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The global krypton market size was USD 44.95 million in 2019 and it is estimated to reach USD 49.90 million by 2027, exhibiting a CAGR of 0.8% over the forecast period.
In the manufacturing of insulation glass, krypton (Kr) gas is used for filling the gaps between glass panels, for heat insulation and sound absorption. The greater the gas filling more is the insulation, thermal protection, and soundproof effect. The demand for energy-efficient buildings is rising across the globe which is likely to aid the growth of the market in the coming years. It also plays an important role in semiconductor excimer lasers. The increasing laser applications in fields such as semiconductor, medical, and defense is expected to boost the demand in the near future.
Halt in Manufacturing Activities in Industries to Decline Demand amid COVID-19
The outbreak of the COVID-19 pandemic has disrupted nearly all the major industries operating around the world. Krypton is produced in sophisticated air separation units and is usually produced only upon order or contracts. However, the COVID-19 outbreak has sparked an exponential increase in the demand for oxygen as the number of patients requiring ventilators has increased rapidly. Also, hospitals and governments around the world are anticipating a rise in the COVID cases and thus, these institutions are building up their inventories to avoid shortages in the near future. Moreover, the manufacturing activities have come to a halt, which, in turn, is resulting in a weaker demand from industries such as glazed window manufacturing, the lighting industry, and others. Further, major manufacturers such as Linde have also committed to fulfilling the demand for oxygen and other medical gases from hospitals in these times of crisis.
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Rising Usage of Krypton in Satellites for Being Cost-effective is a Crucial Trend
In space, xenon gas is used to drive interplanetary probes and maneuverable satellites. The availability of this gas is usually very scarce and it is expensive, as compared to krypton and argon. Thus, most of the satellite manufacturers are trying to incorporate krypton gas instead of xenon, as it is cheaper and is also available in abundance. Hence, it is becoming a significant part of satellite applications. For instance, SpaceX launched the seventh batch of its 60 Starlink satellites on 22nd April 2020. These satellites are equipped with krypton-based ion thrusters. The company is set to launch 12,000 such satellites by 2024.
Soaring Demand for Krypton in Making Glazing Windows to Underpin Growth
The gas finds its main adoption in the high-end double and triple glazed windows. It provides superior thermal, as well as acoustic insulation. It is relatively more expensive than argon, which dominates the market. However, it is gaining significant traction in the market as the demand for high performance and energy-efficient windows is increasing. These multi-layered windows have sound-absorbing properties. They are experiencing surging demand from areas with high temperatures in the Middle East to the cold temperatures in Europe & the other parts of the world. These windows function efficiently by allowing low-temperature absorption in summers and high-temperature retention in winters. This significantly reduces the air-conditioning cost.
Availability of Alternatives to Obstruct Market Growth
Krypton is a rare noble gas present in space, as well as the earth’s crust. The rare gases including argon, neon, and xenon are obtained in air separation units. Argon is produced on a large scale in more than 950 facilities worldwide. But, for neon, krypton, and xenon, there are only around 20 purification plants available globally. Argon is mostly used as a substitute for this gas, as it is less expensive. It is not only cheaper but also provides better insulation properties and helps to reduce heat transfer in energy-efficient buildings.
Less availability makes it a more expensive option. The cost is the main concern for customers. The less availability and high cost make it difficult to compete in the market. At the same time, there are various substitutes that are available. These mentioned factors are expected to restrain the krypton market growth.
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Windows Segment to Generate the Highest Revenue During the Forecast Period
The windows segment dominates the global krypton market, both in terms of volume and value. Multi-layer windows filled with these gases are relatively more expensive than the most widely used argon-filled multi-layer windows. However, they are better in performance than the argon-filled windows. Also, with the increasing importance of energy-efficient buildings, the demand for multi-layer glazing windows is increasing. According to a survey conducted by the U.S. Energy Information Administration in 2015, in the United States, around 51% of energy consumption is utilized for heating and cooling purposes.
The use of double & triple glazed windows can significantly reduce energy consumption and cost over a period of time. With the rising demand for energy-efficient and greener buildings, the demand for these windows is also expected to increase. Many skyscrapers around the world are equipped with such windows for superior performance. For instance, the Empire State Building in New York is equipped with 6379 krypton-air, argon gaseous mixture filled windows. This has reduced the heat losses of the building by over 75%.
