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The Europe Industrial Gases Market size is forecast to increase by USD 7.42 billion, at a CAGR of 5.01% between 2023 and 2028. The growth trajectory of the market hinges on several key factors, foremost among them being the escalating demand for industrial gases across diverse end-user industries. This surge in demand is propelled by the essential role industrial gases play in various manufacturing processes. Additionally, the swift adoption of surface-chilling technology further catalyzes market expansion, as industries seek efficient cooling solutions to optimize production processes. Moreover, the uptick in merger and acquisition (M&A) activities within the market fosters consolidation and drives innovation, paving the way for enhanced offerings and market competitiveness. As these trends persist, the market is poised for sustained growth, fueled by the convergence of technological advancements and evolving industry dynamics.
The market is witnessing significant growth, driven by a multitude of factors. Amid the rising demand for low-calorie alternatives, organic compounds like sugar alcohols are gaining traction, particularly in the production of candies, chewing gums, and ice creams. The chemical industry, including metallurgy and glass, relies heavily on industrial gases such as acetylene for various processes. Furthermore, in the realm of personal care products, hydroxyl groups find applications in toothpaste, mouthwash, and throat lozenges, while flexible polyurethane coatings are integral to breath mints. As Europe continues to prioritize sustainability and innovation, the Industrial Gases Market plays a crucial role, providing essential support to industries ranging from chemicals and energy to yogurts and fruit spreads.
One of the key factors driving the market growth is the rapid adoption of surface-chilling technology. Europe is a significant market for food-grade industrial gases. In addition, the properties of gases and their reaction to food ingredients must be considered before food packaging. Furthermore, the rise in the demand for ready-to-eat (RTE) or packaged food significantly increases the demand for packaging technologies such as modified atmosphere packaging by food and beverage manufacturers.
Moreover, this increases the consumption of food-grade industrial gases such as nitrogen, oxygen, and carbon dioxide, which are used to pack carbonated drinks and dairy and frozen products. In addition, in the food and beverage industry, liquid nitrogen is used in cryogenic freezing. Furthermore, cryogenic freezing has traditionally been attractive due to its low capital costs. Therefore, it is positively impacting the European industrial gasses market. Hence, such factors are driving the market growth during the forecast period.
A key factor shaping the market growth is the increasing demand for convenience foods. Another trend that is positively influencing the market growth is the growing demand for convenience foods, which can be consumed on the go or with minimal preparation. In addition, the lifestyle of consumers is changing, and they are inclined to spend long hours at work. Furthermore, this decreases the cooking time available for cooking a full meal from scratch and increases the demand for convenience foods.
Therefore, market players are responding to this trend by launching new convenience foods such as frozen burgers, soups, and other products, which are packaged to have long shelf lives. For example, packaged burgers are available in either RTC or RTE versions. In addition, the frozen and chilled variants of packaged burgers provide the benefit of increased shelf life. Furthermore, during the storage period, innovative packaging techniques, such as modified atmosphere packaging (MAP), ensure that there is no loss in the nutrient content and freshness of the food product. Therefore, it is positively impacting the European industrial gasses market. Hence, such factors are driving the market growth during the forecast period.
Safety issues associated with the use of industrial gases are one of the key challenges hindering market growth. Several industrial gases are carcinogenic and can be harmful to personnel exposed to these gases. In addition, these gases, once inhaled, chemicals are either exhaled or deposited in the respiratory tract. Furthermore, high-pressure cylinders and liquid tanks must be handled carefully and require skilled labor.
Therefore, the scarcity of a skilled workforce affects the use of these gases and adversely affects the growth of the market. In addition, stringent safety regulations govern various processes, including industrial gas manufacturing, product classification and labeling, registration, packaging, storage, transportation, displaying product information, and product disposal. Furthermore, the use of industrial gases in manufacturing units is monitored by regulatory bodies as they can pose severe risks to human health and safety. Hence, such factors are hindering the market growth during the forecast period.
