Industrial Oxygen: Aligning with Manufacturing and Operational Changes
Several countries have been on a far-reaching journey of energy transition that targets de-carbonization of all aspects of daily lives in a relatively shorter period of time. With rapid depletion of energy resources and fossil fuels, the role of industrial gases is constantly being revised, in an effort to increase the sustainability and economic worth of several manufacturing processes. Inescapable trends of operational change, along with growing demand for alternate energy sources, which are likely to be met by large-scale gasification plants, have provided the much-needed impetus for exploring the potential of industrial gases, especially oxygen, beyond their typical, tried and tested grounds. In addition to the intensification of combustion process that enables the capacity upgrades of existing facilities, the role of industrial oxygen has been prominent in the optimal design of Greenfield refineries.
Industrial Oxygen Market - Key Research Findings
- The global Industrial Oxygen Market size in 2018 was valued at ~US$ 45 Bn.
- The Industrial Oxygen Market is expected to grow at a CAGR of ~6% during the forecast period of 2019-2029.
- Collectively, North America and East Asia are expected to account for half of the revenue shares in the oxygen industry by the end of 2029.
- The East Asia market continue to be a prominent regional market for industrial oxygen manufacturers, attributing to the predominance in steel production activities.
- The medical & healthcare industry is expected to show lucrative growth and is one of the promising end-use sector to invest in for Industrial Oxygen Market players.
- The chemical industry has witnessed significant growth over the recent past and the boom of the specialty chemical & petrochemical sector has been particularly significant.
- Important application potential of oxygen has been identified in pharmaceuticals, biotechnology, and food & beverage industry.
Key Factors Shaping the Industrial Oxygen Market
Mergers & Expansions: A Step towards Market Consolidation
Major market players are strategically expanding their production units in different regions to target regional customers and reduce the transportation expense. Major consumers of oxygen are preferring to install production units to fulfil their demands and reducing supply loads. The leading market participants are emphasized on mergers and acquisitions to extend their global footprint.
- For instance, in October 2018, Linde A.G. and Praxair Inc., two prominent players in the oxygen gas market completed the ~US$ 90 Bn merger of their global industrial gas business to become a market leader in the global gas market and formed a new entity under the name of Linde Plc.
Rising Demand for Oxygen for High-technical and Healthcare Applications
Increasing applications of oxygen in healthcare and medical industries are expected to drive the market growth over the forecast period. The aging population has been growing considerably at a high rate on a global level. To balance the conditions of healthcare system, governments worldwide have been planning to invest a significant amount for the improvement of healthcare services, allowing 100% FDI in the medical device sector. Increased cardiac disorders, paediatrics, and requirement in critical life-saving procedures is propelling the demand for medical grade oxygen. Due to this, the healthcare industry is going through vast infrastructural changes. Oxygen is required for respiratory purposes and various other applications in the healthcare industry. The rapid growth of the healthcare industry across the globe is anticipated to create significant demand for industrial gases over the forecast period.
Increasing Product Innovation for Medical Use Propelling Market Growth
In the recent years, several players are coming up with innovative products for targeting customers from the medical industry. Small oxygen concentrators that are portable, can be used for patients with chronic respiratory disorders, and in emergency medical kits are gaining high attraction in the market. Manufacturers and governments of several countries have also been actively planning to install small and medium size oxygen generation plants for hospitals in remote and rural areas.
Increasing Consumption from Steel Industry in Developing Regions
The steel industry is one of the prime consumer of the oxygen, it approximately consumes 580 kilo tons of oxygen per day. Oxygen manufacturers provide oxygen to the steel industry through long-term supply agreements (10-15 years). The growth in the steel industry acts as a primary driving factor for the global Industrial Oxygen Market. Rising building and construction industry, coupled with the rapid industrialization is expected to propel the demand for steel across the globe. The global steel demand witness 2.1% year on year growth in 2018 and is estimated to grow steadily in the forecast period. The rising demand for steel including carbon steel, electrical steel and mild steel for various applications will fuel the demand for oxygen in the forthcoming period.