The lighting segment also accounts for a prominent share in the global market. Krypton-filled lamps have high demand in the road transport and industrial lighting applications due to their long life span and high white light luminance. However, with the advent of superior lighting technologies such as LEDs, the demand for such lamps is continuously decreasing.
The demand in the laser industry is significantly increasing due to the high demand for krypton excimer lasers in semiconductors and medical fields. These lasers are one of the brightest in the world and have a prolonged life period. In the semiconductor industry, they are used in the production of integrated circuits, micromachining, and similar other applications.
The R&D and other applications segment is the fastest-growing segment in the global market. In liquid form, krypton is used in the construction of quasi-homogeneous electromagnetic calorimeters in experimental particle physics experiments.
Asia Pacific Krypton Market Size, 2019 (USD Million)
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Asia Pacific dominates the global krypton market on account of the strong demand from the construction and semiconductor industries in the region. China experienced increasing urban development in this decade that created lucrative growth opportunities for the associated industries. The established semiconductor and electronics industries in the region also significantly contributed to the demand for krypton in recent years. Asia Pacific is set to be the fastest-growing region over the forecast period owing to the rapid economic developments in the emerging countries.
North America accounts for over one-fourth of global consumption. The resurgent construction industry and government efforts for promoting energy-efficient and greener buildings have generated significant demand for noble gas-filled windows in the local market. In 2010, the U.S. government launched a tax-saving program for thermal insulation measures that resulted in the increased demand for high-performance windows. The demand in the region is further expected to increase with the adoption of this gas as a propellant in the aerospace industry. Space exploration companies such as SpaceX have preferred to use Kr instead of xenon in electric propulsion engines due to its economic benefits and abundant availability, as compared to xenon, for satellite launches.
Europe follows a similar consumption trend as that of North America. The demand in the region is dominated by the windows segment. 99.9% (3.0 window grade) is prominently used in the region. Also, the demand for lighting applications is rapidly decreasing in the western countries of Europe such as Germany, France, and the U.K. which is expected to hamper the market growth in the near future. However, it would exhibit a strong demand from research and laser applications that are further expected to drive growth in the region.
Latin America and the Middle East & Africa are relatively small markets and are expected to showcase low growth, as compared to the other regions. The high temperatures in the Middle East would create lucrative opportunities for krypton-filled glazed windows to be employed in skyscrapers. However, there are very few manufacturers of multi-layer glazed windows in the region that would restrict the market growth. Brazil & Mexico are prominent consumers in Latin America. With the improvement of socio-political conditions in Latin America, the end-use industries are expected to regain their momentum, and thus, it would increase the demand for the products in the future. However, overall, the krypton market in the region is anticipated to exhibit sluggish growth over the foreseeable period.
Industry Giants to Adopt Merger & Acquisition Strategy for Intensifying Competition
The global krypton market is highly consolidated with the top five (including Air Liquide & Linde plc) manufacturers accounting for more than 85% of the market share in global krypton business. Merger & acquisition remains one of the top strategies of key players in the market. Top players have strengthened their positions through such strategies in recent years. The main focus is on countries located in North America, Europe, and Asia-Pacific.
An Infographic Representation of Krypton Market
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The market research report provides both qualitative & quantitative insights into the global krypton market. Quantitative insights include the global market sizing in terms of value (USD million) and volume (million liters) across each segment, sub-segment, and region profiled in the scope of the study. Also, the report covers the market share analysis and growth rates of segments, sub-segments, and key counties across each region. Qualitative insight covers an elaborative analysis of market dynamics, drivers, restraints, growth opportunities, and key trends related to the market. The competitive landscape section covers detailed company profiles of key players operating in the global market. Our researchers have applied SWOT analysis to collect vital information.
Value (USD Million); Volume (Million Liters)
Application; and Geography
Fortune Business Insights says that the market stood at USD 44.95 million in 2019 and is projected to reach USD 49.90 million by 2027.
The market will exhibit steady growth at a CAGR of 0.8% in the forecast period (2020-2027).
The windows segment is expected to lead the global market.
The application of krypton in glazing windows is driving the market growth.
Asia Pacific is expected to hold the highest share in the market.
The use of Kr as a propellant in the aerospace industry is one of the market trends.
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