In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Industrial gases are those gaseous materials which are used in some manufacturing purposes of the industry. The principal industrial gases are nitrogen, hydrogen, carbon dioxide, oxygen, argon, helium and others. It includes an enormous variety of gases and their mixtures that are generally available in cylinders. Various industries producing these types of gases are known as industrial gas industries which supply industrial gases in cylinders or large containers of gases.
Most of the industrial gases are at ambient temperature and pressure which are supplied in the form of compressed gases in cylinders. Various applications of these industrial gases are in food and beverage, pharmaceutical, medical, transportation and various other industries. The oxygen gas is also used for sewage treatment in various sewage treatment plants and clean the water. Additionally, there are various applications of industrial gases such as argon and others in metallurgical industries as welding gases.
The global Industrial gas market is observing pulsating growth on account of increasing metallurgical industries, thereby driving the demand of Industrial gas. Rise in demand by medical and pharmaceutical industry in the past few years and growing technological explorations for applications of industrial gases are projected to drive Industrial gas market along with rising GDP.
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According to Open Government Data (OGD) Platform India, the FDI inflow in Indian Metallurgical industries from 2013-14 with 567USD Million, 2014-15 with 356 USD Million, 2015-16 with 456 USD Million and increased to 1440 USD Million in 2016-17 which encourages the metallurgical industries. Thus, industrial gas market is anticipated to record a CAGR of 7.9% over the forecast period. The Industrial gas market is expected to reach a value of USD 116.2 billion at the end of the forecast period.
Rising Demand by Metallurgical Industries
The rising metallurgical processes in the industries are demanding high for the industrial gases in the market. Various industries applying the gases in metal processing such as steel, iron and other metals during its purification, arc wielding, extraction and others are expected to drive the market of the industrial gases during the forecast period. The growing metallurgical industries are driving the demand for various industrial gases such as oxygen, nitrogen and others which is expected to grow during the forecast period.
Increase in Demand by Health Sector
The development and expansion of technology in health sector is rising the demand for industrial gases in the market. The demand for industrial gases is expected to expand further for minimizing oxygen deficiency through artificial respiration, of patient’s suffering from respiratory problems and other diseases. There are various requirements of nitrogen and carbon dioxide in health sector with various applications of technology has been increasing the market of industrial gas rapidly in recent times.
Toxicity present in various industrial gases are injurious to health owing to its leakage either by accident or inhalation at workplace which is anticipated to hinder the growth of market.
Our-in depth analysis of the global industrial gas market includes the following segments:
By Gas Type
By End Use Industries