Industrial Gases Market to Grow by USD 30.65 Billion (2024-2028), Driven by Facility Expansion Strategies, AI-Powered Report Highlights Market Trends - Technavio

NEW YORK, Nov. 12, 2024 /PRNewswire/ -- Report on how AI is redefining market landscape - The global industrial gases market  size is estimated to grow by USD 30.65 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 5.92%  during the forecast period. Facility expansion strategies by industrial gases vendors is driving market growth, with a trend towards increasing number of mergers and acquisitions among market players. However, criticalities in gas distribution and gas handling systems  poses a challenge.Key market players include Air Liquide SA, Air Products and Chemicals Inc., AIR WATER INC, Airgas Inc., Asia Technical Gas Co Pte Ltd., BASF SE, Buzwair Industrial Gases Factories, Chemix Specialty Gases And Equipment, Goyal Group, Guangdong Huate Gas Co. Ltd., Gulf Cryo Holding CSC, Iwatani Corp., Linde Plc, Messer SE and Co. KGaA, Norco Inc., Praxair Technology Inc., SOL Spa, Taiyo Nippon Sanso Corp., Wesfarmers Ltd., and Yingde Gas Group Co. Ltd..

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Key Market Trends Fueling Growth

The industrial gases market is experiencing significant growth due to increasing trends in various industries. Nitrogen, Hydrogen, Oxygen, and other gases are in high demand for chemicals, fertilizers, and the global population's growing need for food and beverages. Urbanization and agriculture also drive the demand for nitrogen in the frozen food market. Hydrogen is essential for semiconductor fabrication processes, fuel cells, and carbon dioxide capture in the semiconductor and electronics industries. Safety regulations prioritize employees' safety and the ecosystem. Ultra-high purity gases like argon are crucial for wafer cleaning and safety protocols in semiconductor manufacturing. Oxygen, in Type (Oxygen) cylinders, is used in medical applications, such as in hospitals for infected patients. Industrial gases are also used in wastewater treatment, environmental remediation, and industrial processes like steel melting and copper smelting. Companies like Linde, Air Liquide, Messer, and Air Products & Chemicals dominate the market. The cylinder segment includes liquid nitrogen, argon, and carbon dioxide for various applications, such as in liquid gas transport, packaging facilities, and the rubber industry for non-abrasive cleaning and molded rubber products. The market also includes gases like chlorine, acetylene, and specialty gases for different industries. For instance, acetylene is used in steel melting and copper smelting for thermal efficiency, while chlorine is used in cleaning up hazardous waste in coal gasification systems. The flat-panel displays, semiconductors, LED lights, and solar cells industries rely on industrial gases for their production processes. In summary, the industrial gases market is diverse and essential for various industries, from healthcare to electronics and manufacturing. Companies must prioritize safety regulations and environmental concerns while ensuring production efficiency and meeting the increasing demand for these gases. 

The industrial gases market is characterized by a large number of small and medium-sized companies operating regionally. Mergers and acquisitions (M&A) enable larger players to increase their market share, attain economies of scale, and enhance operational efficiency. Companies in the industrial gases sector are expanding their product offerings to cater to diverse customer needs across industries. M&A activities provide opportunities for companies to acquire complementary businesses and technologies, broadening their capabilities and market reach. For instance, in May 2023, Air Products agreed to acquire a natural gas-to-syngas processing facility in Uzbekistan for USD1 billion. Similarly, in April 2023, Air Water Inc. Made a strategic acquisition to expand its operations. 

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Market Challenges

• The Industrial Gases market faces several challenges in various sectors. In the Chemicals and Fertilizers industry, meeting the demands of global population growth and urbanization requires increased production, leading to a higher need for nitrogen, hydrogen, and oxygen. In Agriculture, the frozen food market relies on liquid nitrogen for preservation. In the Semiconductor industry, ultra-high purity gases like argon are essential for semiconductor fabrication processes. Safety is a significant concern, with regulations focusing on employees' safety and ecosystem protection. Carbon dioxide is used in food and beverages and as a fuel, while safety protocols are crucial in semiconductor and coal gasification systems. The Cylinder segment faces challenges in liquid gas transport and packaging facilities, requiring thin-walled steel and composite aluminum cylinders. Industries like Rubber and Steel have unique requirements, such as acetylene for melting and chlorine for disinfection. The semiconductor market's growth, driven by flat-panel displays, LED lights, and solar cells, increases the demand for specialty gases. The cleanup of hazardous wastewater and environmental remediation also requires industrial gases. In the current scenario, the challenge of minimizing production downtime is crucial for industries to maintain their competitiveness. Companies like Linde, Air Liquide, Messer, and Air Products & Chemicals are addressing these challenges with innovative solutions.
• Industrial gases are essential for various sectors such as manufacturing, processing, and packaging. Their distribution from production centers to the point of use is critical, ensuring gas quality is paramount. Impurities, even in parts per million, can significantly impact processes. Distribution systems for food and beverage and healthcare sectors must adhere to stringent standards. Gases are transported in owner trolleys or cylinders, which are returned for refilling and dispatch. Alternative methods include pipelines, bulk transport via ships, and trucks. Ensuring safe and efficient industrial gas distribution is vital for businesses' success.

