Industrial Gases Market Size, Share and Industry Analysis, By Gas Type (Oxygen, Nitrogen, Carbon Dioxide, Hydrogen, Argon, and Others), By Application (Packaging, Coolant, Carbonation, Cryogenic, Cutting & Welding, Laboratory, Air Separation, and Others), By End User (Metallurgy, Healthcare, Chemical, Food & Beverage, Oil & Gas, Power, Pulp and Paper, Electronics, Water Treatment, Mining, and Others), and Regional Forecast, 2020-2027

The global industrial gases market size stood at USD 95.71 billion in 2019 and is projected to reach USD 149.33 billion by 2027, exhibiting a CAGR of 6.0% during the forecast period.

Oxygen, hydrogen, carbon dioxide, and nitrogen are the most common gases used as industrial gases. They have distributed to the end-use industries in both liquefied forms as well as a gaseous form through gas tankers. These gases are made from cryogenic filtration of air with the help of air separation units. Depending on their application in different industries, these gases are also categorized into medical gases, fuel gases, refrigerant gases, and specialty gases. The increasing demand from major end-use industries such as oil and gas, chemicals, petrochemicals, food & beverage, and power has attributed to this global market growth. The increasing production of low sulfur, and clean-burning fuels require a massive amount of hydrogen for hydrotreating petroleum distillates, which is increasing the demand for these gases. The increasing demand for electronic devices throughout the world and growing demand for producing renewable energy is projected to offer a lucrative growth opportunity for the market.

LATEST TRENDS

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Increasing Application in Oil & Gas Industry to Drive Market

The rise in global crude oil demand and the need for refining has increased the demand for these gases in this global market. These gases are used in oil & gas industry at large scale for upstream & downstream application such as drilling, well lifting, coiled tubing, pipe inerting and cooling, leak testing, inspection, maintenance, subsea works, spool base for pipe building, shipbuilding, subsea structure, offshore vessels, catering services, gas analysis, firefighting, compositional analysis, sulfur compounds, and other applications. Increasing expansion of the oil & gas industry would propel the demand for industrial gases, thereby driving the market in the long run.

Increasing Urbanization & Industrialization Rate and Growing Application of Industrial Gases Will Add Impetus to Market

Substantial increase in urbanization and the growing rate of industrialization are the major factors promoting the industrial gases market trends. Urbanization will increase consumer demand, thereby increasing the manufacturing & processing industries, and ultimately adding a boost to the market. As per a report by the Central Intelligence Agency, nations such as China, India, Malaysia, and Vietnam has an urban population of 60.3%, 34.5%, 76.6%, and 36.6% as of 2019 which is increasing at a rate of 2.4%, 2.4%, 2.1%, and 3% respectively. According to the World Investment Report 2018, governments of various nations are focusing on improvising industrial policies. The policies include strategic investment policy priorities, entry and establishment of foreign investors, and promotion and facilitation of investment policies to bring a conducive environment for improving industrial sustainability. Hence, significant growth in industrialization and rising urbanization acts as a potential driver for market growth during the projected period.

DRIVING FACTORS

Increasing Investment in Manufacturing and Processing Industries to Fuel Demand

Increasing investments from the industrial sector that includes mining and metal, food & beverage, metallurgy, and electronics in the developing economies will fuel the demand in the market. According to the World Investment Report 2018, Asia Pacific made an investment of USD 476 billion from foreign direct investment in the year 2017, which was primarily focused by China and Singapore. Hence, the growing investment from the manufacturing & processing industry propels the demand for these type of gases used in industries among various end use industries such as food & beverage, metallurgy, metal & mining industry. Hence, growing investment in manufacturing & processing industries will augment growth during the projected period.

Significant Growth in Food & Beverage and Healthcare Industries Promoting Market Growth

Growing investment in the food & beverage and healthcare industries are propelling the demand in the market during the forecast period. As per the Germany Trade & Invest report, Europe is the largest food producer, and Germany ranks the fourth-largest in the food & beverage industry. Germany is also the third-largest exporter of the food and beverage industry, where exports of processed foods and agricultural commodities have generated sales of USD 84.31 billion in 2018. The healthcare industry also dominates this market owing to increasing investment and technological advancement in the healthcare industry. According to the Forbes report, digital health investments had increased up to USD 6.5 billion in 2017, which is up by 109% as compared to the previous year. Hence, increasing investment and significant growth in the food & beverage and healthcare industry fuels are aiding to the expansion of the market during the forecast period.

