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In the intricate web of modern manufacturing and industrial processes, there exists a silent yet indispensable player, industrial gases. These gases, often taken for granted in their ubiquity, play a crucial role across various sectors, from steelmaking to healthcare, and even food processing. Their applications are as diverse as the industries they serve, making them an essential component of global industrial infrastructure. Industrial gases encompass a broad range of gases produced and used specifically for industrial purposes. These gases are typically manufactured in large quantities and are purified to stringent standards to ensure their effectiveness and safety in various applications. This report comes with 10% free customization, enabling you to add data that meets your specific business needs.
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The key industrial gases include oxygen, nitrogen, hydrogen, carbon dioxide, argon, and helium, among others. Each gas possesses unique properties that make it suitable for specific industrial processes. While industrial gases are indispensable, their production and usage require careful management to mitigate environmental impact and ensure safety. The industry has made significant strides in enhancing efficiency and reducing emissions through advanced technologies and sustainable practices. Additionally, rigorous safety protocols govern the handling, storage, and transportation of these gases to prevent accidents and ensure worker safety. The growing focus on environmental sustainability is also contributing to the growth of the industrial gases market. Industrial gases like oxygen and hydrogen are used in wastewater treatment and alternative energy production, respectively.
According to the report, the market is anticipated to cross USD 145 Billion by 2029, increasing from USD 102 Billion in 2023. The market is expected to grow with 5.97% CAGR by 2024-29. The primary driver for the growth of the industrial gases market is the increased demand from various end-user industries. For instance, the growing steel and metal fabrication industry requires a steady supply of oxygen and argon. Similarly, the expanding healthcare sector necessitates more medical-grade oxygen and nitrous oxide. The food and beverage industry's need for carbon dioxide and nitrogen for preservation and packaging also contributes to market growth.
Technological advancements in production processes and applications of industrial gases are another factor driving market growth. For example, the development of more efficient air separation units (ASUs) has reduced production costs, making industrial gases more accessible. Additionally, the increasing use of industrial gases in emerging technologies, such as fuel cells and clean energy production, is expected to drive market growth. As regulations on emissions become stricter and the demand for sustainable solutions increases, the demand for these gases is expected to rise. The COVID-19 pandemic has also highlighted the importance of industrial gases, particularly medical-grade oxygen, in healthcare settings. This increased demand is expected to contribute to the growth of the industrial gases market.
Market Drivers
- Technological Advancements in Manufacturing: The advent of advanced manufacturing technologies, particularly additive manufacturing (3D printing), has revolutionized industries such as aerospace, automotive, and healthcare. Industrial gases like nitrogen and argon are essential in 3D printing processes to create controlled atmospheres that ensure product quality and structural integrity. Moreover, the rise of clean energy technologies, including hydrogen fuel cells and solar panels, has bolstered the demand for industrial gases such as hydrogen. These gases are integral in the production, storage, and transportation of renewable energy sources, driving innovation and growth in the industrial gases sector.
- Global Industrialization and Urbanization: The ongoing global industrialization and urbanization trends are pivotal drivers for the industrial gases market. Emerging economies are experiencing rapid industrial growth, leading to increased demand for gases in sectors ranging from construction to electronics manufacturing. Urbanization further amplifies this demand, as infrastructure development and urban construction projects necessitate industrial gases for welding, cutting, and heating applications. As industries expand and urban areas develop, the reliance on industrial gases continues to grow, underscoring their crucial role in supporting industrial and urban growth worldwide.
Market Challenges
- Environmental Regulations and Sustainability: One of the primary challenges facing the industrial gases industry is navigating stringent environmental regulations. Governments worldwide are imposing stricter emissions standards, prompting industries to adopt cleaner technologies and reduce their environmental footprint. This regulatory landscape impacts the production and usage of industrial gases, influencing both supply chain dynamics and operational strategies. Additionally, enhancing energy efficiency in gas production processes remains a critical challenge, requiring innovative solutions to minimize energy consumption while meeting growing demand.
