The utilization of industrial gases spans a multitude of industries, and an escalation in demand is foreseen in the near future. This surge is ascribed to the mounting forces of industrialization, urbanization, and population augmentation. Industrial gases are deployed across diverse industrial procedures such as manufacturing, processing, and analysis. Produced in substantial quantities, these gases, encompassing oxygen, carbon dioxide, nitrogen, argon, helium, acetylene, and hydrogen, are distributed in compressed or liquid configurations. Enterprises consistently channel investments into research and development to pioneer and formulate state-of-the-art products and technologies, harmonizing with the evolving needs of their clienteles. These factors are primed to propel expansion in the industrial gas domain by furnishing distinctive and innovative resolutions to a myriad of industries.
In the preceding decade, European Union (EU) nations have progressively leaned on Russian gas, constituting 47% of total EU demand in 2019. Despite diminished pipeline provisions, the EU continued to represent a substantial portion of Russia’s gas exports and revenues. However, a downturn in Russian pipeline provisions, coupled with Gazprom’s curtailment of supplies in Q2, contributed to diminished deliveries and heightened market ambiguity in H1 2022. The present elevated price and restricted supply circumstances, intensified by Russia’s incursion into Ukraine in February 2022, exert substantial pressure on natural gas demand, culminating in a somewhat pessimistic growth outlook for 2022 and marginal consumption increments in the ensuing years. Significantly, the industrial sector persists as a pivotal constituent in global gas demand, contributing to approximately 60% of the total increment from 2021 to 2025. While uncertainty looms large, the surge in demand is concentrated in the Asia Pacific region and the Middle East, constituting nearly 80% of the upswing, whereas Central and South America and Eurasia anticipate stagnation or decline, notably in Europe.
The Enhanced Oil Recovery (EOR) methodology, recognized as “tertiary recovery,” amplifies oil recovery potential by 30%-60% from oil fields that elude efficient extraction through primary and secondary procedures. Amid mounting challenges in uncovering new oil fields, entities in the oil and gas sector pivot towards maximizing the recovery factor (RF) from extant fields. This strategic pivot implies the prospect of heightened oil and gas production, refinery pursuits, and transportation. The adoption of EOR techniques is prognosticated to kindle demand for industrial gases.
The global appetite for power generation is ascending owing to population proliferation, urbanization, and industrialization. The escalating adoption of renewable energy sources, such as wind and solar power, is envisaged to invigorate the power generation sector. Nations actively endeavor to curtail carbon emissions and shift towards sustainable energy sources. The considerable escalation in power generation holds the potential to propel the industrial gas sector, given the indispensable role industrial gases play in production and distribution mechanisms. Gas turbines in power generation harness natural gas and, to a lesser extent, hydrogen for electricity generation.
As the global populace burgeons, so does the need for energy and industrial commodities, propelling the erection of new gas pipelines and the extension of existing ones. This augmentation facilitates the economical conveyance of natural gas, hydrogen, and other industrial gases across extensive distances, affording industries dependable and cost-effective access. Industrial gases assume a pivotal role in diverse applications, spanning chemical manufacturing, steel production, and electronics manufacturing. The burgeoning infrastructure of gas pipelines is anticipated to buttress the industrial gas sector, with a global gas pipeline tally of approximately 5,172, inclusive of over 322 in the US. The chemical industry, the second-largest consumer of industrial gas, harnesses gases like nitrogen, oxygen, hydrogen, and carbon dioxide as raw materials in the synthesis, refining, and processing of diverse chemical products.
The prognosis for distinct types of gases fluctuates contingent on their applications and end-use sectors, categorized into air separation, synthetic, and specialty gases. Air separation gases, commanding the global industrial gas sector with a valuation surpassing USD 50 billion in 2022, prominently spotlight nitrogen. Nitrogen assumes pivotal roles across diverse industries, conserving freshness in the food industry, prolonging shelf life, freezing and transporting food products, and contributing to the fabrication of semiconductors, flat panel displays, and other electronic components in the electronics sector. Furthermore, nitrogen functions as a coolant in cryotherapy and cryosurgery within the medical domain.
The selection of a distribution mode in the industrial gas sector pivots on the specific requirements of customers, encompassing the requisite gas volume, customer location, and the nature of the industrial process. On-site pipeline distribution, distinguished by its innovation and efficiency, is slated to dominate the market during the projection period, manifesting the highest Compound Annual Growth Rate (CAGR). On-site pipeline supply caters to the diverse needs of industrial gases such as oxygen, nitrogen, and argon.
Geographically, the global industrial gas sector boasts a substantial presence in North America, Europe, Asia-Pacific, and the Middle East & Africa. The demand for industrial gases fluctuates across these regions, swayed by economic expansion, industrialization, and environmental statutes. North America stands out as one of the most extensive industrial gas markets, with the United States spearheading the region. The market’s surge in North America is propelled by diverse end-use sectors, encompassing healthcare, metal fabrication, and chemical manufacturing. Europe represents another significant arena for industrial gases, with the United Kingdom, Germany, and France assuming pivotal roles. AsiaPacific emerges as the most rapidly burgeoning global industrial gas market, propelled by the expeditious industrialization and increasing urbanization of countries such as China and India.
The global industrial gas market, marked by fierce competition, is dominated by several colossal multinational entities. Concurrently, the market encompasses numerous diminutive and medium-sized players operating across diverse regions. Market participants actively seek expansion through lucrative partnerships and mergers. Conversely, domestic vendors leverage product portfolios tailor-made to domestic requisites and demand. As a technology-centric product, the demarcation in the industrial gas arena is rooted in sophistication, the deployment of advanced features, and more. Recent strides in engineering and technological facets underscore the metamorphosing dynamics of gas utilization across diverse end-user industries, necessitating highly efficacious industrial gases for ubiquitous applications.
