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The U.S. specialty gas market size was worth USD 1.56 billion in 2022 and is projected to grow at a CAGR of 8.4% during the forecast period.
The U.S. is one of the largest industrial gas consumers in the world and in the last five years, the demand for specialty gases has increased significantly in this country. These include noble gases, carbon gases, and high purity gases which are utilized in many applications and are not limited to hydrocarbon processing industry, food & beverage, electronics, and life sciences. The level of purity for specialty gases can reach up to 99.99999% (7.0), this means very low levels of impurities which makes it suitable for advanced production processes, instrumentation and analytical measurement. As industries are moving from a purity level of parts per billion (ppb) to parts per trillion (ppt), specialty-gas will become a natural choice driving its demand during the forecast period (2023-2030).
The COVID-19 pandemic negatively affected the market in the U.S. This led the government to announce lockdowns which limited the flow of raw materials and products impacting the market significantly. However, the manufacturers have ramped up the production to meet the rising demand for industrial gases and regain their pre-pandemic levels.
Trend of Digitalization Will Act as Growth Lever for Specialty Gas Market
The COVID-19 outbreak propelled the trend of digitalization at a rapid pace forcing almost every industry to become digitalized and increase their online presence. Along with digitalization, electric mobility has created a new demand stream for semiconductor devices. As a result, rapid expansion in vertical and horizontal applications of semiconductor chips is set to double its demand by 2030. In response to this trend, under the U.S. CHIPS Act, the U.S. government will invest USD 52.7 billion in the U.S. semiconductor industry from 2021-2026. In addition, the U.S. is one of the leading semiconductor manufacturers in the world. Specialty gas is a key ingredient in semiconductor chip production and increasing production of semiconductor chips is set to fuel the sales of these gases in the foreseen period.
Increasing Utilization of Specialty Gases across Many Industries are Set to Bolster the Demand
As companies are moving toward more refined products and increased efficiency, specialty-gas is becoming the primary choice to fulfill the criteria. For instance, the oil & gas industry and petroleum refineries are implementing more advanced technologies to increase the purity level of their products. This is mainly because the overall industry is seeking to become more efficient and productive in every possible way. Specialty-gas is a key to achieving and maintaining this performance expectation. The U.S. is a hub of the hydrocarbon processing industry and it is the largest oil producer in the World. In the year 2022, the U.S. accounted for around 20% of the global oil production and generated significant demand for this type of gas in this year.
Apart from this specialty gas is consumed in the food & beverage industry to enhance food product quality and to maintain its safety. Biotech and pharmaceutical companies use these gases across many stages of research, clinical trials, and production. Growing demand for these gas in long-term storage applications of clinical and biological samples will assist the U.S. specialty gas market growth.
High Costs Associated With Specialty Gas Production to Restraint Market Growth
Specialty gas production requires a great deal of production engineering as compared to standard industrial gas production. Due to this, this gas is not easily available as industrial gas shelf products, as in a few complex cases, it takes several weeks to produce the specific gas demanded by the consumer. Being highly pure, it goes through extreme complexity during its production and sourcing pure raw material to purify it further is another challenge faced by manufacturers. Furthermore, it takes an in-house additional purification process to achieve the desired purity required by the consumer. Number of additional processes and advanced technology increases the overall production cost making it challenging for tier 3 and tier 2 companies to manufacture such high-purity gases.
Based on type, the market is segmented into electronic gases, gas & liquid mixtures, pure gases, and others. Electronic gases segment held the largest U.S. specialty gas market share in 2022 and is poised to maintain its dominance throughout the assessment period. This is mainly due to the increasing demand for these gases for various semiconductor applications such as fiber optics, flat panel displays, microelectronics, surface coatings, and others. In response to the increasing demand for electronic gases, many U.S.-based companies and foreign companies are planning to expand their presence in the U.S. market.
Based on end-use industry, the market is segmented into semiconductors, petroleum & chemical, healthcare, and others. Petroleum and chemical industry was identified as one of the significant consumers in the U.S. market in 2022 and is projected to expand at a CAGR of 7.9% from 2023 to 2023. Highly pure gases are widely used in analytical and process control applications as they offer accuracy ranging from percent to parts per billion (% to ppb). As a result, it is highly used in the petroleum and chemical industry to meet analytical and emissions standards, thus driving its demand.
In terms of the competitive landscape, the market depicts the presence of established and emerging specialty-gas companies. Air Liquide, Air Products and Linde are the few manufacturers covered in the market with a considerable amount of market share. During the historical period, these companies were involved in various growth strategies. It is also identified that foreign market companies such as Showa Denko and SK Group are planning to enter the U.S. market which will intensify the regional competition. In addition, market players have prioritized expanding their high-purity gas production for semiconductor applications. These factors are poised to shape the U.S. market in the foreseen period.
The study report thoroughly examines key factors such as leading companies, gas type, and end-use industry. It also provides market trends and highlights significant industry advancements. The study includes different variables that have contributed to the market's growth in recent years and the factors listed above. It examines the industry's newest market dynamics and opportunities and historical data and revenue growth estimates at the country levels.
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CAGR of 8.4% from 2023 to 2030
Value (USD Billion)
By End-Use Industry
According to Fortune Business Insights, the global market size was USD 155.52 million in 2022 and is projected to reach USD 669.77 million by 2030.
The market is expected to exhibit a CAGR of 8.4% during the forecast period (2023-2030).
By type, electronic gases accounted for a considerable proportion of the market in 2022
Air Liquide, Air Products and Chemicals, Inc., and Linde are among the top players in the U.S. market.
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