December 10, 2015
Wellesley, Mass., December 10, 2015 – Keeping the air clean will be a key priority in the industrial gas industry over the next five years. BCC Research reveals in its new report that industrial gases will offer metals producers, electronic component manufacturers, petroleum refiners, specialty chemical manufacturers and automakers the flexibility to meet increasingly stringent environmental legislation through innovative technology.
Since BCC published its last analysis of the global industrial gas business in 2012, market conditions have remained in a state of flux as the world’s major economies have made uneven progress in emerging from the global recession that began in 2008. In addition to macroeconomic trends, some markets that were considered promising (e.g., hydrogen-powered vehicles) now show less potential. This report updates the findings and conclusions of the 2012 report.
The global market for industrial gases is expected to reach $68.7 billion and $80.9 billion in 2015 and 2020, respectively, reflecting a five-year compound annual growth rate (CAGR) of 3.3%. The chemical and refining industries should remain the largest consumer segment, growing at a five-year CAGR of 4% through 2020. The medical segment should demonstrate the highest rate of growth over the forecast period with an anticipated five-year CAGR of 4.6% through 2020.
Europe, the largest geographical market in 2014 with 32% of the total global market, is projected to become the second-largest market by 2020, finishing behind North America. Asia-Pacific, the fastest-growing geographic market with an anticipated five-year CAGR of 6.1%, should increase its market share to 27% by 2020, a 4% gain over its 2014 share.
Industrial gases are produced as byproducts of other manufacturing activities, such as natural-gas processing and steel, cement and lime production. Efficient recovery and recycling are also being practiced for hydrogen and helium. Therefore, the use of industrial gases will continue to increase. They will be used to support greener processes in petrochemicals, agrochemicals and renewable energy production.
Perhaps the most current and powerful driver for using industrial gases in petrochemicals and energy production is improvement of the environment. The Kyoto agreement and other international accords will combine to prohibit the practice of flaring to reduce greenhouse gases and preserve a valuable energy reserve.
“Industrial gas companies do not have the same direct environmental impact as traditional chemical manufacturers. Nevertheless, it is still vital for them to maintain a conscientious stewardship of their products and services,” says BCC Research analyst Andrew McWilliams. “Innovative technology and processes to meet the needs of customers who are striving to improve their own environmental performance are also vital for industrial gas companies. Industrial gases come in a range of products that are beneficial to the environment, including products to purify wastewater, refrigerants that do not deplete ozone, processes for recycling, and technology for reducing and eliminating noxious emissions.”
The Global Industrial Gas Business (CHM041E) examines market segments by features such as product type, type of end user, application, production technology, purity grade, market sizes and value chains. Government environmental and energy regulation are analyzed, along with growth drivers and opportunities, and projects revenues through 2020.
Editors and reporters who wish to speak with the analyst should contact Steven Cumming at steven.cumming@bccresearch.com.
The Global Industrial Gas Business( CHM041E )
Publish Date: Dec 2015
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