Green Ammonia Market Size, Share & Trends Analysis Report By End-use (Fertilizer, Power Generation), By Technology (Solid Oxide Electrolysis), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global green ammonia market size was valued at USD 44.04 million in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 127.9% from 2022 to 2030. The increasing prevalence of green ammonia due to growing awareness of producing clean energy and reducing carbon footprint is expected to boost demand in the coming years. The increasing popularity of the product as marine fuel and shipping in the transportation industry as it emits zero carbon and leaves no sulfur traces which leads to improved air quality is further anticipated to drive market growth in the near future. Green ammonia is produced by hydrogen that comes from water and nitrogen from the air. It is a resourceful fuel for heat and power, especially for marine transport that can be used in gas turbines, internal combustion engines, generator sets, industrial furnaces, and fuel cells.

Due to pressure on the shipping sector to reduce carbon emissions, green ammonia is the best alternative, as it has less volumetric energy density, which makes storage feasible, as compared to other fuels. Additionally, the favorable rules and regulations related to low-carbon emissions and growing fuel demand from the marine industry are also propelling market growth.

Renewable ammonia is expected to become a commodity chemical by 2040. This is due to increasing initiatives by several governments towards low to zero carbon emissions. In the forecast period, the product is likely to become a prime commodity for transporting renewable energy across the regions. Further, the growing demand for green ammonia in various end-use industries including fertilizer, power generation, refrigeration transportation, and others is expected to propel industry growth. In addition, increasing demand for green ammonia in industrial feedstock products including pharmaceutical products is expected to trigger market growth.

The value chain depicts the vertical integration of key players, whose business operations range from raw material suppliers to the distribution of finished products. BASF SE, Yara International, ThyssenKrupp AG, and ITM Power PLC are the key players integrated across the value chain. Among these, Haldor Topsoe, Green Fuel, Yara International ASA, Statkraft AS, and Aker Clean Hydrogen are the key players undertaking R&D activities for the development of required green ammonia in respective markets.

Technology Insights

Proton exchange membrane technology dominated the market with the highest revenue share of 44.3% in 2021. This can be attributed to growing awareness concerning the advantage of this technology due to its high electric efficiency ranging above 90% with high current densities at low voltages. Additionally, favorable government subsidies towards green and clean energy production and increased R&D on fuel cell plans can trigger product demand.

The solid oxide electrolysis technology is expected to register the highest growth rate during the forecast period. This technology includes the usage of electricity generated from renewable sources to produce green hydrogen, which is further synthesized to produce green ammonia.

Alkaline water electrolysis is a conventional and robust technology for electrolysis. It is one of the easiest methods to produce hydrogen using renewable energy. This method is cost-effective but due to the increasing R&D activity on other technologies, the alkaline water electrolysis market will be having stable growth rate during the forecast period. Moreover, alkaline water electrolysis technology is also in high demand due to its low assets expenditure. A technological breakthrough in the industry is considered one of the prime factors supporting market growth.

The technology providers are constantly increasing their R&D activities in order to achieve enhanced performance and cost reductions on the system, cell, and stack levels. These investments are made by the manufacturers in R&D in order to get efficient results that trigger market growth.

End-Use Insights

The transportation segment dominated the market with the highest revenue share of 30.4% in 2021. Its high share is attributable to the increasing fuel energy crisis globally, which has stimulated the need for green fuel. Conventional sources are being replaced by renewable sources such as green ammonia and others. These sources produce clean, efficient, and environment-friendly fuel.

The growing concerns such as environmental protection and carbon emissions are gaining attention at the global level. Because of these issues, the product is gaining significant popularity in the transportation industry. The product requires low storage volumes and is in a liquid state at ambient conditions. It is feasible as compared to other fuels.

The market is further witnessing exponential demand due to increasing renewable energy production and the need for storage. Thus, according to the International Renewable Energy Agency (IRENA), solar & wind are highly capable sources of renewable power that will propel the renewable energy sector in the coming years. Thus, increasing renewable power production and consequent advancement in demand for storage will drive the growth of the green ammonia market.

Regional Insights

North America dominated the market with the highest revenue share of 20.25 % in 2021. This growth is attributed to increasing R&D for hydrogen production and the adoption of electric vehicles in the region. Moreover, government support, rising investments from investors, and the feasibility of the technology in the region are the factors driving the market growth.

Asia Pacific market is estimated to expand at a CAGR of 140.6% by 2030. This is attributed to the government policies and initiatives taken towards reducing carbon emissions and promoting green energy. For instance, the government in India has provided subsidies to increase the use of electric vehicles in the country.

In the European region, the product is witnessing high demand from Spain and Germany on account of the rising adoption of technological advancements. Europe is home to many ammonia production plants and has thriving opportunities for manufacturers as the market is consolidated.

Green ammonia utilizes green hydrogen as the key raw material, manufactured from renewable energy and water, instead of using natural gas as the base feedstock. Conventional ammonia is currently more expensive to produce than green ammonia in Europe, largely due to the Ukrainian geopolitical issues which resulted in a spike in gas prices.

Key Companies & Market Share Insights

The global green ammonia market is oligopolistic in nature and is dominated by key players such as Siemens, ThyssenKrupp AG, and Nel Hydrogen, among others. The manufacturers are focusing on enhancing their production capacity due to the estimated high demand for the product during the near future. The new entrants have a fair opportunity to stabilize themselves in the next few years and gain a notable market share. Some of the prominent players in the global green ammonia market include:

• Nel Hydrogen

• Siemens Energy

• MAN Energy Solutions

• ThyssenKrupp AG

• ITM Power PLC

• Hydrogenics

• Green Hydrogen Systems

• McPhy Energy

• Electrochaea

• EXYTRON

• AquaHydrex

• Enapter

• BASF SE

• Yara International

• ENGIE

• Uniper

• Haldor Topsoe

• Star fire Energy

• Queensland Nitrates Pty Ltd

• Hiringa Energy

Green Ammonia Market Report Scope

Global Green Ammonia Market Segmentation

This report forecasts revenue growth at global, regional, &  country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global green ammonia market report based on the technology, end-use, and region:

• Technology Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Solid Oxide Electrolysis

  • Proton Exchange Membrane

  • Alkaline Water Electrolysis

• End-Use Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Power Generation

  • Transportation

  • Fertilizer

  • Refrigeration

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • Spain

    • Russia

    • The Netherlands

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

  • Central & South America

    • Brazil

    • Chile

    • Argentina

    • Peru

  • Middle East & Africa

    • Saudi Arabia

    • Zimbabwe

    • Morocco

    • South Africa