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The neon gas market size is estimated to increase by USD 116.6 million and grow at a CAGR of 7.55% between 2023 and 2028. The market is experiencing significant growth, driven by increased demand for Integrated Circuits (ICs) and the expanding need for efficient lighting solutions. Furthermore, industrial development in emerging economies is fueling market expansion. However, the market faces challenges such as the adverse effects of the Russia-Ukraine conflict on raw material supply, elevated production costs, and unpredictable investment returns. Complexities in manufacturing processes, including pattern and functional defects, further complicate market growth. Despite these hurdles, the market continues to show promise due to its essential role in various industries, including electronics and lighting.
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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.
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The semiconductor segment was the largest segment and was valued at USD 96.10 million in 2018. 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.
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Europe is estimated to contribute 51% 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 during the forecast period.
Neon gas is a noble gas, found in the periodic table, primarily used in various industries due to its unique properties. The primary applications of neon gas include use in lasers, electronics, and advertising. In the electronics industry, neon gas is utilized in vacuum tubes and neon indicators. In the military and defense sector, it is used in sensors and aviation for various applications. Neon gas is also used in air separation units to extract it from the air. In the semiconductor industry, neon gas is used in LCD and imaging applications. It is used in the production of semiconductor devices as a dopant gas and in the lithography stage. Neon gas is also used in the production of neon lights and fog lights. The demand for neon gas is driven by the growing use of semiconductors in consumer electronics such as smartphones and televisions. Neon gas is also used in helium-neon lasers, which are widely used in research and scientific applications. The global market is expected to grow due to the increasing demand for semiconductors and neon lights. Our researchers analyzed the data with 2023 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. Hence, such factors are driving the market during the forecast period.
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.
Market 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 research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
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The imaging and lighting sector benefits significantly from advancements in technologies related to high-energy particle colliders and plasma studies. These innovations often involve helium, high-purity neon gas, and liquid air, which are critical in cryogenic refrigeration and spectroscopy applications. Semiconductors sectors and the electronic goods sector rely on DUV lithography methods for precision manufacturing of components like barcode scanners and laser sensors. Fractional distillation processes are used to separate gases such as helium and oxygen, which are essential for various applications, including gas lasers and fluorescent starter tubes. The market landscape depends on elements such as the Low temperature polysilicon backplanes, Advanced flat panel displays, Television display, Electric field, High energy particle colliders. The aircrafts sector also utilizes these technologies for advanced imaging and lighting systems. Additionally, electron tubes and glow lamps contribute to lighting solutions, while the study of the Earth’s atmosphere and plasma further supports these high-tech applications.
Neon gas is a rare, colorless, inert, monatomic gas under standard conditions, making it an essential component in various industries, particularly in electronics, military and defense, and lighting applications. Neon is primarily used in the production of neon lights, which are known for their distinctive red glow. Neon tubes, made of glass tubes filled with neon gas under an electrical discharge, are widely used for advertising and illuminating buildings. In electronics, neon gas is used in vacuum tubes, such as wave meter tubes and thermionic valves. In military and defense, it is employed in air separation units for producing oxygen for rocket propulsion systems and in particle colliders for scientific research. Neon also finds applications in semiconductors, cryogenic applications, and holography. Neon's emission spectrum includes red, green, orange, yellow, and other colors, making it suitable for various lighting and signage applications. Its high boiling point and gaseous condition make it an ideal choice for use in cylinders and tanks for storage and transportation. Neon is often used in combination with other rare gases, such as krypton and argon, for various applications in oil and gas, mining, and lighting technologies.
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Market Scope |
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Report Coverage |
Details |
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Page number |
166 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 7.55% |
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Market growth 2024-2028 |
USD 116.6 million |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
6.66 |
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Regional analysis |
Europe, APAC, North America, Middle East and Africa, and South America |
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Performing market contribution |
Europe at 51% |
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Key countries |
Ukraine, Russia, China, US, and France |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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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. |
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Market dynamics |
Parent market analysis, Market forecasting , market report , market forecast , Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for 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 market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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