RESTRAINING FACTORS

Stringent Laws and Regulations for Manufacturing, Storage, and Distribution of Industrial Gases Hampers Market Growth

Stringent laws and regulations related to the manufacturing, storage, and transportation of industrial gases are likely to restrict the market growth during the projected period. According to EU Regulation 231/2012, the composition of hydrocarbons was specified for the storage and distribution of these gases. The transportation of these gases was bound under the European Agreement on the Carriage of Dangerous Goods by Road, ADR regulation for safety measures. Hence, stringent laws and regulations for manufacturing, storage, and distribution of these gases may cause hindrance to the growth of the market.

The outbreak of COVID-19 is affecting the industrial gas market directly, to ensure safety. Most industries and commercial operations are terminated, food & beverage industries are closed, and the transportation sector is also at a halt.  Such factors are attributed to hamper the growth of the industrial gas market. A decrease in demand for the oil & gas industry, metallurgy, and mining industry are also affected due to COVID-19. Hence, the outbreak of COVID-19 is adversely affecting the industrial sector, which may restraint this market in the forthcoming years.

SEGMENTATION

By Gas Type Analysis

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Oxygen segment to Witness Dominance Owing to its Increasing Demand

Based on gas type, the market is segmented into oxygen, nitrogen, carbon dioxide, hydrogen, argon, and others. The oxygen segment is dominating the market owing to its wide application in oxygen scarfing, gas welding, gas cutting, flame cleaning, flame straightening, and flame hardening. It is mostly used in various industries such as air products and chemicals, pharmaceuticals and petroleum, pulp and paper manufacturing, health care, glass, and ceramics industry and other industries. Nitrogen holds the second largest share owing to its chemical property, which is slightly lighter than air and slightly soluble in water. It is used in a wide range of industries such as chemicals, pharmaceuticals, glass, and ceramic manufacture, petroleum processing, steelmaking, and other metal refining industries. The carbon dioxide segment is also drawing notable share, as it is used as a raw material for the production of various air products and chemicals such as carbonation of soft drinks, fire extinguishing systems, freezing of food products such as poultry, vegetables, fruit, and meats. Hydrogen ad Argon segment is also witnessing high growth accountable to its use in various applications such as shield gas in TIG welding for the manufacturing and processing, and metallurgy industries.

By Application Analysis

Increasing LNG Demand, Aid the dominance of Cryogenic Segment in Market

In terms of application, the market is segmented into packaging, coolant, carbonation, cryogenic, cutting & welding, laboratory, and air separation segment. The cryogenic segment is dominating the market owing to a wide application to produce cryogenic fuels, such as liquid hydrogen and liquid oxygen for rockets and spacecraft. The packaging segment is witnessing high growth on account of changing lifestyles and the rise in consumption of packaged food products from the food & beverage industry. The expanding process industry, which drives the need for coolant applications from petrochemical, chemical, energy, food, and pharmaceutical industries, is likely to propel the demand for coolant segments in the coming years. Carbonation is carried out either in industries where beverages are processed and bottled or on-site at places of consumption such as bars and fast-food restaurants. This is likely to boost the carbonation segment growth during the projected period. The Air separation segment is also attracting significant share attributable to a wide application in the metallurgy and healthcare industry. Cutting & welding, laboratory, and other segments, which include firefighting, semiconductor fabrication, and environmental protection, are also arising to the expansion of this market during the forecasted period.

By End User Analysis

Growing Application in Healthcare Industry Is Likely to Create Huge Demand in The Market

In terms of end-users, the market is segmented into healthcare, food & beverage, oil & gas, chemical, power, metallurgy, electronics, mining, pulp and paper, water treatment, and others. The healthcare sector is the leading and fastest-growing segment owing to high demand for wide applications such as nitrogen to preserve vital blood and tissue, helium for MRIs, and oxygen and respiratory gases to breathe. The growing trends for packaged food and increasing investment in the food & beverage industry are also propelling its demand in the market. Specialty gases help to produce advanced lighting and insulation materials as well as photovoltaic cells, which are used in solar energy panels. Hence, increasing demand for renewable energy is likely to boost the growth of this segment in the coming years.

