Xenon Market Size, Share & Industry Analysis, By Application (Imaging and Lighting, Medical, Satellite, Electronics & Semiconductors, R&D, Black Matter Research and Others), and Regional Forecast, 2019-2026

Xenon is a noble gas element with atomic number 54 and chemical symbol Xe. It is a dense, colorless, and odorless gas found naturally in the Earth’s atmosphere in trace amounts accounting for 0.0000087% of air by volume. It is manufactured in large cryogenic air separation units and consumes a significant amount of electricity for chilling.

Xenon market is classified on the basis of applications such as imaging and lighting, medical, satellite, electronics & semiconductors, R&D, black matter research and others. In 2018, the satellite segment held the largest share of 35.22% due to its increasing uses as propellants in spacecraft. Xenon is used most commonly as it can be easily ionized and generate a desirable level of thrust. The imaging & lighting application segment is further classified into arc lamps, headlights, incandescent bulbs, display panels, laser and others. Xenon gas finds its huge adoption in lighting applications. As a result, the imaging & lighting segment accounts for a significant share in the global xenon market globally. However, the rise in popularity of LED lighting technology is taking over the xenon and halogen lamp technology at high rates. This is expected to hamper the market growth. In terms of further segmentation of the imaging & lighting segment, the headlights segment accounts for a prominent share. In 2018, the imaging and lighting segment accounted for 23.62% xenon market share.   

MARKET DRIVERS

“Staggering demand in satellites areas is fueling market growth”

Xenon is an excellent propellant for the electric ion propulsion system, which is gaining significant traction in the satellite industry. From satellite launches to interplanetary operations, electric propulsion has been playing an important role in space exploration and is widely increasing its applications. Weight reduction is one of the prominent advantages of using xenon as a propellant that enables the spacecraft to carry more payload. Also, high ionization promoted by xenon makes it an ideal choice for moving between heliocentric orbits. The U.S., China, and Russia are the countries that launched a majority of satellites till 2019 and are expected to remain the key countries for satellite launches. The demand from the developed countries for satellite launches is expected to drive the xenon market growth.

SEGMENTATION

By Application Analysis

“Satellite Segment is Expected to Generate the Highest Revenue During the Forecast Period”

The satellite segment holds the largest share in terms of value and is expected to rise at the highest CAGR of 13.37% by the end of the forecast period. With the increasing number of electric propulsion spacecraft & satellite, there is a healthy demand for xenon expected from the aerospace industry over the forecast period. Many xenon based satellites are scheduled for launch during the short-term forecast and many more are likely to be announced during the forecast period. Some of the announced spacecraft and satellites include Hotbird 13F (2021), Hotbird 13G (2021), SES-17 (2020), GSAT-20 (2020), and others.

The imaging and lighting segment holds a prominent share in the global xenon market but is likely to shrink tremendously, with the increasing adoption of LED technology. This segment is expected to get dethroned from its position by a large number of consumers by the end of the forecast period. Though the market for xenon headlights is likely to decrease, the market for xenon flash lamps and tubes is still anticipated to grow moderately over the foreseeable period owing to the demand for sound in the projectors and other applications.

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Electronics & semiconductor segment is poised to be one of the fastest-growing segments in the global xenon market. Xenon is primarily consumed in semiconductor industry for etching process. Some of the leading xenon manufacturers also provide xenon recovery systems to the semiconductor industry to reduce the overall cost by up to 50% or more.

The medical segment is considered one of the fastest-growing segments as xenon is an effective anesthesia and neuroprotectant. Medical grade xenon gas requires a high purity of 99.9999% and it is considered to have ideal anesthetic properties as it has not been reported to have any side effects. Usually, 2-3 minutes after the cessation of xenon gas supply, the patient is restored to consciousness without any side effects.

Research & development plays an important role to study the nature of dark matter. Liquid xenon is used for such studies which are quite expensive. The dark matter detection project LUX-ZEPLIN is alone expected to consume around 10 tons of xenon after it starts taking data in 2020. The demand for xenon in research and development is expected to decline in the forecast period as it is very costly and cannot be readily available when required.