- Supply Chain Complexity and Cost Management: Managing the complex global supply chain of industrial gases poses significant challenges for suppliers and consumers alike. Ensuring reliable delivery and maintaining product quality across diverse geographical markets require robust logistics and distribution networks. Moreover, the volatility of raw material costs, such as natural gas and electricity, adds complexity to cost management strategies. Fluctuations in production costs directly impact pricing strategies, profitability, and competitiveness within the industrial gases market, necessitating proactive supply chain management and strategic planning.
Market Trends
- Digitalization and Industry 4.0 Integration: The integration of digital technologies and Industry 4.0 principles is driving transformative trends in the industrial gases sector. Internet of Things (IoT) technologies and smart sensors are revolutionizing gas supply systems, enabling real-time monitoring, predictive maintenance, and enhanced safety measures. Data analytics further optimize operational efficiency, offering insights into gas usage patterns and facilitating proactive decision-making. This digital transformation enhances reliability, reduces downtime, and improves overall operational performance in industrial gas applications.
- Focus on Specialty Gases and Applications: There is a growing focus on specialty gases and their diverse applications across industries such as biotechnology, pharmaceuticals, and electronics manufacturing. Specialty gases, characterized by their purity and specific chemical properties, play critical roles in research, production processes, and laboratory applications. In biotechnology and pharmaceutical sectors, these gases are essential for maintaining controlled environments and ensuring product quality. Similarly, in electronics and semiconductor manufacturing, ultra-pure gases like argon and nitrogen are indispensable for achieving precise manufacturing standards and enhancing product performance. The increasing demand for specialty gases underscores their strategic importance and market growth potential in niche industrial applications.
Oxygen leads the industrial gases market due to its indispensable role in critical industrial processes such as steelmaking, healthcare, and chemical manufacturing.
Oxygen is at the forefront of the industrial gases market for several compelling reasons, driven by its versatile applications across key industrial sectors. One of the primary industries where oxygen plays a pivotal role is steelmaking. In processes like basic oxygen steelmaking (BOS) and electric arc furnaces (EAF), oxygen is injected into molten iron to facilitate faster and more efficient combustion of carbon and other impurities. This enhances the steelmaking process by reducing production time, improving energy efficiency, and enhancing the quality of the final steel product. The use of oxygen in steel production not only increases productivity but also lowers operational costs, making it a cornerstone of modern steel manufacturing.In addition to its crucial role in steelmaking, oxygen is essential in healthcare settings. Medical-grade oxygen is used extensively for respiratory therapies, anesthesia administration, and life support systems in hospitals and healthcare facilities worldwide. The purity and reliability of oxygen in medical applications are paramount for patient safety and the effectiveness of medical treatments. The healthcare sector's reliance on oxygen underscores its critical importance in supporting human health and medical advancements. Moreover, oxygen is integral to chemical manufacturing processes. It serves as a vital reactant in various oxidation processes used to produce chemicals such as ethylene oxide, methanol, and acetylene.
These chemicals are fundamental to numerous industrial applications, including the production of plastics, solvents, and pharmaceuticals. Oxygen's role in chemical reactions enhances process efficiency, product quality, and overall manufacturing productivity. Beyond its applications in steelmaking, healthcare, and chemical manufacturing, oxygen plays a significant role in environmental sustainability efforts. Oxygen-enriched combustion processes are employed in power generation and industrial boilers to improve fuel efficiency and reduce emissions of pollutants like nitrogen oxides (NOx). This contributes to cleaner energy production and aligns with global initiatives to mitigate environmental impacts from industrial activities.
The metal and mining industry leads in the industrial gases market due to the extensive use of gases like oxygen and nitrogen in critical processes such as steelmaking, smelting, and refining.
The metal and mining industry holds a prominent position in the industrial gases market primarily because of its substantial reliance on gases like oxygen and nitrogen for essential production processes. Oxygen, in particular, plays a central role in steelmaking, which is one of the largest consumers of industrial gases. In processes such as basic oxygen steelmaking (BOS) and electric arc furnaces (EAF), oxygen is injected into molten iron to react with impurities like carbon. This enhances the efficiency of combustion, reduces processing times, and improves the quality of the steel produced.The use of oxygen in steelmaking not only optimizes production processes but also enhances energy efficiency and lowers overall production costs, making it indispensable to the steel industry's operations worldwide. In addition to steelmaking, the metal and mining sector utilizes industrial gases extensively in other critical processes. Nitrogen, for instance, is widely employed in mining operations to create inert atmospheres and prevent explosions in underground mines. It is also used for inerting and blanketing purposes in metal processing and refining to minimize oxidation and maintain product quality.
