Surging Healthcare Spending Propelling Industrial Gases Industry

From $92,392.4 million in 2019, the global industrial gases market revenue is predicted to rise to $154,079.5 million by 2030. According to the estimates of the market research company, P&S Intelligence, the market will demonstrate a CAGR of 5.5% from 2020 to 2030. The market is being propelled by the rapid advancements and innovations being made in the healthcare sector, owing to the growing healthcare expenditure, implementation of several government initiatives supporting the use of non-conventional energy sources, and surging adoption of several gases in various applications.

Industrial gases are extensively used in the food and beverage, healthcare, electronics, petroleum, heavy metal, and chemical industries. For instance, carbon dioxide (CO2) is heavily used in the food and beverage industry to make decaffeinated coffee and carbonate beer and soft drinks. Likewise, acetylene is extensively used in the heavy metal industry in the oxy-acetylene flame for welding and cutting. Besides these factors, the increasing implementation of supportive government policies for alternate energy sources is also fueling the expansion of the industrial gases market.

The growing concerns being raised over the escalating pollution levels and deterioration of the environment have propelled the adoption of green energy. As per the data released by the World Bank in 2015, the U.K., Japan, India, China, South Africa, and Chile invested 0.8%, 0.8%, 0.5%, 0.9%, 1.4%, and 1.4% of their gross domestic product (GDP), respectively, in renewable energy sources. Solar photovoltaic (PV) cells, which are one of the major sources of green energy, play a major role in the manufacturing of solar PV panels, in which, they are used for producing wafers and mitigating silicon loss during the ingot sawing process.

Across the globe, the Asia-Pacific industrial gases market is predicted to demonstrate the fastest growth in the forthcoming years. This is ascribed to the expanding manufacturing industry and soaring healthcare expenditure in regional countries. Furthermore, the mushrooming population is also pushing up the demand for end-use products, which is supporting the growth of the market in the region. The players operating in the industry are focusing on acquisitions and mergers to strengthen their position and gain an edge over their rivals.

For instance, Air Liquide SA acquired Southern Industrial Gases Sdn. Bhd. In October 2019. This move helped Air Liquide SA establish its footprint in a much better way than before in Malaysia. Likewise, Praxair Inc. and Linde AG successfully merged together to form Linde Plc in October 2018 to bolster their presence in the industry and augment their revenue. The business reported an annual revenue generation of $29 billion and the market value of Linde Plc stood at $70 billion.

Hence, it can be safely said that the demand for industrial gases will soar in the coming years, primarily because of the rising requirement for these gases in various end-use industries across the world.