Enjoy complimentary customisation on priority with our Enterprise License!
The global green ammonia market size is estimated to grow by USD 1.01 billion, at a CAGR of 90.05% between 2022 and 2027.
The growth of the market depends on several factors, including the introduction of green ammonia, rising concerns for the environment, and scarcity of non-renewable sources. As the sustainable agriculture sector seeks eco-friendly fertilizer solutions and natural gas the demand for renewable ammonia is on the rise. This shift in the production industry towards more eco-friendly alternatives reflects a global effort to reduce nitrogen emissions, and energy storage and combat greenhouse gas effects. With a focus on organic farming practices and innovative technology, green ammonia offers a promising solution to enhance plant efficiency while mitigating environmental impact, driving growth and innovation in the market. The report also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, it includes historical market data from 2017 to 2021.
To learn more about this report, Download Report Sample
The forefront of sustainable agriculture, addressing the increasing demand for eco-friendly fertilizers. As the production industry seeks renewable alternatives, the market for ammonia is experiencing significant growth. Unlike conventional methods, green ammonia production minimizes nitrogen emissions, offering a more environmentally friendly solution for farming. Leveraging advanced technology, this innovative approach enhances plant efficiency while reducing greenhouse gas emissions. With a focus on organic and environmentally conscious practices, the adoption of green ammonia represents a remarkable innovation in the agricultural sector, paving the way for a more sustainable future. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The introduction of green ammonia is notably driving market growth. This product does not lead to greenhouse gas emissions. For instance, in a facility in Harwell, Oxfordshire, UK, electricity, water, and air are used to produce ammonia without carbon emissions.
For the production of this type of ammonia, hydrogen is obtained from water by electrolysis. This can lead to a reduction of emissions of 360 million tons of carbon dioxide into the environment. Thus, the production of green ammonia can reduce carbon emissions using electricity, water, and air. The growing demand for carbon emission-free fuels will surge the demand for green ammonia, which, in turn, will boost the growth of the market during the forecast period.
Increasing investments are a key trend influencing market growth. Several R&D activities have been recorded in the global market in recent years. For instance, EUDP has financed a USD 11.9 billion green ammonia project led by Skovgaard Invest, Vestas, and Haldor Topsoe. The project aims to build a 10 MW plant directly linked to local wind and solar power generation. The construction of the plant is expected to be completed by 2023.
In August 2022, global investment firms Carlyle and GIC announced a strategic investment in Eneus, a green ammonia project development company, to support the development of a pipeline. Similarly, in April 2021, OGUSA USA invested in Starfire Energy Inc, a US-based start-up focused on developing renewable energy, air, and water. Thus, increasing investment in the market will positively impact the growth of the global market during the forecast period.
The high cost of green hydrogen may impede market growth. The initial cost associated with the production of green hydrogen is high. In addition, the fixed cost required to set up a production plant is also high. Green hydrogen costs approximately 2-3 times more on average when compared to gray hydrogen. Fuel cells cost approximately 1.5 to 2 times more than their fossil fuels counterparts.
According to The Energy and Resources Institute (TERI), the cost of green hydrogen production is approximately USD 5 to USD 6 per kg. Hence, it is not feasible for industries such as steel, fertilizer, and long-range shipping to adopt this fuel. Hence, the high initial cost of setting up the production plant is likely to hinder the expansion of the global market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the power generation segment will be significant during the forecast period. The increasing global population is fueling the demand for power generation.
Get a glance at the market contribution of various segments Request a PDF Sample
The power generation segment was valued at USD 2.40 million in 2017 and continued to grow by 2021. Developing countries such as India and China are facing rapid urbanization. Moreover, the demand for electricity is increasing owing to the growing number of consumers. As a result, governments across the world are taking steps to ensure a stable electricity supply. The rising urban population will surge the demand for power generation industries. Such factors are likely to drive the growth of the segment during the forecast period.
For more insights on the market share of various regions Request PDF Sample now!
Europe is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The development of the market in Europe is attributed to factors such as increased research and development in hydrogen production and the introduction of electric vehicles. Government support, increasing investment from investors, and technological feasibility are also factors driving the development of the regional market. The rise in energy prices and growing awareness about the hazardous effects of conventional energy sources have led governments to invest in alternatives. These factors will increase the demand for ammonia in the region during the market forecast period.
The market research report forecasts market expansion by revenue at global, regional, and country levels and provides an analysis of the latest trends and market research and growth opportunities from 2017 to 2027.
The market is driven by increasing consumption and demand for sustainable agricultural production. High capital investment is a barrier, but green ammonia offers carbon-neutral solutions in nitrogen fertilizer production, supporting the food value chain and sustainable food production. It has applications in various industries, including agriculture, energy storage, and hydrogen fuel cells. Manufacturers are investing in carbon-free fertilizers and clean hydrogen technologies, aligning with the European fertilizer industry's goals for energy efficiency and reducing chemical CO2 emissions.
The agricultural sector, including farms and farmland, Feed grains, agricultural production value, and farm sizes benefits from domestically produced green fertilizers, reducing reliance on imported supplies and fostering export opportunities. Energy companies, including German firms, are leveraging green ammonia for power generation, further propelling market growth. Agriculture production and the value of agricultural output are positively impacted by the adoption of carbon-neutral fertilizer products, enhancing crop nutrient availability and ensuring sustainable agriculture practices. The market also addresses the needs of the agriculture industry by providing CO2-free alternatives, improving the sustainability and efficiency of crop production.
Market Scope |
|
Report Coverage |
Details |
Page number |
159 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 90.05% |
Market growth 2023-2027 |
USD 1.01 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
76.43 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 37% |
Key countries |
US, China, Australia, Germany, and Russia |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
AquaHydrex Inc., BASF SE, CF Industries Holdings Inc., Cummins Inc., Enapter Srl, ENGIE SA, Fertiglobe plc, Greenfield Nitrogen LLC, Haldor Topsoes Alle1, Hiringa Energy Ltd., ITM Power plc, Maire Tecnimont SpA, MAN Energy Solutions SE, McPhy Energy SA, Nel ASA, Siemens AG, Starfire Energy, thyssenkrupp AG, Uniper SE, and Yara International ASA |
Market dynamics |
Parent market analysis, market growth and forecasting, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Technology
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.