U.S. Specialty Gas Market Size, Share & COVID-19 Impact Analysis, By Type (Electronic Gases, Gas & Liquid Mixtures, Pure Gases, and Others) and By End-Use Industry (Semiconductors, Petroleum & Chemical, Healthcare, and Others), 2023-2030

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.

LATEST TRENDS

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.

DRIVING FACTORS

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.

RESTRAINING FACTORS

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.

SEGMENTATION

By Type Analysis

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.

• For instance, in June 2022, Showa Denko and SK Group have planned to set up a high-purity gas production plant to tap the increasing demand in the market.

By End Use Industry Analysis

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.

• The U.S. Chemical industry contributes nearly a quarter of the national total GDP accounting for almost 14% of the global chemical production in the year 2022. Such a huge industry presence in the U.S. will create significant demand for specialty gas in the future.

KEY INDUSTRY PLAYERS

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.

LIST OF KEY COMPANIES PROFILED:

• Air Liquide (France)


• Air Products and Chemicals, Inc. (U.S.)


• Linde (Ireland)


• MESA Specialty Gases (U.S.)


• Merck KGaA (Germany)


• Messer (Germany)


• Nippon Sanso Holdings Corporation (Japan)


• Showa Denko (Japan)

KEY INDUSTRY DEVELOPMENTS: 

• February 2023 – H2 Merck KGaA, one of the leading U.S. based manufacturers, has planned to expand its roots in Taiwan by establishing a new production facility. This production facility will be capable of producing these gases and semiconductor materials allowing the company to strengthen its foothold in the foreign market. 

• December 2022 – Electronic Fluorocarbons (EFC) Company that is a key specialty gas supplier to the semiconductor industry partnered with Solvay to distribute and provide Solvay’s product named Solvaclean. This product is a fluorine gas mixture which can be used to clean semiconductor equipment. This partnership will allow Solvay to enter the U.S. market and EFC will benefit by adding extra products in its portfolio.

REPORT COVERAGE

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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Report Scope & Segmentation