Saudi Arabia Industrial Gases Market Overview, 2029

Saudi Arabia Industrial Gases Market Overview, 2029

The industrial gases market in Saudi Arabia is a critical and dynamic sector that underpins the Kingdom’s expansive industrial activities, driven by its vast oil and gas reserves and ambitious economic diversification plans under Vision 2030. Saudi Arabia is one of the world's largest producers of oil and petrochemicals, and this drives a substantial demand for industrial gases like hydrogen, nitrogen, and carbon dioxide. In the oil and gas sector, these gases are essential for enhanced oil recovery (EOR) processes, refining, and gas processing operations. Hydrogen, in particular, is crucial for hydrocracking and desulfurization processes in refineries, which are essential for producing cleaner fuels and meeting stringent environmental standards. The petrochemical industry, a major component of Saudi Arabia's industrial base, uses large quantities of hydrogen and other specialty gases in the production of chemicals, plastics, and fertilizers, supporting the Kingdom's strategy to move up the value chain in petrochemical production. The manufacturing sector in Saudi Arabia, including metals, cement, and electronics, also heavily relies on industrial gases. For instance, oxygen and acetylene are extensively used in metal fabrication and cutting operations, which are integral to the construction and heavy industries. The Kingdom's drive to expand its industrial base beyond hydrocarbons is leading to increased demand for gases in new manufacturing ventures and technological applications. The healthcare sector in Saudi Arabia has seen a growing need for medical gases such as oxygen and nitrous oxide, used widely in hospitals and clinics for patient care, anesthesia, and emergency medical services. The COVID-19 pandemic highlighted the critical role of medical gases, prompting investments to bolster the healthcare infrastructure and ensure the reliable supply of medical oxygen. Saudi Arabia’s commitment to sustainability and reducing carbon emissions is fostering the growth of green hydrogen, which is produced using renewable energy. As part of its Vision 2030 initiative, Saudi Arabia is investing heavily in large-scale green hydrogen projects, aiming to become a global leader in hydrogen production and export. The NEOM project, a cornerstone of Vision 2030, includes plans for one of the world’s largest green hydrogen plants, leveraging the Kingdom’s abundant renewable energy resources. The distribution of industrial gases in Saudi Arabia is supported by a robust infrastructure, including an extensive network of pipelines, bulk transport systems, and cylinder deliveries. Major global and regional companies like Air Liquide, Linde, and Saudi-based National Industrial Gases Company (GASCO) dominate the market, providing comprehensive gas solutions and focusing on technological advancements and sustainability.

According to the research report ""Saudi Arabia Industrial Gases Market Overview, 2029,"" published by Bonafide Research, the Saudi Arabia Industrial Gases Market is expected to grow at more than 6.7% CAGR from 2024 to 2029. The industrial gases market in Saudi Arabia is growing rapidly, fueled by several factors aligned with the Kingdom’s economic vision and industrial landscape. The country's vast oil and gas industry is a cornerstone, driving significant demand for industrial gases like nitrogen, oxygen, and carbon dioxide, essential for enhanced oil recovery (EOR), refining, and gas processing operations. Saudi Arabia's strategic initiatives to enhance its hydrocarbon production and efficiency ensure a steady need for these gases. Additionally, the burgeoning petrochemical sector, a key part of Saudi Arabia’s economic diversification under Vision 2030, relies heavily on hydrogen and other specialty gases for the production of chemicals, plastics, and fertilizers, supporting the market's expansion. Saudi Arabia’s ambitious industrial development plans also contribute to the growth of the industrial gases market. The country's push to diversify its economy includes expanding its manufacturing base, particularly in sectors like metals, cement, and electronics, which require large volumes of industrial gases for welding, cutting, and material processing. These industries are integral to the Kingdom's infrastructure projects and mega-developments, further boosting demand for industrial gases. The healthcare sector in Saudi Arabia is another significant driver, with a growing need for medical gases such as oxygen and nitrous oxide. These gases are crucial for surgeries, anesthesia, and respiratory care, and the expansion of healthcare services and facilities across the Kingdom, particularly in response to the COVID-19 pandemic, has led to increased investments in medical gas infrastructure and supply systems. Saudi Arabia’s commitment to sustainability and its vision to reduce carbon emissions play a critical role in promoting the growth of the green hydrogen economy. The Kingdom aims to become a global leader in hydrogen production, leveraging its abundant renewable energy resources. Major projects, like the NEOM hydrogen plant, focus on producing green hydrogen using solar and wind energy, which aligns with Saudi Arabia’s goals to diversify its energy mix and reduce its carbon footprint. Additionally, advancements in hydrogen storage and transport technologies, such as liquid hydrogen carriers and high-pressure storage systems, are crucial for supporting the Kingdom’s growing hydrogen market. These factors collectively drive the growth and technological evolution of the industrial gases market in Saudi Arabia.

