|
Forecast
Period
|
2024-2028
|
|
Market
Size (2022)
|
USD12.15
billion
|
|
CAGR
(2023-2028)
|
5.08%
|
|
Fastest
Growing Segment
|
Carbon
|
|
Largest
Market
|
Asia-Pacific
|
Market Overview
Global
Specialty Gases Market has valued at USD12.15 billion in 2022 and is
anticipated to project robust growth in the forecast period with a CAGR of 5.08%
through 2028. Specialty gases are gaseous substances of high purity and
exceptional quality, playing a vital role in a wide range of industries. These
industries include healthcare, environmental, petrochemical, semiconductor,
pharmaceutical, and chemical markets. Specialized gases are extensively used in
various industrial processes, serving as analytical lab gases and
intermediates. The most common types of specialty gases include high purity
gases, noble gases, carbon gases, and halogen gases. These gases can be pure gases or gas mixtures
with varying concentrations, ranging from the percent range down to part per
billion and sometimes even part per trillion. They find applications in
analytical methods such as fourier transform infrared (FTIR) and non-dispersive
infrared (NDIR), as well as gas and liquid chromatography. Moreover, specialty
gases are crucial in the electronics sector, where they are utilized in the
production of integrated circuits, silicon wafers, compound semiconductors, and
flat panel display products. The specialty gas industry is a complex and
comprehensive business that supports advancements in chip architectures, which
require new materials and increased material consumption per chip. With the
growing demand for advanced technologies such as augmented reality (AR),
artificial intelligence (AI), internet of things (IoT), virtual reality (VR),
aerospace, automotive applications, and the rise of remote work, online gaming,
e-commerce, mobile devices, personal computers, and virtual learning, the semiconductor
sector is experiencing an unprecedented level of growth. Specialty gases are widely used across
different applications in the semiconductor chip production process, with
nitrogen being one of the extensively used gases. Nitrogen is employed in
abatement systems for purging vacuum pumps and as a process gas. In large,
advanced fabs, nitrogen consumption can reach up to 50,000 cubic meters per
hour, highlighting the need for low-energy and cost-effective on-site nitrogen
generators. Several factors are expected to drive the growth of the global
specialty gas market. The high growth of end-user industries, increased demand
for photovoltaic products and plasma display panels, rising environmental
awareness, growing demand from the healthcare industry, increased usage of
specialty gases in the electronic industry, and surging demand for bio-based
products are all crucial factors contributing to the specialty gas market's
growth during the forecast period. Specialty
gases are predicted to gain traction in the healthcare industry, particularly
due to their rising consumption in medical applications such as anesthesia,
reanimation processes, mechanical ventilation, and Magnetic Resonance Imaging
(MRI). These gases, including medical gases and specialty gas mixtures, play a
vital role in various medical procedures, pathology, patient care, and
research. They are supplied in portable cylinders or directly through pipelines
to hospital wards, ensuring a reliable and efficient supply. Manufacturers like
Messer Group GmbH offer a wide range of specialty gases, along with services
that encompass consultation on gas delivery, planning, installation, and
maintenance of supply systems. However, it is important to note that the
specialty gas market also faces certain challenges. Increasing regulations and
restrictions on the production and quality control of specialty gases, along
with the presence of substitutes, can hamper market growth. On the contrary,
the production of new environmentally friendly technologies and products,
coupled with emerging markets, presents lucrative growth opportunities for the
specialty gas industry. These developments pave the way for a promising future,
where specialty gases continue to play a crucial role in various sectors,
driving innovation and enabling advancements in technology and research.
Key Market Drivers
Increasing Demand of Specialty
Gases in Electronics Industry
Specialty
gases play a crucial role in the manufacturing processes of electronic devices.
These gases, which may be pure or mixed, include high purity gases, noble
gases, carbon gases, and halogen gases. They are used in various stages of
semiconductor manufacturing and support advancements in chip architectures that
require new materials and increased material consumption.
