The global green ammonia market size is estimated to reach USD 82.4 million in 2023. The market is projected to register a stupendous CAGR of 68%, driven by surging requirements for green ammonia from end uses like power generation and agriculture. The overall market is poised to attain a valuation of USD 14,761.3 million by 2033.
The ongoing transition of the industry toward zero-carbon via decarbonization is projected to fuel the sales of green ammonia over the forecast period.
| Attribute | Details |
|---|---|
| Green Ammonia Market Size (2023E) | USD 82.4 million |
| Projected Market Value (2033F) | USD 14,761.3 million |
| Value-based CAGR (2023 to 2033) | 68% |
| Collective Value Share: Top 3 Countries (2033E) | More than 44% |
Increasing stringent emissions regulations and focusing on zero-carbon energy goals are fueling the demand for green ammonia. The share of the green ammonia industry is estimated to be around 3% - 4% of the global ammonia market by 2033.
As per the current estimates, the forecast growth outlook for the fertilizer end-use segment remains around 75.4% for the period of 2023 and 2033. This is due to the growing preference for green ammonia over conventional ammonia for fertilizer production.
Regionally, North America is expected to continue to remain the most prominent market for green ammonia, exhibiting a CAGR of 74.0% through 2033.
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Rising Applications Across Numerous Industries Bolstering Green Ammonia Industry Growth
Ammonia is a widely produced chemical commodity around the world and is majorly utilized in the agriculture sector as a fertilizer. Further, with growing technological advancements and developments, it is found that green ammonia can be utilized in diverse applications in addition to its present primary use in the fertilizer industry.
Ammonia has the benefit of producing no carbon emissions when used as a fuel, and its green credentials can be further improved if ammonia is produced using renewable energy. It has gained huge popularity as a shipping and marine fuel filter in the transportation industry, as it releases no sulfur traces or carbon, which minimizes particulate emissions and enhances the air quality while adhering to IMO 2020 and IMO 2050.
Several key players are testing the use of green ammonia as a marine fuel and are also financing the development of green ammonia supply infrastructure to offer the shipping industry with alternative marine fuel and reduce greenhouse emissions. This is anticipated to drive the market for green ammonia over the forecast period.
Key players are further planning to use green ammonia as a feedstock for power generation. As a result, several projects for constructing turbines and engines using green ammonia as a feedstock are underway. For example, Mitsubishi is relentlessly striving to develop gas turbines with green ammonia as a single and sole feedstock.
Green ammonia is thermally segregated to develop traces of hydrogen, ammonia, and nitrogen, which are utilized as fuel in the gas turbine. Thus, surging applications of green ammonia over the present applications of traditional ammonia is projected to enhance growth prospects in the future.
Growing Demand for Eco-Friendly Fertilizers to Propel Sales of Green Ammonia in the Market
With the regular use of chemical fertilizers and pesticides, there has been a substantial decrease in the quality of soil worldwide. To meet the increasing demand for sustainable methods of agriculture by decreasing hazard generation and carbon emission, demand for organic fertilizers is rising at a strong pace. This is prompting key agrochemical manufacturers to shift their preference towards eco-friendly and sustainable products like green ammonia.
Thus, rising demand for eco-friendly fertilizers to reduce environmental hazards/pollution is expected to boost the sales of green ammonia during the forecast period.
The global demand for green ammonia is set to grow at a CAGR of 68% over the forecast period of 2023 and 2033. Growth in the market is driven by the rapid expansion of end-use industries, including fertilizer, transportation, and power generation, implementation of stringent environmental regulations, and the growing popularity of green fertilizers.
The market is expected to witness a higher growth trajectory due to increasing public and private investments, surging technological advancements, and the robustly declining prices of renewable energy generation. In addition to this, widening the scope of green ammonia across various industrial applications is expected to boost sales of green ammonia during the next ten years.
There is a growing focus on green ammonia in the transportation industry as a shipping and marine fuel owing to its zero-carbon emissions and its zero-sulfur content, which is expected to propel the green ammonia industry growth.
However, despite positive prospects, there are certain factors likely to disrupt the market growth. These factors include high initial investment for the green ammonia production plant, low awareness about green ammonia and its production technology, and others.
Principal Consultant
Rising Usage of Green Ammonia as a Potential Fuel to Drive the United States Market
| Country | The United States |
|---|---|
| Market Share % (2023) | 29% |
The United States is expected to remain one of the robustly growing markets for the consumption and production of green ammonia across the globe. The economy is likely to account for a substantial share of the global green ammonia industry by 2033.
The high percentage of top green ammonia manufacturing firms and top technology providers are backing the market growth. The execution of stringent regulations and the rising trend of utilizing green fertilizers are influencing green ammonia industry growth in the United States.
Similarly, growing investments in green hydrogen, increasing prominence of green ammonia as a hydrogen carrier, and rising focus on the development of renewable fuels for transportation and power generation sectors are expected to push the demand for green ammonia in the country during the forecast period.