REGIONAL ANALYSIS

Asia Pacific is anticipated to remain a major consumer of xenon during the forecast period owing to the rising demand in the satellite industry along with developments in research areas. There are many satellite launches scheduled in the upcoming years which is expected to use xenon based electric propulsion system. A significant amount of xenon is consumed while testing these engines as well. This is expected to create lucrative opportunities for the xenon market growth during the forecast period. For instance, GSAT 20 is set to be launched by the Indian Space Research Organization (ISRO) in 2020. The procurement process for high purity xenon has been started in 2018 for testing and quality inspection purposes. ISRO has also made a few satellite launches (GSAT 9, GSAT 4) in the past that use xenon-based electric propulsion system. China and Japan are also prominent countries that consume a significant amount of xenon for satellite applications. Also, the electronics & semiconductor industries present in the region account for high consumption of xenon for etching and other applications. The industry is expected to positively support the xenon market growth over the forecast due to increasing electronic & semiconductor production.

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North America xenon market is one of the largest. Major growth opportunities in the region remain in satellite and research areas. The satellite segment is expected to consume a high amount of xenon over the forecast period along with other research projects. However, some of the end-users have started using krypton as a propellant in an electric propulsion system and that is expected to hamper the xenon market revenue.   

Moreover, Europe is projected to witness moderate growth in the xenon market. Electronics & semiconductors, and satellite applications are expected to remain the major growth promoters of the market. The ongoing dark matter research in Italy is also expected to create growth opportunities over the forecast period due to high xenon consumption. The third-generation experiment uses three and a half tons of xenon to catch passing WIMP (Weakly Interacting Massive Particles) particle.

Latin America and the Middle East & Africa regions are expected to showcase low growth in the xenon market value compared to the other regions due to the less number of developments in the end-use markets. Most of the xenon demand in these regions are accounted for lighting & imaging applications.

INDUSTRY KEY PLAYERS

“Global Titans such as Air Liquide and Linde plc dominates the Xenon Market”

The global xenon market is highly consolidated, with top-5 players accounting for more than 85% of the market. The merger & acquisition strategy by top manufacturers have changed the competitive landscape of the market to some extent. Top players have strengthened their market position & penetration with this move, in the major markets. This will be useful in maintaining an uninterrupted supply to the end-users.

List of key Companies Covered:

• Air Liquide


• Linde plc


• Air Products & Chemicals, Inc.


• Messer Group GmbH


• Proton Gases (India) Pvt. Ltd.


• Matheson Tri-Gas, Inc.


• American Gas Products (AGP LLC)


• Coregas Pty Ltd


• Akela-p Medical Gases P. Ltd


• Electronic Fluorocarbons, LLC


• Iceblick Ltd.


• Other

REPORT COVERAGE

A growing xenon market trend is observed across industries. The report provides qualitative and quantitative insights into the market and a detailed analysis of the xenon market size & growth rate for all possible segments that exist in the market. The xenon market is segmented by application and geography. Based on application, the market is classified into imaging and lighting, medical, aerospace and aircraft, electronics & semiconductors, R&D, black matter research, and others. Geographically, the market is analyzed across five major regions, which are North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. These regions are further categorized into countries.

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Along with this, the report provides an elaborative analysis of the xenon market dynamics and competitive landscape. Various key insights presented in the report are the price trend analysis, recent industry developments in this market, the regulatory scenario in crucial countries, macro, and microeconomic factors, SWOT analysis, and key industry trends, competitive landscape, and company profiles.

Report Scope & Segmentation

Key Industry Developments

• July 2018, Air Liquide, one of the largest producers of rare gases and other industrial gases in the world, signed several new multi-year contracts of xenon & krypton supply to satellite and semiconductor industries in the US, Europe, and Asia. The contracts are reported to be worth more than USD 59 million.   


• July 2017, Linde plc (then Linde) announced the expansion of the production capacity of xenon at its facility in New Jersey, USA. The company completed the expansion project in the same quarter to meet the increasing demand in the semiconductor industry of  the region.