The global ammonia market is projected to grow from 150.10 million tons in 2024 to 190.20 million tons by 2034, driven by a compound annual growth rate (CAGR) of 2.40%, according to a study by Towards Chem and Materials, a sister firm of Precedence Research.
Fertilizer production continues to be the dominant application for ammonia, accounting for over 70% of market share in 2024. However, new growth is being driven by its emerging use in clean energy, particularly as a hydrogen carrier and low-carbon fuel. Increasing demand from the agricultural sector, alongside decarbonization efforts and regulatory initiatives, are pushing the market towards green and blue ammonia technologies.
Asia Pacific remains the largest ammonia-producing region, with a projected market volume of 82.3 million tons by 2034. China leads production, while India is expanding renewable ammonia initiatives under the SIGHT programme. Europe, with a higher CAGR of 3.61%, is investing in cleaner production aligned with sustainability targets. North America is seeing growth through major public-private investments in low-emission facilities, such as the $1.56 billion loan granted by the U.S. Department of Energy in 2024 for a new ammonia plant in Indiana.
Anhydrous ammonia led the market in 2024 with an 86.12% volume share, mainly used in agriculture due to its high nitrogen content. Aqueous ammonia, used in water treatment and industrial applications, is expected to grow faster at a CAGR of 4.89%.
The Haber-Bosch process remains the primary production method, accounting for 93.70% of output in 2024. However, electrochemical ammonia production is forecasted to expand significantly, growing at over 20% CAGR, driven by technological advancements and modular systems.
Green ammonia projects are underway globally. In January 2025, SwitcH2 and CorPower Ocean partnered to develop a 300,000-ton-per-year renewable ammonia facility in Portugal using wave, wind, and solar energy. In March 2024, Yara signed a long-term agreement with India’s GHC SAOC for the supply of low-emission ammonia.
Top ammonia exporters in 2024 include Trinidad and Tobago, Canada, and the United States. Key players in the global market include Yara International, CF Industries, Koch Fertilizers, BASF SE, and Sumitomo Chemical, among others.
The study also identifies potential challenges, such as the sector’s reliance on natural gas, exposure to volatile energy markets, and increasing pressure from carbon regulations like the EU’s Carbon Border Adjustment Mechanism introduced in 2023.