Green Ammonia Market on Track to Reach USD 5.9 Billion by 2031
Global, Friday, 4 July 2025.
The global green ammonia market, valued at USD 0.2 billion in 2023, is projected to grow to USD 5.9 billion by 2031, fueled by investments in clean fuel technologies and a shift to sustainable energy.
Investment and Global Demand in Green Ammonia
The impressive growth trajectory of the green ammonia market, from USD 0.2 billion in 2023 to an anticipated USD 5.9 billion by 2031, underscores the substantial investments pouring into clean fuel technologies. This expansion, represented by a compound annual growth rate (CAGR) of 52.95% between 2024 and 2031, aligns with the global push to mainstream sustainable energy solutions [1]. As major economies transition towards greener sources of energy, green ammonia stands out due to its dual role in the production of renewable hydrogen and sustainable fertilizers, bolstering its demand and relevance in the global market [2].
Regional Dynamics and Strategic Developments
The geographical adoption of green ammonia technologies is spearheaded by regions with robust decarbonization policies. Europe is particularly aggressive in its efforts, driven by strategic investments in hydrogen valleys and clean ammonia hubs. Asia-Pacific regions, including Japan, China, South Korea, and India, are also accelerating their shift to green ammonia, motivated by the need to decarbonize power plants and engage in sustainable shipping and industrial processes [1]. The United States and Canada have ramped up initiatives, supported by government incentives and private investments, to meet domestic energy needs and create export opportunities [3].
Economic and Environmental Implications
The proliferation of green ammonia technologies is poised to deliver substantial economic and environmental benefits. Economically, it will stimulate job creation in new and existing industries, provide fresh investment opportunities, and strengthen energy security by reducing dependency on fossil fuels. Environmentally, green ammonia contributes significantly to emissions reductions, helping nations work towards their sustainability targets. By 2031, the increased deployment of green ammonia production facilities could enhance energy efficiency and provide a cleaner alternative for industrial and agricultural applications [4].
Challenges and Future Prospects
Despite the formidable growth prospects, the green ammonia market faces challenges, including the need for significant infrastructural investments and technological advancements to improve efficiency and cost-effectiveness. Overcoming regulatory barriers and harmonizing international standards will be crucial for widespread adoption. However, with progressive policies and strategic industrial partnerships, the market is well-positioned for a transformative impact on the global energy landscape [5].