Global industrial gases market value was USD 92.0 billion in 2020. It is expected to grow at a compound annual rate (CAGR of 6.0%) between 2021 and 2028. The market's growth is due to the expanding manufacturing industry in Asia Pacific. In the future, the market will be influenced by increasing industrialization and urbanization as well as the increased use of industrial gases in many industries such healthcare, metals, mining and food and beverage. Due to the demand for flat panels, semiconductors and printed electronics, industrial gas applications are experiencing strong growth.
In the electronics industry, industrial gases like nitrogen trifluoride, sulfur hexafluoride, (SF6), and silane (SiH4) can be used to produce and develop flat panel displays, compound semiconductors, advanced components, and silicon wafers. This growing use makes industrial gases essential for the electronic industry's innovation and product design.
This market is expected to grow because of the increased use of industrial gas for manufacturing semiconductors, displays, LED solid state lighting, wafers and polysilicon. Global investments are attracted to clean energy, primarily solar PV. These gases significantly reduce manufacturing costs and are expected to be more widely used in the future.
Globally, industrial production is growing and will continue to grow. The aerospace, metal and mining industries are experiencing a growing demand for various industrial gases. There are also many market opportunities due to the significant growth in North America's food and beverage, pharmaceutical, and Asian Pacific industries.
Due to the closure of industries in states that have been severely affected by COVID-19, industrial-grade carbon dioxide demand has been lower. The demand for carbon dioxide has been higher than that of medical and firefighting applications. Due to the increasing demand for medical-grade CO2 in recent years, there has been a significant increase in the number of COVID centers in the country.
In 2020, Oxygen accounted for 28.1% of the total revenue. It has been shown to increase the fuel's thermal efficiency. It is used for treating polluted water, hazardous wastes, and to gasify coal. In order to reduce pollution, the gas can be used to replace chlor in pulp and paper industries. The medical industry also has large uses for oxygen. In the future, industrial oxygen will be in high demand because of the widespread application of oxygen across many industries.
In 2020, nitrogen gas accounted for the second largest revenue share and is expected to grow at the fastest rate between 2021 and 2028. Due to the rapidly growing healthcare and pharmaceutical industries in North America and Asia Pacific, nitrogen gas is widely used in the sector. This will drive the segment's growth in the future.
The forecast period will see significant increases in carbon dioxide due to increased use of carbon dioxide in gas-based enhanced oil recover in countries like the U.S. and Canada. Additionally, fluctuations in crude oil prices as well as an increase in mature wells worldwide will lead to a significant rise in the use of enhanced oil recovery to improve the efficiency of oil production.
In 2020, the cylinder (merchants) segment had 36.9% of the revenue. This segment also includes gases distributed as packaged cylinders (high pressure gas or low-pressure liquid). However, this distribution method is not suitable for customers who have a low demand for industrial gases. Gases such as hydrogen, oxygen, helium and argon can be easily compressed into a cylindrical for cylinder distribution at pressures up to 300 bar. Many gases can also be supplied at room temperature in their liquid state.
Over the forecast period, the fastest growth is expected in the on-site segment. On-site includes the installation of a filing station at the company's plant or elsewhere. This distribution method is used to supply large quantities of gases at different pressures and states. The market for hydrogen is expected to grow significantly because of the elimination of many problems associated with the transportation and distribution. Because of the affordability of new technologies, on-site hydrogen generation has become more popular in small-scale industries.
Manufacturing applications accounted for 26.2% of the total revenue in 2020. This segment is expected to see significant growth over the forecast period. Due to the growth of the manufacturing industries in India, China and South Korea, the demand for industrial gases such as nitrogen, oxygen and carbon dioxide is expected to grow significantly in developing countries. This segment is expected to grow due to the increasing demand for advanced industrial gasses in the electronic sector.
Over the forecast period, the fastest growing segment in healthcare is expected to be the healthcare application segment. The ongoing COVID-19 epidemic has also driven demand for medical-grade industrial gasses, particularly oxygen. This market has strong growth potential due to an increase in global healthcare spending.
A wide variety of industrial gases are used in the food- and beverage industries. Industrial gases are used in many applications within the food industry. They include modified atmospheric packaging (MAP), chilling, freezing and controlling temperature during transport and storage. It is used primarily to preserve the quality and extend the shelf life of food products. It is also used to detect food quality in storage and processing. In the production of carbonated beverages, carbon dioxide is used by the beverage industry. Carbon dioxide that is food-grade and safe for consumption is an important ingredient in carbonated beverages. It helps to prevent mold growth and inhibit the growth of bacteria, depending on the carbonation level.
Asia Pacific was responsible for 36.1% of the total revenue in 2020. It is expected to grow at the highest CAGR over the forecast period. The growth and expansion in end-use industries in China and South Korea can explain the increasing demand for industrial gas in Asia Pacific. These countries are key markets for industrial gas both globally and in the Asia Pacific.
China was the biggest country-level market for 2020. Asia Pacific saw the highest demand for industrial gas due to increased demand from the aerospace industry for high quality gas solutions. The forecast period will also see significant growth in the emerging economies of India and China's food, beverage, and pharmaceutical industries, which should create plenty of market opportunities.
The U.S. was the North American market's largest revenue contributor in 2020 and is expected to grow at the highest rate over the forecast period. The North American market will likely grow due to the growing electronic and healthcare industries. Market growth is also expected to be fueled by the expansion of the regional industrial sector.
Global market's competitiveness is due to numerous established entities that control large amounts of shares in different sectors of the industrial gas value chain. They also have multiple distribution channels for their products.
High transport costs result in customer density and less competition. Industry players compete on the basis of price, brand image and quality, as well as technology and distribution network. To achieve economies of scale, local businesses supply multinational companies in addition to their domestic sales. Due to the large number of competitors in the market, there has been fierce competition. To survive in this highly competitive global marketplace, companies must be innovative and develop multifunctional products. They also need to have efficient pricing and superior quality. There is moderate to high industry competition. The following are some of the major players in the global industrial gas market:
Air Liquide
Chemicals & Products for the Air
Messer Group
Taiyo Nippon Sso
The Linde Group
Up Market Research published a new report titled “Industrial Gases Market research report which is segmented by Distribution (On-site, Cylinder), by Application (Manufacturing, Healthcare), by Product (Nitrogen, Oxygen), By Players/Companies Air Products & Chemicals, Air Liquide, The Linde Group, Messer Group, Taiyo Nippon Sanso”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.
Report Attributes | Report Details |
Report Title | Industrial Gases Market Research Report |
By Distribution | On-site, Cylinder |
By Application | Manufacturing, Healthcare |
By Product | Nitrogen, Oxygen |
By Companies | Air Products & Chemicals, Air Liquide, The Linde Group, Messer Group, Taiyo Nippon Sanso |
Regions Covered | North America, Europe, APAC, Latin America, MEA |
Base Year | 2020 |
Historical Year | 2018 to 2019 (Data from 2010 can be provided as per availability) |
Forecast Year | 2028 |
Number of Pages | 229 |
Number of Tables & Figures | 161 |
Customization Available | Yes, the report can be customized as per your need. |
The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.
The market is segmented by Distribution (On-site, Cylinder), by Application (Manufacturing, Healthcare), by Product (Nitrogen, Oxygen).
Industrial Gases Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.
Key Benefits for Industry Participants & Stakeholders:
Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.
We have studied the Industrial Gases Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.
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