The industrial gases market is segmented in various ways to better understand its diverse applications and economic significance. By type, it includes gases such as oxygen, nitrogen, hydrogen, carbon dioxide, acetylene, and other types including ammonia, methane, butane, and propane. Each of these gases plays a crucial role in different industrial processes; for instance, oxygen is vital for combustion processes, nitrogen is used in food preservation, hydrogen in refining and chemical processes, carbon dioxide in carbonation, acetylene in welding, and other gases in various chemical reactions and energy applications. The market is further categorized by end-user industry, highlighting its extensive utilization across manufacturing, chemical, metal and mining, energy and power, food and beverage, and healthcare industries, among others. Manufacturing industries, for example, represent a significant segment due to their extensive use of gases for welding, cutting, and other processes. The chemical industry heavily relies on gases like hydrogen and nitrogen for producing various chemicals. The energy and power sector uses gases for enhanced oil recovery and power generation, while the food and beverage industry utilizes gases for packaging and carbonation. Healthcare industry applications include medical gases for respiratory therapies and anesthesia. Additionally, the distribution mode of these gases is an important aspect, categorized into on-site pipeline, bulk, and cylinder delivery methods, each tailored to specific industrial requirements and consumption patterns. On-site pipeline distribution is essential for industries with continuous, large-scale gas needs, bulk delivery caters to moderate requirements, and cylinder distribution is suitable for smaller, more flexible applications. The segmentation highlights the global, regional, and country-specific relevance of industrial gases, reflecting the market's dynamic nature and its critical role in supporting various industrial activities worldwide. Understanding these segments helps in comprehending the market trends, identifying growth opportunities, and addressing the specific needs of different industries and regions.

In Saudi Arabia, the industrial gases market is regulated by several key bodies and frameworks aimed at ensuring safety, environmental protection, and operational standards. The primary regulatory authority overseeing this sector is the Saudi Standards, Metrology and Quality Organization (SASO), which sets standards and regulations for the production, storage, and distribution of industrial gases. SASO mandates compliance with technical standards and specifications that ensure the quality, safety, and efficiency of industrial gas operations across the kingdom. Additionally, Saudi Arabia aligns with international standards such as ISO 9001 for quality management systems and ISO 14001 for environmental management systems, which are critical for companies in the industrial gases sector to maintain operational excellence and regulatory compliance. Looking ahead, the prospects for Saudi Arabia's industrial gases market are promising, driven by robust industrial growth, significant investments in infrastructure and construction, and ongoing diversification efforts under Saudi Vision 2030. The kingdom's strategic geographic location, coupled with its large-scale industrial projects and expanding petrochemical sector, provides substantial opportunities for the industrial gases market to expand. Future demand is expected to rise across sectors such as healthcare, oil and gas, metallurgy, and electronics, where industrial gases like oxygen, nitrogen, and hydrogen play crucial roles in various applications. Government support plays a pivotal role in fostering market growth through initiatives like the National Industrial Development and Logistics Program (NIDLP) and the Saudi Industrial Development Fund (SIDF), which aim to enhance industrial capabilities, support local manufacturing, and attract foreign investment in advanced technologies, including hydrogen production and utilization. Financial incentives, subsidies, and investment in infrastructure further bolster the industrial gases sector, promoting innovation, research, and development in sustainable and efficient gas technologies. These regulatory frameworks and government initiatives collectively position Saudi Arabia's industrial gases market for sustained growth, leveraging its economic reforms, strategic initiatives, and abundant resources to strengthen its competitive position in the global market while advancing towards a diversified, knowledge-based economy as outlined in Saudi Vision 2030.

The industrial gases market in Saudi Arabia faces several unique challenges that impact its operations and future growth prospects. One significant challenge is the dependency on imported technologies and expertise despite efforts to localize industrial capabilities through initiatives like Vision 2030. While Saudi Arabia has invested heavily in infrastructure and industrial development, including petrochemicals and manufacturing sectors, there remains a reliance on foreign expertise and technologies for advanced industrial gas production and distribution systems. This dependency exposes the market to fluctuations in global commodity prices, currency exchange rates, and supply chain disruptions, particularly during periods of geopolitical tensions or global economic uncertainties. Additionally, regulatory compliance in Saudi Arabia is stringent, focusing on safety, environmental sustainability, and quality standards. Companies in the industrial gases sector must adhere to regulations set by authorities like the Saudi Standards, Metrology and Quality Organization (SASO), which ensures that products meet local and international standards. Compliance requires continuous investment in technology, infrastructure, and skilled manpower, which can pose challenges, especially for smaller firms and new entrants. Moreover, the competitive landscape in Saudi Arabia's industrial gases market is characterized by the presence of large multinational corporations with extensive global networks and established customer bases. These companies often have the advantage of economies of scale and advanced technologies, making it challenging for local companies to compete on a global scale without robust differentiation strategies or partnerships. The transition towards sustainable energy solutions, including hydrogen, presents both opportunities and challenges for Saudi Arabia's industrial gases market. While there is growing interest and investment in renewable energy and hydrogen technologies as part of Vision 2030, scaling up production and distribution infrastructure requires significant capital investment, technological advancements, and skilled workforce development. Furthermore, the COVID-19 pandemic highlighted vulnerabilities in global supply chains and logistics, impacting the industrial gases sector's operations, project timelines, and market demand fluctuations. Despite these challenges, Saudi Arabia's strategic initiatives like the National Industrial Development and Logistics Program (NIDLP) and the Saudi Industrial Development Fund (SIDF) provide opportunities for the industrial gases market to innovate, expand capabilities, and capitalize on emerging trends in clean energy and technology.
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.