Industrial Gases Market by Type (Oxygen, Nitrogen, Hydrogen, Carbon Dioxide, Acetylene, Inert Gases), End-use Industry (Chemicals, Electronics, Food & Beverages, Healthcare, Manufacturing, Metallurgy, and Refining), and Region - Global Forecast to 2028
Updated on : April 23, 2024
Industrial Gases Market
The global industrial gases market was valued at USD 105.6 billion in 2023 and is projected to reach USD 137.9 billion by 2028, growing at 5.5% cagr from 2023 to 2028. Industrial gases, including nitrogen, hydrogen, and oxygen, are integral in the manufacturing of a wide range of chemicals and fertilizers, playing key roles in processes such as synthesis, purification, and combustion. As global population growth and urbanization fuel the demand for chemicals in various industries, and as agriculture faces the challenge of feeding a growing population, the versatile applications of industrial gases position them as essential contributors to advancing both chemical production and agricultural productivity. This symbiotic relationship underscores the critical role industrial gases play in supporting key sectors that are integral to global economic development and sustainability. The Asia Pacific is the largest market for industrial gases followed by North America, and Europe.
Attractive Opportunities in the Industrial Gases Market
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Industrial Gases Market Dynamics
Driver: Growing demand for frozen food
The expanding frozen food market is poised to be a key driver for the industrial gases sector. As consumer preferences shift towards convenient and frozen food options, industrial gases such as nitrogen and carbon dioxide play a pivotal role in the freezing and preservation processes. Nitrogen's cryogenic properties aid in quick-freezing, maintaining the texture and nutritional value of frozen products, while carbon dioxide is widely used in cold storage and transportation. The demand for industrial gases in the growing frozen food industry underscores their critical role in meeting the evolving needs of the food supply chain, emphasizing the importance of these gases in ensuring the quality, safety, and convenience of frozen food products.
Restraint: Strict regulatory compliance
Strict regulatory compliance poses a notable restraint on the industrial gases market, requiring companies to adhere to stringent safety, environmental, and quality standards. Compliance with a complex web of regulations, both at the national and international levels, adds operational challenges and costs for industrial gas manufacturers. Meeting stringent standards often necessitates substantial investments in monitoring systems, safety protocols, and emissions control technologies, impacting overall production expenses.
Opportunities: Growing semiconductor market
The growing semiconductor market presents a significant opportunity for the industrial gases sector. As the demand for advanced electronic devices continues to soar globally, industrial gases such as ultra-high purity gases, nitrogen, and argon play crucial roles in semiconductor manufacturing processes. These gases are essential for processes like chemical vapor deposition, wafer cleaning, and inert gas purging, contributing to the production of high-quality semiconductors. The rapid technological advancements and increasing complexity of semiconductor fabrication further amplify the demand for specialized industrial gases, positioning the industry to capitalize on the growth of the semiconductor market and foster innovation in the electronics sector.
Challenges: Ensuring the safety of employees
Ensuring the safety of employees represents a paramount challenge in the industrial gases sector. The handling, production, and transportation of industrial gases involve inherent risks, including exposure to hazardous materials, high-pressure systems, and cryogenic temperatures. Stringent safety protocols are crucial to mitigate these risks and prevent accidents. Maintaining comprehensive training programs, implementing robust safety measures, and investing in state-of-the-art equipment are imperative to safeguard employees' well-being. The diverse nature of industrial gases applications and the global reach of the industry further compound the challenge, requiring continuous efforts to harmonize and uphold safety standards across different regions.
Industrial Gases Market Ecosystem
By Type, Oxygen accounted for the highest CAGR during the forecast period.
Oxygen stands out as the fastest-growing type in the industrial gases market due to its indispensable role across various industries, driving heightened demand. Oxygen plays a pivotal role in environmental applications, such as wastewater treatment and environmental remediation. As environmental consciousness rises globally, the demand for oxygen in processes aimed at reducing pollutants and improving water quality is contributing to its status as the fastest-growing type in the industrial gases market. The versatile applications of oxygen across healthcare, industry, and environmental sectors collectively position it as a key driver in the ongoing expansion of the industrial gases market.
By End-use Industry, food and beverages accounted for the highest CAGR during the forecast period.
The growing consumer demand for packaged and processed foods, coupled with the industry's adoption of advanced freezing and chilling technologies, further propels the need for industrial gases. Cryogenic gases like liquid nitrogen are instrumental in quick-freezing food products, preserving their texture and nutritional value. Furthermore, the industry's increasing emphasis on sustainability aligns with the use of industrial gases in modified atmosphere packaging (MAP), reducing the reliance on chemical preservatives and enhancing the overall environmental profile of food products.
