Forecast Period
|
2024-2028
|
Market Size (2022)
|
USD 5.26 billion
|
CAGR (2023-2028)
|
4.13%
|
Fastest Growing Segment
|
Oxygen
|
Largest Market
|
South Central
|
Market Overview
China Industrial & Specialty Gases Market has
valued at USD 5.26 billion in 2022 and is anticipated to project robust growth
in the forecast period with a CAGR of 4.13% through 2028. The market for gases
in China is characterized by a wide range of varieties. It encompasses not only
basic industrial gases like nitrogen, oxygen, and carbon dioxide, but also
specialty gases such as ultra-high-purity helium and argon. These gases find
diverse applications across multiple sectors - from manufacturing processes to
medical treatments, from food preservation to pollution control.
In recent years, there has been a notable increase
in investment in China's industrial gas market. This trend is particularly
evident in the production of industrial synthetic gases like hydrogen and
acetylene, driven by the growing demand for cleaner energy sources. Hydrogen,
in particular, has emerged as a promising area for future growth, as the
country strives to embrace more sustainable energy solutions.
Furthermore, the rare gas industry in China is
gaining significant attention. These gases play a crucial role in high-tech
industries, and China's ability to produce and supply them could have a
substantial impact on the global market. As the demand for rare gases continues
to rise, China's position as a key player in the global industrial landscape is
further solidified.
However, the growth of the gases market in China is
not without its challenges. Regulatory compliance, safety standards, and
environmental concerns are crucial issues that need to be addressed.
Additionally, the fluctuating prices of raw materials pose a potential risk to
market stability.
Despite these challenges, the outlook for China's
industrial and specialty gases market remains highly promising. The increasing
demand from various industries, coupled with the government's supportive
policies, is expected to drive the market forward. As China continues to cement
its position as a global industrial powerhouse, the growth and development of
its industrial and specialty gases market are poised to follow suit.
Key Market Drivers
Growing Demand of Industrial & Specialty Gases in
Food & Beverage Industry
Industrial and specialty gases play a critical role
in the food and beverage industry, providing essential support in various
stages of food processing and packaging. For instance, gases like nitrogen and
carbon dioxide are commonly used in modified atmosphere packaging (MAP), which
helps to improve the shelf life of food products by creating an optimal
environment. By controlling the gas composition inside the packaging, MAP can
slow down the growth of spoilage-causing microorganisms and preserve the
freshness of the food.
In addition to MAP, gases such as oxygen and carbon
dioxide are also widely utilized in beverage carbonation. Through a carefully
controlled process, these gases are introduced into beverages to create the
desired level of fizziness, enhancing the overall sensory experience for
consumers.
The increasing consumer demand for high-quality,
packaged, and processed food products is one of the key drivers behind the
growth of the industrial and specialty gases market in the food and beverage
sector. As consumers become more health-conscious and seek fresher and
longer-lasting food options, the use of specialty gases in food preservation
and packaging has gained prominence. These gases enable the extension of shelf
life without compromising the taste, texture, or nutritional value of the
products.
Furthermore, the growing demand for advanced
packaging solutions is another factor contributing to the market growth.
Specialty gases are pivotal in creating innovative packaging solutions that
maintain the freshness, quality, and visual appeal of food and beverages. From
modified atmosphere packaging to vacuum sealing, specialty gases offer
versatile options to meet the evolving needs of the industry.
In conclusion, the increasing demand for industrial
and specialty gases in the food and beverage industry is a significant driving
force behind China's industrial and specialty gases market. As consumer
preferences continue to evolve and the need for advanced packaging solutions
rises, this trend is expected to persist, fostering further growth in this
dynamic and essential market segment.
Growing Demand of Industrial & Specialty Gases in
Automotive Industry
Industrial and specialty gases play a crucial and
irreplaceable role in the automotive industry. These gases are not only used in
various stages of vehicle manufacturing, such as welding, heat treatment, and
airbag inflation but also serve quality control purposes, including leak
detection in vehicle components, using specialty gases like argon and helium.
The automotive industry's rapid expansion in China
has been a primary driver for the increased demand for industrial and specialty
gases. As one of the largest car markets globally, China's automotive industry
requires significant quantities of these gases to support various applications.
This rising demand is further fueled by advancements in automotive
manufacturing technology, which have created a surge in the need for industrial
and specialty gases.
