Enjoy complimentary customisation on priority with our Enterprise License!
The neon gas market size is estimated to increase by USD 105.46 million and grow at a CAGR of 7.29% between 2022 and 2027. The market's expansion hinges on various factors, including heightened demand for Integrated Circuits (ICs), growing need for lighting solutions, and industrial development in emerging nations. Challenges confronting the market encompass the adverse effects of the Russia-Ukraine conflict, elevated production costs, and unpredictable returns on investments, as well as complexities in patterns and functional defects during the manufacturing process.
To learn more about this report, View Report Sample
This market report extensively covers market segmentation by application (semiconductor, imaging and lighting, lasers, and others), distribution channel (cylinders, bulk and micro bulk, and on-site), and geography (Europe, APAC, North America, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The semiconductor segment is estimated to witness significant growth during the forecast period. The emergence of a multi-core digital signal processor (DSP) reduces power consumption and increases performance. Multi-core DSPs are essential for high-performance radar and avionics systems deployed in defense infrastructure for enhanced surveillance. Radars and military equipment require high processing support and therefore depend on efficient implementation of DSP algorithms.
Get a glance at the market contribution of various segments View the PDF Sample
The semiconductor segment was the largest segment and was valued at USD 91.73 million in 2017. It is used in the production of semiconductors. With technological improvements, mobile systems supporting defense infrastructure are getting smaller and defense applications are becoming more powerful. Therefore, the demand for more optimized DSP with better architecture is expected to increase. These factors will drive the growth of global semiconductor components which in turn will fuel the market during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
Europe is estimated to contribute 52% 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. Factors such as growing demand for advanced vehicles, growth in the automotive industry, rising smartphone adoption rates coupled with growing internet connectivity, rising demand for products with advanced technology from the defense and aerospace industries and growing demand for high-speed devices from the telecommunications industry are driving demand for semiconductors which are driving the application.
In addition, the presence of global and local market players such as INGAS and Cryoin is a key driver for the growth of the market in Europe. Furthermore, improved internet connectivity coupled with increased smartphone USAge and developments related to the deployment of 5G technology are the key factors boosting the demand for hybrid semiconductors, thereby boosting the market growth in Europe.
The market is primarily driven by its widespread usage across various industries, including electronics, military and defense, aviation, and semiconductor manufacturing. It is an essential component in gas lasers used for cutting, welding, and medical applications, making it indispensable in the defense sector and medical industry. Additionally, in the electronics industry, it is utilized in flat panel displays, LCD screens, and smartphone manufacturing, contributing to its significant demand. Despite challenges such as global financial crises and rising gas costs impacting market dynamics, the continuous advancements in technology and the growing demand for semiconductors and electronic devices have bolstered the growth of the market.
Furthermore, a notable trend in the market is the increasing adoption of neon lights in various applications such as lighting, signage, and advertising. Neon lights offer high brightness and visibility, making them popular choices for illuminating buildings, billboards, and storefronts. Moreover, advancements in imaging and lighting technologies, such as the use of neon gas in Excimer laser gas mixtures and low-temperature polysilicon (LTPS) backplanes for flat panel displays, have further propelled the demand for neon gas. As the demand for high-purity neon gas continues to rise for applications in gas lasers, semiconductor manufacturing, and lighting applications, the market is expected to witness steady growth in the coming years.
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.
The market is propelled by the increasing demand for integrated circuits (ICs) across various industries, particularly in automotive, consumer electronics, and telecommunications. As the automotive sector adopts more stringent safety regulations globally, automotive OEMs are compelled to incorporate advanced electronic components into vehicles to enhance safety features. This necessitates the use of semiconductor chips, where neon gas plays a crucial role in the lithography process, essential for manufacturing semiconductor chips. Additionally, the proliferation of smartphones, televisions, and other electronic devices further drives the demand for semiconductor chips, thereby increasing the requirement for neon gas in the semiconductor manufacturing process.
Furthermore, advancements in technology and the growing integration of semiconductor integrated circuits in automotive applications, such as microcontrollers, microprocessors, memory devices, and power management ICs, contribute to the rising demand for semiconductor chip production. Neon gas, utilized in the production of semiconductor chips through the excimer laser gas mixture process, becomes indispensable in meeting the escalating demand for electronics. As a result, the market is poised to witness significant growth during the forecast period, driven by the expanding semiconductor industry and the increasing use of integrated circuits in various electronic devices.
