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The industrial gases market size is forecast to increase by USD 30.65 billion, at a CAGR of 5.92% between 2023 and 2028. The growth rate of the market depends on various factors, including facility expansion strategies by vendors, the adoption of industrial gases for rapid surface chilling technology, and the overall industrial growth in emerging countries, which fuels the demand for industrial gases. It also includes an in-depth analysis of drivers, trends, and challenges. Our report examines historical data from 2018-2022, besides analyzing the current market scenario.
Industrial gases refer to a group of elemental and chemical gases (inorganic and organic) used in industrial applications. These gases are lightweight and usually have a low molecular weight. They can be used individually or as mixtures in various end-user industries.
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The market is driven by diverse sectors such as metallurgy, electronics, glass, and metals. Key segments like cryogenic filtration, air separation units, and medical gases contribute to market growth. Industries ranging from steel and glass to oil and fiber optics leverage industrial gases. The market's impact extends to environmental protection and clean energy, influencing photovoltaic industries, semiconductors, solar displays, and electronic devices. Challenges include meeting demand in a dynamic market while adapting to evolving technologies. Keeping pace with emerging trends is crucial as the industrial gases sector continues to play a pivotal role across multifaceted industries. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
The adoption of industrial gases for rapid surface chilling technology is notably driving market growth. These gases play a vital role in various sectors, including metallurgy, electronics, and the glass industry. In addition, their application in the food & beverages and healthcare sectors is significant, with a focus on cryogenic filtration and air separation units. Furthermore, the steel segment benefits from industrial gases, particularly in processes like cryogenically cooled liquid nitrogen for rapid surface chilling technology.
Further, this technology, crucial in the food industry, relies on gases like liquid nitrogen and carbon dioxide, aligning with environmental protection and clean energy trends. As industries recognize the benefits, the demand for industrial gases is expected to surge, driving market growth in the forecast period.
Increasing use of industrial gases as an alternative source of energy is an emerging trend shaping the market growth. Hydrogen is the most abundantly found element, particularly in water. In addition to being an industrial gas, it can be used for reducing the emission of GHGs. It is an alternative to petroleum-based fuels as it is renewable and abundant and does not produce any emissions. Industrial gases such as hydrogen and methane can be used to store and transport energy generated from renewable sources such as solar and wind power. Hydrogen, for example, can be produced during periods of excess renewable energy production and later converted back to electricity or used as a fuel when renewable energy generation is low.
Further, liquid nitrogen is primarily used as a coolant and as a source of primary power in automotive. There is a shifting trend toward hybrid buses, which use hybrid propulsion systems. This system reduces nitrogen oxide and carbon dioxide emissions during acceleration after stopping. This will create new lucrative opportunities for the vendors in the market and will, therefore, positively impact the growth of the market during the forecast period.
The slowdown of the manufacturing sector in China is a significant challenge hindering the market growth. The country manufactures a wide range of automotive and aircraft components as well as industrial machines and electronics. However, the Chinese economy, as well as its manufacturing sector, is facing a slowdown due to the decline in global exports and low foreign investments. The companies that had taken excessive loans for maintaining operations faced a severe crisis due to the manufacturing overcapacity in the country and dwindling profits. The average labor costs are also rising, rendering China a less attractive investment destination. The policy changes in the US, which is China's biggest export market, may also significantly affect the growth of its manufacturing sector.
However, the US government is in the process of implementing several trade reforms that may restrict the import of manufactured goods into the country from China. Weak global commodity prices have further affected China's exports to several other countries, which are currently undergoing an economic recession. Such factors hinder the growth in China, which may hamper the market growth and trends during the forecast period.
The market share growth by the manufacturing segment will be significant during the forecast years. Industrial gases are predominantly used in several manufacturing industries, such as aerospace, automotive, glass, ceramics, pulp and paper, shipbuilding, and railways coach and wagon manufacturing. Industrial gases such as oxygen, nitrogen, hydrogen, and carbon dioxide are fundamental to a wide range of manufacturing processes.
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The manufacturing segment was the largest and was valued at USD 22.58 billion in 2018. In the automotive industry, are used in automobile parts and body manufacturing as well as repair. As industries increasingly focus on sustainability and environmental responsibility, the demand for cleaner energy solutions is growing. Industrialization and infrastructure development in emerging economies are driving the demand for manufactured goods, thereby increasing the need for manufacturing processes. The demand in the manufacturing sector is expected to continue growing as industries evolve, regulations become more stringent, and innovative applications emerge, which, in turn, will drive the growth of the market during the forecast period.