As
the demand for electronic devices across various sectors continues to spike, so
does the need for specialty gases in their production. This trend is especially
pronounced in South Asia, which continues to lead the market, while East Asia
is also showing impressive growth rates. The increasing demand for electronic
devices, driven by factors such as technological advancements and consumer
preferences, is fueling the demand for specialty gases. This, in turn, is
contributing to the growth of the global specialty gases market.
One
of the key factors driving the demand for specialty gases in the electronics
industry is the expansion within the semiconductor industry. With leading-edge
logic and 3D NAND technologies gaining traction, the requirement for specialty
gases in their production processes is on the rise. These innovative
technologies necessitate the use of specialty gases to achieve precise and
reliable results.
Moreover,
rapid advancements in the electronics industry have led to the development of
complex end-to-end businesses that rely heavily on specialty gases. From
research and development to manufacturing and testing, the entire supply chain
of electronic devices relies on the availability and quality of specialty
gases. As such, the growth of the electronics industry directly influences the
specialty gases market.
However,
these challenges also present opportunities for growth and innovation. As the
specialty gases market continues to grow, driven by the increasing demand from
the electronics industry, research and development efforts could lead to the
development of alternative gases or more efficient usage methods. Innovations
in gas purification, packaging, and delivery systems could further enhance the
performance and sustainability of specialty gases.
In
conclusion, the increasing demand for specialty gases in the electronics
industry is a significant driver of the global specialty gases market. As
electronic devices become increasingly integral to our daily lives, this trend
is expected to continue, offering ample opportunities for growth and innovation
in the specialty gases market. By staying at the forefront of technological
advancements and addressing the evolving needs of the electronics industry, the
specialty gases industry can thrive and contribute to the ongoing progress of
the electronic devices we rely on.
Increasing Demand of Specialty
Gases in Healthcare Industry
Specialty
gases are high purity gases that have specific applications across a wide range
of industries. In the healthcare sector, these gases play a crucial role in
various applications, spanning from clinical to laboratory settings. For
example, nitrous oxide is commonly used as an anesthetic, helium is utilized in
MRI machines, and oxygen is essential for respiratory therapy.
Moreover,
specialty gases like nitrogen and argon find extensive usage in cryogenics and
cryosurgery, while gases such as neon, krypton, and xenon have applications in
laser eye surgery. As the demand for healthcare services continues to grow, so
does the need for specialty gases.
The
rising global population, coupled with an increase in chronic and lifestyle
diseases, has led to a significant surge in the demand for healthcare services.
Consequently, this surge drives the requirement for specialty gases in various
healthcare applications.
Additionally,
advances in medical technology and the development of new therapeutic
techniques have further contributed to the increased usage of specialty gases.
The ongoing COVID-19 pandemic has also highlighted the critical role of
specialty gases, particularly medical oxygen, in providing essential healthcare
support.
The
increasing demand for specialty gases in the healthcare industry acts as a key
driver for the growth of the global specialty gases market. As healthcare
services continue to evolve and expand, this trend is expected to persist,
offering ample growth opportunities for players in the specialty gases market.
In
conclusion, given the vital role of specialty gases in the healthcare industry
and the continuous expansion of the sector, the global specialty gases market
exhibits a positive outlook for the foreseeable future. The ongoing
advancements in medical technology and the rising demand for healthcare
services further reinforce the significance of specialty gases in enabling
quality patient care and treatment.
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Key Market Challenges
Volatility in Price of Feedstock
Feedstocks
play a crucial role in the production of specialty gases. They are raw materials
used in the intricate process of creating these high-purity gases, which
encompass noble gases, carbon gases, halogen gases, and various others. The
cost of these feedstocks directly impacts the price of the final product, i.e.,
specialty gases. With intricate supply chains and strict quality control
measures, the production of specialty gases relies heavily on the availability
and affordability of feedstocks.
