The global industrial gases market was valued at $50.8 billion in 2016 and is forecast to grow at a steady CAGR of 5.4% between 2017 and 2024, culminating in 2024 global revenue of $83.3 billion. Increasing drilling activities coupled with growth of end-use industries such as pharmaceuticals and metal processing is anticipated to drive market growth over the forecast period.
Due to emerging markets in oil and gas sector, chemical industries, steel and metal processing industries, pharmaceutical industries, food and beverage industries, the demand for industrial gasses is expected to grow throughout forecast years.
Key Product Categories & Technologies
Industrial gasses are atmospheric gasses and processes gasses. Principally these gasses are nitrogen, helium, carbon dioxide, argon, acetylene, ozone, acetylene, natural gas, propane, propylene and hydrogen, which are used for various industrial applications. The growth of industrial gasses is expected in forecast years due to its various applications in agriculture, mining, oil and gas, construction, glass manufacturing, transportation equipment, instruments, food and tobacco, paper and paper products, chemicals and chemical products, petroleum products, rubber and plastics industries.
In 2016, consumption of these gasses in Gulf Countries was 3.75 million tones. The largest consumer among Gulf countries was Saudi Arabia in 2016, contributing revenue share of 46.8%. Industrial Gases revenue in Gulf Countries in expected to reach 1270.1 million UDS by 2022. The driving force for demand in Refinery, Oil and Gas sectors is constraints in capital investments, urge to improve the efficiency of the process and interest in capitalizing on low-grade crude oil. These challenges drive the industries to look for alternative options in which industrial gasses play a vital role. Industrial gasses are also required in large quantities to control various processes.
These industrial gasses are used in welding and fabrication industries, customize cutting, preheating, installation of the pipeline network, construction of heavy machines and building of offshore rigs and platforms. It was observed that demand of Argon in 2015 had highest growth rate, due its inert properties. This chemically inert element is used in welding industries, as it protects the puddle against oxidation from surrounding air.
There are different processes for each industrial gas and the complexity of process will depend on physical, chemical and safety-related constraints. Carbon Dioxide is manufactured by combustion of hydrocarbons, the flue gas generated due to combustion is purified, compressed, dehumidified and liquefied to produce high-quality Carbon dioxide.
Hydrogen can be produced by various processes such as electrolysis, biomass gasification, photo biological processes, microbial biomass conversion, electrolysis, carbon sequestration from natural gas. Argon is manufactured in cryogenic air separation unit by fraction distillation of air. Argon is inert and non-toxic but it is dangerous asphyxiant in closed areas since it is 38% denser than air.
Industrial gasses are stored as liquids at cryogenic temperatures and high pressure, to maintain the safety at production area and ensure timely delivery by transportation.
Top Players & Company Share
The prominent companies to manufacturer industrial gasses are AGA AB, Air Liquide, Praxair, The BOC Group, Linde Group, BASF, Messer group. Four major industries – Praxair, Air Products, Air Liquide and Linde contribute to 80% of industry revenue.
Growth Drivers & Restraints, Major Trends and Issues
Global demand for industrial gas will increase due to the rapid growth of industries. The Asia Pacific region is forecasted to have a boost in growth rate due to its ever-expanding manufacturing base. The growth rate in Africa and the Middle East will be will more than average growth rates due to its large oil reserves and refining industries. However, high storage and transportation cost is the major restraint for the markets. In January 2017, thirteen leading transport, energy and industry companies have united to vision a long term ambition for hydrogen to foster energy transition. Since hydrogen being a versatile and clean energy carrier- zero CO2 emission, major companies are interested to invest in development and commercialization of hydrogen and fuel cell sector. Total investment by these companies is estimated to be of 1.51 Billion USD per year.
One of the major drivers for investment in industrial gasses is also photovoltaic industry, which is evolving as clean resource of energy generation. Industrial gasses reduce the overall manufacturing cost of photovoltaic panels.
Competitive Dynamics & End market mix
There are opportunities in industrial gasses market in North America, Europe, China, India and Japan. The successful acquisition of Air Liquide and Air Gas will generate 30% more revenue in Gas and its services in the USA. This acquisition generates annual sales of 22 billion USD. The Linde Group is to begin construction of air separation unit worth 7.5 Billon USD in East Malaysia. Praxair has signed a long-term contract with DOW Chemicals Company USA to start a hydrogen facility that will recover byproduct streams. It has also signed a contract to supply Nitrogen to DOW Chemicals Company production facility.
In the emerging economy and rapid industrialization globally, the overall market for industrial gasses is expected to grow. The end users are looking forward to alternative options which are environment-friendly and low cost, thus the companies will continue to be keen in investing in the production of industrial gasses. CAGR of 5.4% is expected from 2016 to 2024 to reach the revenue of 83 Billion USD. Gulf countries, USA and Europe will be major countries that will drive the market for industrial gasses.
- Market growth drivers
- Top players
- Global regional insights
- Technology outlook
- North America
- Europe and Asia Pacific
- The Middle East and Africa
- Oil and Gas, Petrochemicals, Food and beverage Industry, Refinery Industry, chemical industries, steel and metal processing industries.