Based on the type, the market has been segmented into hydrogen, oxygen, nitrogen, carbon dioxide and others. The hydrogen?segment will account for the largest share of this segment.? Hydrogen is among the lightest gases present in the atmosphere. Hydrogen is predominantly used in chemical industries, petroleum refining, electronics, glass, and metal processing industries. It is commonly used in the refinery industry for lowering the sulfur content and to remove pollutants and impurities from transportation fuels. It, thus, helps refiners produce better-quality products from crude oil. Hydrogen is a potential source of renewable and clean energy. Hydrogen-based fuel cells are commonly used in the transportation industry as they are a pollution-free source of energy. Furthermore, hydrogen is used in ammonia (hydrogen-nitrogen) fertilizers. Ammonia is among the most preferred chemicals in fertilizer manufacturing. Globally, decreasing arable land and growing use of fertilizers to improve agricultural yield are anticipated to boost the demand for hydrogen during the forecast period.
APAC is estimated to contribute 39% to the growth of the global market during the projection period. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional market trends and analysis, and drivers influencing the market's trajectory throughout the projection period.
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Further, APAC was the largest contributor to the market in terms of consumption. In addition, the region is expected to witness the fastest growth rate over the forecast period, mainly due to the rising industrialization and increasing demand from end-user industries such as metals and metal fabrication, chemical and petrochemical, and food and beverage. The demand is high in APAC due to the rapid expansion of infrastructure, which requires industrial gases to produce large volumes of steel. Also, the increasing need for alternate sources of energy is fueling the expansion of gasification plants and gas-to-liquids, coal-to-liquids, and coal-to-chemical plants.
Additionally, with the rapidly depleting fossil fuel sources, the use of hydrogen as an energy source will gain traction during the forecast period. The use of nitrogen for food preservation will also boost the growth of the market. The market in APAC is driven by increasing industrialization, rising economic growth, and the subsequent growing demand from end-user industries such as electronics and energy. Such factors are expected to drive the regional market growth during the forecast period.
Companies are implementing various market growth and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
Air Liquide SA - The company offers industrial gases including oxygen, nitrogen, hydrogen, argon, carbon dioxide, helium, acetylene, and specialty gases for refining, petrochemical and metal industries.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including Air Liquide SA, Air Products and Chemicals Inc., AIR WATER INC, Airgas Inc., Asia Technical Gas Co Pte Ltd., BASF SE, Buzwair Industrial Gases Factories, Chemix Specialty Gases And Equipment, Goyal Group, Guangdong Huate Gas Co. Ltd., Gulf Cryo Holding CSC, Iwatani Corp., Linde Plc, Messer SE and Co. KGaA, Norco Inc., Praxair Technology Inc., SOL Spa, Taiyo Nippon Sanso Corp., Wesfarmers Ltd., and Yingde Gas Group Co. Ltd.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report predicts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The market is a vital component across a multitude of sectors, with a substantial impact on global industries. In the healthcare industry, industrial gases find extensive usage, from medical applications to supply chains. Gas companies, especially in the GCC region, contribute significantly to the industry's growth. Beyond healthcare, these play a crucial role in diverse end-use sectors, including the glass industry, manufacturing, and processing industries. The market encompasses various forms, including liquefied and gaseous forms, such as refrigerant and fuel gases. Industries like steel, glass, oil, and fiber optics rely on industrial gases for their manufacturing processes.
Key players like Air Products & Chemicals play a pivotal role, and noble gases contribute to specialized applications. From construction and energy & power segments to agriculture, automobiles, beverages, chemicals, and food industries, industrial gases are integral. Their usage extends to space explorations, shipbuilding, and welding, emphasizing their versatile applications. With properties like insulating gas and corrosion resistance, industrial gases are indispensable in arc welding and even in the production of window panes. The government's investment in world-class infrastructure and transport construction vehicles further underscores the significance of the market. As industries continue to evolve, the demand remains essential for various applications across a diverse range of sectors.
Market Scope |
|
Report Coverage |
Details |
Page number |
189 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.92% |
Market Growth 2024-2028 |
USD 30.65 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.38 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 39% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Air Liquide SA, Air Products and Chemicals Inc., AIR WATER INC, Airgas Inc., Asia Technical Gas Co Pte Ltd., BASF SE, Buzwair Industrial Gases Factories, Chemix Specialty Gases And Equipment, Goyal Group, Guangdong Huate Gas Co. Ltd., Gulf Cryo Holding CSC, Iwatani Corp., Linde Plc, Messer SE and Co. KGaA, Norco Inc., Praxair Technology Inc., SOL Spa, Taiyo Nippon Sanso Corp., Wesfarmers Ltd., and Yingde Gas Group Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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