Green ammonia market size is set to grow by USD 1.00 billion from 2022 to 2027, Europe is estimated to contribute 37% to the growth of the global market, Technavio

NEW YORK, March 8, 2024 /PRNewswire/ -- The global green ammonia market size is estimated to grow by USD 1,008.31 million from 2022 to 2027, according to Technavio. The market is estimated to grow at a CAGR of 90.05% during the forecast period. By geography, the global green ammonia market is segmented into Europe, North America, APAC, South America, and Middle East and Africa. The report provides actionable insights and estimates the contribution of all regions to the growth of the global green ammonia market. Europe is estimated to contribute 37% to the growth of the global market during the forecast period. The growth 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 some factors that are driving the growth of the regional market. Rising energy prices and growing awareness of the dangerous impacts of conventional energy sources have led governments to invest in alternatives such as green ammonia. These factors will increase the demand for ammonia in this region during the forecast period.  

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The introduction of green ammonia is notably driving the green ammonia market growth.

Green ammonia production drives the market as it does not emit greenhouse gases and therefore does not increase carbon dioxide emissions. A proof-of-concept plant in Harwell, Oxfordshire has allowed it to achieve this by using electricity, water and air to produce ammonia with zero CO2 emissions. In general, ammonia is produced by the Haber process, which involves the conversion of hydrogen and nitrogen under a high temperature (752 degrees F to 842 degrees F) using an iron catalyst. Currently, the production of ammonia by the Haber process accounts for 1.6% of global carbon dioxide emissions. Thus, the production of green ammonia using electricity, water, and air can reduce carbon emissions. 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.

• The high cost of green hydrogen may hamper the growth of the green ammonia market.

Segment Overview
Technavio has segmented the market based on application (power generation, transportation, industrial feedstock, and others) and technology (alkaline water electrolysis, proton exchange membrane, and solid oxide electrolysis). 

• The power generation segment will account for a significant share of the market growth during the forecast period. The increasing global population is the main driver of the demand for power generation. Emerging regions such as India and China are undergoing rapid urbanization, and the demand for electricity is constantly increasing due to the growing number of consumers. This has forced governments around the world to take aggressive steps to ensure a stable electricity supply in their jurisdictions. This is important for stable investment inflows into the power generation industry. Demand for power generation will soar as the urban population grows. Such factors are likely to remain the major factors behind the growth of the global market during the forecast period.

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Key Company

Technavio has extensively analyzed 15 major vendors, including 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.

• Increasing investment is a major trend impacting the growth of the green ammonia market.

Insights on Market Drivers, trends, & Challenges, historic period(2017 to 2021) and forecast period(2023 to 2027)- Request a sample report!

Analyst Review

The green ammonia market is poised for exponential growth, offering a sustainable alternative to traditional chemical fertilizers that contribute to environmental degradation. Leveraging renewable energy sources such as solar, wind, and hydropower, the production of ammonia undergoes a transformative process through electrolyzers, utilizing water and nitrogen extracted from an air separation unit.

This innovative approach to ammonia production not only reduces reliance on fossil fuels like natural gas but also mitigates greenhouse emissions, aligning with global initiatives such as the Renewable Energy Directive and the Renewable Fuels Standards Program aimed at achieving net zero CO2 emissions. The transition towards a hydrogen-based economy is further facilitated by the investment in renewable energy projects, fostering power generation that minimizes power generation cost and maximizes environmental sustainability.

The demand for green ammonia extends beyond environmental concerns; it addresses the need for eco-friendly fertilizers in agricultural production. As fertilizer consumption continues to rise, there is a growing emphasis on soil health and soil conditions. Traditional chemical fertilizers and pesticides have been detrimental to soil ecosystems, leading to contamination and diminishing agricultural yields. In contrast, organic fertilizers and green ammonia promote soil health, enhancing crop yields while preserving the environment.

The Asia Pacific region, with its burgeoning agricultural sector, stands to benefit significantly from the adoption of green ammonia. Governments and industries are increasingly recognizing the capital-intensive nature of green ammonia plants and are willing to invest in CAPEX costs to transition towards sustainable practices.

The green ammonia market is not limited to its application in agriculture; it extends to transportation fuel and power generation, offering versatile solutions to diverse industries. As awareness of environmental sustainability grows, the demand for green ammonia will continue to soar, driving innovation and transforming the landscape of energy production and agricultural practices worldwide.

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Market Overview

The Green Ammonia Market is witnessing a surge in demand due to the rising focus on renewable and carbon-free energy sources. This eco-friendly alternative is produced through the utilization of solar, wind, or hydropower to power an electrolyzer, which splits water into hydrogen and oxygen. The hydrogen is then combined with nitrogen, typically extracted from an air separation unit, to produce ammonia. This process significantly reduces carbon emissions compared to traditional methods. The ammonia production sector is rapidly adopting these green technologies to meet sustainability goals, driving the growth of the green ammonia market. With an increasing emphasis on environmental conservation, green ammonia presents a promising solution for various industries.

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Table of contents

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 Company Landscape
12 Company Analysis
13 Appendix

About US
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contact
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

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