|
Forecast
Period
|
2025-2029
|
|
Market
Size (2023)
|
USD
1.58 Billion
|
|
Market
Size (2029)
|
USD
2.14 Billion
|
|
CAGR
(2024-2029)
|
5.12%
|
|
Fastest
Growing Segment
|
Metallurgy
|
|
Largest
Market
|
West
India
|
Market Overview
India Industrial, Specialty & Shielding Gases
Market has reached USD 1.58 billion by 2023 and is anticipated to project
robust growth in the forecast period with a CAGR of 5.12% through 2029. The India market for industrial, specialty, and shielding gases offers a broad array of products, including oxygen, nitrogen, argon, helium, carbon dioxide, hydrogen, acetylene, and specialty gases. These gases serve various sectors such as metallurgy, refinery, chemical, and petrochemical industries, playing a significant role in driving market growth.
The market benefits from continuous advancements in the metal industries, which fuel the demand for these gases. This consistent demand, combined with the current momentum of the market, ensures steady expansion. The market is on a positive trajectory, poised for substantial growth in the upcoming years due to increased demand from key industries.
Given this favorable outlook, the India market for industrial, specialty, and shielding gases presents attractive opportunities for both existing market players and potential newcomers. With its diverse product range, broad application scope, and growing demand, the market holds considerable potential for sustained growth and profitability.
Key Market Drivers
Growing Demand of Industrial, Specialty &
Shielding Gases in Food & Beverage Industry
The industrial, specialty, and shielding gases market in India is experiencing robust growth, primarily driven by the increasing demand from the thriving food & beverage industry. These gases serve various applications across different segments of the food & beverage sector, playing a pivotal role in driving market expansion.
In particular, food-grade gases are essential in the food & beverage industry, contributing significantly to processes such as freezing, chilling, carbonation, and packaging of food and beverages. Incorporating these gases ensures the freshness, quality, and safety of products, meeting the growing consumer expectations for superior quality, diverse variety, and optimal freshness.
Notably, the COVID-19 pandemic has influenced market dynamics. Despite a decrease in restaurant dining, there has been a notable increase in the use of CO2 in the food sector, where it is a significant consumer of liquid CO2.The rising demand for industrial, specialty, and shielding gases in the food & beverage industry is a key driver of India's market for these gases. As the food & beverage sector continues to evolve and expand, it will further stimulate market growth, presenting promising opportunities for industry players. Through continuous innovation and adaptation to evolving consumer preferences, the industry is poised for a bright future.
Growing Demand of Industrial, Specialty &
Shielding Gases in Healthcare Industry
Industrial and specialty gases are indispensable in the healthcare sector, serving critical roles beyond providing life-supporting oxygen in hospitals. These gases are essential for various medical applications, including the production of medical devices requiring sterile gases to uphold stringent quality and safety standards.
As the healthcare industry undergoes rapid expansion, the demand for industrial and specialty gases continues to escalate, particularly for medical-grade gases crucial for optimal healthcare facility operations and patient care. Heightened awareness of these gases' importance in delivering safe and effective medical treatments further propels market growth. The COVID-19 pandemic underscored the pivotal role of industrial and specialty gases in healthcare. The unprecedented surge in demand for medical oxygen during the pandemic's peak highlighted these gases' life-saving significance, reshaping market dynamics. India's market for industrial, specialty, and shielding gases experiences significant growth driven by the healthcare industry's continuous evolution and expansion. As the sector progresses, new opportunities emerge for industry stakeholders to meet escalating demand and advance healthcare technologies and treatments.
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Key Market Challenges
Volatility in Availability of Raw Materials
The industrial, specialty, and shielding gases market in India is witnessing substantial growth, primarily fueled by increased demand from metal industries, particularly the steel sector. However, amidst this promising growth, challenges have surfaced, notably concerning raw material availability volatility.
The production of industrial gases relies heavily on raw materials such as natural gas, air, and various feedstocks. Fluctuations in the availability and prices of these raw materials can significantly impact production costs and market dynamics. For instance, the cost of components used in producing specialty carbon black, a critical ingredient in certain industrial gases, is influenced by the prices of feedstock oil, natural gas, and high-sulfur fuel. Any fluctuations in these prices directly affect industrial gas production costs.
Broader economic factors contribute to this challenge. Volatile raw material prices, inflation, geopolitical risks, and inadequate manufacturing capacities relative to domestic demand all influence market dynamics. The industrial gases market in India thus presents a delicate balance between growth opportunities and challenges. Diligent monitoring and strategic approaches are essential to navigate these complexities and ensure sustained success in this evolving landscape.
Key Market Trends
Rise in Hydrogen Economy
The industrial, specialty, and shielding gases market in India is currently experiencing rapid transformation, primarily propelled by the significant emergence of the hydrogen economy. As societies worldwide strive for cleaner and more sustainable energy sources, hydrogen has gained prominence across various sectors, including the industrial gases market. Hydrogen, a long-standing element, is now being thrust into the forefront of the global energy transition. Its demand has surged remarkably, increasing more than threefold since 1975, with a substantial portion of hydrogen supplied from fossil fuels.
