Industrial gases are those gases and mixtures of gases that are manufactured specifically for use by industry. Gases, in general, have been used in a variety of ways since ancient civilization, however, with the evolution of technology their applications have extended to cover virtually every industry, ranging from oil and gas to chemicals, petrochemicals, metals, medicine, steelmaking, power, mining, pharmaceuticals, electronics, biotechnology, water, nuclear power, fertilizers, and aerospace.

Although the principal gases are oxygen, carbon dioxide, hydrogen, nitrogen, helium, argon, and acetylene, combinations of gases are also used. The industrial gases are typically referred to on the basis of their use by industries and are identified as specialty gases, fuel gases, packaging gases, medical gases, refrigerant gases, welding cases, bulk gases or breathing gases.

Global Industrial Gas Market Size

Based on the current global industrial gas market size, the value of the market is expected to reach a value of $110 billion by 2022, growing at a compound annual growth rate (CAGR) of 7-8 percent. The regions of North America, Western Europe, China, and North Pacific Rim nations such as China and Japan are the biggest consumers of industrial gas, accounting for over 75 percent of the global market. The growth of the market is driven by the revival of large economies like the U.S. and China and demands from emerging economies such as India. In recent years, the profit margins have increased due to cheaper electricity prices since electricity costs contribute to approximately 60 percent of the cost of industrial gas generation. Factors affecting the costs in the industrial gas market are the customization of the product, gas purity, the volume of purchase and the location of delivery.

High market maturity regions for the industrial gas market are the U.S., Canada, and Australia while medium market maturity regions are Brazil and South Africa. The industrial gas market is highly consolidated with the top 6 industrial gas suppliers in the market accounting for around 80 percent of the global market. Top global service providers are Air Liquide, Praxair, Air Product, Linde, TNSC and Yingde Gas. The top players further engage in mergers and acquisitions to strengthen their presence in the global market.

Global Industrial Gas Market Applications

Industrial gases have massive applications across industries including end-user markets such as healthcare, electronics, chemicals, oil and gas, mining, and food & beverage. Major growth drivers for the global industrial gas market on the basis of application are healthcare, electronics, and food & beverages. In comparison, the demands for industrial gas by the industries of oil and gas and steel have reduced.

Healthcare: Increase in lifestyle diseases and an aging global population has led to greater demand from healthcare services. There are a variety of industrial gases used in the healthcare industry, including oxygen, nitrous oxide, nitrogen, carbon dioxide, medical air, medical vacuum and other specialty gases based on the requirement. Industrial gases are used during surgery, used as supplements, for anesthesia and even for cleaning purposes for high tech medical machinery. Oxygen plays a major role in the healthcare industry as it is used for people suffering from lung issues, respiratory distress or difficulty in breathing. Industrial gases such as nitric oxide, nitrous oxide, helium, hydrogen, and xenon are also used in pharmaceutical products.

Electronics: The demand for electronics is growing at a rapid pace, led by an increase in disposable income of people in developing nations, an increase in the usage of digital devices and growth of semiconductor industry. Industrial gases are used in the manufacturing of semiconductors, flat display panels and LED lightning. Industrial gases are used as chemical vapors for cleaning, depositing layers of chemicals on a surface, and for etching processes. Ultra-pure gases are used in manufacturing flat display screens. Large quantities of high-purity ammonia, hydrogen, nitrogen, and other hydrides are used in manufacturing LED lights.

Food & Beverages: Across the world, there has been a substantial rise in the percentage of health-conscious consumers that are pushing for fewer additives, fewer preservatives, and fresher food products. Accordingly, the use of food-grade industrial gases by the food & beverage industry has increased manifold, for freezing, storing and packaging food items keeping them fresh for longer, and replacing chemical preservation methods. Food-grade gases refer to high-purity gases that meet food standards. Commonly used food-grade gases are oxygen, carbon dioxide, and nitrogen. Industrial gases are used for numerous food products including dairy, meat, seafood, fish, vegetables, fruits, beverages, convenience foods, confectionery, frozen products, and bakery.

Industrial gases are used across numerous industries at a global level, with more applications emerging as the technology for producing, managing and using industrial gases evolves. Currently, the most popular applications of industrial gases driving the growth of the market are of the healthcare sector, electronics, and food & beverage industry. There is immense potential in using industrial gases since there are a vast number of combinations of industrial gases that can be used, in addition to the applications of gases in pure form.