Industrial Oxygen Market Structure Analysis
- The global Industrial Oxygen Market represents a highly consolidated competition landscape, where a majority of key players maintain their strategic focus on the development of long-term supply contracts, acquisitions of local players, and joint ventures with regional players targeting a firmer global footprint.
- The Industrial Oxygen Market has been comparatively vast in size, which remains a key factor for its dynamic competitive nature.
- Prominent manufacturers of oxygen are currently prioritizing on the medical & healthcare sector to resonate with the growing demand for medical oxygen in Europe, North America, and East as well as South Asia markets.
- Production capacity expansion is also identified to remain as one of the key developmental strategies adopted by manufacturers of oxygen.
- For a stronger foothold in target markets, oxygen manufacturers continue to rely on inorganic strategies such as mergers and acquisitions.
- Deeper understanding of the market trends and preferential shifts of end-use segments across several regions are likely to create a bottleneck for prominent players, looking forward to untapped opportunities in the Industrial Oxygen Market.
Technological Advancements to Push On-site Production
An incessant increase in energy demands, along with a number of initiatives taken for climatic change mitigation, has ensured that the industrial oxygen market has seen manifold growth in revenues. As the usage of industrial oxygen meandered through non-traditional areas, such as space research, agro-processing, and food preservation, a number of market players have been adopting advanced technologies such as pressure swing absorption (PSA) as a highly efficient yet cost effective method to produce industrial oxygen. A boom in healthcare industry in both developed and developing countries has also been contributing to the demand for high-grade industrial oxygen. Moreover, mobile PSA systems that allow on-site production of oxygen are gradually replacing high-pressure cylinders in the medical & healthcare space, thereby offsetting challenges associated with delivery and storage of oxygen.
Industrial Oxygen – en route to Mass Markets
In today’s technology-ready culture, industrial oxygen is becoming increasingly essential in a multitude of industries, most significantly in steel manufacturing, chemical processing, and healthcare. The growth of industrial oxygen market is currently concentrated in Asia Pacific, owing to rapid infrastructure expansion and several government policies favoring manufacturing industry. Numerous upcoming industrial projects in the region along with recent trends of industrial gas companies establishing ASU (air separation unit) production facilities in countries such as China and India, where cost of operations are relatively low, are likely to prepare the ground for further expansion of industrial oxygen market.
* This data is only a representation. Actual data may vary and will be available in report.
The Broader Perspective
With growing urgency of energy conservation and efficiency in terms of using the existing fuel, the use of industrial oxygen is likely to grow significantly in various industries, making the processes effective and ecofriendly. A notable rise in steel demand, driven by construction and infrastructure projects along with enormous requirement of oxygen in gas-to-liquids sector, will continue to provide potential growth prospects to the market. However, a majority of governments have implemented stringent laws on industrial gas manufacturing, storage, and distribution to prevent contamination and accidents. While this continues to remain a challenge for the market in the short term, the standardization will be critical for the overall market in the long run. Further, industrial oxygen manufacturing process is regarded as extremely capital-intensive, and thus the global market is concentrated among a handful of large companies.
>99% pure industrial oxygen remains highly preferred
90%-99% pure industrial oxygen witnesses increasing adoption
Liquefied oxygen remains top-selling category
Demand for compressed oxygen gas grows significantly
Adoption of cryogenic air separation increases rapidly
Use of non-cryogenic air separation to pick pace
Use in metallurgy to remain significant
Demand from medical & healthcare increases
How Growth will Unfold
Apart from manufacturing, the distribution of industrial oxygen contributes significantly to the companies’ economic footprint. A number of market players are thus focusing on offering storage and distribution of industrial oxygen as a part of their business. As distribution strategies of industrial oxygen suppliers generally maintain a region-wise focus, manufacturers are establishing ASUs in close proximity to the site of consumption, to fulfill the demand for large volumes of industrial oxygen, especially from metallurgical and healthcare sectors. Further, investments in capacity expansion, continued M&A activities, and establishment of long-term supply agreements are emerging as profitable strategies for the industrial oxygen market players.
