Saudi Arabia Industrial Gases Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Saudi Arabia Industrial Gases Market Size

Saudi Arabia Industrial Gases Market Trends & Growth Drivers

Oil and Gas Production Is Biggest Trend

• Oil and gas production is significantly influencing this market, as the country has extensive hydrocarbon reserves. Natural gas is the primary feedstock for producing hydrogen, ammonia, and methanol.
• Additionally, the kingdom is aiming to develop its non-oil industries which will be surge the demand for various industrial gases, for instance petrochemicals industries uses hydrogen, oxygen, nitrogen and other gases for refining process
• In March 2023, Saudi Aramco announced its partnership with Linde Saudi Industrial Gas Company to develop new ammonia cracking technology and lower-carbon hydrogen technology.

Growing Construction Sector Is Driving the Market

• Since the kingdom launched the Vision 2030, the industrial gases industry growth has been fueled by the ongoing and planned infrastructure and building projects across the residential, commercial, and industrial sectors.
• New residential areas for the accommodation of a growing population are increasing the demand for industrial gases for use in the production of steel products.
• For energy projects, these gases are needed to develop new energy plants, such as world’s largest single-site solar power plant, which will involve gases in different stages of construction and maintenance.

Environmental Challenges Restrain Growth of the Market

• These gases' generation and distribution, especially steam–methane reforming and air separation, result in significant carbon dioxide emissions and have an adverse effect on the environment.
• Moreover, the production of some gases and the refining of petroleum lead to harmful gas emissions in the atmosphere, such as nitrogen oxides. This is a major contributor to air pollution and can cause severe damage to the human respiratory system.
• For industrial gas production, including the petrochemical and refinery industries, water for cooling purposes or other processes is needed.
• For a severely water-starved country, such as Saudi Arabia, the erosion of the potable water supply and its direction toward industrial facilities could worsen the situation.

Saudi Arabia Industrial Gases Market Analysis

Product Insights

• Hydrocarbon gases will be dominant in the Saudi Arabian market, with a share of 40% in 2024. This is because Saudi Arabia is the largest producer of gas and oil, which contain a variety of hydrocarbons, such as ethylene, butane, acetylene, butene, and methane.
• Jafurah, the largest natural gas field in Saudi Arabia, contains 200 trillion cubic feet of natural gas. The project is under development, with production expected to start in 2025 and a total of 2.0 billion cubic feet of natural gas produced by 2030.
• According to reports, Saudi Aramco expects domestic demand for natural gas to increase by 3.7% annually from 2021 to 2030 due to a growing number of natural-gas-fired power plants.

The products analyzed in this report are:

• Hydrogen Gases
  • Hydrogen bromide
  • Hydrogen chloride
  • Hydrogen fluoride
  • Hydrogen sulfide
  • Others
• Nitrogen Gases
  • Ammonia
  • Nitric oxide
  • Nitrous oxide
  • Nitrogen dioxide
  • Nitrogen trifluoride
  • Others
• Oxygen   
• Noble Gases      
  • Argon
  • Helium
  • Krypton
  • Neon
  • Others
• Hydrocarbon Gases (Largest and Fastest-Growing Category)
  • Natural gas
  • Acetylene
  • Butane
  • Butadiene
  • Butene
  • Ethylene
  • Others
• Halogen Gases
  • Chlorine
  • Boron trichloride
  • Fluorine
  • Others
• Others

End User Insights

• The power generation sector will hold the largest market share, of 30%, in 2024 because this industry depends on natural gas.
• Vision 2030 supports natural gas development throughout the country to seek 50% natural gas-fired electricity generation in favor of non-oil economy development. Moreover, Jafurah Plant, the largest unconventional gas field owned by Saudi Aramco, is going to start production in 2025. The project involves a power generation plant to supply bulk electricity.
• The construction sector will witness the fastest growth, with 5.0% CAGR, in the forecast period. This is credited to Saudi Arabia Vision 2030, which includes construction plans for residential, commercial, and industrial sectors.
• This industry consumes a wide range of gases for welding and cutting metal pipes, metal beams, and metal sheets.

The end users covered in this report are:

• Chemicals Industry
• Electronics
• Food and Beverages
• HealthCare
• Manufacturing
• Metallurgy
• Refining
• Power Generation (Largest Category)
• Construction (Fastest-Growing Category)
• Others

Distribution Mode Insights

• Pipelines will dominate the market in 2024 due to the presence of 31 gas power plants across the country, which generate 34,502.1 MW of energy in total.
• Since the country don’t have coal production, natural gas fired power plant are used to meet electricity demand, companies, including Saudi Aramco, Saudi Cement Company, and Saudi Electricity Company (SEC), are operating these power plants to supply electricity.
• The cylinder category is expected to witness the highest CAGR, fueled by the ongoing and upcoming construction projects across the country. Generally, gases are supplied to construction sites in high-volume pressurized cylinders.

The distribution modes covered in this report are:

• On-Site
• Bulk Liquid
• Cylinder (Fastest-Growing Category)
• Pipeline (Largest Category)

Regional Analysis

• Riyadh will hold the largest market share, of 40%, in 2024 driven by new construction projects.
• With 84 metro stations, 176 km of route, and six new metro lines under development, Riyadh's public transportation sector is expanding.
• Riyadh art projects include 10 major projects and two annual festivals to attract tourists and travelers. This includes the Riyadh Icon, the Hidden River, the Illuminated Bridges, Urban Flow, Art on the Move, welcoming gateways, Jewels in Riyadh, and an urban art lab.
• The project will mark a significant accomplishment toward achieving the primary objective of Saudi Vision 2030, which is to elevate Riyadh's standing among the world's most-livable cities.
• The Bridge Project at the intersection of King Abdullah Road and Prince Turki Bin Abdulaziz I Road aims to improve the traffic system on King Fahd Road. This project will involve the Southern Ring Road and a 32-kilometer stretch of this route.
• The King Salman Park Project is a 16-square-kilometer complex that houses three movie theaters, five museums, and an education center for children. It’s also aims to offer a wide range of sports. In addition, it will include 12,000 residential sectors, 16 hotels, and retail areas.

The provinces analyzed in this report are:

• Al-Riyadh (Largest and Fastest-Growing Province)
• Makkah
• Al-Madinah
• Al-Qaseem
• Eastern Region
• Aseer
• Tabouk
• Hayel
• Northern Border
• Jazan
• Najran
• Al-Baha
• Al-Jouf

Saudi Arabia Industrial Gases Market Share

There are huge number of major players in the Saudi Arabian industrial gases market, which makes it fragmented in nature. With the new infrastructure projects under development, new manufacturer can find new openings if they can deliver the best product according to the demand of the client. There are well-known players in the market, including Air Liquide, Linde Saudi Industrial Gas Company, Arab Industrial Gases Company, Rawabi Holding, and Saudi Basic Industries Corporation (SABIC).

Saudi Arabia Industrial Gases Market News

• In May 2024, Buzwair Group’s scientific and technical gases division announced the relocation of its facility to produce a larger volume of products with advanced technology.
• In July 2023, Barrak Gas Factories announced the operationalization of its new filling station in Najran.
• In June 2022, Rawabi Energy and Mariapps Marine declared a joint venture agreement to support companies in making their services more cost-effective and operationally optimized through digitalization to meet demand.
• In December 2022, Saudi Arabian Mining Co. signed a 20-year contract with Gulf Cryo to build and operate a carbon dioxide plant in Ras Al Khair, Saudi Arabia, for industrial applications.