Furthermore, in non-ferrous metal production such as aluminum smelting, industrial gases play a crucial role in creating controlled atmospheres that ensure efficient processing and high-quality output. Moreover, the metal and mining industry's reliance on industrial gases extends to environmental and sustainability efforts. Oxygen-enriched combustion processes are employed to improve energy efficiency and reduce emissions in metal refining and processing. Nitrogen and argon are used in environmental control systems to minimize pollutants and improve air quality in mining and smelting operations. These practices not only enhance operational efficiency but also align with global environmental regulations and sustainability goals.
Onsite pipeline supply is leading in the industrial gases market due to its efficiency, cost-effectiveness, and ability to provide continuous and reliable gas supply directly to industrial facilities.
Onsite pipeline supply has emerged as a leading solution in the industrial gases market, driven by its numerous advantages in meeting the specific needs of industrial facilities. One of the primary reasons for its leadership is its unparalleled efficiency and reliability in delivering gases directly to customer sites. Unlike traditional cylinder or bulk delivery methods, onsite pipelines are installed directly at industrial facilities, connecting gas production units to end-users through a network of pipelines. This setup ensures continuous and uninterrupted gas supply, eliminating the need for manual handling and storage of cylinders or tanks.This continuous supply capability is particularly crucial for industries requiring high volumes of gases, such as steelmaking, chemical manufacturing, and electronics production, where any interruption in supply can lead to costly production delays. Furthermore, onsite pipeline systems are highly cost-effective over the long term. While initial installation costs may be higher compared to bulk or cylinder delivery systems, onsite pipelines offer significant savings in operational expenses and logistics. They reduce labor costs associated with cylinder handling, storage space requirements, and transportation expenses.
Moreover, the efficient distribution of gases directly to point-of-use minimizes losses due to evaporation or leakage, optimizing overall gas utilization and reducing waste. This cost efficiency makes onsite pipelines particularly attractive for industries operating on large scales or requiring consistent gas supply for continuous production processes. Another key advantage of onsite pipeline supply is its flexibility and customization to meet specific customer requirements. Gas compositions and flow rates can be tailored according to industrial processes and fluctuating demand, ensuring optimal performance and efficiency.
This flexibility is crucial in industries where precise control over gas quality and delivery parameters is essential, such as in semiconductor manufacturing, pharmaceuticals, and food processing. Moreover, onsite pipeline systems contribute to enhanced safety and environmental sustainability. By reducing the transportation of gas cylinders and tanks, they minimize the risks associated with handling and storage, promoting safer working environments. Additionally, onsite pipelines support sustainable practices by reducing carbon emissions associated with transportation and logistics, aligning with global efforts to mitigate environmental impact.
Asia-Pacific is leading in the industrial gases market due to rapid industrialization, expanding manufacturing sectors and increasing demand for industrial gases across diverse industries.
Asia-Pacific has emerged as the leader in the industrial gases market, driven by several key factors that underscore its dynamic growth and dominance in the global industrial landscape. One of the primary reasons for its leadership is rapid industrialization and urbanization across the region. Countries like China, India, Japan, South Korea, and Southeast Asian nations have experienced robust economic growth, leading to substantial investments in infrastructure, manufacturing, and industrial development. This rapid industrialization has significantly boosted the demand for industrial gases in sectors such as steelmaking, chemicals, electronics, automotive, and healthcare.As industries expand and modernize their production capabilities, the need for gases like oxygen, nitrogen, hydrogen, and carbon dioxide for various manufacturing processes has escalated, driving the growth of the industrial gases market in the region. Moreover, Asia-Pacific benefits from a strong manufacturing base and a competitive industrial landscape. The region hosts some of the world's largest manufacturing economies, producing a wide range of goods for domestic consumption and export markets. Industries such as steel, automotive, electronics, and chemicals are major consumers of industrial gases for applications ranging from metal processing and semiconductor manufacturing to environmental control and medical gases.
