Global Industrial Gas Market - Outlook & Forecast 2023-2028

The global industrial gas market is expected to grow at a CAGR of 7.30% from 2022 to 2028.

GLOBAL ENERGY CRISIS

Over the past decade, EU states have increasingly relied on Russian gas despite various crises and tensions, with the share of Russian gas meeting total EU demand rising from 30% in 2009 to 47% in 2019. Even with lower pipeline supplies, the EU still accounted for 60% of Russia's gas exports and around 70% of its gas export revenues in 2021, highlighting strong interdependency. However, the drop in Russian pipeline supplies continued in H1 2022, falling by 30% y-o-y, and Gazprom's unilateral supply cuts in Q2 further contributed to lower deliveries and heightened market uncertainty.

MARKET TRENDS & OPPORTUNITIES

Adoption of Enhanced Oil Recovery Technique

Enhanced Oil Recovery (EOR) technique, also called “tertiary recovery,” is a process of extracting oil from oil fields that cannot be extracted through primary and secondary processes. The EOR technique increases the oil recovery capability by 30%-60% from an oil field. Recently, most oil & gas producing companies have shifted their focus towards maximizing the recovery factor (RF) from their oilfields and maintaining oil prices. The main reason for this shift is the increasing difficulty in new oil field inventions. Discovery of new oil fields is time-consuming and requires huge investments. Therefore, today, oil & gas-producing companies aim to extract the maximum possible amount of oil & gas from an already discovered oil field. Such factors directly signify the possibility of increasing oil & gas production, refinery, and transportation. Hence, with the increasing adoption of EOR techniques, production and refinery of oil & gas are expected to boost. This, in turn, is expected to add fuel to the demand for industrial gas.

Rising Shift Towards Alternative Energy and Power Sources

The global demand for power generation continues to rise, driven by population growth, urbanization, and industrialization. Additionally, the increasing adoption of renewable energy sources, such as wind and solar power, is expected to drive growth in the power generation industry. Countries seek to decrease carbon emissions and transition towards more sustainable energy sources. A significant increase in power generation has the potential to drive the industrial gas market, as the production and distribution of industrial gases play a critical role in power generation. For instance, gas turbines in power generation are used to produce electricity from natural gas and, to a lesser extent, from hydrogen.

Constantly Increasing Gas Pipeline Infrastructure

As the world population continuously grows, the demand for energy and industrial goods also increases. This demand is driving the construction of new gas pipelines and the expansion of existing ones, making it easier and more cost-effective ones, making it easier and more cost-effective to transport natural gas, hydrogen, and other industrial gases across long distances.

INSIGHTS BY END-USER

The global industrial gas market caters to various end-user industries per their specific gas requirements and uses. The chemical industry is the second largest end-user of industrial gas, as it is used in several applications such as synthesis, refining, and processing. Industrial gases such as nitrogen, oxygen, hydrogen, and carbon dioxide are used as feedstocks in producing a wide range of chemical products, including fertilizers, plastics, and pharmaceuticals. The healthcare industry uses gas for medical purposes, such as anesthesia, respiratory, sterilization, etc. The manufacturing industry is expected to witness the highest CAGR in the global industrial gas market during the forecast period. The manufacturing industry is one of the biggest consumers of industrial gases, using them in a wide range of applications, from welding and metal fabrication to chemical production and pharmaceuticals.

Segmentation by End-user

• Manufacturing Industry
• Chemical Industry
• Metal & Mining Industry
• Energy & Power Industry
• Food & Beverage Industry
• Healthcare Industry
• Other Industries

INSIGHTS BY TYPES OF GASES

The outlook of different types of gases varies depending on their applications and end-use industries. Gases are divided into air separation, synthetic, and specialty gases. Air separation gases dominated the global industrial gas market, valued at over USD 50 billion in 2022. Among the various gases used in the air separation gases segment, nitrogen has several important uses in various industries. In the food industry, nitrogen preserves freshness and increases shelf life. It is also used to freeze and transport food products. In the electronic industry, nitrogen is used to manufacture semiconductors, flat panel displays, and other electronic components. Further, nitrogen is used as a coolant in cryotherapy and cryosurgery in the medical industry.

Segmentation by Type of Gases

• Air Separation Gas
• Synthetic Gases
• Specialty Gases

INSIGHTS BY DISTRIBUTION MODEL

The choice of distribution mode depends on the customer's specific needs, including the required volume of gas, the location of the customer, and the nature of the industrial process. Industrial gas companies typically provide a range of distribution modes to meet the diverse needs of their customers. The distribution model segments the global industrial gas market as on-site pipeline, bulk, and cylinder. The market is dominated by on-site pipeline distribution and is expected to dominate during the forecast period with the highest CAGR. On-site pipeline supply is an innovative and efficient way of supplying customers with industrial gases like oxygen, nitrogen, and argon.

Segmentation by Distribution Models

• By On-site Pipeline
• By Bulk
• By Cylinder

GEOGRAPHICAL ANALYSIS

The industrial gas market has a significant presence in North America, Europe, Asia-Pacific, and the Middle East & Africa regions. The demand for industrial gases varies across geographies, influenced by economic growth, industrialization, and environmental regulations. North America is one of the most extensive industrial gas markets, with the United States being the largest market in the region. The region's global industrial gas market is driven by the presence of various end-use industries, including healthcare, metal fabrication, and chemical manufacturing. Europe is another significant industry for industrial gases, with the United Kingdom, Germany, and France being the major markets in the region. Asia-Pacific is the fastest-growing global industrial gas market, driven by the rapid industrialization and increasing urbanization of countries such as China and India.

Segmentation by Geography

• APAC
• North America
• Europe
• Latin America
• Middle East & Africa

COMPETITIVE LANDSCAPE

The global industrial gas market is highly competitive, with several large multinational companies dominating the industry. The market is also fragmented, with numerous small and medium-sized players operating in different regions. Some of the key players in the global industrial gas market include Linde plc, Air Liquide, Air Products and Chemicals, Praxair, Taiyo Nippon Sanso Corporation, Messer Group, SOL, Yingde Gases Group Company, Gulf Cryo Holding with several other prominent vendors.

Key Company Profile

• Air Liquide
• Air Products and Chemical
• Linde plc
• MATHESON TRI-GAS, INC.
• Messer
• BASF
• AIYO NIPPON SANSO CORPORATION

Other Prominent Vendors

• Southern Gas Limited
• Gulf Cryo
• Universal Industrial Gases
• Ellenbarrie Industrial Gases
• Concorde-Corodex Group
• MVS Engineering
• SOL Group
• Yingde Gases
• Buzwair Industrial Gases Factories
• Gasum
• Chemix Gases
• Goyal MG Gases
• National Gas
• Toho Acetylene
• Maxima Air Innovation
• KOATSU GAS KOGYO CO., LTD.
• OCI Company
• African Oxygen

KEY QUESTIONS ANSWERED:

• How big is the industrial gas market?
• What is the growth rate of the global industrial gas market?
• What are the growing trends in the industrial gas market?
• Which region holds the most significant global industrial gas market share?
• Who are the key players in the global industrial gas market?