Industrial Gases Market Overview
The global industrial gases market size is projected to reach $71.0 billion by 2022, growing at a CAGR of 6.2% during the forecast period. The factors driving the growth of the market include large base of end-use industries, increasing government initiatives toward alternate sources of energy, and increasing healthcare expenditure.
Based on type, the global industrial gases market is categorized into hydrogen, oxygen, carbon dioxide, nitrogen, helium, argon and acetylene. The hydrogen gas segment accounted for the largest market share during the historical period and by 2022, it is expected to hold a market share of over 65%. However, the helium gas segment is expected to witness the fastest growth during the forecast period.
Geographically, the Asia-Pacific is the largest market for industrial gases. By 2022, the region is projected to account for 40% market share of the overall industrial gases market. The region is also expected to witness the fastest growth in market during the forecast period. The fastest growth is attributed to the high demand of industrial gases in chemical, pharmaceutical and steel industry; large population; and rapid industrialization in the region. In addition, high demand for gaseous mixtures in steel and polymer industries is supporting the growth of the industrial gases market in the region. The increasing gross domestic product and increasing consumption of industrial gases in India and China are driving the growth of the market in Asia-Pacific.
Industrial Gases Market Dynamics
Increasing demand for on-site and captive hydrogen production is creating major growth opportunities for the industrial gases market. The world is advancing toward hydrogen economy, albeit at a slow pace. Having foreseen the demand for hydrogen-driven energy solutions, companies are focusing on on-site and captive production of the gas. Owing to poor quality of crudes, hydrogen generation from crude processing is decreasing. This is forcing refineries to set up on-site hydrogen plants that are adjacent to the refining facilities. Also, other large-scale companies that require large hydrogen supply prefer installation of on-site hydrogen production facilities.
Captive production of hydrogen includes hydrogen plants built and operated by the end-user company. The on-site and captive hydrogen markets are mainly dominated by industries such as oil refining, food production, metal treatment, and fertilizer manufacturing industries.
The increasing healthcare expenditure is a major growth driver of the industrial gases market. The healthcare expenditure is increasing across the globe, owing to the increasing prevalence of diseases and increasing government and non-government initiatives. According to the World Health Organization (WHO), the total healthcare expenditure is increasing globally, which is leading to improvement in healthcare infrastructure. This increase in healthcare expenditure leads to increase in affordability and accessibility of treatment and diagnosis for different medical conditions.
Governments in different countries are investing a significant portion of their GDP for healthcare. Although, there are huge variations among the healthcare spending of different countries, healthcare has been one of the primary focus for all. Healthcare spending in the developed economies of North America and Europe is considerably higher in comparison to that in the developing countries. The lower spending in developing countries is primarily due to their low income per capita GDP. However, per capita healthcare spending in developing countries is also increasing due to increasing government initiatives. The increasing healthcare expenditure leads to increased demand of healthcare products, where industrial gases are used.
High cost associated with the storage and transportation of industrial gases is a major barrier to the growth of the industrial gases market. Storage and transportation of industrial gases involves high cost. There are number of regulations framed by government and non-government organizations and agencies to ensure safe transportation of industrial gases. Storage and transportation of industrial gases are the key challenges faced by the manufacturers of these gases. Manufacturers have to maintain certain parameters such as temperature, pressure and quality of containers in order to ensure safe storage of industrial gases. All these complexities increase the cost of industrial gases. Similarly, while transporting industrial gases, logistic services provider has to bear a huge cost in order to ensure safe transportation of industrial gases.
Industrial Gases Market Competitive Landscape
Some of the major players operating in the global industrial gases market include Praxair Inc., Air Products and Chemicals Inc., Linde AG, Air Products and Chemicals Inc., Air Liquide, Airgas Inc., and Taiyo Nippon Sanso Corporation.