Oxygen Market Definition
The oxygen market consists of the sales of oxygen by entities (organizations, sole traders or partnerships) that manufacture oxygen gas in compressed, liquid, and solid forms. Oxygen is used as medical oxygen for respiration, as industrial gas in different industries, and is also used in oxy-acetylene torches. Oxygen is a colorless non-metallic gas which is highly reactive in nature. Oxygen forms oxides with many compounds and other elements. It is widely used for industrial, medical, and scientific applications as an oxidizing agent or as a catalyst. Oxygen is available in cylinders, spray cans, containers and others.
Oxygen Market Size
The global oxygen market reached a value of nearly $27,741.8 million in 2019, having increased at a compound annual growth rate (CAGR) of 6.1% since 2015. The market is expected to decline from $27,741.8 million in 2019 to $27,548.0 million in 2020 at a rate of -0.7%. The decline is mainly due to lockdown and social distancing norms imposed by various countries and economic slowdown across countries owing to the COVID-19 outbreak and the measures to contain it. The market is also restrained due to uncertain demand from the industrial sector due to uncertain demand. The market is then expected to recover slightly and grow at a CAGR of 0.11% from 2021 ad reach $27,482.3 million in 2023. The market is expected to reach $30,052.0 million in 2025, and $ 36,553.2 million in 2030.
Growth in the historic period resulted from emerging markets growth, increased prevalence of disease, and rising air pollution levels. Factors that negatively affected growth in the historic period were safety, and changing regulations.
Going forward, increasing demand for oxygen due to COVID-19 effect, applications of oxygen in healthcare, and increased demand for portable oxygen for homecare will drive the growth. Factors that could hinder the growth of the oxygen market in the future include reduction in free trade, and uncertain demand from industry.
Oxygen Market Drivers
Increased Demand For Portable Oxygen For Homecare
The increased demand for portable oxygen driven by home healthcare is expected to drive the market. A portable oxygen concentrator is a medical device that helps individuals with a low level of blood oxygen. The device is used to provide oxygen therapy to people that require greater oxygen concentrations than the levels of ambient air. The factors fueling the demand for portable oxygen concentrators is an increasing prevalence of chronic obstructive pulmonary diseases, growing consumer awareness for oxygen therapy devices, a changing consumer lifestyle, and a rise in investment by manufacturing companies towards the production of homecare products. People are also increasingly using oxygen pods or oxygen therapy for anti-ageing applications.
Oxygen Market Restraints
The key restraints on the oxygen market include:
Alternative Products For Healthcare Applications
Increased awareness and use of alternative products such as oxygen concentrators are expected to restrain the growth of the market. Technological advancements are enabling the development of innovative products for oxygen supply and this is expected to be a restraint for the oxygen gas market. For instance, Inogen Inc., a medical technology company offering innovative respiratory products for use in the homecare setting, announced a new innovative product Inogen One G5 which is a portable oxygen concentrator. The Inogen One G5 offers the highest oxygen output per pound of weight of any portable oxygen concentrator currently available in the market. Increasing investments in developing such products is expected to restrain the market in the forecast period.
Oxygen Market Trends
Major trends influencing the oxygen market include:
Oxygen Manufacturers Adopting IoT Technology
Many oxygen manufacturers are adopting IoT (Internet of Things) technologies to connect equipments’ and smart devices to garner real time insights and locate gaps in the manufacturing process. The data obtained 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. For instance, some of the major companies adopting IoT include Linde Gases and Air Liquide.
Customized Air Separation Plants
Oxygen gas manufacturers are adopting advanced manufacturing technologies to increase production and meet delivery challenges. Customized multi-train air separation projects can present a number of design and delivery challenges, particularly in remote locations. For instance, Linde’s customized air separation plants are individually designed to deliver the gases in the purities and volumes needed by the company’s customers, and Linde have built such plants even in remote and extremely harsh environments. The company has built 4,000 air separation plants across the globe and many of them are customized that meet customer-specific demands and each plant has oxygen producing capacity of 1,000 tonnes to 5,500 tonnes.
