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Summary
The global industrial gas market has exhibited strong growth since 2020. Valued at $105.08 billion in 2023, the market is projected to continue expanding at a CAGR of 7.42% until 2030, potentially reaching $173.43 billion. This growth is primarily driven by the Asia-Pacific region, with a significant market share of 36.6%. The market is dominated by a few key players, with Air Liquide, Linde, and Air Products accounting for over 75% of the global market share. Despite the promising prospects, challenges such as environmental regulations, safety concerns, and the high costs of gas conversion could impede even faster growth.
Fluctuating Fortunes in the Pivotal Industrial Gases Sector
Tracing the journey of the industrial gases market within the country presents an intriguing narrative of ups and downs. This sector plays a crucial role across diverse industries, including chemicals, metallurgy, food processing, and healthcare, by providing essential gases such as oxygen, nitrogen, argon, helium, carbon dioxide, acetylene, among others. The market witnessed a remarkable resurgence, with sales skyrocketing by 22% and 34% in the years 2021 and 2022 respectively, signaling a renewed vibrancy within the sector. The domestic landscape, evaluated at approximately between 1.6 and 2.7 billion euros, denotes a market that has found its footing after a period of contraction caused primarily by increased reliance on imports. Nevertheless, there's been a shift as the country grapples with the impacts of rising energy prices and a global pandemic—factors that have unexpectedly fueled the sector's growth. Globally, the market valuation stands impressively at over 100 billion US dollars, with expectations of expansion to surpass the 170 billion dollar mark by the end of the decade, representing a compound annual growth rate between 7% and 8%. The Asia-Pacific region leads this charge, accounting for over a third of the market due to an uptick in manufacturing activities. Still, the industry faces challenges including stringent environmental regulations, safety concerns, and the substantial costs involved in gas transformation processes.
When zeroing in on the gases themselves, hydrogen presents itself as a burgeoning market, driven by increasing environmental legislation and its potential as a greener replacement in various applications. Investments in the hydrogen economy are particularly noteworthy, with France committing between 20 and 25 billion euros within a decade, aiming to meet an ambitious target of integrating hydrogen to constitute between 10% and 15% of the EU's energy matrix by mid-century. The French market's structure is emblematic of an oligopoly, with four titans dominating around 87% of the national market. With Air Liquide at the helm holding over half the share, followed by a series of mergers and acquisitions shaping the market dynamics. Even on the international stage, consolidation trends prevail. Despite the global outreach, production has tended to migrate abroad, seeking cost efficiencies in labor and operations.
Dominant Forces in the Industrial Gases Arena: Air Liquide, Linde, and Air Products
In the competitive landscape of the industrial gases market, a trilogy of titans stand as the main players—Air Liquide, Linde, and Air Products.
These three behemoths exert a formidable influence within the industry, reflecting an oligopolistic market structure where a handful of companies hold substantial market sway.
- Air Liquide is a name synonymous with industrial gases not only in France but on a global scale. It commands a dominating presence, attributable to its expansive infrastructure and robust product portfolio across various gases like oxygen, nitrogen, and hydrogen. The company, based in Paris, operates under a philosophy of innovation and sustainability, consistently investing in cutting-edge production techniques and broadening its reach. With operations spanning from healthcare to electronic gas supplies, Air Liquide's influence extends far beyond French borders, making it a key figure in shaping the industry's direction.
- Linde, having merged with Praxair, signifies another industry pillar with an equally impressive global footprint. This German-origin company, now a combined force with Praxair, offers a vast array of products while also making strides in the application of industrial gases in technology and healthcare. Linde's approach to mergers and acquisitions, as seen with Praxair, demonstrates a strategic outlook towards growth and market consolidation. With an international array of production sites and a commitment to R&D, Linde remains at the forefront of addressing the complex demands of the industrial gases market.
- Lastly, Air Products, with its extensive network of production and distribution facilities across continents, cultivates a robust position in the market. The company prides itself on supplying a variety of industrial gases, specializing in areas like propulsion fuels and unique applications for the technology sector. Their reach, mirroring their counterparts, challenges geographical boundaries and showcases a commitment to advancing the industrial gas application scope.
Together, these titans form an imposing trio. Their extensive networks, commitment to innovation, and proactive engagement in mergers and acquisitions continue to not only shape the industrial gases landscape but also dictate the tempo of its growth and evolution, ensuring their positions as the prominent figures within the sector.
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- Number of pages : 30 pages
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- Last update : 17/11/2023
Summary and extracts
1 Market summary
1.1 Market definition and presentation
Industrial gases are defined asmanufactured gases resulting from the distillation of air .
