Regardless of a company’s size or income, the most recent research study offers an exhaustive analysis of the Industrial Gases market for 2023–2032. This survey study discusses the key market trends and the industry’s outlook for the forecast years.
Global Industrial Gases Market presents a variety of new trends that have a significant impact on market growth dynamics as well as the most recent industry knowledge. According to the most recent projection, global growth will reach its lowest point this year at 2.8% before edging up to 3.0% in 2024. Although more slowly than expected, the rate of global inflation will drop from 8.7% in 2022 to 7.0% this year and 4.9% by 2024. Notably, growth rates for emerging markets and developing economies have increased significantly in many cases, from 2.8 percent in 2022 to 4.5% this year.
The global industrial gases market reached USD 93.1 Billion in 2020. It is further projected to reach USD 147.1 Billion by 2027, at a CAGR of 6.5% during the forecast period (2021-2027). The rising application of industrial gases in numerous areas such as health care, food and beverage, electronics and semiconductors, flat panel display and printed electronics, and fertilizer production is driving the growth of the global industrial gases market. Additionally, the increased demand for industrial gases has been fueled by the growing demand for global crude oil and the need for refining.
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Due to excessive demand from the healthcare and food & beverage industries, companies operating in the global industrial gases sector had to ramp up production of certain industrial gases like oxygen, nitrogen, and carbon dioxide during the lockdown phase. Since companies are always looking for cost-effective and sustainable processes for the production of industrial gases, this factor is likely to propel the growth of the global industrial gases market.
Global Industrial Gases Market Overview:
Industrial gases are the gases that are produced for industrial use. Gases like oxygen, nitrogen, hydrogen, carbon dioxide, methane, ammonia, argon, helium, and krypton-xenon are known as industrial gases. These gases are used in a variety of industries for a variety of purposes. Industrial gases are used in the chemical industry, science and analysis, the food and beverage industry, manufacturing, trades and crafts, and rubber and plastics production, to name a few.
The most popular methods for purifying industrial gases are cryogenic distillation and adsorption. Other gases are generated using a variety of methods. For example, the reaction of water with calcium carbide produces acetylene, while the electrolysis of water produces hydrogen. The most common source of nitrogen is the fractional distillation of air, which also yields a considerable amount of oxygen and a negligible amount of argon. The Sabatier process produces methane, and other industrial gases are generated as required.
Global Industrial Gases Market Forecast and Trends
Growth Drivers
Growing Demand for Fertilizers & Agrochemicals
Fertilizers and agrochemicals are the backbone of the agricultural economy. Farmers use fertilizers and agrochemicals to provide necessary nutrients to plants. Nitrogen and methane are used extensively in the fertilizer industry, while chlorine, oxygen, and nitrogen are used extensively to produce agrochemicals. According to the International Fertilizer Association (IFA), global fertilizer demand will be slightly less than 200 MT by 2021-22, with nitrogen-based fertilizers increasing by 1.2% per year, phosphoros-based fertilizers increasing by 1.5% per year, and potassium-based fertilizers increasing by 2.1% per year. According to the IFA’s prediction, Africa, Eastern Europe, and Central Asia, and Latin America will have the highest growth rates during the forecast period due to high agricultural growth potential. IFA further said that the global fertilizer industry is set to invest USD 110 billion between 2017-2021 in more than 65 new fertilizer production units, increasing production capacity by more than 90 million tonnes.
Industrial gases are critical components of the fertilizer and agrochemical industries. During the forecast period, the growth of the fertilizer and agrochemicals industries is expected to support the development of the global industrial gases market. For example, nitrogen is used in the production of ammonia, which is one of the key raw materials used in manufacturing urea and ammonium fertilizers. Dichlorodiphenyltrichloroethane (DDT) is produced using chlorine. It is worth noting that India has the highest DDT production rate, followed by China.
Increasing Demand and Application of Industrial Gases in The healthcare Industry
Industrial gases are extensively used in the healthcare industry. Oxygen is a critical component of the healthcare industry. Medical-grade oxygen, medical air, and carbon dioxide are all widely used in the healthcare industry for a variety of purposes. While medical-grade oxygen is administered to patients suffering from respiratory conditions, medical air (an ultra-pure, compressed form of air) is used when patients suffer from oxygen toxicity. The European Industrial Gases Association said that the demand for medical-grade oxygen went up in Europe in 2020 as a result of the COVID-19 pandemic. Its members, such as The Linde Group and Air Liquide, experienced 5-10 times the usual medical-grade oxygen demand. In Italy and Eastern Europe, Air Liquide reported 4-6 times the average demand for medical-grade oxygen. Linde, Germany’s largest supplier of medical gases, was running cylinder filling stations 24×7 in 2020 and had to boost cylinder delivery to satisfy the increased demand. Likewise, Oximesa, a subsidiary of Nippon Gases, had to shift to a 24*7 production schedule in Spain in 2020 to meet the surging demand for medical-grade oxygen.
