Report Description

Forecast Period

2024-2028

Market Size (2022)

USD 3.55 Billion

CAGR (2023-2028)

6.81%

Fastest Growing Segment

Compressed Gas

Largest Market

Asia Pacific

Market Overview

The Global Industrial Nitrogen Market was valued at USD 3.55 Billion in 2022 and is growing at a CAGR of 6.81 % during the forecast period. The increase in use of nitrogen across the oil & gas industry for well stimulation, inertization, and drilling owing to its improved process efficiency is expected to serve as a crucial growth factor for the industrial nitrogen industry. Also, the rise in adoption of industrial nitrogen in the food & beverages industry for modified atmosphere packaging applications to displace oxygen-containing air with nitrogen and lower rancidity further propels the growth of the industrial nitrogen market. However, high production costs of nitrogen is anticipated to hamper the growth of the industrial nitrogen market. On the contrary, increased demand for industrial nitrogen in the chemical industry is expected to generate lucrative opportunities for the global industrial nitrogen market.

Key Market Drivers

The nitrogen market consists of the sales of industrial nitrogen and related services used in a variety of applications, including steel manufacture to stop oxidation and food packaging in the food sector to avoid food spoiling.

The market for nitrogen is expanding in part because of the expanding food and beverage sector. In the food and beverage business, nitrogen gas is frequently utilized to package food products. Nitrogen gas prevents oxygen from coming into touch with the food item, extending the shelf life of the food by preventing oxidation. This helps to retain the quality of the food by preventing food deterioration. The need for nitrogen has significantly increased as a result of the expansion of the food and beverage sector. Consequently, this will help the nitrogen industry flourish.

Mechanical severance or fractional refining of air yields industrial nitrogen, a very pure element. It is frequently found in gaseous or liquid form and is utilized in a wide range of end-use processes, including those in the manufacture of metal, food, beverages, chemicals, and agrochemicals. The requirement to maintain the quality and safety of processed food items has increased significantly as a result of the expanding population, especially in developing countries.

Rising applications

The increased use of nitrogen in the food and beverage sector is driving growth in the worldwide industrial nitrogen market. The growing food and beverage industry is one factor driving the growth of the nitrogen market. Nitrogen gas is commonly used in the food and beverage industry to package food goods. By preventing oxygen from coming into contact with the food item, nitrogen gas increases the shelf life of the meal. Halting food degradation, this preserves the food's quality. Moreover, the market is being boosted by the quick advancements achieved in this end-use industry in different areas of the world. A prominent trend that is projected to be crucial in the market's growth dynamics is the rise in the use of nitrogen in the healthcare sector and the manufacture of pharmaceuticals in both emerging and developed areas.

Rising demand of nitrogen

Over the next few years, the increased demand for industrial nitrogen in the chemical sector is anticipated to present possibilities for the worldwide market. The market is anticipated to be driven by ongoing developments in cryogenic fraction distillation technology. The market is anticipated to see growth throughout the forecast period as demand for improved food preservation technologies increases.