Industrial Gases Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth And Forecast 2022-2027

Industrial Gases Market Overview

The Industrial Gases market size is estimated to reach US$130.8 billion by 2027, after growing at a CAGR of 5.3% during the forecast period 2022-2027. Industrial gases are gaseous materials such as oxygen, acetylene, methane, carbon dioxide, hydrogen sulfide, fluorine, nitrogen trifluoride, and others, that are produced in large quantities for usage in the industry. The increasing application of industrial gases for metal cutting, welding, gas transportation in healthcare, and others creates a drive in the industrial gases market. Furthermore, the increasing demand for high purity gas over various chemical ingredients in food and beverage, healthcare, and power generation applications is anticipated to offer a major growth in the industrial gases industry. The Covid-19 hampered the demand and growth of the industrial gases market due to factors such as logistics restrictions, closure of manufacturing activities, demand and supply gap, and other lockdown regulations, thereby resulting in a decline in demand for industrial gases across major industries. Furthermore, with the bolstering growth and recovery in the market, the application of industrial gases flourished. Therefore, the industrial gases market is anticipated to grow rapidly during the forecast period.

Report Coverage

The report: “Industrial Gases Market Report – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the industrial gases market.

By Type: Nitrogen, Oxygen, Carbon Dioxide, Hydrogen, Acetylene, Helium, Argon, Ammonia, Neon, Propane, Methane, Butane, and Others
By Packaging: Cylinders, Drums, Bottles, and Others
By Application: Semiconductors, Flat Panel Display, Carbonated Beverages, Food Packaging, Cryogenics, Plastics, Fertilizers, Welding, Metal Fabrication, Glass Melting, and Others
By End-Use Industry: Building & Construction (Residential, Commercial, and Industrial), Energy Generation (Solar, Wind Energy, Others), Healthcare, Oil & Gas (Onshore and Offshore, Mining, Automotive (Passenger Vehicle, Light Commercial Vehicle, and Heavy Commercial Vehicle), Aerospace, Metallurgy, Chemical & Petrochemical, Agriculture, Food & Beverage, Electrical & Electronics (Consumer Electronics, Printed Electronics, Wearable, and Others), and Others
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the World (Middle East, and Africa)

Key Takeaways

• Asia-Pacific dominates the industrial gases market, owing to its flourishing base for major industries such as healthcare, automotive, construction, and others. The advancements in the production base for industrial gases and the high demand for utility and specialty gases in APAC are boosting the growth of industrial gases in the Asia-Pacific region.
• The demand for industrial gases such as oxygen, carbon dioxide, nitrogen, and others in the healthcare sector is increasing due to vast applications in medical devices, inhalation therapy, welding, and others, thereby boosting the applicability of industrial gases in the healthcare industry.
• Oxygen gas has major demand in the industrial gases market, owing to its wide range of applications in medical and healthcare, metal fabrications, construction, aerospace, and others, which is anticipated to boost its demand in the market during the forecast period.
• However, the hazards associated with various industrial gases such as methane, carbon dioxide, and others such as global warming, air pollution, and contamination is acting as a challenge for the industrial gases industry.

Industrial Gases Market Segment Analysis – By Type

The oxygen segment held the largest share in the industrial gases market in 2021 and is forecasted to grow at a CAGR of 5.6% during the forecast period 2022-2027. The high demand for oxygen gas is high due to its requirement as raw material for oxidizing and life-saving features, and its flourishing applicability in the medical sector compared to other industrial gases. The oxygen gas has flourishing applications in inhalation therapy, ventilators, concentrators, welding, and others. The high demand for oxygen gas in the healthcare sector is boosting the growth in the market. According to the National Audit Office, around 11,500 ventilators were available in April 2020, which rose to 24,000 ventilators availability by June 2020 in the UK. According to World Integrated Trade Solution (WITS), the medical oxygen export in 2019 was highest in Belgium with 352,806,000 m3. Moreover, according to the Ministry of Health and Family Welfare, the medical oxygen consumption was 3842 MT in India, which is 54% of the daily production capacity as of April 2021. With the rise in the demand for the ventilator, oxygen concentrators, and others owing to the covid-19 outbreak, the demand for oxygen gas for application in ventilator machines, inhalation, and others, in the healthcare sector is growing. Thus, owing to flourished demand from the medical sector, the oxygen industrial gas segment is anticipated to attract major growth in the market during the forecast period.

Industrial Gases Market Segment Analysis – By End-Use Industry

The Healthcare segment held a significant share in the industrial gases market in 2021 and is forecasted to grow at a CAGR of 6.3% during the forecast period 2022-2027. Industrial gases such as oxygen, nitrogen, carbon dioxide, and others have flourishing applications in the powering of surgical tools, inhalation therapy, anesthetics, and others. The usage of medical gases offers lifesaving benefits and is regulated as drugs; thereby having major demand in the healthcare industry. The medical and healthcare infrastructure development is boosting the growth in the market. According to the Economic Survey 0f 2022, the public expenditure on the healthcare sector in India stood at 2.1% of GDP in 2021-22 against 1.8% of GDP in the year 2020-21. According to the American Hospital Association, hospital drug expenses increased by 30% in 2020-21 compared to the previous year. The demand for industrial gases is growing for various applications in the healthcare industry. With flourishing demand and increase in application for industrial gases in healthcare, the industrial gases are anticipated to grow majorly in the healthcare industry during the forecast period.