Opportunities And Recommendations In The Oxygen Market
Opportunities – The top opportunities in the oxygen market segmented by type will arise in the medical oxygen segment, which will gain $851.6 million of global annual sales by 2023.The top opportunities in the oxygen market segmented by application will arise in the healthcare segment, which will gain $851.6 million of global annual sales by 2023. The oxygen market size will gain the most in the China at $880.3 million.
Market-trend-based strategies for the oxygen market include acquiring smaller companies to increase the market share, partnering with respirator product manufacturers to develop innovative products, developing customized air separation plants, and increasing the production capacities for pulp and paper industry oxygen gases. Player-adopted strategies in the oxygen market include investing in expanding manufacturing operations, improving infrastructure and in acquisitions and mergers to strengthen their service offerings.
Recommendations – To take advantage of the opportunities, The Business Research Company recommends the oxygen companies to focus on customized air separation plants, invest in IoT technology, invest in pulp and paper, expand in emerging markets, increase domestic production, provide competitively priced offerings, and collaborate with government organization.
Oxygen Market Segmentation
The Oxygen market is segmented by type, by application and by geography.
By Oxygen Type -
The oxygen market can be segmented by type of
The industrial oxygen market was the largest segment of the oxygen market segmented by type, accounting for 77.4% of the total in 2019. Going forward, the medical oxygen segment is expected to be the fastest growing segment in the oxygen market, at a CAGR of 5.0% during 2019-2023.
- a) Medical Oxygen
- b) Industrial Oxygen
- c) Others
By Application -
The oxygen market can be segmented by end-user sector into
The others market was the largest segment of the oxygen market segmented by application, accounting for 27.6% of the total in 2019. Going forward, the healthcare segment is expected to be the fastest growing segment in the oxygen market, at a CAGR of 5.0%.
- a) Mineral Processing
- b) Automobiles
- c) Healthcare
- d) Cosmetics
- e) Mining
- f) Pharmaceuticals
- g) Others
The oxygen market is segmented into
Asia Pacific was the largest region in the global oxygen management market, accounting for 40.0% of the total in 2019. It was followed by North America, Western Europe and then the other regions. Going forward, the fastest-growing regions in the oxygen market will be the Middle East, and Africa, where growth will be at CAGRs of 3.5% and 3.4% respectively during 2019-2023. These will be followed by Eastern Europe, and South America, where the markets are expected to grow at CAGRs of 2.2% and 1.3% respectively.
- o North America
- o Western Europe
- o Asia Pacific
- South Korea
- o Eastern Europe
- o South America
- o Middle East
- o Africa
Oxygen Competitive Landscape
Major Competitors are:
Other Competitors Include:
- • Air Liquide
- • The Linde Group
- • Mitsubishi Chemical Holdings Corporation
- • Air Products and Chemicals Inc.
- • Yingde Gases
- • Air Water Inc.
- • Messer Group GmbH
- • Iwatani International Corporation
- • National Oxygen Ltd
- • Guangdong Huate Gas Co., Ltd.
- • Matheson Tri-Gas
- • Flogas Britain Ltd
- • NGK Spark Plug Co, Ltd
- • The BOC Group plc
- • SAID Group
- • SOL SpA
- • Oxygen 8
- • NGK Spark Plug Co, Ltd
- • Taiyo Nippon Sanso
- • Oxair
- • Core Industrial Gases
- • Supagas
- • AMCS Corporation
- • National Oxygen Ltd
- • Bhagwati Oxygen Ltd
- • Gagan Gases Ltd
- • Refex Industries
- • NGK Spark Plug Co., Ltd.
- • GRASYS
- • Praxair Inc
- • WIKA Alexander Wiegand SE & Co. KG
- • BOC Healthcare
- • Gulf Cryo
- • Gas Africa
- • Afrox