Industrial gases are produced as gaseous products to be used in various industrial production processes at ambient pressure and temperature. Among them are compounds, pure gases, and gas mixtures. Increases in the capacity of the world's oil and gas refineries and in the consumption of natural gas for domestic and commercial purposes are driving the market for industrial gases. Growing demand for industrial gases from important end-use industries like the oil and gas, petrochemicals, food and beverage, chemicals, and power industries. The rising use of industrial gases in numerous industries, including construction, metals, mining, and food services, is driving the expansion of the market. Market growth is also fueled by rising global demand for renewable energy sources and electronic devices.
Every sector of the economy has been negatively impacted by the worldwide health catastrophe brought on by the unexpected spread of the COVID-19 pandemic. Due to operational disruptions brought on by a lack of labor and a decline in demand from end-use industries due to extensive lockdowns to stop the virus' spread, less money was invested in gases in the fiscal year 2020. The spread of the disease has also dramatically altered the demand for crude oil, resulting in record-low oil prices.
Growing Demand from Healthcare Sector to Fuel Market Growth
The demand for industrial gases is growing due to the healthcare sector's rapid technological development. The growth of gas-assist equipment vendors in the medical sector offers a variety of equipment and controls, but the basic process is the same regardless of the variances. Pressure changes and stream regulation primarily provide organized control of process factors. Additionally, bulk oxygen is frequently needed in the medical sector to reduce the risk of excess oxygen in the body during procedures and to provide artificial ventilation. Nitrogen is used in pre-flight lung diagnostics to determine a person's capacity to adapt to a simulated aircraft cabin environment. Carbon dioxide can be inhaled during insufflation and mixed with oxygen to stimulate the heart. Thus, all these factors are anticipated to drive the market's growth.
Strict Laws and Regulations for the Production, Distribution, and Storage of Gases to Limit the Market Growth
The market's growth during the anticipated period is likely to be constrained by strict laws and regulations governing gas production, storage, and transportation. E.U. Regulation 231/2012 established the composition of hydrocarbons for storing and transporting industrial gases. For the safety of those transporting these gases, the European Agreement on the Carriage of Dangerous Goods by Road, ADR 13 regulation, required a bond.
Based on product, the industrial gases market is segmented into oxygen, nitrogen, hydrogen, carbon dioxide, acetylene, argon and others. The oxygen category dominated the market in 2021. The fuel's thermal efficiency will be increased, as is widely known. Treating hazardous wastes and contaminated water is another use for oxygen in addition to gasifying coal. Extensive use of oxygen is also made in the medical field. Due to oxygen's widespread use across various industries, it is anticipated that the demand for industrial oxygen will rise in the years to come.
Besides, the carbon dioxide category is anticipated to grow significantly over the forecast period because it is increasingly used in various nations for gas-based enhanced oil recovery. In addition, due to fluctuating crude oil prices and a rise in the number of mature wells around the world, the use of enhanced oil recovery to increase the efficiency of oil production from oil wells will significantly increase.
By distribution, the market is segmented into on-site, bulk (liquid gas transport) and cylinder (merchant). The cylinder (merchant) category dominated the market in 2021, considering that gases are delivered using packed cylinders. The only clients who would benefit from this delivery method are those with a modest need for industrial gases. Nitrogen, oxygen, helium, argon, and hydrogen are just a few gases that can easily be compressed into a cylinder at pressures up to 300 bars for cylinder distribution.
Besides, the on-site category is anticipated to grow significantly over the forecast period. The on-site section includes the setup of the filling station at the firm's facility or another location. This distribution method supplies large quantities of gases at various pressures and states. On-site generation eliminates several problems with hydrogen distribution and transportation, so the industry is anticipated to grow significantly.
Asia Pacific is projected to hold the largest industrial gas market share over the forecast period. This can be attributed to the growing demand for manufactured goods brought on by the region's large population and robust manufacturing sector, particularly in India, South Korea, China, and Japan, due to their competitive labor markets. Additionally, the less strict environmental rules than in Western nations are facilitating the expansion of the regional industry.
On the other hand, the North American industrial gases market is anticipated to grow significantly over the forecast period. The region's expanding healthcare and electronic sectors will probably help the North American market expand. Additionally, it is anticipated that the market will grow due to the expansion of the industrial sector in the area.
LIST OF KEY COMPANIES PROFILED:
- BASF SE
- AIR LIQUIDE S.A.
- Messer Group
- Linde Plc
- Taiyo Nippon Sanso
- Southern Gas Ltd.
- Universal Industrial Gases, Inc.
- Gulf cryo, International Industrial Gases Limited
- Goyal MG gases Pvt. Ltd.
- Ellenbarrie Industrial Gases
- Praxair Technology, Inc.
- MVS Engineering Pvt. Ltd.
- National Gases Ltd.
- Air Products & Chemicals
KEY INDUSTRY DEVELOPMENTS:
- June 2022: To aid China in achieving its decarbonization targets and laying the groundwork for a cleaner future, Air Products has stated that it will support China's new phase of development, focusing on the energy transition.
- March 2021: Echo Energy Plc was awarded two more contracts to sell industrial gases at a premium. Each contract has a 12-month term, and the company will begin selling gases in May 2021.
|Unit||Revenue (USD Million) and Volume (Kilo Tons)|
|Segmentation||By Product, By Application, By Distribution, and By Geography|