The chemical industry is also witnessing high growth owing to the wide application of oxygen, hydrogen, carbon dioxide, methane, and other. They are also used for chemical processes, neutralizing agents for alkaline materials, and raw material in the chemical industry. The oil & gas industry is also adding a boost to the market share where liquid nitrogen and carbon dioxide is used to produce conventional and unconventional hydrocarbons through fracturing. Industrial gases are used in various applications in the oil & gas sector, such as nitrogen gas for coiled tubing, completion, drill stem testing, pressure testing, stuck drill pipe, and other applications. The metallurgy industry also augments growth on account of increasing welding applications such as welding processes, metal arc welding, flame cleaning, gas welding, gas cutting, oxygen scarfing, flame hardening, flame straightening, and gas tungsten arc welding. Electronics, mining, pulp & paper segment, and other segments, which include automotive, utilities, construction, and plastic & recycling segments, are likely to witness steady growth during the forecasted period.

REGIONAL INSIGHTS

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The market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. Asia Pacific is likely to hold major industrial gases market share owing to increasing urbanization and industrialization, coupled with growing applications in various end use industries such as metallurgy, healthcare, food and beverage, oil & gas, power.  Besides this, emerging economies such as China, India, Japan, and Indonesia, and others, are looking forward to investing in sustainable energy development. Several companies are investing in these countries due to the presence of an enormous consumer base. Asia Pacific is expanding in the healthcare and food & beverage industries, thereby driving the market. The industrial sector is expected to witness a rise in demand for industrial gas in the projected period. The demand from the pharmaceutical and metallurgy industries are also adding a boost to the market.

North America, on the other side, is holding the second largest market share owing to the increasing application of these gases in the oil & gas industry, healthcare industry, and growing chemical industry.

The countries in the Middle East & Africa are highly dominated by oil and gas companies, which require specialty gases and nitrogen gas for drilling and completion work. Furthermore, the rapidly growing urbanization and industrialization rate from the Latin American food & beverage industry is expected to draw stable revenue during the forecast period.

KEY INDUSTRY PLAYERS

Linde Holds Leading Position Owing to Increasing Industrial Investment

The competitive landscape of the market depicts significant investment in the healthcare and pharmaceutical industry, with Linde holding a significant position. Improving economic scenario and growing metal processing and manufacturing industries, which includes oil & gas, chemical, food & beverages, and transportation are the prominent factors responsible for the dominance of Linde.

However, regional and domestic players such as Bombay Oxygen Corporation Limited, SICGIL India limited, Yateem Oxygen, Goyal MG Gases Pvt. Ltd and other key players are engaging in mergers and acquisitions, joint ventures, and other collaborative efforts to contribute notably to the market.

LIST OF KEY COMPANIES PROFILED:

• Air Liquide


• Air Products


• Linde


• Matheson Tri-Gas


• Messer Group


• Gulf Cryo


• BASF


• Southern Company Gas


• Universal Industrial Gases


• Ellenbarrie Industrial Gases Ltd


• Bhuruka gases ltd


• Concorde-Corodex Group


• Dubai Industrial Gases


• Bristol Gases


• Mohsin Haider Darwish LLC

KEY INDUSTRY DEVELOPMENTS:

• October 2019 – Air Products has received a contract worth USD 168 million from NASA to supply helium for its space projects. The contract runs for two years, followed by a one-year option that would extend the deal to 2024.


• June 2019 – Linde and ExxonMobil Asia Pacific Pvt. Ltd. had signed a multi-billion agreements for the expansion of the company’s integrated manufacturing complex in Singapore. The project includes building and operating four additional gasifiers, a 1200 metric ton per day (TPD) air separation plant (ASU) as well as Linde’s proprietary downstream gas processing units and sulfur recovery plants.


• June 2019 – HyGear had signed a long term contract with a glass producer in Belgium for supplying hydrogen gas. The contract is part of HyGear ongoing expansion of its Gas-as-a-Service (Gaas) offering in Europe.

REPORT COVERAGE

The industrial gases market report provides a detailed chain analysis of the market and focuses on key aspects such as leading companies, products, and upcoming developments of the product. Besides this, the report offers insights into the industry trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.

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