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The global green ammonia market size is estimated to grow by USD 3.21 billion, at a CAGR of 113.07% between 2023 and 2028. 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 ammonia is on the rise. Green ammonia production relies on electrolyzers to generate hydrogen from renewable energy sources, which is then combined with nitrogen to create ammonia in an environmentally sustainable manner. 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.
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The green ammonia market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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.
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The power generation segment was valued at USD 3.70 million in 2018. 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 augment the demand for power generation industries, including biomass power generation. Such factors are likely to drive the growth of the segment during the forecast period.
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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 is gaining momentum as a key player in the push towards clean energy and decarbonization. Green ammonia, produced through renewable energy sources, offers a promising solution for reducing greenhouse emissions and dependency on natural gas. It plays a significant role in maritime fuel, shipping fuel, and refrigeration transportation, contributing to lower carbon footprints and emission free operations. This eco friendly alternative to conventional ammonia is central to green ammonia projects, aimed at producing clean ammonia for use in biofertilizers and eco friendly fertilizers. It supports the transition to sustainable agriculture by minimizing environmental hazards and enhancing environmental protection. As the transportation industry seeks to mitigate environmental impact, green ammonia provides a viable, low carbon emission option. The development of ammonia production plants and manufacturing facilities for green ammonia is crucial for advancing production of smart energy and aligning with sustainability goals, paving the way for reduced reliance on commodity chemicals and fostering renewable energy innovation.
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 drive the demand for green ammonia, which, in turn, will boost green ammonia market growth 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 some leading companies in the market. 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.
The green ammonia market is expanding due to increasing demand for carbon-neutral solutions and the reduction of greenhouse gas emissions. Key trends include the use of renewable energy in ammonia production, advancements in electrolyzer technology, and its role as a hydrogen carrier and energy storage solution. It is also gaining traction as a sustainable alternative in agriculture, industry, and transportation fuels. Thus, increasing investment in the market will positively impact green ammonia market growth 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 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.
Moreover, 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 green ammonia market growth during the forecast period.
The green ammonia market forecasting 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 green ammonia market growth and trends 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 green ammonia market research and growth 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 forecast report also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, it includes historical market data from 2018 to 2022.
The market is witnessing significant growth due to the increasing focus on carbon neutrality and ecological footprint reduction. Green ammonia, produced from renewable energy sources, is an eco-friendly alternative to conventional ammonia, which is a major contributor to greenhouse gas emissions. This hydrogen carrier is gaining popularity as a hydrogen fuel, energy storage solution, and transportation fuel. The electrolyzer technology used in producing green ammonia through alkaline water electrolysis is a key driver for market growth. The green ammonia market is gaining momentum due to its potential to support carbon neutrality and reduce the ecological footprint. Produced through electrolyzer technology using alkaline water electrolysis, green ammonia serves as a sustainable alternative to conventional ammonia. It is used in industrial furnaces and as a commodity chemical, reducing greenhouse gas emissions across various sectors. Green ammonia is also gaining prominence as a hydrogen carrier, energy storage solution, and transportation fuel, making it a key player in the transition toward cleaner energy.
With its renewable ammonia production process, the market is set to expand, addressing both environmental concerns and the growing demand for sustainable industrial and energy solutions. Green ammonia is used as a resourceful fuel in various sectors such as power generation, agriculture, and industry. In power generation, it is used as a fuel for gas turbines and internal combustion engines. In agriculture, it is used as an eco-friendly fertilizer, while in industry, it serves as a feedstock for producing commodity chemicals. The demand for green ammonia is also increasing in the transportation sector, particularly in shipping and marine fuel applications. Emissions regulations are driving the adoption of green ammonia as a marine fuel to reduce air quality issues. The use of green ammonia as a hydrogen fuel in fuel cells is gaining popularity due to its high energy density and zero carbon emissions. Overall, the green ammonia market is expected to grow significantly due to its role as a hydrogen carrier, energy storage solution, and transportation fuel, and its ability to contribute to environmental sustainability and reduce greenhouse gas emissions.
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Market Scope |
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Report Coverage |
Details |
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Page number |
173 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 113.07% |
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Market growth 2024-2028 |
USD 3.21 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
85.16 |
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Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
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Performing market contribution |
Europe at 37% |
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Key countries |
US, Germany, China, Russia, and Australia |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AquaHydrex Inc., BASF SE, CF Industries Holdings Inc., Cummins Inc., Enapter S.r.l., ENGIE SA, Greenfield Nitrogen LLC, Hiringa Energy Ltd., ITM Power PLC, MAIRE S.p.A., MAN Energy Solutions SE, McPhy Energy SA, Nel ASA, OCI NV, Siemens AG, Starfire Energy, thyssenkrupp AG, Topsoes AS, Uniper SE, and Yara International ASA |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our green ammonia market forecast report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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