Demand for medical-grade oxygen has increased to 8,000 MT per day as the second wave of COVID-19 sweeps through the Indian subcontinent. To meet the increasingly rising demand, global leaders such as The Linde Group, Air Liquide, and local manufacturers are all ramping up production.
Apart from oxygen and medical air, carbon dioxide is also in high demand in the healthcare sector as it is used to enlarge and stabilize body cavities to provide better visibility of the surgical area during minimally invasive surgeries like laparoscopy, endoscopy, and arthroscopy. Thus, the demand for medical-grade oxygen and other medical-grade gases is expected to remain high during the forecast period and drive the growth of the global industrial gases market.
Restraints
More Stringent Regulatory Requirements on Gases Used in The Food & Beverage Industry
The food & beverages industry has always been one of the most heavily regulated industry. Government and regulatory bodies are always on their toes regarding the chemicals and ingredients used in food & beverages. Companies are constantly experimenting with new flavors, textures, colors, tastes, and other aspects of existing foods in order to draw customers while lowering the cost of the products. To do so, businesses often resort to using low-cost chemicals that are hazardous to human health. The food and beverage industry often makes use of toxic gases such as carbon dioxide, carbon monoxide, and sulfur dioxide. As a result, regulatory bodies are constantly attempting to impose stringent controls on the use of these gases in the food and beverage industry.
For example, Carbon dioxide is used extensively in carbonated drinks and also for freezing food items. Carbon monoxide is used to freeze meat products like beef, pork, and chicken as it maintains their colour. Sulfur dioxide is used in the winemaking process. Excessive doses of such gases can damage consumers’ health, which is why companies must adhere to strict regulations set out by the Global Food Safety Initiative (GFSI), as well as local governments and regulatory bodies, in order to market such goods. These stringent regulations and standards are expected to stifle the growth of the global industrial gases market over the forecast period.
Global Industrial Gases Market: By Gas Type
The global industrial gases market is segmented into oxygen, nitrogen, hydrogen, carbon dioxide, acetylene, argon, and others segment based on gas type. Oxygen held the largest market share in global industrial gases market in 2020. The widespread use of oxygen in the medical and healthcare sectors, as well as oxy-fuels, contributed significantly to oxygen’s large market share. The demand for medical-grade oxygen has also gone up as a result of the ongoing pandemic. According to The European Industrial Gases Association, in 2020, companies operating in European countries registered 5-10 times the usual medical-grade oxygen demand. To meet the sudden increase in demand for medical oxygen, many companies had to transition to 24-hour production. Indian is currently facing a shortage of medical-grade oxygen. According to the Ministry of Home Affairs, India has ramped up its medical-grade oxygen production to 9,103 metric tons oxygen from 7,259 metric tons to meet the exponentially rising demand. The oxygen demand is expected to remain high in the near future, which is likely to contribute to the growth of the global industrial gases market.
Global Industrial Gases Market: By Application
Based on application, the global industrial gases market is segmented into healthcare, manufacturing, food & beverages, metallurgy & glasses, chemicals & energy, and others. The healthcare segment held the largest market share in the global industrial gases market in 2020. The healthcare sector’s substantial market share in the global industrial gases market was largely due to the exponential rise in medical-grade oxygen demand. The demand for medical-grade oxygen has increased dramatically in Europe, Latin America, Africa, and Asia-Pacific, with medical-grade oxygen shortages in Latin American countries, Sub-Saharan African countries, and India. The healthcare segment is expected to hold a significant share at the end of the forecast period owing to the surging demand for medical-grade oxygen from the healthcare industry.
Impact of COVID-19 in the industry
The onset of novel coronavirus has affected the global economy besides affecting business operations. Due to the high infection rate and adverse impact on public health systems, various countries had to enforce nationwide lockdowns. Industry players are currently considering reinforcing the damaged supply chains to serve the community and create new business opportunities.
COVID-19, however, affected the global industrial gases market positively. The demand for medical-grade oxygen skyrocketed owing to COVID-19. Companies had to ramp up their production, shift to 24*7 production schedules, operate filling stations 24*7, and increase the number of cylinders. In India, the steel industry, oil & gas industry, fertilizer industry all had to shift to oxygen manufacturing to fulfill the growing demand for medical-grade oxygen.