Asia Pacific is projected to account for the highest CAGR during the forecast period.
The Asia Pacific region has emerged as the fastest-growing market for industrial gases, driven significantly by the booming semiconductor production within the region. With Asia Pacific serving as a global hub for electronics manufacturing, particularly in countries like China, Taiwan, and South Korea, the demand for industrial gases, including specialty gases crucial for semiconductor fabrication processes, has skyrocketed. The rapid expansion of the semiconductor industry, fueled by technological advancements and the increasing global demand for electronic devices, underscores Asia Pacific's pivotal role in the industrial gases market.
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Industrial Gases Market Players
The industrial gases market comprises key players such as Air Liquide (France), Linde plc (England), Air Products & Chemicals, Inc. (US), Messer SE & Co. KGaA (Germany), and Nippon Sanso Holdings Corp. (Japan) , and others. Expansions, acquisitions, joint ventures, and new product developments are some of the major strategies adopted by these key players to enhance their positions in the industrial gases market.
Industrial Gases Market Report Scope
|
Report Metric |
Details |
|
Market Size Value in 2022 |
USD 100.0 Billion |
|
Revenue Forecast in 2028 |
USD 137.9 Billion |
|
CAGR |
5.5% |
|
Years Considered |
2021–2028 |
|
Base year |
2022 |
|
Forecast period |
2023–2028 |
|
Unit considered |
Value (USD Million/Billion) |
|
Segments |
Type, End-use Industry, and Region |
|
Regions |
North America, Asia Pacific, Europe, South America, and Middle East & Africa |
|
Companies |
Air Liquide (France), Linde plc (England), Air Products & Chemicals, Inc. (US), Messer SE & Co. KGaA (Germany), and Nippon Sanso Holdings Corp. (Japan) and others. |
This research report categorizes the global industrial gases market based on type, end-use industry, and region.
Industrial Gases Market on the basis of Type:
- Oxygen
- Nitrogen
- Hydrogen
- Carbon Dioxide
- Acetylene
- Inert Gases
- Other Types (ammonia, methane, butane, and propane)
Industrial Gases Market on the basis of the End-use Industry:
- Chemicals Chemicals
- Electronics
- Food and Beverages
- Healthcare
- Manufacturing
- Metallurgy
- Refining
- Other End-Use Industries (mining, water & wastewater treatment, and agriculture)
Industrial Gases Market on the basis of Region:
- North America
- Asia Pacific
- Europe
- South America
- Middle East & Africa
The market has been further analyzed for the key countries in each of these regions.
Recent Developments in Industrial Gases Market
- In November 2023, Air Liquide has partnered with Groupe ADP, to support the development of hydrogen infrastructure in airports.
- In March 2023, Air Liquide has announced the construction of an industrial-scale ammonia (NH3) cracking pilot plant, in Belgium.
- In December 2023, Linde Plc has increased the liquid hydrogen production capacity at its facility in McIntosh, Alabama.
- In September 2022, Abdullah Hashim Industrial Gases & Equipment Co. Ltd. (a joint venture of Air Products & Chemicals, Inc.) has announced the acquisition of Air Liquide’s Merchant Industrial Gases Business (i.e., Al Khafrah Industrial Gases)..
- In April 2023, Air Products & Chemicals, Inc.has announced to build own, and operate two nitrogen plants in Penang’s Bayan Lepas Free Industrial Zone and Batu Kawan Industrial Park, in Malaysia.
- In March 2023, Messer SE & Co. KGaA has started a new air separation plant in Vratimov, Czech Republic.
Frequently Asked Questions (FAQ):
What are the major drivers driving the growth of the industrial gases market?
Industrial gases market drivers, are growing demand from electronics industry, growing demand for frozen food, and rise in chronic diseases.
What are the major challenge in the industrial gases market?
The major challenge in the industrial gases market is the supply chain disruptions.
What are the restraining factors in the industrial gases packaging market?
The major restraining factor faced by the industrial gases market are the strict regulatory compliance, and volatile raw material cost.
What is the key opportunity in the industrial gases market?
The major opportunity in the industrial gases market is the growing semiconductor market.
What are the applications where industrial gases are used?
The key applications of the industrial gases are chemicals, electronics, food and beverages, healthcare, manufacturing, metallurgy, and refining. .