The presence of established manufacturing clusters and industrial hubs in countries like China, Japan, and South Korea further supports the demand for industrial gases, as these regions continue to innovate and expand their industrial capabilities. Additionally, Asia-Pacific's leadership in the industrial gases market is bolstered by strategic investments in technology and infrastructure. The adoption of advanced manufacturing technologies, including additive manufacturing (3D printing) and automation, has increased the efficiency and precision of industrial processes, thereby driving the demand for specialty gases and high-purity gases.
Furthermore, investments in infrastructure development, energy projects, and clean technologies contribute to the growing consumption of industrial gases for energy production, environmental protection, and sustainable development initiatives. Furthermore, favorable government policies and initiatives aimed at promoting industrial growth, enhancing manufacturing competitiveness, and supporting technological advancements play a crucial role in driving the industrial gases market in Asia-Pacific. Governments across the region are implementing policies to attract foreign investments, foster innovation, and improve regulatory frameworks, creating conducive environments for industrial gas suppliers and manufacturers to expand their operations and meet growing market demands.
- In November 2023, Air Liquide has partnered with Groupe ADP, to support the development of hydrogen infrastructure in airports.
- In March 2023, Air Liquide has announced the construction of an industrial-scale ammonia (NH3) cracking pilot plant, in Belgium.
- In December 2023, Linde Plc has increased the liquid hydrogen production capacity at its facility in McIntosh, Alabama.
- In April 2023, Air Products & Chemicals, Inc. has announced to build own, and operate two nitrogen plants in Penang’s Bayan Lepas Free Industrial Zone and Batu Kawan Industrial Park, in Malaysia.
- In March 2023, Messer SE & Co. KGaA has started a new air separation plant in Vratimov, Czech Republic.
Years considered in this report:
- Historic year: 2018
- Base year: 2023
- Estimated year: 2024
- Forecast year: 2029
Aspects covered in the report:
- Industrial Gases market outlook with its value and forecast, along with its segments
- Various drivers and challenges
- On-going trends and developments
- Top profiled companies
- Strategic recommendation
By Type:
- Oxygen
- Nitrogen
- Hydrogen
- Carbon Dioxide
- Acetylene
- Other Types (Ammonia, Methane, Butane, And Propane)
By End user Industry:
- Manufacturing Industry
- Chemical Industry
- Metal & Mining Industry
- Energy & Power Industry
- Food & Beverage Industry
- Healthcare Industry
- Others
By Mode of Distribution:
- On-Site pipe line
- By Bulk
- By Cylinder
The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. After this, the research team made primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once the research team attained the primary data, they verified the details obtained from secondary sources.Intended Audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Industrial Gases industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.Table of Contents
1. Executive Summary5. Economic/Demographic Snapshot13. Strategic Recommendations
2. Market Dynamics
3. Research Methodology
4. Market Structure
6. Global Industrial Gases Market Outlook
7. North America Industrial Gases Market Outlook
8. Europe Industrial Gases Market Outlook
9. Asia-Pacific Industrial Gases Market Outlook
10. South America Industrial Gases Market Outlook
11. Middle East & Africa Industrial Gases Market Outlook
12. Competitive Landscape
14. Annexure
List of Figures
List of Tables
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Air Liquide S.A.
- Linde Plc
- Messer Group GmbH
- Nippon Sanso Holdings Corporation
- Mitsubishi Chemical Group Corporation
- SOL Group
- Iwatani Corporation
- BASF SE
- Ellenbarrie Industrial Gases Ltd
- Nutrien Ltd
- Gulf Cryo
- Concorde Corodex Group
- Norco, Inc
- Yara International ASA
- National Oxygen Limited
- Coregas Pty Ltd
- Kriogenmash
- Ellenbarrie Industrial Gases Ltd
- Holston Gases, Inc.
Table Information
Report Attribute | Details |
---|---|
No. of Pages | 182 |
Published | June 2024 |
Forecast Period | 2023 - 2029 |
Estimated Market Value ( USD | $ 102 Billion |
Forecasted Market Value ( USD | $ 145 Billion |
Compound Annual Growth Rate | 5.9% |
Regions Covered | Global |