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The industrial gas market is estimated to grow at a CAGR of 5.92% between 2022 and 2027. The size of the market is forecast to increase by USD 29,120.36 million. The growth of the market depends on several factors, including the increasing requirements for oil and gas extraction and refining, rapid surface chilling technology, and industrial growth in emerging countries.
This report extensively covers market segmentation by type (hydrogen, oxygen, nitrogen, carbon dioxide, and others), end-user (manufacturing, chemical processing, metal fabrication, energy, and others), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing requirement for oil and gas extraction and refining is notably driving the market growth, although factors such as criticalities in gas distribution and gas handling systems may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Industrial Gases Market Driver
The increasing requirement for oil and gas extraction and refining is notably driving the market growth. The oil and gas and petrochemical industries are growing at a rapid pace and are one of the key end-users of industrial gases. The use of carbon dioxide is increasing considerably in the oil and gas industry.
Carbon dioxide is widely used for enhancing oil recovery in the oil and gas industry as it is miscible with crude oil and is cost-effective compared with other similar miscible fluids. An increase in the use of nitrogen and carbon dioxide in oil recovery projects and a high requirement for low-sulfur diesel and gasoline, wherein these gases are used for sulfur separation, will foster market growth. The growth in fuel oil and gas demand has led to a simultaneous increase in the global refinery capacity due to the addition of new refineries and the expansion of the existing refinery complexes.
Significant Industrial Gases Market Trend
Innovations in storage design and packaging are the primary trend in the market. Due to the explosive, high flammability, and hazardous nature of industrial gases, utmost care is taken during handling, storing, and transport. Most vendors are engaged in manufacturing effective storage facilities in their facilities or outsourcing them from other specialized vendors engaged in the business of storage systems. These gases can also be transferred through pipelines where the pressure is maintained at a low level, and the length of the pipeline is short. During most phases of chemical production, industrial gases are transported through pipelines over a short distance.
Innovative gas packaging solutions are being launched by many companies. Linde has already adopted composite cylinders in its distribution channel. The company advises the use of disposable plastic valve protection caps over unprotected cylinder valves. Innovations in cylinder packaging and pressure valves are expected to increase the adoption of such solutions by major gas vendors.
Major Industrial Gases Market Challenge
Criticalities in gas distribution and gas handling systems are the major challenges impeding the market. Industrial gases play a crucial role in the manufacturing, processing, and packaging sectors. Distribution systems for industrial gases catering to the food and beverage and healthcare sectors must meet exacting standards. These gases must be transported in owner trolleys or cylinders, and these trolleys and cylinders must be brought back to the refilling site for refilling and dispatch.
The other modes of distributing gases include pipelines and bulk transport through ships and trucks. Along with the containers used for transport, the functionality of gas handling equipment should be in accordance with the purity standards of gas. Pressure-reducing regulators and purge functionalities are among the components that play a vital role in the production of industrial gases. Therefore, efficient gas handling and distributed systems are crucial for the manufacturers of industrial gases.
Key Industrial Gases Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Industrial Gases Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Linde Inc. - The company offers industrial gases and mobile nitrogen pump trucks and tube trailers that can deliver a continuous, dedicated supply of 99.9+% pure nitrogen, in a wide range of temperatures and pressures, for a wide range of industries and applications. The company is involved in offering high-quality solutions, technologies, and services that are used for applications such as life-saving oxygen for hospitals.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The reports categorize the global industrial gases market as a part of the global speciality chemicals market. The parent global speciality chemicals market covers companies engaged in the manufacturing of various types of products under organic and inorganic chemicals. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The market share growth of the hydrogen segment will be significant during the forecast period. 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.
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The hydrogen segment was valued at USD 29.065.45 million in 2017 and continued to grow until 2021. 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.
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APAC is estimated to contribute 41% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The demand for industrial gases 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. This will propel the demand for a large amount of oxygen. Regulations pertaining to fuel emissions have created the demand for cleaner fuels in the transportation sector, which in turn, will boost the need for hydrogen. With the rapidly depleting fossil fuel sources, the use of hydrogen as an energy source will gain traction in the coming years. The use of nitrogen for food preservation will also boost the growth of the market.
The outbreak of COVID-19 led to a decline in the demand for industrial gases in APAC. However, the need for medical oxygen increased substantially in the region. Realizing this growing demand, the Governments of various countries regularized the circulation and supply of medical oxygen from local production units. Also, the rising demand for industrial gases has attracted many international vendors to this region. The increase in the number of market players in APAC is expected to further boost the regional market growth in the future.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Type (Hydrogen, Oxygen, Nitrogen, Carbon dioxide, and Others), End-user (Manufacturing, Chemical processing, Metal fabrication, Energy, and Others), and Geography (APAC, North America, Europe, South America, and Middle East and Africa).
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Industrial Gases Market Scope |
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Report Coverage |
Details |
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Page number |
193 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.92% |
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Market growth 2023-2027 |
USD 29,120.36 million |
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Market structure |
Concentrated |
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YoY growth 2022-2023(%) |
5.12 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 41% |
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Key countries |
US, China, Japan, India, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Air Liquide SA, Air Products and Chemicals Inc., Air Water Inc., Airgas Inc., Asia Technical Gas Co Pte Ltd., BASF SE, Bombay Oxygen Investments Ltd., Buzwair Industrial Gases Factories, Coregas Pty Ltd., Daesung Industrial Co. Ltd., Goyal Group, Guangdong Huate Gas Co. Ltd., Gulf Cryo Holding CSC, Iwatani Corp., Linde Inc., Messer SE and Co. KGaA, Praxair Technology Inc., SOL Spa, Taiyo Nippon Sanso Corp., and Yingde Gas Group Co. Ltd. |
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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, and Market condition analysis for the forecast period. |
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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. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
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
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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