Increasing demand for enhanced power density is the primary trend shaping market growth. Composite semiconductor materials are suitable to operate at high power densities because the intrinsic properties of the materials allow them to withstand high temperatures. The need for a cooling system is eliminated, resulting in compact application sizes and lower costs. In addition, composite semiconductor materials offer higher conversion rates and energy efficiency, which ultimately results in lower system costs.
Moreover, applications such as inverter systems, electric rail traction drives, wind generators, and solar generators use power electronics to improve their operational efficiency. However, silicon-based electrical devices cannot deliver the required performance, driving demand for composite semiconductor materials. As neon is the main component used in hybrid semiconductor photolithography, the increasing demand for hybrid semiconductors will drive the global market during the forecast period.
The negative impact of Russia Ukraine war is the challenge that affects the growth of the market. Ukraine is a major supplier of neon, with key suppliers such as Cryoin and INGAS based in Ukraine. INGAS Due to Russia's invasion of Ukraine, Cryoin's production plants were closed in 2022, after which it faced an acute financial crisis. The Russian invasion of Ukraine had a negative impact on the development of the semiconductor industry due to the rising cost of various raw materials used in the production of semiconductors.
Moreover, due to the war, semiconductor manufacturers in many parts of the world were unable to source components from Russia and Ukraine. Rising energy prices and the unavailability of key components used in semiconductor chip manufacturing have affected its manufacturing process. Hence, the war between Russia and Ukraine has negatively impacted neon demand on both the supply and demand side. Also, the Russia-Ukraine war is expected to impede market growth during the forecast period.
The market research 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.
GlobalMarket Customer Landscape
Companies 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.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
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 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 is influenced by various factors including military and defense applications, advancements in technology, and the demand for neon lights in advertising and illuminating buildings. Aviation and space agencies also contribute to the market through the use of neon gas in rocket propulsion systems and space exploration. With its wide range of applications including LCD screens, gas lasers, and plasma studies, neon gas continues to be vital in semiconductor manufacturing and cryogenic refrigeration. However, challenges such as gas costs and supply chain disruptions impact market dynamics, despite the ongoing expansion of production facilities and technological advancements.
Moreover, the market thrives on diverse applications such as sensors, signage, and lighting due to its unique properties and wide range of uses. Neon gas manufacturers continually expand production facilities to meet growing demand, particularly in cryogenic applications and particle colliders where its low boiling point and emission spectrum are essential. From television displays to fluorescence tubes, neon gas plays a pivotal role in various technologies, including Excimer laser gas mixtures and DUV lithography systems. Despite fluctuating neon gas prices, its indispensable role in imaging, lighting, and chromatography ensures sustained demand and technological advancements in the market.
Air separation units, pivotal in the production of noble gases like neon and krypton, are experiencing heightened attention during the assessment period. This surge is fueled by the expansion of production facilities for neon tubes, glass tubes, and wave meter tubes. These gases find extensive applications in various industries, including the manufacturing of helium-neon lasers for holography and other specialized purposes.
Neon Gas Market Scope |
|
Report Coverage |
Details |
Page number |
157 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.29% |
Market growth 2023-2027 |
USD 105.46 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.21 |
Regional analysis |
Europe, APAC, North America, Middle East and Africa, and South America |
Performing market contribution |
Europe at 52% |
Key countries |
US, China, Ukraine, Russia, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Air Liquide SA, Air Products and Chemicals Inc., Axcel Gases, BhurUKa Gases Ltd., Chemix Gases, Chengdu Taiyu Industrial Gases Co. Ltd., Cryoin Engineering Ltd., Deluxe Industrial Gases, INGAS LLC, Jinhong Gas Co. Ltd., Linde Plc, Merck KGaA, Messer SE and Co. KGaA, Mitsubishi Chemical Group Corp., Proton Gases India Pvt. Ltd., TEMC Co. LTD., and Wesfarmers Ltd. |
Market dynamics |
Parent market analysis, Market forecasting, 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 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. |
We can help! Our analysts can customize this market research report to meet your requirements.
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.