The scope of industrial gases includes :
- oxygen
- nitrogen
- argon
- helium
- carbon dioxide
- acetylene
- other gases
Industrial gases are used in a wide variety of sectors: chemicals (oxygen, nitrogen, hydrogen, CO), food processing (nitrogen and CO2), metallurgy (oxygen, argon) and health (oxygen, nitrous oxide). [Chemistry Info]
The global market is booming due to increasing demand for industrial production and urbanization, as well as rising consumer spending on food and transport. In 2023, it is valued at105.08 billion US dollars, and should continue to grow at aCAGR of 7.42% over the period 2023-2030, reaching 173.43 billion US dollars in 2030. This growth is primarily driven by the Asia-Pacific region, which holds a 36. 6% share of the market [Grand View Research]
Nevertheless, environmental regulations, safety and the particularly high costs of gas conversion continue to be obstacles to faster growth. [Grand View Research]
In France, the market has been slowly declining due to import growth and the country's increasing dependence on foreign gas. However, 2021 and 2022 were years of growth, with salesincreasing by 22% and 34% respectively, reaching 2.71 billion euros in 2022. [Insee] . Soaring energy prices and the consequences of the pandemic should continue to drive growth in the French industrial gases market in the years ahead.
In France, as elsewhere in the world, the industrial gases market is dominated by a small number of players, and its structure is that of an oligopoly. The main players in France areAir Liquide, Linde and Air Products.
Finally, hydrogen is a gas whose development needs to be monitored, and in which the government and the EU are investing heavily.
1.2 The global market is expanding
The global industrial gas market is growing rapidly. In ****, it is valued at ***.** billion US dollars, and should continue to grow at a CAGR of *.**% over the period ****-****, reaching ***.** billion US dollars in ****. Global industrial gas market size World, ****-****, US$ billion Source: ****
Several factors are responsible for this sustained ...
1.3 A growing domestic market after 10 years of decline
The French industrial gas manufacturing business is listed by INSEE under the NAF **.**Znomenclature code: "Manufacture of industrial gases". INSEE gives this market size for ****: it amounted to *.** billion euros. This figure can be used to estimate the size of the medical imaging market in France in ****, by multiplying it by ...
1.4 International trade
In this section, we use UN Comtrade data to analyze the industrial gas trade. In particular, we use the code HS**** - Hydrogen, rare gases and other non-metals. This category is slightly larger than industrial gas, but the trends in terms of trading partners are applicable to the smaller industrial gas ...
2 Demand analysis
2.1 Which industries use which gas?
Source: ****
broad category
Indeed, the industrial gas market is a B*B market, and it mainly caters for four markets: large-scale industry (***) and electronics. Production in these markets therefore has a direct influence on the health of the industrial gas market in France.
Several markets are driving demand at a higher ...
2.2 Hydrogen: a booming market
Demand for hydrogen is growing worldwide and in France. Legislation concerning greenhouse gases is becoming stricter, and the refining industry is using hydrogen to reduce the sulfur content of fuels and lighten heavy hydrocarbons. [***] In terms of use, Hydrogen Europe states that hydrogen is the main manufacturing component used to produceammonia ...
2.3 Market breakdown by gas
Nitrogen
The global nitrogen market is valued at $**.* billion in **** and is expected to grow at a CAGR of *% over the period ****-****, reaching $** billion. This growth is fuelled by increasing industrial production in sectors such as metal fabrication [***]
France is particularly strong in the nitrogen fertilization segment of the global ...
3 Market structure
3.1 A highly concentrated market
In France, there are four major players , together accounting for **% of the market in ****. Among them, Air Liquide industrie France stands out, with a market share of **.*% in ****.
To calculate market share, we take the revenue of each player in industrial gas manufacturing in France (***), since the data available on the ...
3.2 The share of domestic production is shrinking
As explained in the AFGC, industrial gases can be produced by various processes, depending on the type of gas and the type of gas distribution to the customer . In general, air gases such as oxygen, nitrogen, argon, helium, krypton, xenon and neon are mainly produced by fractional distillation of air cooled ...
3.3 The two main distribution channels
Because of thecomplexity of transport arrangements and the high cost of transport, the main manufacturers of industrial gases are also the main distributors. Air Liquide explains that transport costs limit the operating zone to a radius of *** to *** km around the production unit, with the exception of high value-added gases such ...
4 Offer analysis
4.1 Product overview: the different types of industrial gas
According to EIGA, thefollowing more detailed classification of the scope of gases can be made: air gases - oxygen (***) ; rare gases - such as helium (***); hydrogen (***); chlorine (***); acetylene (***). In addition,according to Messer , industrial gases are divided into three categories: Industrial gases: used for welding, pressurization, combustion, degassing, protective atmospheres and ...
4.2 Production costs for industrial gases
In this section, we provide an overview and breakdown of the factors that determine the cost of industrial gas production.
