Almost every industry, from manufacturing to healthcare and even food and beverage processing, relies on a steady stream of industrial gases for its operations.
Gases like oxygen, nitrogen, and carbon dioxide, among others, have a wide range of applications. They are used for combustion, fabrication, packaging, electronics manufacturing or fuel extraction. When used responsibly and with the right KnowHow, they save costs and improve the efficiency of several industrial processes.
It’s no wonder, then, that the global industrial gas market is thriving.
According to the Global Industrial Gas Market forecast for 2023-2028, its market share is expected to grow from $96.5 billion in 2022 to an impressive $147.28 billion by 2028, with a compound annual growth rate of 7.30%. What are the trends that will contribute to this growth? Here are some indications from the report.
Key Trends to Look Out for
Increased Adoption of Enhanced Oil Recovery
Enhanced oil recovery is a process that oil and gas companies use to extract leftover oil that hasn’t already been retrieved through either primary or secondary techniques. It has been gaining prominence over the last few years. The process also relies on industrial gases, so as more companies implement EOR techniques, we can expect the demand for industrial gas to rise.
Shift Towards Alternative Fuels
The increased adoption of renewable power sources is also expected to impact the demand for industrial gases. They can, for instance, be extensively used in the generation of hydrogen energy, as well as in gas turbines.
Increase in Gas Pipeline Infrastructure
Pipelines facilitate the movement of gases used by several industries. The immense growth of pipeline infrastructure is thus expected to have a direct impact on the development of the industrial gas market.
New Developments in Healthcare
A number of industrial gases are used in the healthcare industry, including oxygen, nitrogen, hydrogen and helium. These gases are used in pharmaceutical-based products, as well as in the development of new drugs. An increased emphasis on quality healthcare is thus expected to drive demand for industrial gases in the near future.
What gases lead the way?
The demand for air separation gases is expected to dominate the industrial gas sector. These include nitrogen, oxygen, hydrogen, helium, and argon. Of these, nitrogen is expected to be the most significant — considering its applications in a wide range of industries, from healthcare to electronics to food and beverage, among others.
Trends by Region
Asia-Pacific is the fastest-growing region in the industrial gas market, largely thanks to rapid industrialization and urbanization spurring manufacturing.
However, North America and Europe are also expected to be significant regions, with most of the demand coming from industries like healthcare, metal fabrication and chemical manufacturing.
Forge Forward with nexAir’s KnowHow
While an economic slowdown and increasing government regulations have hampered the growth of the industrial gas market in the last few years, the forecast for the next five years seems promising.
Among other factors, this growth can be attributed to the adoption of new industrial techniques, a rising demand from the healthcare sector, and the expanding global pipeline infrastructure.
For over 80 years, nexAir, the leading supplier of industrial gas across the Southeast, has shared its immense KnowHow to help crucial industries Forge Forward. As the market continues to grow, you can be sure that we’ll be standing on the front lines.
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