In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022. Purchasing power in the country is expected to fell nearly by 2.5%.
On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.
March 2021- Air Liquide declared to invest USD 99.4 million to establish hydrogen and nitrogen units in Kazakhstan.
February 2021- Inox Air Products announced to contribute USD 265.55 million for assembling 8 new air partition units all across India. The new plants will be established in Gujarat, Maharashtra, Tamil Nadu, Madhya Pradesh, Uttar Pradesh, Andhra Pradesh, and West Bengal.
The global liquid nitrogen market is estimated to garner a substantial amount of revenue by growing at a CAGR of ~5% over the forecast period, i.e., 2022 – 2030. The growth of the market can be attributed primarily to the rising demand for LN2 in industrial gas and electronic product applications, and rapidly growing infrastructural activities around the world. Furthermore, the world is witnessing an upsurge in development of sophisticated new technologies for manufacturing liquid nitrogen, which in turn is projected to offer profitable opportunities to the market in the imminent time.
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Increasing urbanization and industrialization, and escalating demand for liquid nitrogen as a refrigerant and coolant among several end user industries including food and beverages, healthcare, metal fabrication, and construction, are primarily expected to drive market growth in the upcoming years. According to the World Bank, 56.15 percent of the total population of the world lived in urban areas in 2020, up from 55.714 percent and 55.272 percent in 2019 and 2018 respectively.
The market is segmented by end user into chemical and pharmaceutical, healthcare, transportation, and others, out of which, the chemical and pharmaceutical segment is anticipated to hold the largest share in the global liquid nitrogen market. This can be accounted to the high demand for liquid nitrogen from the industry as a result of its properties such as chemical inertness, non-toxicity and inflammability. Apart from this, rapid expansion of medical sector in China and India over the last few years is also evaluated to boost the market segment growth in the future. Additionally, on the basis of function, the coolant segment is assessed to grab the most significant share during the forecast period, which can be credited to the rise in usage of liquid nitrogen as a coolant in a wide range of industry verticals, including metal manufacturing and healthcare.
The chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, Chemical industry in the U.S. accounted for 16.43% to manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in future. According to UNEP (United Nations Environment Program), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry, that accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favorable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labor as well as government subsidies and relaxed environmental norms have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for the investment in businesses in Asia Pacific countries in the upcoming years.
On the basis of geographical analysis, the global liquid nitrogen market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa region. The market in the Asia Pacific is estimated to witness noteworthy growth over the forecast period on the back of the robust progress of chemical and pharmaceutical industries, especially in China, Japan and India, and increasing demand for electronic products in the region. According to the statistics by the Department of Chemicals & Petro-Chemicals of the Government of India, the production of major chemicals in India registered 9459 Thousand MT in the year 2012-13, and is further estimated to reach 14884 Thousand MT in the year 2025-26. In addition, presence of large and diverse domestic drug industry is also predicted to boost APAC’s market growth in the coming years. Moreover, the market in North America is assessed to acquire the largest share during the forecast period ascribing to the growing number of manufacturers and suppliers of liquid nitrogen, and rising research and development activities associated with the product.
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The global liquid nitrogen market is further classified on the basis of region as follows:
Our in-depth analysis of the global liquid nitrogen market includes the following segments:
Ans: The major factors driving market growth are rising demand for LN2 in industrial gas and electronic product applications and growing infrastructural activities around the world.
Ans: The market is anticipated to attain a CAGR of ~5% over the forecast period, i.e., 2022 – 2030.
Ans: Harmful impacts of liquid nitrogen on the body are estimated to hamper the market growth.
Ans: Asia Pacific will provide more opportunities for market growth owing to the robust progress of chemical and pharmaceutical industries, especially in China, Japan and India.
Ans: The major players in the market are Air Liquide SA, Taiyo Nippon Sanso Corporation, Messer Group, Emirates Industrial Gases Co. Ltd., Nexair LLC, and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by storage type, function, technology, end user, and by region.
Ans: The coolant segment is anticipated to hold largest market size and is estimated to grow at a notable CAGR over the forecast period and display significant growth opportunities.