India, with its ambitious renewable energy goals and firm commitment to the Paris Agreement, is actively exploring hydrogen's potential as an alternative energy source. This keen interest is evident in the growing demand for hydrogen within India's industrial gases market.
Within the industrial gases market, hydrogen is utilized across diverse sectors, including refining, chemical production, metallurgy, and more recently, as a clean energy carrier. The expanding presence of the hydrogen economy is thus significantly influencing the growth and development of this market. The ascent of the hydrogen economy represents a prominent and transformative trend within India's industrial, specialty, and shielding gases market. As the country continues to investigate and invest in hydrogen as a clean and sustainable energy solution, this trend is poised to shape the market's future, offering exciting opportunities for industry stakeholders.
Segmental Insights
Application Insights
Based on the category of application, the
metallurgy segment emerged as the dominant player in the Indian market for
Industrial, Specialty & Shielding Gases in 2023. Industrial gases play a vital role in metallurgical processes, offering essential functionalities and advantages. For instance, argon, commonly used as a shielding gas, provides optimal protection during electric arc welding for both nonferrous and some ferrous metals. This shielding gas creates a controlled environment that prevents oxidation and ensures high-quality welds. Welding gases, like acetylene, serve multiple purposes in metal cutting and welding applications. Acetylene, renowned for its high heat output, enables efficient and precise metal cutting, making it an ideal choice for various industrial processes. Its versatility and reliability make it a preferred option in many welding operations.
The increasing demand from metal industries, particularly the steel sector, is significantly boosting the usage of industrial gases. The Indian steel industry, acknowledged as one of the fastest-growing globally, heavily depends on industrial gases for diverse processes, including oxygen steelmaking. These gases, such as oxygen, play a pivotal role in facilitating the production of high-quality steel, ensuring efficient combustion and heat transfer, and contributing to the overall productivity and competitiveness of the steel industry.
Mode of Distribution Insights
The bulk segment is projected to experience rapid
growth during the forecast period. One of the primary reasons for the dominance
of bulk distribution in the industrial gases market is the high volume demand
from various industries. Industries such as metallurgy, light engineering, and
mining rely heavily on industrial gases to support their operations and
processes. For instance, in metallurgy, large volumes of industrial gases like
argon are required as shielding gases for the electric arc welding of nonferrous
and specialty metals. This ensures the quality and integrity of the welds,
making them suitable for critical applications. Due to the extensive use and
demand for argon in such processes, it is supplied in bulk quantities to meet
the needs of these industries effectively.
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Regional Insights
West India emerged as the dominant player in the
India Industrial, Specialty & Shielding Gases Market in 2023, holding the
largest market share in terms of value. West India, known for its diverse
industrial base, encompasses sectors such as metallurgy, refinery, chemical,
petrochemical, and more, all of which play a significant role in the region's
economic growth. These industries, driven by their unique requirements, have a
high demand for various types of industrial gases to support their operations.
For instance, argon, a versatile gas, finds its application as a shielding gas
for electric arc welding, ensuring the quality and integrity of the welding
process.
The region witnesses a consistent and substantial
demand for industrial gases from end-user industries, particularly the metal
industry, with a special emphasis on steel production. The critical processes
involved in these industries, including refining, smelting, and shaping, rely
heavily on the availability of significant volumes of industrial gases. Whether
it's oxygen for the oxygen-enhanced combustion process or nitrogen for inerting
and purging applications, the industrial gas requirements in West India are
vital to sustain and propel the region's industrial growth.
Recent Developments
- Air Liquide India, a global leader in industrial
gases and services, is making a significant investment in Gujarat, India. The
upcoming air separation unit (ASU) is designed to meet the growing demand for
oxygen and nitrogen. With a production capacity of 1,500 tons per day of oxygen
and 1,000 tons per day of nitrogen, the ASU is set to play a crucial role in
supporting various industries and sectors. The commissioning of this
state-of-the-art facility is anticipated in 2024, marking a significant milestone
in Air Liquide's commitment to providing sustainable solutions for India's
industrial gas needs.
Key Market Players
- Praxair
India Private Limited
- Linde
India Limited
- Bhuruka
Gases Limited
- Bombay Oxygen Investments Ltd.
- SICGIL India Limited
|
By
Application
|
By Mode of Distribution
|
By Region
|
- Metallurgy
- Refinery
- Chemical
& Petrochemical
- Others
|
|
- North India
- East India
- West India
- South India
|
Report Scope:
In this report, the India Industrial, Specialty
& Shielding Gases Market has been segmented into the following categories,
in addition to the industry trends which have also been detailed below:
- India Industrial, Specialty & Shielding
Gases Market, By
Application:
o Metallurgy
o Refinery
o Chemical & Petrochemical
o Others
- India Industrial, Specialty & Shielding
Gases Market, By
Mode of Distribution:
o Tonnage
o Bulk
o Packaged
- India Industrial, Specialty & Shielding
Gases Market, By Region:
o North India
o East India
o West India
o South India
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the India
Industrial, Specialty & Shielding Gases Market.
Available Customizations:
India Industrial, Specialty & Shielding Gases
Market report with the given market data, TechSci 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).
India Industrial,
Specialty & Shielding Gases Market is an upcoming report to be released
soon. If you wish an early delivery of this report or want to confirm the date
of release, please contact us at [email protected]