Industrial Gases Market Forecasts to 2028 – Global Analysis By Product (Argon, Acetylene and Other Products), Distribution (Bulk (Liquid Gas Transport), On-site and Cylinder (Merchant)), End User and Geography

Industrial Gases Market Forecasts to 2028 – Global Analysis By Product (Argon, Acetylene and Other Products), Distribution (Bulk (Liquid Gas Transport), On-site and Cylinder (Merchant)), End User and Geography

According to Stratistics MRC, the Global Industrial Gases Market is accounted for $99.68 billion in 2022 and is expected to reach $169.03 billion by 2028 growing at a CAGR of 9.2% during the forecast period. Industrial gases include gases such as carbon dioxide, argon, hydrogen, helium, and acetylene, as well as many additional gases and mixes that are generated or produced for industrial purpose. These gases are employed in a variety of industries, including oil and gas, petrochemicals, chemicals, power, mining, and steelmaking, among others. Industrial gases are utilised in a variety of industrial applications, including aerosol propellants, cutting and welding, food processing, underwater diving, and more. They are highly combustible and dangerous by nature and are delivered in gas cylinders.

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Market Dynamics:

Driver:

Surging Consumption of Industrial Gases in the Oil & Gas Industry

Global gas consumption has increased in response to rising global crude oil demand and the need for refining. Industrial gases are used extensively in the oil and gas industry for drilling, well raising, coiled tubing, pipe inerting and cooling, leak testing, inspection, maintenance, subsea activities, spool base for pipe building, shipbuilding, gas analysis, and a number of other vital operations. The expansion of the oil and gas industry is predicted to drive up demand for these industrial gases in a variety of activities, resulting in market growth.

Restraint:

Stringent laws and regulations for manufacturing, storage, and distribution of gases

Stringent laws and regulations governing the manufacture, storage, and transportation of gases are expected to limit market growth during the forecast period. They are governed by a plethora of strict regulatory regulations. The composition of hydrocarbons for the storage and distribution of industrial gases was regulated in EU Regulation 231/2012. These gases were transported in accordance with the European Agreement on the Carriage of Dangerous Goods by Road, ADR 13 standard for safety precautions.

Opportunity:

Increasing urbanization and industrialization

Various emerging and developed countries have seen rapid increases in the pace of urbanisation and industrialization, which will shape the industrial gases market trends over the projection period. As a result of urbanisation, this market is projected to benefit from rapid increase in the establishment of new facilities such as manufacturing and processing sectors. According to World Bank estimates, several top nations such as Italy, India, China, and Vietnam will have around 71%, 34%, 60%, and 37% of their people living in urban areas by the end of 2019. Furthermore, the growth of the application sector will increase demand for these gases.

Threat:

Rising global price of industrial gases

The rising global price of industrial gases is likely to be a major stumbling block to the market's growth over the forecast period. The high cost of energy in the separation of industrial gases makes it a substantial cost element, accounting for 50% of the entire production cost. Because electricity contributes for about half of the cost of production, the cost of production fluctuates with the cost of electricity. The weighting of cost components may vary depending on individual parameter price fluctuations in each nation.

Covid-19 Impact

COVID-19 has had a significant impact on the world economy, with disastrous repercussions on global trade, affecting households, businesses, financial institutions, industrial facilities, and infrastructural corporations all at the same time. The new coronavirus has harmed various economies and triggered lockdown in many nations, limiting commercial growth. The shutdown of industrial firms resulted in a drop in demand for industrial gases in most nations throughout the world, resulting in a drop in demand for the industrial gases market. The decline in industrial gas use in industrial facilities worldwide during the outbreak has a detrimental impact on market development.

The oxygen segment is expected to be the largest during the forecast period

The oxygen segment is estimated to have a lucrative growth, due to its wide application in oxygen scarfing, gas welding, gas cutting, flame cleaning, flame straightening, and flame hardening. Oxygen is employed in the treatment of dirty water and hazardous wastes, as well as in the coal gasification process. In order to limit pollution, the gas can also be used to substitute chlorine in the pulp and paper industry. Oxygen is also used extensively in the medical industry. Thus, the widespread use of oxygen in numerous industries is likely to drive industrial oxygen demand in the coming years.

The food and beverage segment is expected to have the highest CAGR during the forecast period

The food and beverage segment is anticipated to witness the fastest CAGR growth during the forecast period, due to its wide applications. Industrial gases are used in the food business for a variety of applications, including modified atmospheric packing (MAP), chilling and freezing, and managing product temperature during transit and storage. It is primarily used to preserve the quality and extend the shelf life of food products. It also serves as an indicator for determining food quality during preparation and storage. Carbon dioxide is used in the beverage sector to make carbonated beverages. Therefore, the above mentioned factors drive the market growth.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to the increased urbanisation and industrialization, as well as the increased usage of gases in numerous end-use industries such as metallurgy, healthcare, food and beverage, oil and gas, and power. Emerging economies such as China, India, Japan, and Indonesia, among others, are eager to engage in sustainable energy development. Due to the presence of a large consumer base, other corporations are also investing in these countries. Additionally, it is anticipated that throughout the projection period, there will be plenty of chances for market expansion due to the huge growth of the food, beverage, and pharmaceutical sectors in emerging economies like China and India.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period, owing to the growing healthcare and electronic industries across the region. The industrial sector is likely to have a significant demand for gases during the forecast period. Demand for these gases is increasing significantly in the pharmaceutical and metallurgy industries, which will drive the market. Moreover, the expansion of the industrial sector in the region is anticipated to fuel market growth.

Key players in the market

Some of the key players profiled in the Industrial Gases Market include Air Water Incorporation, Airgas Inc., BASF SE, Taiyo Nippon Sanso, Buzwair Industrial Gases Factories, Yingde Gases Group Company Limited, Messer Group, Air Liquide S.A, Air Products and Chemicals Inc., Linde Group, Bristol Gases, Matheson Tri-Gas, Gulf Cryo, Dubai Industrial Gases and Universal Industrial Gases

Key Developments:

In January 2021, Air Liquide announced a 40% stake acquisition in the French company H2V Normandy, which aims to build a large-scale electrolyzer complex to produce green hydrogen in France. This strategic investment shows Air Liquide’s commitment to environment-friendly hydrogen energy and decarbonization of the industry and mobility markets.

In January 2021, Gulf Cryo and Tecno Project Industriale (TPI) from SIAD Group, confirmed the signing of a Memorandum of Understanding (MoU) for the purchase of a modular CO2 recovery plant with a daily production capacity of 300 metric tons per day. Gulf Cryo announced that this new mega CO2 recovery plant investment will enable it to double its existing CO2 production capacity in Saudi Arabia and will capture more than 250,000 tons a year of CO2 emissions to produce high-purity, food-grade green CO2. The company claims that this plant will be the largest CO2 emissions capture plant in Saudi Arabia.

Products Covered:
• Argon
• Acetylene
• Carbon Dioxide
• Hydrogen
• Nitrogen
• Oxygen
• Other Products

Distributions Covered:
• Bulk (Liquid Gas Transport)
• On-site
• Cylinder (Merchant)

Applications Covered:
• Air Separation
• Carbonation
• Coolant
• Cryogenic
• Cutting & Welding
• Laboratory
• Packaging
• Other Applications

End Users Covered:
• Healthcare
• Chemicals
• Food & Beverage
• Power
• Oil & Gas
• Electronics
• Pulp & Paper
• Water Treatment
• Mining
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements