The global green fertilizers market was valued worth around USD 3.59 billion in 2022 and is predicted to grow to around USD 7.03 million by 2032 with a compound annual growth rate (CAGR) of roughly 6.9% between 2023 and 2032.The report highlights an analysis of significant growth driving factors, market restraints, and challenges along with assessing new growth revenues in the global green fertilizers market.
Global Green Fertilizers Market: Overview
Green fertilizers refer to mineral fertilizers that are nitrate based and have same physical and chemical composition to fossil fuel (coal, natural gas, oil etc.) derived fertilizers. Unlike fossil fuel-based fertilizers, green fertilizers are produced using renewable electricity (wind, hydro, solar) and have much lesser carbon footprints. Green fertilizers are mainly fossil free and offer an easy technique to decarbonize the food production.
Currently available processes of production of nitrogen-based fertilizer are energy intensive. Natural gas is the major raw material used in ammonia production. Whereas SMR i.e., steam methane reforming technology is widely used technology for the ammonia production. During the process, natural molecules are split to product carbon dioxide and hydrogen using high temperatures and steam. Hydrogen produced during the process is then allowed to associate with nitrogen in the air to produce ammonia. SMR technology produces considerable quantity of CO2 even though it is least carbon-intensive technology.
Hydrogen required for ammonia production will come from electrolysis of water that is based on electricity production using renewable sources such as hydro, wind or solar. Rest other process remains same post the hydrogen is extracted to produce the green ammonia.
Benefits of green fertilizer include they are fossil free, which allow food system decarbonization and aid in limiting the dependency on fossil fuels. Also, one can expect considerable reduction in carbon footprint across value chain of food production. Food products and crops produced using green fertilizers are expected to reduce carbon footprint in an effortless way for food companies and farmers without needing to change agricultural processes, practices and their operations.
The economic and population growth worldwide is quite significant along with rapid urbanization. Droughts, heavy rains, wildfires, increased pests are effects of climate change and are impacting domestic agriculture production. Agricultural processes are known to account for almost 9% of greenhouse gas (GHG) emissions in US and seen 11% increase since 1990. Agricultural sector is focusing on reducing carbon footprint and greenhouse gas emissions and trying to increase resilience to climate change. This requires better agricultural practices that are sustainable and align with the climate-smart agriculture.
COVID-19 pandemic has hit adversely across all business operations worldwide. Complete lockdowns and quarantine measures negatively impacted many industrial sectors across the globe. Strong slowdown in the sales of green fertilizers was observed during the peak COVID-19 pandemic due to the disruptions in raw material supply chains, logistics and transportation. The market started to recover during second quarter of 2021 with partial upliftment of pandemic-led lockdown and travel restrictions,
Key Insights
- As per the analysis shared by our research analyst, the global green fertilizers market is estimated to grow annually at a CAGR of around 6.9% over the forecast period (2023-2032).
- Rising need to reduce carbon footprint, need for sustainable agricultural practices and rising prices of natural gas are expected to drive green fertilizers market growth.
- Based on technology, the alkaline water electrolysis (AWE) segment is estimated to register fastest growth rate in the coming years
- Based on fertilizer, the ammonium nitrate (AN) segment was estimated to show maximum market share in the year 2021.
- On the basis of region, Europe was the leading revenue generator in 2021 accounting for market share of almost 35%.
Global Green Fertilizers Market: Growth Drivers
Rising demand for sustainable green fertilizers to reduce carbon footprint will propel the green fertilizers market growth worldwide.
Green fertilizers play a vital role in food chain decarbonization. Food companies and farmers can meet the climate pledges with the use of green fertilizers in the food supply chain and aid in taking measures related to climate change, Companies can focus on reducing the greenhouse gases and carbon footprint which will drive the market growth for green fertilizers.
Global Green Fertilizers Market: Restraints
Availability of large number of synthetic substitutes
Though the green fertilizers seem to have potential role in reduction of carbon footprint, there are wide range of synthetic fertilizer substitutes available in the market at comparatively lower price. The availability of substitute may impede the market growth in short term. However, rising focus to reduce the carbon footprint will boost the demand for green fertilizers in long term even though synthetic substitutes are available in the market at comparatively lower cost.
