1 Global Ammonia Transportation Market Size (Revenue) and CAGR (2024-2033)
Global Ammonia Transportation market generated revenue of USD 1299.68 Million in 2024 with a CAGR of 3.8% during 2024 to 2033.
The growth in the ammonia transportation market, driven by increased demand in emerging markets, the need for agricultural sector capacity expansion, and the potential of ammonia as a carrier for hydrogen energy, which is crucial for the clean energy economy. However, the market also faces challenges such as rising fuel prices, a shortage of drivers, supply chain disruptions, and global uncertainties. Despite these challenges, the market is expected to grow, with significant opportunities in transporting hydrogen in the form of ammonia, which is seen as a sustainable alternative for various industries.
Figure Global Ammonia Transportation Market Size (M USD) Outlook (2024-2033)
2 Ammonia Transportation Market Drivers
Table Market Drivers
Descriptions | |
Increased demand in emerging markets | China is a major producer and consumer of ammonia, and its nitrogen fertilizer consumption ranks first in the world. The Chinese textile industry also benefits from ammonia’s capabilities. Liquid ammonia is widely used in tanning leather, and dyes are also widely used in textile dyeing. Liquid ammonia plays an important role in the development of synthetic fibers. Ammonia solutions allow fabrics to be dyed to almost any color. Additionally, the use of ammonia as a green fuel alternative is increasing in India and China. In June 2023, the Indian government of Andhra Pradesh implemented a policy targeting the production of green hydrogen and green ammonia, providing incentives to developers of such projects, such as 100% reimbursement of net state goods and services tax. In November 2023, the Indian state of Odisha approved investment proposals for four green hydrogen-based ammonia and methanol plants worth $5.5 billion. In July 2023, construction of the world’s largest green ammonia plant started in China, indicating growing interest and investment in this field. The plant is expected to produce 32,000 tons of green hydrogen and 180,000 tons of ammonia annually. The widespread use of ammonia has increased the demand for ammonia transportation in emerging markets and promoted the development of the ammonia transportation industry. |
Agricultural sector capacity expansion | According to the World Economic Forum, ammonia plays a vital role in agriculture and the global food supply chain. Ammonia combines with nitrogen from the atmosphere and uses the absorbed nitrogen to create the primary nutrient for crops, which is then used to produce nitrogen fertilizer. As an important raw material in fertilizer production, ammonia can improve crop health and, in the long term, maintain or even improve soil fertility. According to the United Nations, the world’s population continues to grow and will reach 9 billion by 2050. By then, the demand for food production is expected to increase by 60% on the same land area. Achieving food security requires the availability of adequate, nutritious food at affordable prices. This can be achieved by using optimized fertilizers. The United States is one of the largest importers of the three major fertilizer raw materials. Major producers of major fertilizer ingredients include China, Russia, Canada and Morocco. In March 2023, the United States Department of Agriculture (USDA) announced the first two rounds of new grant programs to expand innovative production of domestic fertilizer production capacity in 47 states and two regions. The USDA also announced that it had received applications for $3 billion from more than 350 independent companies, highlighting the remarkable recovery of the country’s fertilizer industry. Additionally, the USDA announced an initial $29 million in grants in the first round. The subsidy will help independent companies increase production of U.S.-made fertilizer and encourage healthy competition. In March 2023, CBH Group announced the opening of the new Kwinana fertilizer plant, which will greatly benefit Western Australia’s grain farmers. The project marks the launch of CBH’s liquid fertilizer business and will increase granular fertilizer production capacity by 15,000 units. The new facility has 32,000 tonnes of urea ammonium nitrate (UAN) storage capacity and 55,000 tonnes of granular bulk fertilizer storage capacity. Therefore, the need to increase production capacity in the agricultural sector has driven the development of the ammonia transportation industry. |
3 Global Ammonia Transportation Market by Type in 2024
The global ammonia transportation market is segmented into various product types, each serving distinct purposes and demands. In 2024, the market is primarily divided into Road Transportation, Rail Transportation, Pipeline Transportation, and Others. Each type has its own definition, market size, and share, providing a comprehensive view of the industry’s structure and dynamics.
Road Transportation: Road Transportation refers to the movement of ammonia via trucks or other road vehicles. Known for its flexibility and wide coverage, road transportation is a critical component of the ammonia logistics chain. In 2024, the road transportation type dominates the market, garnering a revenue of $496.87 million and representing a 38.23% share of the total market. The segment’s dominance can be attributed to the ease of door-to-door delivery and the extensive road network globally.