Industrial Gases Market Segment Analysis – By Geography

Asia-Pacific region held the largest share in the industrial gases market in 2021 up to 39%. The robust growth and demand for industrial gases in APAC are influenced by flourishing applications and development in major industries such as healthcare, automotive, energy generation, and others. The increasing development and demand from the healthcare industry in APAC is driving the industrial gas market. According to the International Trade Administration, the medical device sector in China is expected to reach US$38.5 billion by the year 2025. The growth of the automotive industry in the Asia-Pacific also contributes to the high demand for industrial gases such as oxygen, methane, acetylene, nitrogen, and others. According to the International Organization of Motor Vehicle Manufacturers (OICA), the automotive production in China showed a 3% growth, 30% growth in India, and 63% in Indonesia in 2021, compared to a fall of 2% in China, 25% fall in India, and 43% decline in Indonesia in the year 2020. With the rising advancements and development in the industries, majorly across healthcare, transportation, and others in APAC, the demand for industrial gases for applications such as fabrication, drug synthesis, welding, and others is flourishing, thereby offering major growth opportunities for industrial gases industry in the Asia-Pacific region during the forecast period.

Industrial Gases Market Drivers

Rapid Demand From the Oil & Gas Industry

Industrial gases such as nitrogen, argon, hydrogen, and others have flourishing demand in the oil and gas industry due to their various applications in the oil and gas such as refining, separation, pipeline, and others. The oil and gas sector is growing rapidly owing to high energy demand and emphasis on various exploration and production (E&P) activities. According to the International Energy Agency (IEA), the global oil consumption demand is expected to reach 104.1 mb/d by the year 2026, an increase of 4.4 mb/d from 2019. According to the India Brand Equity Foundation (IBEF), the oil refining capacity in India stood at 248.9 million metric tonnes per annum as of September 2021, with IOC being the largest domestic refiner, with a capacity of around 69.7 million metric tonnes per annum. With the rise in oil and gas refining, drilling, exploration, and production activities, the demand for industrial gases such as nitrogen, argon, hydrogen, and others is rising for application in refining, separation, piping, and other activities in the oil and gas sector. Thus, the established growth in the oil and gas industry is driving and offering major growth opportunities in the Industrial gases market.

Bolstering Growth of Electronics Industry

Industrial gases such as nitrogen trifluoride, hydrogen sulfide, argon, silane, and others have flourishing applications in the electronics industry for application in integrated circuits, semiconductors, flat panel displays, printed electrical devices, and others. The rise in electrical and electronics production owing to increased consumption of electronic devices such as computers, PC, smartphones, semiconductor devices, and others in the work-from-home environment is boosting the growth of the electronics industry. According to the Semiconductor Industry Association (SIA), the worldwide sales of semiconductors totaled US$151.7 billion during the first quarter of 2022, showing an increase of 23% over the first quarter of 2021. According to India Brand Equity Foundation (IBEF), the electronics and computer software industry in India is expected to reach US$300 – US$350 billion by the year 2025. Furthermore, the domestic production of electronics has grown from US$29 billion in 2015 to US$67 billion in 2021. With the booming growth for electronics products across the globe, the demand for industrial gases is also rapidly growing; thereby the rise in the electronics sector is acting as a driver for the industrial gases industry.

Industrial Gases Market Challenges

Restrictions on the Environmental Hazards of Industrial Gases

Industrial gases such as methane, carbon dioxide, and others possess a major threat to the environment. The release of industrial gases into the atmosphere creates pollution, global warming, and other hazardous effects. Moreover, various regulations on reducing global warming and air contamination lead to challenges for the industrial gas market. For instance, Environment Protection Agency (EPA) finalized the GHG emissions standard for transport vehicles to control the emissions. Moreover, the Clean Air Act by EPA in the U.S works to reduce and control methane emissions. The restrictions on the production and application of harmful industrial gases are thereby a major challenge for the market. Thus, owing to such factors, the industrial gases industry faces a major hamper and slowdown.

Industrial Gases Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the industrial gases market. Industrial gases top 10 companies are:

1. Air Liquide S.A.
2. BASF SE
3. Universal Industrial Gases
4. Messer Group
5. Air Products
6. Dubai Industrial Gases
7. Gulf Cryo
8. Linde
9. Air Products
10. Ellenbarrie Industrial Gases Ltd

Recent Developments

• In April 2022, Air Products acquired the industrial gases business of Air Liquide, which included specialty gases, liquid bulk, and packaged gases. The acquisition is aimed to strengthen the industrial gases business and expand the product portfolio in the market.
• In February 2022, Linde signed an agreement with the BASF for the supply of hydrogen. The Linde operated a new hydrogen production facility in France, doubling the capacity. This will offer expansion and growth in production in the industrial gases industry.
• In October 2019, Southern Industrial Gases, a leading Malaysian industrial gases player, was acquired by Air Liquide. This acquisition doubled Air Liquide's packaged gas filling capacity and strengthened its position in the market.