North America Industrial Gases Market Outlook, 2029

North America Industrial Gases Market Outlook, 2029

The North American industrial gases market plays a vital role in supporting a diverse range of industries across the region. These gases, encompassing elements like oxygen, nitrogen, hydrogen, and specialty gas mixtures, serve a multitude of functions within various industrial processes. From providing inert atmospheres for welding and metal fabrication to creating controlled environments for food processing and pharmaceutical manufacturing, industrial gases are essential for ensuring efficient and high-quality production across numerous sectors. The North American market boasts a well-established infrastructure for gas production, distribution, and safety regulations, making it a reliable and mature market for industrial gas consumers. One of the defining characteristics of the North American industrial gases market is the presence of a well-established on-site gas generation model. This model involves installing gas production plants directly at customer facilities, eliminating the need for traditional transportation and storage of bulk gas supplies. On-site generation offers several advantages for large-volume gas users within the North American market. Firstly, it provides a reliable and consistent source of gas supply, minimizing the risk of disruptions or delays associated with external transportation logistics. On-site plants can be tailored to meet the specific gas requirements and production schedules of individual customers, ensuring a constant and uninterrupted flow of gas for their operations. Secondly, on-site generation offers cost savings for high-volume gas users. Eliminating the need for transportation and storage infrastructure associated with traditional delivery methods can translate to significant cost reductions over time. Additionally, on-site plants can capture waste heat generated during the production process, improving overall energy efficiency and reducing the environmental footprint of gas production. However, on-site generation is not without its limitations. The upfront investment costs associated with installing and maintaining these production plants can be significant. This model is typically only feasible for large industrial facilities with a consistent and high-volume demand for specific industrial gases. Smaller businesses or those with fluctuating gas needs might find traditional delivery methods from bulk suppliers to be a more cost-effective solution. Despite these limitations, the on-site gas generation model has become a prominent feature within the North American industrial gases market. This trend reflects the growing focus on operational efficiency, cost optimization, and energy sustainability within various industries across the region.

According to the research report ""North America Industrial Gases Market Outlook, 2029,"" published by Bonafide Research, the North America Industrial Gases market was valued at more than USD 30.38 Billion in 2023. One of the defining characteristics of the North American industrial gases market is the high concentration of large, established gas producers. Companies like Air Liquide, Linde plc, Air Products and Chemicals, Inc., and Messer SE & Co. KGaA dominate the market landscape. These companies boast extensive production facilities, robust distribution networks, and a well-established customer base across various industries. Their significant financial resources allow them to invest in research and development, continuously improve production efficiency, and explore innovative gas delivery solutions. This concentration of major players fosters a highly competitive environment within the North American market, driving continuous innovation and a focus on providing high-quality gases and reliable customer service. However, alongside these established giants, a unique aspect of the North American market lies in the presence of a vibrant network of regional and specialty gas suppliers. These smaller players cater to specific geographic regions or niche gas applications. For instance, a regional supplier might focus on providing bulk gas deliveries to a cluster of manufacturing facilities within a specific state. Similarly, a specialty gas supplier might concentrate on supplying high-purity gases essential for research laboratories or the electronics industry. These regional and specialty suppliers offer crucial benefits within the North American market. They provide a level of flexibility and responsiveness that larger companies might not always be able to match. Regional suppliers can cater to the specific needs of local customers, offering shorter delivery times and potentially lower transportation costs. Specialty gas suppliers possess in-depth knowledge of specific gas applications and can provide expert advice and technical support to their niche customer base. There's a growing emphasis on closed-loop gas recovery and recycling systems. These systems capture and purify used industrial gases, enabling them to be reused in production processes. This not only reduces overall gas consumption and associated environmental impact but also enhances resource efficiency and potentially lowers operating costs for industrial gas users. The development and implementation of these closed-loop systems are gaining traction within the North American market, driven by both environmental considerations and economic benefits. Finally, the focus on sustainability extends to product development and innovation. Industrial gas companies are actively researching and developing new gas mixtures and production methods that offer enhanced environmental benefits. For instance, the exploration of bio-derived feedstocks for gas production or the development of oxygen enrichment technologies in steel manufacturing can contribute to a more sustainable industrial gas industry.

