Industrial Gases Market 2020 and Forecast 2021-2027

  • TBI775817
  • November 05, 2020
  • Global
  • 135 pages
  • IFF Market Research

Report Overview: Industrial Gases Market

The global industrial gases market size was valued at USD 72.2 billion in 2020 and looks set to grow at a compound annual growth rate (CAGR) of 4.4% from 2021 to 2027. Moreover, increasing urbanization and industrialization coupled with increasing application of industrial gases in various industries such as healthcare, metals and mining, and food and beverage are further expected to influence the market for industrial gases in the coming years. Industrial gas is an important segment that contributes to an economy’s progress. The region-wise market is expected to grow at a rate that is double the GDP rate. However, environmental regulations and safety and huge gas conversion costs may hinder the market growth during the forecast period. The utilization of nitrogen has increased faster than that of oxygen.  Argon has also picked up the pace and can be expected to supersede oxygen in terms of utilities. Rise in global crude oil demand and the need for refining it will offer significant growth opportunities to the market, further boosting the demand for industrial gases. Industrial production has been growing globally and is expected to maintain the growth in the forecast period. There is a continuous growth in the demand for industrial gases in the aerospace and metal and mining industry, in which various industrial gases are used on a large scale. Also, significant growth of food and beverage and pharmaceutical industries in North America, Europe, and Asia Pacific regions are generating abundant opportunities for market growth. In addition, growing implementation of cryogenic processes for air separation in industries and the usage of gaseous mixes such as syngas, a blend of carbon monoxide and hydrogen, are the key trends driving the market demand for industrial gases globally. Hydrogen has the potential to help decarbonize the energy systems, owing to which governments are taking various initiatives to boost the production and use of hydrogen and increase application of the same for various applications. This is expected to drive the application of hydrogen in various end-use industries in the coming years.

Product Insights: Industrial Gases Market

In the product segment, nitrogen gas is projected to expand at the highest revenue-based CAGR during the forecast period, reaching USD 28.1 billion by 2027. Nitrogen is used on a large scale in healthcare sector and the growing medical and pharmaceutical industry in North America and Asia Pacific region is expected to propel the market growth in the coming years. Nitrogen is an inert gas and finds applications in heat-treatment for establishing a neutral atmosphere. The gas is also used in huge quantities in blast furnaces and various other furnace applications due to its neutral properties. Oxygen is used for fabrication, steel melting, medical applications, copper smelting, etc., is known to improve the thermal efficiency of fuel, and thus, can be used for obtaining better energy from fuel. Oxygen is used to treat hazardous wastes, polluted water, and for gasification process of coal. It can also replace chlorine in pulp and paper industry in order to reduce pollution. Thus, large-scale application of oxygen in various industries is expected to propel the demand for industrial oxygen in coming years. Companies have started focusing on developing cleaner sources of energy and have thus come up with the concept of hydrogen fuel cells. Hydrogen can be used to power fuel cells that efficiently convert hydrogen to electricity. Hydrogen has the potential to replace traditional forms of power generators such as large batteries used in buses, cars, submarines, forklift trucks, power plants, or even combustion engines.

Application Insights: Industrial Gases Market

In application segment, the manufacturing industry accounted for the largest market share and is projected to register the second-highest CAGR during the forecast period. The demand for industrial gases such as nitrogen, oxygen, carbon dioxide, hydrogen and others in manufacturing industry is projected to witness substantial growth in the developing economies owing to the growing manufacturing industry in India, China, Brazil, and South Korea. Growing demand for advanced industrial gases in electronic industry is expected to further propel the growth of this segment. The healthcare application segment emerged as the fastest-growing application and accounted for approximately 18% of the total revenue share in 2019. The healthcare segment is projected to witness substantial growth in the developing economies owing to high demand for industrial gases such as oxygen, nitrogen, and carbon dioxide in the medical and pharmaceuticals sectors. Among other popular industrial gases, carbon dioxide is widely used in the food industry for carbonated soft drinks, beer, etc. Liquid CO2 is also used as a refrigerant in the food and beverage industry. This gas is also used as an insecticide/deoxidizing agent for food preservation. The growth of the food and beverage industry is further expected to propel the demand for carbon dioxide. Moreover, gases such as helium, argon, oxygen, and carbon dioxide are the most commonly used gases for ore reduction, recycling of metals, welding, shielding, refining, casting, reheating, heat treatment, and other metal works.

Regional Insights: Industrial Gases Market

Asia Pacific accounted for the largest market share in 2019 and is projected to continue its dominance during the forecast period. The industrial gases market for the Asia Pacific region is projected to hold a share of approximately 36% in 2027, expanding at a CAGR of 5.4% from 2021 to 2027. The economic growth in countries of Asia Pacific such as China, India, and South Korea has shown strong growth and the trend is expected to continue in the next five years. The industrial production indexes for the year 2018 disclose that industrial production has been experiencing a positive trend so far and is expected to increase further. The manufacturing sector has been displaying positive signs of development across Asia Pacific and fast-growing steel production in India and China is expected to generate the demand for industrial gases in the region. China is the largest country-level market for industrial gases in Asia Pacific as well as across the globe. Asia Pacific observed the maximum demand for these gases, owing to the upsurge in demand for high-quality gas solutions in the aerospace industry. Also, boosting food and beverage and pharmaceutical industries in the emerging economies such as India and China are expected to generate abundant opportunities for market growth during the forecast period.

Key Companies & Market Share Insights: Industrial Gases Market

The market is competitive in nature owing to the presence of well-established players that control the majority of shares in various sectors of the industrial gases value chain and have multiple channels for manufacturing and distribution of their finished products globally. Increasing demand for these products from the end-use industries has encouraged the market players to increase their global footprint and product range so as to serve a broader industry segment. Market players look forward to expanding their global footprint by enhancing their production capacity and increasing their operational capabilities. This provides the companies with advantages of maintaining the economies of scale to optimum level. The companies have also taken up mergers and acquisitions so as to serve a broad industry segment and enhance their global footprint. Some of the prominent players in the industrial gases market include: Key companies profiled This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Trusted Business Insights has segmented the global industrial gases market report based on product, application, distribution, and region:

Product Outlook (Volume, Million SCF; Revenue, USD Million, 2016 - 2027)

  • Oxygen
  • Nitrogen
  • Hydrogen
  • Carbon Dioxide
  • Acetylene
  • Argon
  • Others

Application Outlook (Volume, Million SCF; Revenue, USD Million, 2016 - 2027)

  • Healthcare
  • Manufacturing
  • Metallurgy & Glasses
  • Food & Beverage
  • Retail
  • Chemicals & Energy
  • Others

Distribution Outlook (Volume, Million SCF; Revenue, USD Million, 2016 - 2027)

  • On-site
  • Bulk (Liquid Gas Transport)
  • Cylinder (Merchant)

Table of Contents
Chapter 1 Methodology And Scope
  1.1 Market Segmentation & Scope
  1.2 Market Definitions
  1.3 Assumptions
  1.4 Information Procurement
       1.4.1 Purchased Database(Statista, FactSet, Bloomberg, SDC Platinum)
       1.4.2 IFF Internal Database
       1.4.3 Secondary Sources
       1.4.4 Third-Party Perspective
       1.4.5 Primary Research
  1.5 Information Analysis
       1.5.1 Data Analy
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