Green Ammonia Market Size, Share & Trends Analysis Report By Technology, By End-use, By Region, And Segment Forecasts, 2023 - 2031
The market for green ammonia, which had a value of USD 34 million in 2021, is anticipated to increase at a compound annual growth rate (CAGR) of 70.75% from 2022 to 2030, reaching USD 4865 million.
The green ammonia industry is still in the development stages. As government regulations and public awareness about carbon dioxide emissions and the maintenance of the atmosphere's health rise, it appears that more research and development efforts are being directed toward the production of green ammonia.
Green ammonia can also have a significant impact by reducing the world's reliance on fossil fuels and assisting in the reduction of greenhouse gas emissions. By electrolyzing water to produce hydrogen, which is powered by renewable sources including solar, wind, and hydroelectric power, green ammonia is produced. Green ammonium is useful in many fields, including agriculture, energy storage, and the ocean.
Additionally, the expanding need for green ammonia in a variety of end-use industries, including fertilizer, power production, transportation, and others, is anticipated to fuel market expansion. In addition, rising demand for green ammonia in industrial feedstock goods, such as pharmaceutical goods, is anticipated to fuel market expansion.
In the upcoming years, demand is anticipated to increase due to the rising popularity of green ammonia and increased awareness of the importance of creating clean energy and lowering carbon footprints. Further predicted growth in the market is the rising demand for the product as marine fuel and shipping in the transportation sector due to its better air quality and lack of carbon and sulfur traces. Nitrogen from the air is combined with hydrogen from water to create green ammonia. It is an efficient source of heat and electricity, especially for sea transportation, and it can be utilized in fuel cells, gas turbines, internal combustion engines, generators, and industrial burners.
All industries, including green ammonia, have been negatively impacted by the COVID-19 epidemic. To stop the disease from spreading, the governments of many nations have implemented statewide lockdowns. This has resulted in limitations on both the movement of people and products. As a result, some businesses were forced to postpone or abandon the building of green ammonia manufacturing facilities due to a lack of laborers and raw materials. The market for green ammonia has suffered as a result of delays in the development of manufacturing plants.
Mitsubishi is developing a gas turbine that can only run on green ammonia. The gas turbine uses trace amounts of ammonia, hydrogen, and nitrogen that are produced as a result of thermally breaking the green ammonia. The market for green ammonia is predicted to increase significantly as a result of the increasing applications of green ammonia over currently used applications of conventional ammonia.
Ammonia, which is the second-most extensively manufactured chemical good in the world, is mostly used as a fertilizer in agriculture. In addition, it has been discovered that green ammonia, in addition to its current principal usage in the fertilizer sector, has the potential to be employed in a number of other applications as a result of expanding technological improvements and developments. To give the shipping industry alternative marine fuel and reduce greenhouse gas emissions, a number of significant firms are investigating the use of green ammonia as a marine fuel and investing in the creation of green ammonia supply infrastructure. Over the forecast period, it is expected that this will fuel the green ammonia market.
Globally, the quality of soil has significantly declined as a result of the widespread use of chemical fertilizers and pesticides. Demand for organic fertilizers is developing quickly in response to the growing demand for sustainable agricultural practices that reduce risk generation and carbon emissions. Important agrochemical producers are being compelled by this to change their preference for green and sustainable products like green ammonia.
In terms of volume, the European market is anticipated to be the largest in 2021. Due to an increase in hydrogen fuel technologies and government attempts to install hydrogen fuel in residential and commercial markets, the state's green ammonia industry is predicted to experience growth. The United States is expected to be one of the international markets with the fastest rate of growth for the production and use of green ammonia during the forecast timeline. The country's share of the worldwide green ammonia market by 2032 is likely to be sizable. The substantial presence of significant green ammonia industrial businesses and intriguing technology sources, the enforcement of tight rules, and the growing use of environmental fertilizers are all having an impact on the U.S. green ammonia industry.
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