Market Drivers

• Resurgence of the manufacturing sector: After a period of outsourcing production overseas, there's a growing trend of onshoring manufacturing activities back to North America. This shift is driven by factors like increasing labor costs in traditional manufacturing hubs, concerns about intellectual property theft, and a desire for greater control over supply chains. The onshoring trend necessitates a reliable supply of industrial gases for critical production processes across various industries, including automotive, aerospace, and electronics. Industrial gas companies that can cater to the specific needs of onshoring manufacturers and offer efficient distribution networks will be well-positioned to capitalize on this growth driver within the North American market.
• Growing shale gas production: The abundance of shale gas reserves in the region has led to a significant decline in natural gas prices. Natural gas is a crucial feedstock for industrial gas production, and lower feedstock costs translate into more competitive pricing for industrial gases. This cost advantage can incentivize wider adoption of industrial gases across various industries and stimulate demand within the North American market. Furthermore, the availability of abundant and affordable natural gas can encourage the development of new, energy-efficient technologies for industrial gas production, promoting sustainability within the market.

Market Challenges

• Skilled labor shortage: The industrial gas industry relies on qualified personnel for operating production facilities, managing logistics, and ensuring safety protocols are followed. An aging workforce and a skills gap in critical areas like cryogenics and process engineering pose a threat to the smooth operation and efficiency of the market. Investing in training programs, upskilling initiatives, and attracting young talent to the industrial gas industry will be crucial for addressing this labor shortage and ensuring a sustainable workforce for the future.
• Stringent environmental regulations: These regulations are implemented to protect public health and the environment, but they can also increase the operational costs for industrial gas producers. Developing and implementing cleaner production technologies, exploring carbon capture and storage solutions, and optimizing energy efficiency within production facilities are crucial steps for industrial gas companies to navigate these environmental regulations and ensure long-term sustainability within the North American market.

Based on the report, the Industrial Gases market is segmented into Oxygen, Nitrogen, Hydrogen, Carbon Dioxide and Acetylene.

Oxygen, the most widely produced and consumed industrial gas globally, holds a dominant position in the North American market. Its vital role in various industrial processes, including steel production, metal fabrication, and welding, ensures a steady demand. Furthermore, the growing healthcare sector in North America, particularly the increasing use of respiratory therapies, translates to a heightened demand for medical-grade oxygen. The segmentation by purity levels, with industrial-grade and medical-grade oxygen catering to distinct needs, is another noteworthy aspect within this segment. Nitrogen, the second-largest segment, finds applications in a multitude of industries. Its inert properties make it ideal for creating an oxygen-free environment, crucial for preventing oxidation and ensuring product quality in processes like food and beverage preservation, pharmaceuticals manufacturing, and electronics production. The oil and gas industry within North America also utilizes nitrogen for well purging, pressure maintenance, and enhanced oil recovery techniques. Additionally, the growing popularity of inert gas welding processes, which utilize nitrogen to create a protective shield around the weld zone, further contributes to the demand within this segment. Hydrogen, while constituting a smaller portion of the market compared to oxygen and nitrogen, presents a high-growth potential due to its diverse applications. The ongoing energy transition in North America, with a focus on clean energy sources, positions hydrogen as a potential game-changer. Hydrogen fuel cells offer a promising alternative for powering electric vehicles and reducing reliance on fossil fuels. Furthermore, the use of hydrogen in industrial processes like ammonia production and metal refining is creating new opportunities within this segment. However, the development of efficient and cost-effective hydrogen production and storage infrastructure remains crucial for wider adoption. Carbon Dioxide (CO2) finds application in various sectors within the North American market. The food and beverage industry utilizes CO2 for carbonation of soft drinks and beers. In the healthcare sector, CO2 is used in minimally invasive surgeries and cryotherapy procedures. Furthermore, the emerging application of CO2 capture and utilization technologies, aimed at reducing greenhouse gas emissions, presents a potential growth avenue for this segment. However, stringent regulations on CO2 emissions necessitate investments in carbon capture technologies to ensure sustainable utilization within the market. Acetylene, traditionally used for oxy-fuel welding and cutting applications, has witnessed a decline in demand in recent years. The emergence of safer and more efficient alternative welding processes, like MIG (Metal Inert Gas) welding, has contributed to this decline. However, acetylene still finds application in specific niche applications, such as metal cutting and underwater welding. Other types of industrial gases, including ammonia, methane, butane, and propane, cater to a diverse range of applications within the North American market. Ammonia plays a crucial role in fertilizer production and is also used as a refrigerant. Methane serves as a natural gas source for industrial heating and power generation. Butane and propane are primarily used as fuel gases for heating, cooking, and industrial processes.

According to the report, the Industrial Gases market is segmented into Manufacturing Industry, Chemical Industry, Metal & Mining Industry, Energy & Power Industry, Food & Beverage Industry and Healthcare Industry.