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Segment Overview 

This industrial gases market report extensively covers market segmentation by

1. End-user 
• 1.1 Manufacturing
• 1.2 Chemical processing
• 1.3 Metal fabrication
• 1.4 Energy
• 1.5 Others
2. Type 
• 2.1 Hydrogen
• 2.2 Oxygen
• 2.3 Nitrogen
• 2.4 Carbon dioxide
• 2.5 Others
3. Geography 
• 3.1 APAC
• 3.2 Europe
• 3.3 North America
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Manufacturing-  Industrial gases play a crucial role in various manufacturing industries, including aerospace, automotive, glass, ceramics, pulp and paper, shipbuilding, and railways coach and wagon manufacturing. Oxygen, nitrogen, hydrogen, and carbon dioxide are some of the essential industrial gases used for processes such as welding, cutting, brazing, heat treating, purging, and annealing. These gases are integral to manufacturing automobile parts, bodies, and repairing in the automotive industry. In addition, they are employed in energy-related processes like hydrogen production for fuel cells and carbon capture and storage. With a focus on sustainability and environmental responsibility, the demand for industrial gases in cleaner energy solutions is increasing. Industrialization and infrastructure development in emerging economies are driving the need for manufactured goods, leading to higher demand for industrial gases in manufacturing processes. The global industrial gases market is anticipated to grow due to evolving industries, stricter regulations, and innovative applications.

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Research Analysis

The industrial gases market encompasses the production, sale, and distribution of various gases such as Nitrogen, Hydrogen, Oxygen, and others. These gases find extensive applications in various industries including chemicals, fertilizers, and agriculture. With the global population growth and urbanization, the demand for industrial gases is expected to rise. The food industry, particularly the frozen food market, relies heavily on gases like Nitrogen and Carbon Dioxide for preservation. Hydrogen is increasingly being used as a fuel and in the production of chemicals and steel. Industrial gases also play a crucial role in wastewater treatment, environmental remediation, and the semiconductor industry. Liquid Nitrogen is commonly used in cooling and cryogenic applications. Other gases like Oxygen, Acetylene, Chlorine, and Hydrogen are used in steel melting, copper smelting, and thermal efficiency improvement. The market is dominated by large players like Linde, Air Liquide, and Messer, but the workforce in this sector is significant. The market also caters to niche applications like carbon dioxide capture and cleanup of hazardous waste, and coal gasification systems. The virus outbreak has had a minimal impact on the demand for industrial gases, as they are essential for various industries and applications.

Market Research Overview

The Industrial Gases Market encompasses a wide range of gases including Nitrogen, Hydrogen, Oxygen, and their derivatives. These gases find extensive applications in various sectors such as Chemicals, Fertilizers, and the emerging industries of the Frozen Food Market and Semiconductor Industry. With the global population growth and urbanization, the demand for these gases is on a steady rise. Nitrogen, Hydrogen, and Oxygen are integral to the production of chemicals and fertilizers. In the Semiconductor Industry, gases like Carbon Dioxide, Argon, and Ultra-high purity gases are essential for semiconductor fabrication processes. Hydrogen is used in fuel cells for electricity generation, while Nitrogen is used as a fuel in coal gasification systems. Safety regulations are of utmost importance in the Industrial Gases Market. Employees' safety and the ecosystem are protected through stringent safety protocols and the use of specialized equipment. Wastewater treatment and environmental remediation are also significant applications for these gases. Liquid gases like Nitrogen and Carbon Dioxide are transported through various means such as cylinders, bulk distribution, and onsite distribution. The Cylinder segment is a significant contributor to the market, with thin-walled steel and composite aluminum cylinders being popular choices. Industrial gases are used in various industries such as the Rubber Industry for non-abrasive cleaning of rubber molds and in the production of molded rubber products. In the Food and Beverages Industry, gases like Nitrogen are used for packaging and preserving food. Specialty gases are used in various applications such as wafer cleaning in semiconductor fabrication processes and in the production of flat-panel displays, LED lights, and Solar cells. The demand for industrial gases is driven by various factors such as the growth of the Semiconductor Market, the increasing use of industrial gases in the production of Electronic Devices, and the growing demand for cleaner fuels. However, the market also faces challenges such as production downtime due to maintenance and the impact of viruses like COVID-19 on supply chains. Overall, the Industrial Gases Market is a dynamic and diverse industry that plays a crucial role in various sectors of the economy. With ongoing research and development, the market is expected to continue growing and evolving to meet the changing needs of industries.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• End-user
• Manufacturing
• Chemical Processing
• Metal Fabrication
• Energy
• Others
• Type
• Hydrogen
• Oxygen
• Nitrogen
• Carbon Dioxide
• Others
• Geography
• APAC
• Europe
• North America
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

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SOURCE Technavio