Rail Transportation: Rail Transportation involves the use of trains or railways for ammonia transport. It is recognized for its stability, safety, and economy, especially for longer distances and larger volumes. In 2024, this segment generated a revenue of $605.57 million, capturing a 46.59% share of the market.
This mode’s growth is driven by its efficiency in moving large quantities over extended distances with lower environmental impacts compared to road transportation.
Pipeline Transportation: Pipeline Transportation is a method that uses pipelines to transport ammonia over long distances. It is considered safe and efficient, with the ability to handle large volumes while being energy-saving and environmentally friendly. Despite its benefits, pipeline transportation has a smaller market share in 2024, at 3.34%. This can be linked to the high infrastructure costs and the geographical limitations of pipeline networks.
In summary, while Road Transportation holds the largest market share, Rail Transportation is the fastest-growing product type in the ammonia transportation market. The diversity in product types reflects the industry’s adaptability to different market demands and the continuous evolution towards more sustainable practices.
Table Global Ammonia Transportation Market Size and Share by Type in 2024
Type | Market Size (M USD) | Market Share (%) |
|---|---|---|
Road Transportation | 496.87 | 38.23 |
Rail Transportation | 605.57 | 46.59 |
Pipeline Transportation | 43.42 | 3.34 |
Others | 153.82 | 11.84 |
4 Global Ammonia Transportation Market by Application in 2024
The global ammonia transportation market serves a variety of applications, each with its own significance in the industry’s ecosystem. In 2024, the market is segmented into Agriculture, Industrial, Pharmaceutical, Energy, and Others, each contributing differently to the market’s total value.
Agriculture: Agriculture is the largest application sector for ammonia transportation, utilizing ammonia primarily as a fertilizer. In 2024, this application held the largest market share with a revenue of $630.57 million, accounting for 48.52% of the total market, reflecting the critical role of ammonia in global food production. The growth in this sector is driven by the increasing demand for fertilizers to support a growing population and the need for sustainable agricultural practices.
Industrial: The Industrial application follows, with a revenue of $382.08 million and a market share of 29.40% in 2024. This sector encompasses a broad range of uses, including the manufacturing of plastics, textiles, dyes, and other chemicals. The stability of this segment is due to the consistent demand for these products across various industries.
Pharmaceutical: Pharmaceutical uses of ammonia transportation represent a smaller but growing segment, In 2024, this application had a revenue of $97.11 million, holding an 18.70% share of the market. The demand for Ammonia Transportations in metallurgy is driven by the need to minimize wear and tear on metal processing equipment.
Paper Making: The paper making industry, which relies on the smooth operation of machinery, had a revenue of $48.64 million in 2024, capturing a 3.74% share of the market. The growth is attributed to the increasing importance of ammonia in the production of pharmaceuticals and commercial products.
Energy: Energy is an emerging application for ammonia, particularly as a low-carbon fuel and a carrier of hydrogen energy. This segment generate revenue of $157.77 million and holds a market share of 12.14% and in 2024 and is expected to grow rapidly due to the global shift towards cleaner energy sources and the need for sustainable fuel alternatives.
The agriculture sector dominates the market share for ammonia transportation applications, while the energy sector exhibits the fastest growth rate. These dynamics underscore the market’s responsiveness to global challenges, such as food security and climate change, and its potential for innovation in emerging sectors.
Table Global Ammonia Transportation Market Size and Share by Application in 2024
Application | Market Size (M USD) | Market Share (%) |
|---|---|---|
Agriculture | 630.57 | 48.52 |
Industrial | 382.08 | 29.40 |
Pharmaceutical | 48.64 | 3.74 |
Energy | 157.77 | 12.14 |
Others | 80.62 | 6.20 |
5 Global Ammonia Transportation Market by Region in 2024
The global ammonia transportation market is a diverse and dynamic industry, with various regions contributing significantly to its growth and development. In 2024, the market is characterized by the varying contributions from different geographical areas, each with its own set of economic drivers and market characteristics. This analysis will delve into the market sizes and shares by major region, identifying the biggest regional market by revenue and the fastest-growing region.
United States continues to be a dominant player in the global ammonia transportation market, with a revenue of $433.01 million USD in 2024, accounting for 33.32% of the global market share. The United States’ strong presence can be attributed to its well-established infrastructure, advanced technology, and the country’s significant role in both the production and consumption of ammonia, particularly in the agricultural and industrial sectors.
Europe follows as a key region, with a market revenue of $260.87 million USD, holding a 20.07% share. Europe’s market is driven by its robust chemical industry and the demand for ammonia in various manufacturing processes. The region’s commitment to sustainability and the adoption of cleaner energy solutions also contribute to the demand for ammonia transportation services.
China emerges as a significant contributor to the market, with a revenue of $319.36 million USD and a market share of 24.57%. China’s rapid industrialization and its role as a global manufacturing hub have led to a substantial demand for ammonia in various industrial applications. The country’s focus on expanding its agricultural sector further bolsters the need for ammonia transportation services.
Japan and India also play crucial roles in the market, with revenues of $71.91 million USD and $90.12 million USD, respectively. Japan’s advanced chemical industry and India’s growing demand for fertilizers in its agricultural sector are key factors contributing to the regions’ market shares.
South America and Middle East and Africa regions, while smaller in comparison, are not to be overlooked. South America, with a market revenue of $36.55 million USD, and the Middle East and Africa, with $42.02 million USD, are regions that are expected to experience growth due to their expanding industrial sectors and the need for ammonia in various applications.
When it comes to the fastest-growing region, China stands out due to its rapid economic growth, industrial expansion, and increasing demand for ammonia in both agricultural and industrial sectors. The Chinese government’s initiatives to support domestic production and the growing need for sustainable agricultural practices are driving factors for the region’s growth in the ammonia transportation market.
Table Global Ammonia Transportation Market Size, Region Wise in 2024
Region | Market Size (M USD) | Market Share (%) |
|---|---|---|
United States | 433.01 | 33.32 |
Europe | 260.87 | 20.07 |
China | 319.36 | 24.57 |
Japan | 71.91 | 5.53 |
India | 90.12 | 6.93 |
South America | 36.55 | 2.81 |
Middle East and Africa | 42.02 | 3.23 |
Others | 45.84 | 3.53 |
Figure Global Ammonia Transportation Revenue Market Share by Region in 2024
6 Global Ammonia Transportation Market Top 3 Players
Company Introduction and Business Overview: CF Industries is a leading global manufacturer of hydrogen and nitrogen products, with a significant focus on clean energy, emissions reduction, fertilizers, and other industrial applications. Established in 1946 and headquartered in the USA, CF Industries has a strong presence in North America and Europe, catering to a diverse range of customers across various sectors.
Products Offered: CF Industries produces a wide range of products, including anhydrous ammonia, which is a concentrated nitrogen fertilizer. They also upgrade ammonia to other products such as urea, UAN (urea ammonium nitrate), and diesel exhaust fluid. Their ammonia is sold directly to agricultural or industrial customers and is known for its high nitrogen content, making it a cost-effective fertilizer.
Revenue in 2024: In 2024, CF Industries is projected to generate a revenue of $86.27 million USD, with a gross margin of 31.40%. This revenue places them as a major player in the global ammonia transportation market, reflecting their substantial contribution to the industry’s growth and their ability to adapt to market demands.
Company Introduction and Business Overview: Yara International ASA, established in 1905 and headquartered in Norway, is a chemical manufacturing company that produces and markets agricultural development and industrial products. Yara’s activities span from phosphate mining and ammonia production to building local market knowledge and developing customer relationships.
Products Offered: Yara’s product portfolio is extensive, including urea, compound fertilizer, calcium ammonium nitrate, nitric acid, phosphoric acid, and feed phosphates. They also offer environmental solutions such as NOx abatement and odor control, as well as process solutions and equipment for storing and handling their products.
Revenue in 2024: Yara is expected to achieve a revenue of $58.72 million USD in 2024, with a gross margin of 35.07%. Their global presence and diverse product offerings have solidified their position as a key player in the ammonia transportation market, meeting the growing demands of various industries worldwide.
Company Introduction and Business Overview: BNSF Railway, established in 1995 and headquartered in the USA, operates one of the largest rail networks in North America. With approximately 32,500 route miles across 28 states and three Canadian provinces, BNSF Railway is a major intermodal transport provider in the world.
Products Offered: BNSF Railway specializes in the transportation of a variety of products, including crude oil and refined products such as gasoline, diesel, and liquefied petroleum gas. Their services are designed to provide safe, reliable, and cost-effective transportation solutions for customers across North America.
Revenue in 2024: BNSF Railway is projected to generate a revenue of $42.82 million USD in 2024, with a gross margin of 34.02%. Their extensive rail network and ability to transport a wide range of products have made them a significant contributor to the ammonia transportation market, particularly in the region.
Table Global Ammonia Transportation Revenue Share of Top3 Players in 2024
Company | 2024 |
CF Industries | 6.64% |
Yara | 4.52% |
BNSF Railway | 3.29% |