Global Green Fertilizers Market: Opportunity
Rising investments in green fertilizers development to open new growth avenues
Agricultural chemicals are known to be associated with many health hazards. The chemicals may have significant impact on environment. Environmental concern is a major issue with the use of synthetic fertilizers. Thus, government and food companies are focusing on reducing this impact by use of green fertilizers. Rising investments are projected to create new growth opportunities to major market players operating in the green fertilizer market.
Segment Insights
Based on technology, the market is divided into Proton Exchange Membrane, Alkaline Water Electrolysis and Solid Oxide Electrolysis. Alkaline water electrolysis (AWE) segment was the largest segment accounting for maximum revenue share in 2021. This segment is projected to register fastest growth rate in the coming years. AWE involves electrolysis in solution of sodium or potassium hydroxide using two electrodes. This technology is being widely deployed in green ammonia production as produces higher gas purity and uses lower cost catalysts. Additionally higher durability of AWE is estimated to be major driver for the growth of this segment.
Based on fertilizer, the market is segmented into Calcium ammonium nitrate (CAN) and Ammonium nitrate (AN). Market was dominated by Ammonium nitrate (AN) segment with largest revenue share in 2021. The large market share of this segment is attributed to efficacy of ammonium nitrate. ammonium nitrate segment is projected to register moderate growth in the coming years.
Regional Insights
Europe to lead the market growth during the projection period
In 2021, Europe contributed to the largest revenue share of more than 35% of global green fertilizers market. Europe region will hold its dominant market share over the forecast period. European green fertilizer industry will see significant growth in the coming years with significant developments and advancements in improving energy efficiency of ammonia production.
Asia Pacific region is estimated to be the fastest growing region in the coming years. Japan and China will see a noticeable growth with rising focus on sustainable solutions.
Competitive Analysis
The global green fertilizers market is driven by players like Siemens Energy; Yara International ASA; Origin Energy Limited; Hive Energy; HY2GEN AG; Iberdrola, S.A.; Haldor Topsor A/S; H2U Technologies, Inc.; Fertiglobe; Fusion-Fuel; Eneus Energy Limited; Dyno Nobel; Enaex Energy; Ballance Agri-Nutrients; CF Industries Holdings, Inc.; Aker Clean Hydrogen; ACME Group and Air Products Inc. among others.
Recent Developments:
- In January 2022, Yara International and Lantmännen signed commercial agreement for bringing the renewable energy-based fossil free fertilizers in the market. Yara is a leading Norwegian company a dealing with fertilizer production whereas Lantmännen is leading agricultural cooperative.
Green Fertilizers Market Scope and segmentation
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Details
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Market Size in 2022
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USD 3.59 Billion
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Estimated Market Size in 2032
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USD 7.03 Billion
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CAGR Growth Rate
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6.9% CAGR
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Base Year
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2022
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Forecast Years
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2023-2032
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Segmentation
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Technology, Fertilizer and Region
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By Technology
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- Alkaline Water Electrolysis
- Proton Exchange Membrane
- Solid Oxide Electrolysis
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By Fertilizer
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- Calcium ammonium nitrate (CAN)
- Ammonium nitrate (AN)
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Major Regions Covered
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- North America
- Europe
- Asia Pacific
- Latin America
- The Middle East & Africa
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Report coverage
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Revenue forecast, company share, growth factors, and recent trends
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Free customization scope (equivalent to 5 analysts working days)
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If you want detailed information, that is not currently within the scope of the report, we will provide it to you as part of the customization process.
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Frequently Asked Questions (FAQs):
Which key factors will influence Global Green fertilizers market growth over 2023-2032?
- Increasing need for sustainable agricultural fertilizers, rising environmental concerns, focus on reducing carbon footprint to drive growth of the green fertilizers market.
What technology segment of Global Green fertilizers market will see major growth?
- According to Market Research, Alkaline Water Electrolysis technology segment will see a considerable growth over the forecast period between 2023and 2032.
Which region will contribute notably towards the Global Green fertilizers market value?
- The global green fertilizers market is anticipated to generate the highest revenue from Europe.
Which are the major players leveraging the Global Green fertilizers market growth?
- The global green fertilizers market is driven by players like Siemens Energy; Yara International ASA; Origin Energy Limited; Hive Energy; HY2GEN AG; Iberdrola, S.A.; Haldor Topsor A/S; H2U Technologies, Inc.; Fertiglobe; Fusion-Fuel; Eneus Energy Limited among others.