Moreover, China's strong emphasis on green
transportation and the subsequent growth in electric vehicle (EV) production
have significantly contributed to the market's expansion. The production of EV
batteries, which is a crucial aspect of electric vehicle manufacturing,
requires the use of specialty gases. Given that China is the largest
manufacturer of EVs worldwide, the demand for these gases is projected to
continue rising.
In conclusion, the escalating demand for industrial
and specialty gases in the automotive industry is a key driver of China's
industrial and specialty gases market. As the automotive industry continues to
expand and evolve, this trend is expected to persist, fueling further growth in
the industrial and specialty gases market. The continuous evolution of
automotive technologies, the increasing adoption of electric vehicles, and the
government's focus on green transportation will all contribute to the sustained
growth of the industrial and specialty gases market in China.
Download Free Sample Report
Key Market Challenges
Volatility in Energy Prices
Energy is not only a vital input in the production
of industrial and specialty gases, but it also plays a crucial role in their
overall cost structure. Fluctuations in energy prices can have a direct and
significant impact on the production costs of these gases. For instance, hydrogen,
which is a key industrial gas. Its production requires substantial amounts of
energy, and any increase in energy prices would inevitably escalate the
production costs. These higher costs may then be passed on to consumers,
potentially leading to a reduction in demand
Similarly, specialty gases like argon and helium,
which find applications in diverse sectors such as automotive and electronics
industries, are also produced through energy-intensive processes. Consequently,
any volatility in energy prices can introduce unpredictability in their
production costs. This, in turn, poses challenges for manufacturers when it
comes to budgeting and financial forecasting.
With its rapidly growing economy, China's energy
demand is also on the rise. This increasing demand has the potential to raise
energy prices and further contribute to price volatility. Moreover,
geopolitical conflicts, like those involving Taiwan, can lead to global energy
supply disruptions, which in turn can result in price increases.
Key Market Trends
Growing Advancements in Gas Technologies
In recent years, the gas industry has witnessed
numerous technological advancements that are revolutionizing the production,
storage, and transportation of gases. These advancements include
digitalization, automation, Artificial Intelligence (AI), Big Data analytics,
and the Internet of Things (IoT).
Digitalization and automation have paved the way
for real-time monitoring and control of various processes, resulting in
increased efficiency and reduced operational costs. AI and Big Data analytics
are being utilized to forecast demand, optimize supply chains, and improve
decision-making.
On the other hand, the IoT is facilitating
continuous monitoring of system status, enabling the early identification of
potential issues before they escalate into major problems. These advancements
collectively contribute significantly to the growth of the industrial and
specialty gases market in China.
Notably, technological advancements have played a
pivotal role in the oil and gas industry, particularly in the extraction and
production of natural gas. Advanced software solutions, such as electric
monitoring and drone technology, are making natural gas exploration and
production safer and more efficient.
Furthermore, these technological breakthroughs are
effectively reducing the costs associated with the liquification and
regasification of liquefied natural gas (LNG), thereby making transportation
easier and more economical. This is particularly relevant for China, which
stands as one of the largest importers of LNG globally. With continuous
technological advancements, the gas industry is poised for further growth and
innovation in the coming years.
Segmental Insights
Product Insights
Based on the category of product, the oxygen segment
emerged as the dominant player in the Chinese market for industrial & specialty
gases in 2022. In the industrial sector, oxygen plays a crucial role in various
applications, particularly in steel melting and fabrication processes. The
steel industry heavily relies on oxygen to enhance the combustion efficiency in
blast furnaces, resulting in improved productivity and reduced emission of
nitrogen oxides. Additionally, oxygen is utilized to replace air in
steel-making furnaces, further optimizing the steel production process.
Moreover, the healthcare sector significantly
contributes to the high demand for oxygen. It is an indispensable resource in
medical treatments, including anesthesia administration, life support systems,
and respiratory therapies. With the continuous growth of healthcare expenditure
worldwide, the demand for medical oxygen is projected to witness a further
increase, highlighting its critical importance in ensuring quality patient
care.
While the electronics specialty gas market
predominantly relies on foreign lead suppliers, oxygen still holds a
significant share. In the manufacturing of semiconductors, oxygen is
extensively used for etching silicon substrates, enabling the precise
fabrication and production of high-quality electronic components.