The Metal & Mining Industry stands out as the leading consumer of industrial gases in North America. This dominance is driven by several factors. Firstly, the presence of a well-established metal fabrication sector across the United States and Canada necessitates a constant supply of industrial gases for welding, cutting, and heat treatment processes. Secondly, the resurgence of the North American mining industry, particularly for shale gas extraction and base metals like copper and nickel, further amplifies demand for industrial gases used in blasting, flotation, and other mining operations. Finally, the growing focus on lightweight materials within various manufacturing sectors translates to a demand for inert gases like argon and helium used in processes like titanium welding and aluminum fabrication. The sustained activity within the North American Metal & Mining industry positions it as the primary driver for industrial gas consumption. Following closely behind is the Manufacturing Industry, encompassing a broad range of sub-sectors that rely heavily on industrial gases for various applications. In the automotive industry, for instance, inert gases like argon and nitrogen are used in welding processes for car parts and chassis assembly. The aerospace sector utilizes oxygen for brazing and welding of critical aircraft components, while nitrogen plays a role in purging fuel tanks and preventing oxidation. Chemical manufacturing processes often require industrial gases like hydrogen and oxygen for various reactions and syntheses. The diverse applications of industrial gases across the vast North American manufacturing landscape solidify this segment's significant contribution to the overall market. The Chemical Industry represents another crucial end-user segment within the North American industrial gases market. Chemical manufacturing processes often rely on industrial gases like oxygen, nitrogen, and hydrogen as feedstocks or reaction media. For instance, the production of ammonia, a key component in fertilizers, requires large volumes of hydrogen and nitrogen. Similarly, oxygen plays a vital role in the production of chlorine and other industrial chemicals. The ongoing growth of the chemical industry in North America, driven by factors like increasing demand for pharmaceuticals, plastics, and agricultural products, ensures a steady demand for industrial gases as essential inputs within various chemical manufacturing processes. The Energy & Power Industry is another significant consumer of industrial gases in North America. Oxygen is used in oxy-fuel combustion processes within power plants, while nitrogen finds applications in purging pipelines and maintaining inert atmospheres during equipment maintenance. The growing emphasis on cleaner energy sources like natural gas also translates to a demand for industrial gases used in processing and transportation. Furthermore, the potential for hydrogen as a clean energy carrier could reshape the industrial gas market in the future, with North American countries actively exploring hydrogen production and utilization technologies. The evolving energy landscape in North America presents both challenges and opportunities for the industrial gases market within this segment. Food & Beverage and Healthcare industries also contribute to the North American industrial gases market, albeit to a smaller extent compared to the leading segments. In the food & beverage sector, applications include using nitrogen for modified atmosphere packaging to extend product shelf life and carbon dioxide for carbonation of beverages. The healthcare industry utilizes medical-grade oxygen for respiratory therapy and anesthesia, while other industrial gases like nitrous oxide and helium find specialized applications within medical procedures. While these segments represent a smaller share of the overall market, they contribute to the diverse demand profile for industrial gases within North America. Finally, the ""Other"" segment encompasses a wide range of industries that utilize industrial gases for various purposes. This includes applications in electronics manufacturing, glass production, water treatment, and research & development laboratories. The specific gas requirements and consumption volumes within this segment can vary considerably.

Based on the report, the major countries covered in the report include the United States, Canada, Mexico, and the rest of North America.

The United States stands out as the undisputed leader within the North American industrial gases market, driven by a confluence of factors that create a robust demand environment. One of the most significant drivers is the presence of a well-established and diverse manufacturing sector within the US. Industries like automotive, aerospace, chemicals, and electronics are major consumers of industrial gases, requiring a steady supply of oxygen, nitrogen, hydrogen, and various specialty gases for critical processes like welding, metal fabrication, and inert atmospheres. The ongoing growth and technological advancements within these industries translate to a heightened demand for high-quality and reliable industrial gas solutions. Beyond established industries, the US market is also witnessing significant growth in emerging sectors that rely heavily on industrial gases. The burgeoning renewable energy sector, for instance, utilizes industrial gases like hydrogen for fuel cell applications and nitrogen for purging wind turbine components. Similarly, the expanding medical device manufacturing industry requires a consistent supply of medical-grade oxygen, nitrogen, and other specialty gases for sterilization and research purposes. This sectoral diversification within the US creates a multifaceted demand for a wide range of industrial gases, positioning the market for continued growth. Another factor contributing to the US leadership position is the presence of a well-developed infrastructure for industrial gas production, distribution, and support services. Major industrial gas companies have established a strong presence in the US, with extensive production facilities strategically located across the country. This ensures efficient gas delivery to various industrial hubs and minimizes transportation costs. Additionally, a robust network of distributors and service providers caters to the specific needs of diverse industrial gas users.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this 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. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying 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.
***Please Note: It will take 48 hours (2 Business days) for delivery of the report upon order confirmation.