Although air is free, industrial gas production entails a number of costs. Indeed, theindustry is extremely capital-intensive, which also explains why there are few players and the market is concentrated (***). For ...
4.3 Producer price index
The graph below illustrates the evolution of industrial gas production prices in France between **** and ****. The base value of the price index is **** (***). Following this logic, we see that prices fell by **.*% between **** and ****, then rose sharply between **** and ****, so that production prices in **** are almost double those in ****. Price index, ...
5 Rules and regulations
5.1 General regulations
The manufacture of industrial gases involves numerous health risks and is therefore closely regulated, from production to transport and storage. Regulations governing the production of industrial gases include the following: [***] Gas storageregulations; Acetylene storage regulations; Oxygen storage regulations; Regulations for the storage of hydrogen; Essential rules for the storage of gas ...
5.2 New regulations
Following the fire at Lubrizol and Normandie Logistique in September **** in Rouen, new regulations have been put in place to reinforce the safety of high-risk industrial sites. These changes came into force in January ****[***] :
For warehouses of combustible materials, flammable liquids, waste transit sorting facilities and Seveso facilities: obligationto keep an ...
6 Positioning the players
6.1 Segmentation
The French and global markets are dominated by the four companies listed below.
- Air Liquide
- Air Products,7
- Messer
- Clesse Industrie
- Butagaz
- Linde
- Messer France
- GCE (ESAB Groupe)
- Praxair ( Linde Group)
- Sol Group
- Carburos Metálicos (Air Products)
- Gaz Industrie
- OxyNord
- Charot
- Polidoro
- Antargaz
List of charts
- Size of the global industrial gas market
- Size of the French industrial gas market
- Utilisation de l'hydrogène
- Taille du marché mondial de l'hydrogène
- French industrial gas market structure by revenue
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Latest news
Antargaz leaves Grigny and Ris-Orangis - 28/03/2024
- Antargaz site size: 3.4 hectares Site: Seveso 2, high threshold
- Scheduled completion of dismantling of Antargaz facilities: First quarter 2025
Siemens Energy and Air Liquide inaugurate their gigafactory to get green hydrogen off the ground - 09/11/2023
- Siemens Energy and Air Liquide's electrolyser Gigafactory in Berlin.
- It will produce cells with a total capacity of 1GW in the first year, gradually increasing to 3GW.
- Investment of 30 million euros
- it will power the hydrogen projects of Siemens Energy and Air Liquide, its only two customers.
- In Germany, Air Liquide will commission a 20 MW plant in the Ruhr, currently the largest in Europe.
- Another electrolyzer, ten times larger (200 MW), is planned: "Normand'Hy".
- It will supply green hydrogen to manufacturers in the Seine Valley. TotalEnergies has already reserved half the capacity.
- Air Liquide plans to have a portfolio of 3 GW by 2030.
- Air Liquide currently produces 1.2 million tonnes of hydrogen a year worldwide, but the overwhelming majority is still of fossil origin.
- "By 2030, grey hydrogen may account for only 50% of our business,
- The group plans to triple its sales by 2035, to 6 billion euros, taking advantage of the growth in low-carbon hydrogen.
- Germany sees hydrogen as one of the main vectors for decarbonization.
- Hydrogen infrastructure plan in the coming weeks - a 10,000-kilometer network
Air Liquide greenens its hydrogen - 31/07/2023
- Air Liquide's Port-Jérôme plant captures 100,000 tonnes of CO2 each year, more than 90% of the plant's emissions.
- Air Liquide has received 200 million euros from the French government to launch a hydrogen industry in Normandy.
- 95% of the natural gas consumed at Port-Jérôme is transformed into hydrogen.
- The Normand'Hy project involves an investment of 250 million euros to build a 200-megawatt electrolyzer.
- More than 680 "large-scale" hydrogen projects have been announced worldwide, representing a total investment of $240 billion.
Air Liquide: the springboard of the energy crisis - 16/02/2023
- The Group reported annual sales of 29.93 billion euros, the highest in its history
- Sales were driven by industrial merchant activities, in particular hydrogen and oxygen sales to the steel and chemical industries in Europe and the United States
- three new industrial gas production units for two major semiconductor manufacturers in Taiwan
- The Group has built its largest biomethane production unit in the United States
Energy: the propane industry calls for aid for its customers - 21/11/2022
- The three market leaders are: Antargaz, Butagaz, Primagaz
- 600.000 French households heated with LPG (liquefied petroleum gas)
- LPG emits up to 50% lessCO2 than fuel oil, and up to 77% less for bio-propane
- 20 million French people use propane and butane for cooking and heating.
- More than 25,000 communes (out of 36,000) rely on this energy source because they are not connected to the natural gas network
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