The multifaceted applications of oxygen across
various industries underscore its vital role as a versatile and essential
resource, contributing to the advancement and efficiency of numerous processes
and technologies.
Mode of Distribution Insights
The tonnage/gaseous segment is projected to
experience rapid growth during the forecast period. Tonnage gases, such as
nitrogen, oxygen, and hydrogen, are extensively used in various industries,
including steel, chemical, oil and gas, and electronics. For instance, nitrogen
and hydrogen are critical in the petroleum refining process, where nitrogen is
used for purging and hydrogen for desulfurization, while oxygen is vital for
steel production, enabling efficient combustion in blast furnaces. This widespread
use drives the high demand for tonnage gases, leading to their dominance in the
market.
Gaseous products, especially when produced and
supplied in bulk (tonnage), are often more cost-effective than their liquid
counterparts. This is due to lower production, storage, and transportation
costs, as well as reduced energy consumption. The cost-effectiveness of tonnage
gases makes them an attractive choice for industries, further contributing to
their market dominance.
China's rapid industrialization has led to the
growth of several end-user industries, such as the automobile and steel
sectors, which heavily rely on industrial gases. The burgeoning growth of these
industries has, in turn, fueled the demand for tonnage gases, as they are
crucial for various processes, including heat treatment, welding, and metal
fabrication. As China continues to expand its manufacturing capabilities, the
demand for tonnage gases is expected to rise significantly, reinforcing their
position as key components of the industrial landscape.

Download Free Sample Report
Regional Insights
South Central emerged as the dominant player in the
China Industrial & Specialty Gases Market in 2022, holding the largest
market share in terms of value. In South Central China, a sprawling region
known for its heavy industries, such as steel, automobile manufacturing,
electronics, and petrochemicals, there is a significant demand for industrial
and specialty gases. These industries, acting as major consumers, are
instrumental in driving the growth and development of the region.
One of the key factors contributing to the region's
prominence is its strategic location. Situated in close proximity to both
inland and coastal areas, South Central China offers seamless accessibility and
facilitates the efficient distribution of gases. This geographical advantage
not only enables the smooth transportation of gases but also ensures easy
access to raw material sources and end-user industries.
Moreover, South Central China boasts advanced
infrastructure, including an extensive network of pipelines, which greatly
enhances the efficiency of gas transportation. This well-established
infrastructure guarantees a consistent and reliable supply of gases to
industries, further reinforcing the region's dominance in the market.
Recent Developments
- In 2022, Linde Group, a renowned German
multinational industrial gases and engineering company, joined hands with
Fortescue Metals Group, a leading Australian iron ore mining company, in
an ambitious endeavor. Their collective mission is to establish a
groundbreaking green hydrogen production facility in Western Australia,
leveraging the abundant renewable energy sources available in the region,
including solar and wind power. Through this innovative partnership, they
aim to generate an impressive annual capacity of up to 30,000 tonnes of
green hydrogen, thereby contributing significantly to the global shift
towards sustainable energy solutions.
Key Market Players
- Linde
AG
- Yingde
Gases Group Co., Ltd.
- Taiyo
Nippon Sanso Corporation
- Shanghai
Chinllenge Gases Co., Ltd.
- Hangzhou
Hangyang Co., Ltd.
By Product
|
By Mode of
Distribution
|
By Region
|
- Oxygen
- Nitrogen
- Hydrogen
- Carbon Dioxide
- Argon
- Others
|
- Tonnage/Gaseous
- Bulk
- Cylinder
|
- East
- North & North-East
- Southwest
- South Central
- Northwest
|
Report Scope:
In this report, the China Industrial &
Specialty Gases Market has been segmented into the following categories, in
addition to the industry trends which have also been detailed below:
- China Industrial & Specialty Gases Market, By Product:
o Oxygen
o Nitrogen
o Hydrogen
o Carbon Dioxide
o Argon
o Others
- China Industrial & Specialty Gases Market, By Mode of Distribution:
o Tonnage/Gaseous
o Bulk
o Cylinder
- China Industrial & Specialty Gases Market,
By Region:
o East
o North & North-East
o Southwest
o South Central
o Northwest
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the China
Industrial & Specialty Gases Market.
Available Customizations:
China Industrial & 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).
China Industrial & Specialty 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]