Nevertheless, due to severely damaged supply chains and travel restrictions, procurement of raw materials is becoming difficult, affecting the production of industrial gases, especially oxygen. The global industrial gases market is expected to register significant growth in upcoming years owing to an increase in demand from the healthcare segment.
Global Industrial Gases Market: Regional Insights
The global industrial gases market is segmented into five regions: North America, Europe, the Asia-Pacific, Latin America, and the Middle East & Africa. The Asia-Pacific industrial gases market accounts for the largest share in the global industrial gases market and is expected to lead the market in the forecast period.
The Asia-Pacific region led the market in 2020 due to its large fertilizer industry, surging demand for medical-grade oxygen, and large food & beverage industry. China and India are two of the biggest consumers of nitrogen. China is the world’s largest nitrogen consumer with annual consumption of 44.97 million tons. India is in second place with annual consumption of 16.48 million tons, according to the Food and Agriculture Organization.
India witnessed an increase in demand for medical-grade oxygen in September 2020 amid the first wave of COVID-19. India ramped up its oxygen production capacity from 5,913 MT in April 2020 to 6,862 MT in September 2020. Additionally, the food & beverages industry also witnessed growth in the frozen food segment. Nitrogen and carbon dioxide are used extensively to freeze food items in the industry. All these factors are driving the development of the global industrial gases market in the Asia-Pacific region and are expected to drive the growth of the global industrial gases market in the region during the forecast period.
Competitive landscape
The global industrial gases market has several key players operating in the market. Some of the key players operating in the market are The Linde Group, Air Liquide S.A., Praxair Inc., Taiyo Nippon Sanso Corporation, Matheson Tri-Gas Inc., Air Products and Chemicals, Inc., Iwatani Corporation, Messer Group GmbH, Gulf Cryo, Yingde Gas Group Co., Ltd., and other prominent players. Acquisitions and mergers are some of the strategies adopted by the key manufacturers. Major players often employ tactics such as new product releases or emphasize continuous technological advancement to gain a competitive edge in the market. Companies are also investing in research and development in an attempt to dominate the industry.
Additionally, various companies are striving to gain market share by adopting competitive strategies such as joint ventures and research partnerships. The market players compete based on product quality, conformance to standards and performance, and a cost-effective manufacturing process, which optimizes the process for better production.
Recent Developments
In April 2021, Gujarat Narmada Valley Fertilizers and Chemicals Ltd (GNFC) tripled its medical-grade oxygen production capacity from 10,000 liters to 30,000 liters within a week. Since April 19, 2021, the company has been providing free medical-grade liquid oxygen. The company initially provided 10,000 liters of oxygen per day, but within a week, production had increased to 30,000 liters of medical-grade oxygen.
In April 2021, Linde India, a subsidiary of The Linde Group, announced that it had partnered with TATA Group to secure 24 cryogenic containers for transporting medical-grade oxygen. A total of 20 metric tonnes of liquid oxygen can be transported in each container.
Scope of the Report
By Gas Type
Ø Hydrogen
Ø Oxygen
Ø Nitrogen
Ø Carbon Dioxide
Ø Acetylene
Ø Argon
Ø Others
By Application
Ø The healthcare
Ø Manufacturing
Ø Food & Beverages
Ø Metallurgy & Glasses
Ø Chemicals and Energy
Ø Others
By Distribution & Transportation
Ø On-Site
Ø Liquid Gas Transport (Bulk Transport)
Ø Cylinder (Merchant)
By Region
Ø North America
Ø Europe
Ø Asia-Pacific (APAC)
Ø Latin America (LATAM)
Ø Middle-East & Africa (MEA)
Table of Content
Chapter 1: Global Industrial Gases Industry Overview
Chapter 3: Market Dynamics
Chapter 4: Top Company Profiles
Chapter 5: Global Industrial Gases market Competition, by Players
Chapter 6: Global Market Size by Regions
Chapter 7: Global Market Segment by Application
Chapter 8: Global Industrial Gases Industry Segment by Type
Chapter 9: Market Chain, Sourcing Strategy, and Downstream Buyers
Chapter 10: Strategies and key policies by Distributors/Suppliers/Traders
Chapter 11: Key Marketing Strategy Analysis, by Market Vendors
Chapter 12: Market Effect Factors Analysis
Chapter 13: Global Industrial Gases market Size Forecast (2023-2032).
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