With a remarkable growth forecast of USD 74.94 billion in 2024 to USD 158.19 billion by 2034, the industrial gases market is booming. This growth is mostly attributable to the growing use of industrial gases in the photovoltaic sector, with an estimated compound annual growth rate (CAGR) of 7.80%. Nitrogen, oxygen, and argon are industrial gases that are necessary for the production of semiconductors, solar cells, and LEDs. For solar panels, which are gaining popularity as a renewable energy source, these parts are essential. These gases are essential to the growth of solar energy because they lower manufacturing costs and boost production efficiency.
Hydrogen: A Pillar of the Energy Industry
Specifically, hydrogen has emerged as a key component of the energy sector. When hydrogen is utilized as an alternative fuel and in fuel cells, it provides significant benefits for lowering carbon emissions and broadening the range of energy sources. The market for industrial gases has experienced notable growth due to the sharp increase in demand for hydrogen in the Asia-Pacific region. Businesses are making significant infrastructure investments in the production and distribution of hydrogen. For instance, in February 2022, Linde doubled its production capacity at the French chemical park Chalampé by signing a long-term contract with BASF to supply steam and hydrogen. These developments in infrastructure are necessary to meet the increasing demand for industrial gases such as hydrogen.
Investment and Innovation in Industrial Gases
Companies in the industrial gases industry are investing more in R&D to keep up with this growing demand. The objective of these endeavors is to enhance manufacturing procedures and create fresh uses for industrial gases within the energy domain. Technological advancements increase productivity and cut expenses, giving businesses a competitive edge in the global economy.Air Liquide made an approximately €40 million investment in an Indian gas separation unit that specialized in industrial commercial activities in January 2022. This kind of investment shows the company’s dedication to supplying the expanding market for industrial gases and fostering innovation and expansion within the energy industry.
Future Market Outlook
Promising growth projections for the industrial gases market are supported by strong demand in the energy sector. Over the course of the projection period, the compound annual growth rates (CAGR) for the USA, Germany, Spain, China, and India are 4.30%, 3.60%, 5.80%, 8.70%, and 11.60%, respectively. Demand should be sustained by the diversification of industrial gas applications, particularly in energy storage and clean fuel technologies. The development of green hydrogen production techniques and energy-efficiency-boosting programs will be crucial to the market’s future expansion.
Recent developments and key initiatives
Current events provide insight into the dynamics of the industry. As an illustration, Air Products Inc. established a new cryogenic nitrogen production facility in Malaysia in 2021 to support its business operations and satisfy the region’s expanding need for industrial gases. These kinds of programs demonstrate how businesses are putting themselves in a position to take advantage of fresh market opportunities and meet global energy demands.All things considered, the industrial gases market is undergoing a significant shift, driven by the rising demand for hydrogen and photovoltaic energy. To meet this increasing demand and improve businesses’ standing in the international marketplace, infrastructure and technological innovation investments will remain vital.To take advantage of new opportunities and stay competitive, businesses in this industry must continue to be flexible and make investments in R&D. The industrial gases market is well-positioned for significant, sustainable growth in the years to come thanks to rising demand and continuing innovation.
