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The global industrial gases market stood at $92,392.4 million in 2019, and is expected to showcase a CAGR of 5.5% during the forecast period (2020–2030). The vast number of diversified applications, increase in government initiatives toward alternate sources of energy, and advancement in the healthcare sector due to rise in healthcare expenditure are some of the key attributable factors for the growth of the market.
Due to COVID-19, the demand for industrial gases has been witnessing the mix scenario of positive and negative impact. Industrial gases are used in almost every type of industries, including chemical, oil & gas and petrochemical, healthcare, food processing, and electronics. In the light of COVID-19, all the industries except essential ones, such as healthcare and food processing, witnessed the downturn in manufacturing operations, owing to the supply chain disruption, factories shutdown, and cash flow crunch, among others.
While in the healthcare and food processing industries, the demand for industrial gases has increased in the current scenario, due to rising number of patients and increasing demand for packaged food, in order to curtail the spread of the disease.
The hydrogen category, based on type, held the largest volume share in the industrial gases industry in 2019. This is majorly attributed to the high-volume consumption of hydrogen gas in the process of hydrogenation of fats and oils, welding, and production of various chemicals, among others. Further, it is considered as a future fuel and therefore companies and governments are investing in this gas business ecosystem.
The on-site generation category is expected to showcase the fastest growth during the forecast period, on the basis of delivery. This is due to the growth in manufacturing industries, owing to the growing population and increasing people per capita income. Therefore, in order to meet the rising demand for industrial gases, the manufacturing industries require constant supply of the gases, in order to maintain the production rate, which can be easily met with the on-site generation delivery.
The oil & gas and petrochemical industry accounted for the largest size in the industrial gases market in 2019, on the basis of end user. The rising number of crude oil and natural gas reservoirs, in which oil and gas can only be produced by secondary and tertiary methods of production, by using industrial gases, which provide artificial pressure to the reservoirs. Further, rising refineries production capacity mitigates the demand generated from other downstream sectors, such as chemicals and metal processing. Owing to such factors, the oil & gas and petrochemical industry dominated the industrial gases market during the historical period.
Geographically, the APAC region accounted for the largest share in the industrial gases market in 2019 and this trend is expected to continue in coming years. This is mainly attributed to the large-base of manufacturing industries in the region, mainly in China, India, Japan, and South Korea, owing to low labor cost, rising demand for products due to growing population, and less stringent environmental regulations, as compared to western economies. For instance, Chinese manufacturing output in 2018–19 was approximately $4.0 trillion, while Japan generated approximately $1.0 trillion, which translated to 28.4% and 7.23%, respectively, of the global manufacturing output.
The APAC industrial gases market is expected to demonstrate the fastest growth during the forecast period, owing to the growing population and increasing people spending power due to rising per capita income, in the region. Further, in last few years, companies have been shifting their manufacturing bases in the region, in order to increase their market share and to mitigate the rising products demand.
In last few years, the global industrial gases industry has witnessed an increase in number of mergers and acquisitions, which are the key strategic developments of companies. These mergers and acquisitions are primarily aimed at product expansion and improving geographic presence of the companies. For instance, in 2018, Linde AG merged with Praxair Inc., a U.S.-based gas producing company, to form Linde Plc. The merger spearheaded to the larger market share in the industrial gases market. Further, in 2016, Air Liquide S.A. completed the acquisition of Airgas Inc., a supplier of industrial gases and associated products and services in the U.S.
Industrial gases find applications in several industries, including chemical, petroleum, heavy metal, healthcare, food, and electronics. For instance, carbon dioxide is used for carbonating soft drinks and beer, and helps in making decaffeinated coffee; therefore, it finds its applications in the food and beverage industry. Acetylene is generally used as oxy-acetylene flame for cutting and welding of metals.
Further, as per the Invest India, a National Investment Promotion & Facilitation Agency, the demand for petrochemicals is expected to grow at a CAGR of 7.5% during 2019–2023, with a polymer demand growing at 8.0% CAGR during the same period. Since, hydrogen is used in chemical manufacturing processes and petroleum refining, and thus, the demand for hydrogen gas would expect to increase substantially in near future. Therefore, these factors are promoting the growth of the global industrial gases market.
|Base Year (2019) Market Size||$92,392.4 million|
|Forecast Period (2020-2030) CAGR||5.5%|
|Report Coverage||Market Dynamics, Value Chain Analysis, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Company Share Analysis, Companies’ Strategic Developments, Competitive Benchmarking, Company Profiling|
|Market Size by Segments||Type, Delivery, End User, Region|
|Market Size of Geographies||U.S., Canada, Germany, U.K., France, Italy, Spain, China, India, Japan, South Korea, Brazil, Mexico, Saudi Arabia, South Africa, U.A.E., Turkey|
|Secondary Sources and References (Partial List)||All India Industrial Gases Manufacturers Associations, American Council for an Energy-Efficient Economy, Asia Industrial Gases Association, Australia New Zealand Industrial Gases Association, British Compressed Gases Association, Central Intelligence Agency (U.S.), Chemical Industries Association, Compressed Gas Association, Energy Information Administration (U.S.), European Industrial Gases Association|
Increasing concerns regarding the emission generated by the usage of fossil fuels, which are one of the main causes of global warming, have shifted the global interest from conventional energy to green energy. For instance, as per the World Bank 2015 data for renewable energy investment, countries, such as South Africa, Chile, China, Japan, the U.K., and India, invested 1.4%, 1.4%, 0.9%, 0.8%, 0.8%, and 0.5%, respectively, of their total gross domestic product (GDP).
Solar photovoltaic (PV) is one of the sources of green energy and attracting investment globally. Industrial gases play a crucial role in the manufacturing of solar PV panels and help in reducing the overall manufacturing cost. These gases are used in the PV industry for wafer production and reducing silicon losses during the ingot sawing process. This helps in significantly reducing the manufacturing cost, which is expected to boost the demand for industrial gases during the forecast period.
The industrial gases market is consolidated in nature, with the presence of numerous major players, such as Air Liquide SA, Linde Plc, Air Products and Chemicals Inc., and Taiyo Nippon Sanso Corporation.
In recent years, the players in the industry have merged and acquired other players, in order to increase their marker share. For instance:
The industrial gases market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.
Based on Type
Based on Delivery
Based on End User