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Extensive secondary sources, directories, and databases such as Hoovers, Bloomberg BusinessWeek, Factiva, and OneSource have been used to identify and collect information for this technical, market-oriented, and commercial study of the industrial gases market. In-depth interviews were conducted with various primary respondents, which included key industry participants, subject matter experts (SMEs), C-level executives of key industry players, and industry consultants, among other experts, to obtain and verify critical qualitative and quantitative information and to assess prospects.
Secondary Research
In the secondary research process, various secondary sources have been referred to for identifying and collecting information for this study. Secondary sources included annual reports, press releases, and investor presentations of companies; white papers; publications from recognized websites; and databases. Secondary research has mainly been used to obtain key information about the supply chain of the industry, the total pool of key players, market classification & segmentation according to the industry trends to the bottom-most level, regional markets, and key developments from both market- and technology-oriented perspectives.
The market size of industrial gases has been estimated based on secondary data available through paid and unpaid sources and by analyzing the product portfolios of key companies. This data has been further validated through various primary sources.
Primary Research
The industrial gases market comprises various stakeholders in the supply chain and includes suppliers, manufacturers, and end-users. Various primary sources from the supply and demand sides of the industrial gases market have been interviewed to obtain qualitative and quantitative information. Primary participants from the supply side include key opinion leaders, executives, vice presidents, and CEOs of companies in the market. Primary sources from the demand side include experts from end-use industries, associations and institutions involved in the market, and key opinion leaders.
Following is the breakdown of primary respondents
Notes: *Others include sales, marketing, and product managers.
Tier 1: >USD 5 Billion; Tier 2: USD 1 Billion– USD 5 Billion; and Tier 3: <USD 1 Billion.
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Market Size Estimation
Both top-down and bottom-up approaches were used to estimate and validate the total size of the global industrial gases market. These approaches were also used extensively to estimate the size of various dependent sub-segments in the market. The research methodology used to estimate the market size includes the following details:
- The key players in the industry and markets have been identified through extensive secondary research.
- The industry’s supply chain and market size, in terms of value, have been determined through primary and secondary research processes.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
- All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
- The research included the study of reports, reviews, and newsletters of top market players, along with extensive interviews for opinions from leaders such as directors and marketing executives.
Top-Down Approach
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Bottom-Up Approach
Data Triangulation
After arriving at the overall market size, the total market has been split into several segments. Where applicable, the data triangulation procedure has been employed to complete the market estimation process and arrive at the exact statistics for all segments. The data has been triangulated by studying various factors and trends from both the demand and supply sides. The market size has been validated using both the top-down and bottom-up approaches.
Market Definition
Industrial gases are specifically produced for use for various industrial purposes. Different industrial gases, including nitrogen, oxygen, carbon dioxide, hydrogen, acetylene, inert gases, and others, are present in a gaseous state at room temperature. These gases tend to have low molecular weight and distinct properties. They can be used as pure gases, compounds, or mixtures in various industries, including chemicals, electronics, food and beverages, healthcare, manufacturing, metallurgy, refining, etc.
Key stakeholders
- Industrial gases equipment suppliers
- Commercial R&D institutes
- Industrial gases distributors and suppliers
- Regulatory bodies
- Industry associations, and research institutes
- Local Governments
- End users (chemicals, healthcare, electronics, etc.)
Report Objectives
- To describe and forecast the global Industrial gases market in terms of value.
- To provide detailed information about significant drivers, restraints, opportunities, and challenges influencing market growth
- To strategically analyze micromarkets1 with respect to individual growth trends, prospects, and contributions to the total market
- To analyze the market segmentation and forecast the market size based on the type, end-use, and region.
- To forecast the market size in terms of value with respect to main regions, Asia Pacific, North America, Europe, Middle East & Africa, and South America, along with their key countries
- To analyze opportunities in the market for stakeholders and provide details of the competitive landscape.
- To strategically profile key players and comprehensively analyze their core competencies2
- To analyze competitive developments such as joint ventures, mergers & acquisitions, contracts, agreements, and research & development (R&D) activities in the global Industrial gases market.
Available Customizations:
Along with the given market data, MarketsandMarkets offers customizations as per the specific needs of the companies. The following customization options are available for the report:
Product Analysis:
- Product Matrix, which gives a detailed comparison of the product portfolio of each company
Regional Analysis:
- Further breakdown of the Rest of the Asia Pacific, industrial gases market
- Further breakdown of the Rest of Europe, industrial gases market
- Further breakdown of the Rest of South America, industrial gases market
- Further breakdown of the Rest of Middle East & Africa, industrial gases market
Company Information:
- Detailed analysis and profiling of additional market players (up to 5)
Growth opportunities and latent adjacency in Industrial Gases Market