Price
volatility, referring to the rapid rate at which the price of an asset
fluctuates for a given set of returns, poses a significant challenge in the
specialty gases market. In the case of feedstocks, factors such as geopolitical
concerns, energy transition challenges, and supply-demand imbalances often
contribute to price fluctuations. These volatile prices not only impact the
cost of feedstocks but also create a ripple effect throughout the entire
specialty gases industry.
The
implications of price volatility in the specialty gases market are
far-reaching. When feedstock prices increase, it leads to higher production
costs for specialty gases, as manufacturers have to bear the burden of elevated
input costs. In turn, these increased costs are often passed on to the
consumers, resulting in higher prices for specialty gases. This poses
challenges for both producers and consumers alike, as they grapple with the
impact of price fluctuations on their budgets and operations.
Furthermore,
price volatility creates obstacles for companies in planning their budgets and
making long-term business decisions. The uncertainty surrounding feedstock
prices makes it difficult to forecast and allocate resources effectively. The
stability of the supply chain is also affected, as companies face challenges in
securing a consistent and reliable supply of feedstocks. These complications
further exacerbate the production and distribution challenges faced by the
specialty gases industry.
In
summary, the role of feedstocks and the impact of price volatility are crucial
considerations in the specialty gases market. Understanding the complexities of
feedstock procurement, price fluctuations, and their implications is essential
for industry stakeholders to navigate the challenges and ensure the sustainable
production and availability of specialty gases.
Key Market Trends
Growing Demand of Custom Gas
Mixtures
Custom
gas mixtures are meticulously formulated combinations of gases, precisely
tailored to meet the unique requirements of various applications. These
specialized blends can consist of a diverse range of gases, including oxygen,
nitrogen, helium, argon, and more.
The
demand for these custom gas mixtures has been steadily increasing across
multiple industries, such as food and beverage, healthcare, electronics, and
manufacturing. This surge in demand can be attributed to the inherent
advantages of these bespoke mixtures, which can be fine-tuned to align with
specific application needs. As a result, efficiency is enhanced, and waste is
minimized, leading to improved overall performance.
The
growing demand for custom gas mixtures is an eminent trend observed in the
global specialty gases market. As industries actively seek out more efficient
and tailored solutions, this demand is anticipated to rise even further,
fostering substantial growth in the specialty gases market. While challenges
may arise, this trend also presents significant opportunities for innovation
and expansion within the market, paving the way for novel advancements and
breakthroughs.
Segmental Insights
Product Type Insights
Based
on the category of product type, the carbon segment emerged as the dominant
player in the global market for Specialty Gases in 2022. Carbon gases, such as
carbon dioxide and carbon monoxide, are widely utilized in various medical
equipment, including nuclear magnetic resonance imaging (MRI), ophthalmology
devices, and more. These gases play a crucial role in enabling accurate
diagnoses and effective treatments in the healthcare industry. Moreover, carbon
gases find extensive application in sectors like electronics, manufacturing,
healthcare, and chemicals due to their diverse properties and functionalities.
The
demand for carbon gases is witnessing steady growth, primarily driven by their
increasing use in instrument calibration. The precise calibration of
instruments is vital for ensuring accurate measurements and reliable
performance across industries. As a result, the demand for carbon gases, known
for their stability and accuracy, continues to rise.
In
addition to their wide-ranging applications, ultra-high purity gases, known for
their exceptional purity levels, are extensively employed in diverse
industries. These gases find use in insulation, lighting, and cooling systems
within electronics, metal processing, chemical, and oil & gas sectors.
Furthermore, the semiconductor industry heavily relies on ultra-high purity
gases for the manufacturing of semiconductors, which are the building blocks of
modern electronics. Given the continuous growth and innovation in the
semiconductor industry, the demand for ultra-high purity gases is expected to
witness significant expansion in the coming years.
Application Insights
The
healthcare segment is projected to experience rapid growth during the forecast period.