The packaged segment is estimated to witness significant growth during the forecast period. The packaged segment offers convenient and readily accessible industrial gas solutions, especially for small- and medium-sized enterprises (SMEs) and end-users with intermittent or varying demand. In addition, this accessibility enables businesses to efficiently manage their gas requirements without the need for large storage facilities. Furthermore, packaged industrial gases find applications across a diverse range of industries, including healthcare, food and beverage, welding, and laboratories.
The packaged segment was the largest and was valued at USD 9.74 billion in 2018. Moreover, the flexibility of packaged solutions makes them suitable for various processes, contributing to their widespread adoption. In addition, the increasing number of SMEs in Europe, particularly in sectors such as manufacturing and healthcare, drives the demand for manageable and cost-effective packaged industrial gas solutions. Furthermore, these enterprises often have specific and moderate gas needs, making packaged distribution a practical choice. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
Based on the end-user, the segment is classified into manufacturing, chemical processing, metallurgy, medical and healthcare, food and beverages, and others. The manufacturing segment will account for the largest share of this segment The manufacturing sector comprises applications in glass manufacturing, paper and pulp, and automotive industries. In addition, industrial gases such as hydrogen, nitrogen, oxygen, carbon dioxide, and argon are extensively used in the manufacturing industry. Moreover, they are used for manufacturing speciality glass, float glass, solar glass, and fibreglass. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth and trends growth during the forecast period.
Companies are implementing various 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.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including Air Products and Chemicals Inc., BASF SE, BUSE KSW GmbH and Co. KG, Cryogenmash, Ellenbarrie Industrial Gases Ltd., Gasum Ltd., GAZ SYSTEMES SASU, Gazprom Nedra LLC, IJSFABRIEK STROMBEEK, Iwatani Corp., Linde Plc, Messer SE and Co. KGaA, Mitsubishi Chemical Group Corp., SOL Spa, Taiyo Nippon Sanso Corp., Tyczka Polska Sp. z o.o., Westfalen AG, and Yara International ASA
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 research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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The market is undergoing a transformative phase, driven by a spectrum of applications and innovations. With a focus on sustainability and health-conscious consumer trends, industries are increasingly turning to low calories alternatives derived from carbohydrates and table sugar for various products, including foams, sealants, and adhesives. Rigid polyurethane coatings and elastomers ensure durability and resistance to abrasion, making them ideal for use in electronics, footwear, and furniture. Industrial Gases play a pivotal role in the production of foams used in diverse applications such as seating, headrests, and ventilator headliners. Moreover, the market is witnessing a surge in product innovations leveraging Polyol-based products for enhanced performance and sustainability, with a growing emphasis on Bulk and On-Site solutions to meet evolving industry demands.
In addition, with a focus on health and sustainability, there is a rising preference for products with low calories, driving the development of new formulations. Industries are also seeking materials with hardness and resistance to abrasion, leading to the adoption of advanced solutions. Industrial Gases play a crucial role in the production of insulating materials and foams, especially those used in manufacturing headrests, armrests, and protective components. Additionally, they contribute to the creation of exterior panels and housing electronics, ensuring durability and performance in various applications. This trend reflects the ongoing innovation and commitment to quality in the market.
Market Scope |
|
Report Coverage |
Details |
Page number |
175 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.01% |
Market Growth 2024-2028 |
USD 7.42 billion |
Market structure |
Concentrated |
YoY growth 2023-2024(%) |
4.42 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Air Liquide SA, Air Products and Chemicals Inc., BASF SE, BUSE KSW GmbH and Co. KG, Cryogenmash, Ellenbarrie Industrial Gases Ltd., Gasum Ltd., GAZ SYSTEMES SASU, Gazprom Nedra LLC, IJSFABRIEK STROMBEEK, Iwatani Corp., Linde Plc, Messer SE and Co. KGaA, Mitsubishi Chemical Group Corp., SOL Spa, Taiyo Nippon Sanso Corp., Tyczka Polska Sp. z o.o., Westfalen AG, and Yara International ASA |
Market dynamics |
Parent market growth analysis, market report, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
Customization purview |
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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 Distribution Channel
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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