Industrial Gases Market Size Worth $147.1 Billion By 2028 | CAGR 6.0%
Industrial Gases Industry Overview
The global industrial gases market size is expected to reach USD 147.1 billion by 2028, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 6.0% from 2021 to 2028. The use of industrial gas in the electronics (photovoltaic) industry for the manufacturing of semiconductors, solar, displays, LED solid-state lighting, wafers, and polysilicon compel the growth prospects for this market. Clean energy, predominantly solar PV, is evolving as an eminent source of clean energy generation, thereby attracting investments globally. These gases substantially reduce the manufacturing costs, which is poised to increase their implementation over the forecast period.
Major end-use industry segments such as medical and pharmaceuticals, food and beverages, petroleum refining, petrochemicals, and aerospace prefer acquiring these gases directly from the manufacturing/distribution companies. Companies operating in these end-use segments usually require large quantities of gases, and therefore opt for bulk or onsite form of distribution.
Industrial Gases Market Segmentation
Grand View Research has segmented the global industrial gases market on the basis of product, application, distribution, and region:
Based on the Product Insights, the market is segmented into Oxygen, Nitrogen, Hydrogen, Carbon Dioxide, Acetylene, Argon, and Others.
- Oxygen held the largest revenue share of 28.1% in 2020. It is known to improve the thermal efficiency of fuel. Oxygen is used to treat polluted water and hazardous wastes and for the gasification process of coal. The gas can also replace chlorinein the pulp and paper industry in order to reduce pollution.
- Nitrogen gas held the second-largest revenue share in 2020 and is projected to expand at the highest growth rate from 2021 to 2028. Nitrogen gas is used on a large scale in the healthcare sector due to the growing medical and pharmaceutical industry in Asia Pacific and North America. This is expected to propel the growth of the segment in the coming years.
- Carbon dioxide is expected to witness significant growth in the forecast period owing to an increase in the usage of carbon dioxide for gas-based enhanced oil recovery in the countries, such as the U.S., Canada, Mexico, Brazil, and the Middle East oil-producing nations. Further, fluctuation in crude oil prices and an increase in the number of matured wells around the world will result in a significant increase in the usage of enhanced oil recovery to increase the efficiency of oil production from the oil wells.
Based on the Application Insights, the market is segmented into Healthcare, Manufacturing, Metallurgy & Glass, Food & Beverages, Retail, Chemistry & Energy, and Others.
- The manufacturing application segment accounted for the largest revenue share of 26.2% in 2020 and is projected to witness significant growth during the forecast period. The demand for industrial gases, such as nitrogen, oxygen, carbon dioxide, and hydrogen, in the 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.
- The healthcare application segment is expected to witness the fastest growth over the forecast period. In addition, the ongoing COVID-19 pandemic has further driven the demand for medical-grade industrial gases, especially oxygen. An increase in global healthcare spending is creating a strong growth potential for this market.
- Industrial gases are used for a wide range of applications in the food and beverage industry. In the food industry, industrial gases are employed for numerous applications, including modified atmospheric packaging (MAP), chilling and freezing, and controlling the temperature of products during transportation and storage. It is majorly used to maintain the quality and increase the shelf life of food products.
Based on the Distribution Insights, the market is segmented into On-site, Bulk (Liquid Gas Transport), and Cylinder (Merchant).
- The cylinder (merchant) segment held the largest revenue share of 36.9% in 2020. The segment includes the gases being distributed in the form of packaged cylinders (high-pressure gas or low-pressure liquid). This form of distribution is however only conducive for customers with a small requirement of industrial gasses.
- The on-site segment is expected to witness the fastest growth over the forecast period. The on-site segment includes the filing station being set up either at the company plant or on another site. This mode of distribution is used for supplying large quantities of gases at varying pressures and states.
Industrial Gases Regional Outlook
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa (MEA)
Key Companies Profile & Market Share Insights
The competitive nature of the global market is attributed to the presence of numerous well-established entities who control the majority of the shares in various sectors of the industrial gases value chain and have multiple channels for manufacturing and distribution of their finished products globally.
The high transport costs create benefits of customer density and mitigate rivalry. The industry players compete by factors such as price, brand image, quality, technology, and distribution network. The local companies supply to the multinational companies apart from their sales in the domestic market in order to achieve economies of scale. The presence of a large number of players in the market has resulted in tough competition. New and multifunctional product developments, superior quality, and efficient pricing are the only strategies companies can adapt to survive in this highly competitive global market. The industry rivalry is medium to high. Some prominent players in the global industrial gases market include:
- Air Liquide
- Air Products & Chemicals
- Messer Group
- Taiyo Nippon Sanso
- The Linde Group
Order a free sample PDF of the Industrial Gases Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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