Surge in Number of Green Ammonia Projects Spurring Market Growth in Australia and New Zealand
| Country | Australia |
|---|---|
| Market Share % (2023) | 1.4% |
Australia and New Zealand are expected to remain the prominent consumers of green ammonia across the globe, owing to significant green ammonia project activities in the country. FMI predicts the Australian and New Zealand green ammonia market to witness a growth rate of about 85.2% over the period between 2023 and 2033. The region has invested significant resources in developing a green hydrogen economy, owing to stringent regulations for the adoption of renewable resources in the region.
Demand for green ammonia is especially rising across Australia due to the rapid shift towards eco-friendly products to curb emission levels and reduce environmental degradation. The country is witnessing a significant increase in the number of green ammonia projects, and most of these projects are pilot-scale with an expected capacity of 20,000 - 60,000 tpy, which is significantly increasing the consumption and production of green ammonia.
Alkaline Water Electrolysis Remains the Most Preferred Production Process
| Segment | Alkaline Water Electrolysis |
|---|---|
| Market Share % (2023) | 83% |
Owing to the well-known, reliable, and conventional method of electrolysis, alkaline water electrolysis (AWE) is expected to grow at a robust CAGR of 73.4% over the forecast period.
Alkaline water electrolysis is a kind of electrolyzer that is distinguished by having two electrodes functioning in a liquid electrolyte solution of potassium or sodium hydroxide. It is being increasingly used for manufacturing green ammonia due to cheaper catalysts and higher gas purity. Furthermore, alkaline water electrolysis has higher durability due to an exchangeable electrolyte and lower dissolution of anodic catalyst, which is also expected to boost segment growth.
Demand for Green Ammonia to Remain High in Fertilizer Sector
| Segment | Fertilizer |
|---|---|
| Market Share % (2023) | 48% |
By end use, the fertilizer segment currently dominates the global green ammonia market and is expected to witness a growth rate of about 68.6% between 2023 and 2033. This can be ascribed to the heightened adoption of green ammonia for the production of environmentally-friendly fertilizers and increasing government efforts in promoting fully carbon-free agriculture activities.
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Leading players in the green ammonia market are adopting different growth strategies like establishing new manufacturing facilities, launching new green ammonia projects, strengthening distribution channels, and forming alliances and partnerships to expand their presence as well as to meet the increasing demand for green ammonia all over the globe.
Furthermore, some market players are also investing in research and development to explore new application areas of green ammonia.
For instance:
Similarly, new companies are being formed in an attempt to reduce the environmental effects of ammonia production. For instance, in August 2021, three leading firms, i.e., Statkraft, Aker Clean Hydrogen, and fertilizer specialist Yara launched HEGRA, a new company focused on the production of green ammonia.
New startups like Green Ammonia Pty. Ltd. (founded in 2017) and Jupiter Ionics (founded in 2021) are entering the green ammonia market space to take benefit of the emerging opportunities.
Since its establishment in 2021, Jupiter Ionics has been focused on developing breakthrough electrochemical technology for the production of green ammonia.
| Attribute | Details |
|---|---|
| Estimated Market Value (2023) | USD 82.4 million |
| Projected Market Value (2033) | USD 14,761.3 million |
| Anticipated Growth Rate (2023 to 2033) | 68% |
| Forecast Period | 2023 to 2033 |
| Market Analysis | USD million for Value and Kilo Tons for Volume |
| Key Countries Covered | The United States, Canada, Brazil, Mexico, Germany, Italy, France, the United Kingdom, Spain, BENELUX, Russia, China, Japan, South Korea, India, ASEAN, Australia and New Zealand, GCC Countries, Northern Africa, South Africa |
| Key Segments Covered | Production Process, End Use, and Region |
| Key Companies Profiled |
CF Industries Holdings, Inc; BASF SE; Yara International ASA; Maire Tecnimont S.p.A.; ACME Group; Fertiglobe plc; NEL Hydrogen; ThyssenKrupp AG; ITM Power; Holder Topsoe; Green Hydrogen Systems; Greenfield Nitrogen LLC; Siemens; Others |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The market share is estimated to make a revenue of USD 82.4 million in 2023.
The sales of green ammonia in top 3 countries was more than 44% in 2022.
The sales of green ammonia in the United States to be almost 29% of the global demand in 2023.
The demand for green ammonia is expected to drive the market at 68% CAGR until 2033.
The alkaline water electrolysis method contributes nearly 83% of the market share.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Process 5.1. Alkaline Water Electrolysis 5.2. Proton Exchange Membrane 5.3. Solid Oxide Electrolysis 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End Use 6.1. Fertilizer 6.2. Transportation 6.3. Power Generation 6.4. Industrial Feedstock 6.5. Others 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 7.1. North America 7.2. Latin America 7.3. Western Europe 7.4. Eastern Europe 7.5. South Asia and Pacific 7.6. East Asia 7.7. Middle East and Africa 8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. CF Industries Holdings, Inc 17.2. BASF SE 17.3. Yara International ASA 17.4. Maire Tecnimont S.p.A. 17.5. ACME Group 17.6. Fertiglobe plc 17.7. NEL Hydrogen 17.8. ThyssenKrupp AG 17.9. ITM Power 17.10. Holder Topsoe 17.11. Green Hydrogen Systems 17.12. Greenfield Nitrogen LLC 17.13. Siemens 18. Assumptions & Acronyms Used 19. Research Methodology
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Green Ammonia Market
