Industrial Gas Market Definition
The industrial gas market consists of the sales of industrial gases by entities (organizations, sole traders or partnerships) that manufacture industrial organic and inorganic gases in compressed, liquid, and solid forms. Industrial gases are also referred to as bulk gases or commodity gases.
Industrial Gas Market Size
The global market for industrial gas reached a value of nearly $97.6 billion in 2018, having grown at a compound annual growth rate (CAGR) of 4.9% since 2014.
Growth in the historic period resulted from emerging markets growth and technology development. Going forward, economic growth and applications of industrial gas in healthcare will drive growth. Factors that negatively affected growth in the historic period were safety, and changing regulations. Factors that could hinder the growth of this market in the future are rise in interest rates, and reduction in free trade.
Industrial Gas Market Drivers
The key drivers of the industrial gas market include:
Technology Development – Technological development was a key driver of the global economy. Between 2013 – 2018, the value of the NASDAQ index of technology stocks in the USA increased by more than 100%. Industries that involve technology, such as the industrial gas industry, benefited from this trend during this period. Areas of rapid technological change in the industrial gas market included using hydrogen in automobiles, manufacturing hydrogen from sewage, and developing new drugs using industrial gases.
Industrial Gas Market Restraints
The key restraints on the industrial gas market include:
Changing Regulations – Many of the products in the industrial gas industry are potentially hazardous during the manufacturing stages. Due to this, regulations, assessment and management of the risks involved in the manufacturing, transporting and disposing of chemicals increased and changed frequently. Industrial gas manufacturers are expected to be compliant with complex regulations that govern labelling, handling, manufacturing, and shipping and storage of the product. For large multinational companies, keeping up with these changing regulations was a major restraint as regulations differ by countries and geographies.
Industrial Gas Market Trends
Major trends influencing the industrial gas market include:
Industrial Gases Applications In Food And Beverage - The food and beverage industry is increasingly utilizing food-grade industrial gases to keep the food products safe and fresh. Food grade gases are high purity gases complying with food grade standards. Food grade industrial gases include nitrogen, oxygen, and carbon dioxide which are used to chill, freeze and package a variety of food products such as dairy and frozen products, beverages, fruits and vegetables, meat, fish, seafood, convenience food, bakery and confectionery. The demand of health-conscious consumers for fewer additives, safer and fresher food products also increases the demand for industrial gases, which can sometimes be used in place of chemical ingredients.
Industrial Gas Manufacturers Adopting IoT Technology - Many chemical manufacturers are adopting IoT (Internet of Things) technologies to connect equipment and smart devices to garner real time insights and locate gaps in the manufacturing process. The data obtained through these devices is processed, analyzed and interpreted by plant managers and senior level management to improve quality and achieve optimum production levels. For example, smart systems give information on the working condition and performance of chemical reactors with embedded software and analytics tools to notify plant operators and managers on possible machine breakdowns. Major industrial gas manufacturers adopting IoT technology include Praxair-Linde and Air Products.
Opportunities In The Industrial Gas Market
Opportunities – The top opportunities in the global industrial gas market will arise in the nitrogen gas segment which will gain $7.8 billion of global annual sales by 2022. The industrial gas market size will gain the most in China. Industrial gas-trend-based strategies include increasing the production capacities for food grade industrial gases, adopting IoT technologies to increase operational efficiencies and reduce production costs, and acquiring smaller companies to increase their market shares. Players adopted strategies in the industrial gas industry include acquiring companies in similar industries, expanding production facilities, growth through acquisitions, and making sustainable investments.
Industrial Gas Market Segmentation
The industrial gas market is segmented by type of gas, by end user industry and by geography.
By Type Of Gas -
The industrial gas market is segmented by type of gas into
- a) Nitrogen
- b) Oxygen
- c) Hydrogen
- d) Carbon dioxide
- e) Others
Hydrogen had the highest growth rate of nearly 5.4% during the historic period. The fastest growth in the historic period can be attributed to demand by oil and gas companies to remove sulphur during the oil refining process and to process crude oil into refined fuels.
By End Use Industry -
The industrial gas market is segmented by end use industry into
- a) Manufacturing
- b) Metallurgy
- c) Chemicals
- d) Healthcare
- e) Food & Beverages
- f) Others
The manufacturing market accounted for the largest share of the industrial gas market in 2018 at 26.7%.
By Geography - The industrial gas market is segmented into
- o North America
- o Western Europe
- UK
- Germany
- France
- Spain
- Italy
- o Asia Pacific
- China
- Japan
- India
- Australia
- o Eastern Europe
- o South America
- o Middle East
- o Africa
Asia Pacific is the largest market for industrial gas, accounting for almost 39% of the global market. It was followed by North America, Western Europe and then the other regions. Going forward, the Middle East and Africa will be the fastest growing regions in this market.
Industrial Gas Competitive Landscape
Major Competitors are:
- • Air Liquide
- • The Linde Group
- • Praxair, Inc.
- • Air Products and Chemicals Inc
- • Mitsubishi Chemical Holdings Corp
Other Competitors Include:
- • Sinopec
- • Air Water Inc.
- • Messer Group GmbH
- • Agrium Inc
- • Showa Denko K.K.
