The global industrial gases market size is expected to reach USD 134.3 billion by 2027, registering revenue based CAGR of 5.5% over the forecast period, according to a new report by Grand View Research, Inc. The market is expected to witness substantial growth owing to increasing demand for industrial gases in manufacturing and healthcare sector. Moreover, increasing application of carbon dioxide in the Enhanced Oil Recovery (EOR) technology, food and beverages, and medical industry is anticipated to be the major driving force for the growing demand for industrial carbon dioxide.
Hydrogen can be used to power fuel cells that efficiently convert hydrogen to electricity. The utility gamut of fuel cells is immense and thus, has the potential to replace the traditional forms of power generators such as large batteries in buses, cars, submarines, forklift trucks, power plants, and combustion engines.
The healthcare application segment is predicted to have the highest growth and is expected to attain a CAGR of 7.0% in terms of revenue, over the forecast period. This is a highly versatile segment and its utilities range from pharmaceutical products to supplies and from medical equipment and healthcare services to medical therapies. The segment also includes preservation of tissue and blood using oxygen, MRIs using helium, and respiratory therapy using oxygen to help patients breathe.
Bulk (Liquid Gas Transport) distribution mode of delivery is ideally opted as a mode of distribution when the demand for gases if higher than packaged gas distribution and lesser than onsite distribution. This is a more efficient form of distribution and is therefore preferred over other modes of distribution since it ensures continuous supply of gases.
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Further key findings from the report suggest:
- China is the largest market across the globe while India is projected to be the fastest growing market at revenue based CAGR of 7.6% during the forecast period, owing to significant growth of food and beverage, pharmaceutical, and manufacturing sector in Asia Pacific
- Nitrogen is projected to expand at the highest CAGR during the forecast period owing to its applications in medical and pharmaceutical industry, in extraction of air from mines , and in blast furnaces and other furnace applications
- The healthcare segment emerged as the fastest growing application segment and accounted for approximately 18% of the total revenue share in 2019 owing to its high demand for industrial gases such as nitrogen and oxygen in the medical and pharmaceuticals industry
- The on-site distribution segment in Japan is the fastest growing segment and is projected to attain revenue based CAGR of 6.9%
- Bulk mode of delivery is ideally opted as the mode of distribution when the demand for gases is higher than packaged gas distribution and lesser than onsite distribution
- Major companies actively operating in the industry include Air Products & Chemicals Inc.; The Linde Group; Air Liquide; Air Products; and Messer Group.