The healthcare sector relies on a wide range of specialty gases, including
crucial ones like oxygen, medical nitrous oxide, medical air, and medical
helium. These gases play a vital role in various medical applications, such as
anesthesia, respiratory therapy, and surgical procedures. With governments
worldwide increasing healthcare expenditure and the continuous advancement of
medical technologies, the demand for these specialty gases is expected to
witness significant growth in the market. This growth can be attributed to
their essential role in delivering safe and effective healthcare services,
ensuring patient well-being, and supporting medical professionals in providing
optimal care.
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Regional Insights
Asia Pacific emerged as the dominant
player in the Global Specialty Gases Market in 2022, holding the largest market
share in terms of value. The region, encompassing China, Japan, and India,
boasts numerous electronic manufacturing hubs. These hubs, supported by local
governments, have spurred the growth of diverse end-use industries including
consumer electronics, oil & gas, manufacturing, and healthcare. The
region's Production-Linked Incentives (PLI), subsidies, and favorable Foreign
Direct Investment (FDI) policies have further propelled the expansion of these
industries. As a result, the specialty gas industry has witnessed remarkable
growth and established its dominance in the region.
Recent Developments
- In
February 2023, Linde, a leading industrial gas company, announced a significant
long-term partnership with OCI. This collaboration aims to supply clean
hydrogen and other industrial gases to OCI's state-of-the-art blue ammonia
factory in Beaumont, Texas. As part of this arrangement, Linde will construct,
own, and manage an on-site complex that will cater to OCI's annual production
of 1.1 million tons of blue ammonia. By providing clean hydrogen and nitrogen,
Linde will play a crucial role in supporting OCI's commitment to sustainable
and environmentally friendly practices. Notably, Linde's innovative approach
will include the sequestration of more than 1.7 million tons of CO2 emissions
annually, further contributing to the reduction of greenhouse gas emissions.
- Additionally,
in the same month, Air Products, a prominent producer of gas separation and
purification membranes, unveiled its latest breakthrough product, the PRISM
InertPro Nitrogen Membrane System. This cutting-edge nitrogen membrane system,
showcased at the prestigious Middle East Oil and Gas Show in Bahrain, is
specifically designed for the energy, oil, and gas industry. The PRISM InertPro
stands out for its innovative and flexible modular platform, delivering
world-class efficiencies in providing nitrogen systems. With this advanced
technology, Air Products aims to enhance operations in the industry, offering
an efficient and reliable solution for nitrogen generation.
Key Market Players
- Air
Liquide SA
- Airgas, Inc.
- Air Products Inc.
- Linde plc
- Messer group GmbH
- MESA International Technologies, Inc.
- Norco Inc.
- showa denko k.k.
- Taiyo Nippon Sanso Corporation
- Weldstar, Inc
|
By Product Type
|
By Application
|
By Region
|
- High purity
- Nobel
- Carbon
- Halogen
- Others
|
- Manufacturing
- Electronics
- Healthcare
- Others
|
- North America
- Europe
- Asia Pacific
- South America
- Middle East & Africa
|
Report Scope:
In this report, the Global Specialty Gases Market
has been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- Specialty Gases Market, By Product Type:
o High purity
o Nobel
o Carbon
o Halogen
o Others
- Specialty Gases Market, By Application:
o Manufacturing
o Electronics
o Healthcare
o Others
- Specialty Gases Market, By Region:
o North America
§ United States
§ Canada
§ Mexico
o Europe
§ France
§ United Kingdom
§ Italy
§ Germany
§ Spain
o Asia-Pacific
§ China
§ India
§ Japan
§ Australia
§ South Korea
o South America
§ Brazil
§ Argentina
§ Colombia
o Middle East & Africa
§ South Africa
§ Saudi Arabia
§ UAE
§ Kuwait
§ Turkey
§ Egypt
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Global
Specialty Gases Market.
Available Customizations:
Global Specialty Gases Market report with the given
market data, Tech Sci Research offers customizations according to a company's
specific needs. The following customization options are available for the
report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
Global Specialty Gases Market is an upcoming report
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