* This data is only a representation. Actual data may vary and will be available in report.Click Here To Know How The Growth Will Unfold
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Industrial Oxygen: Meeting Alternative Energy Demands
A latest market study published by Future Market Insights on the Industrial Oxygen Market includes global industry analysis 2014-2018 & opportunity assessment 2019-2029, and delivers in-depth assessment of the most important market dynamics. After conducting a methodical research on the historic as well as current growth parameters of the Industrial Oxygen Market, the growth prospects of the market are obtained with maximum precision.
Industrial Oxygen Market Taxonomy
The global Industrial Oxygen Market is segmented in detail to incorporate every aspect of the market and to deliver a thorough market intelligence approach to the reader.
- Low Purity (90%-99%)
- High Purity (>99.5%)
By Product Type
- Compressed Oxygen Gas
- Liquefied Oxygen
- Oxygen Gas Mixtures
By Production Process
- Cryogenic Air Separation
- Non-Cryogenic Air Separation
- Pressure Swing Adsorption (PSA)
- Vacuum-Pressure Swing Adsorption (VPSA/VSA)
By End-Use Industry
- Automotive & Aerospace
- Chemical Processing
- Fine/ Specialty Chemicals
- Bio Energy
- Oil & Gas
- Co-generative Power Plant
- Construction Material
- Lime & Cement
- Food & Beverages
- Water & Wastewater Treatment
- Medical & Healthcare
- Welding & Metal Fabrication
- Pharmaceutical & Biotechnology
- Others (Pulp & Paper, Electronics, and Diving)
- North America
- Latin America
- South Asia
- East Asia
- Middle East and Africa
The report begins with the executive summary of the Industrial Oxygen Market, which includes a summary of the key findings and statistics of the market. It also includes the supply-side and demand-side trends pertaining to the Industrial Oxygen Market.
In this chapter, readers can find the definition and a detailed taxonomy of the Industrial Oxygen Market, which will help them understand the basic information about the Industrial Oxygen Market. Along with this, comprehensive information pertaining to the application of oxygen in different end-use industries can be found. This section also highlights the inclusions and exclusions, which benefits the reader to understand the scope of the Industrial Oxygen Market report.
This chapter of the Industrial Oxygen Market report describes the key market trends that are expected to significantly impact the market growth during the forecast period. A comprehensive analysis of the industry trends are provided in this section.
This section includes the factors that have emerged as key successful factors and strategies adopted by key market participants in the global Industrial Oxygen Market.
This section explains the global market volume analysis and forecast for the Industrial Oxygen Market between the forecast periods of 2019-2029.
This section of the report delivers detailed pricing analysis of the Industrial Oxygen Market at the regional level for the current year as well as forecast year.
This section highlights the global market value analysis and forecast for the Industrial Oxygen Market between the forecast periods of 2019-2029. This chapter includes a detailed analysis of the historical Industrial Oxygen Market, along with an opportunity analysis of the future. Readers can also find the absolute $ opportunity for the current year (2019) and an incremental $ opportunity for the forecast period (2019–2029).
This chapter of the report describes the key macro-economic factors that are expected to influence the growth of the Industrial Oxygen Market over the forecast period. Along with the macroeconomic factors, this section also highlights the value chain, production process, forecast factors, supply process, and operational challenges for the Industrial Oxygen Market. Moreover, in-depth information about the market dynamics and their impact analysis on the market have been provided in the succeeding section.
Based on the purity, the Industrial Oxygen Market is segmented into low purity (90%-99%) and high purity (>99.5%) type of oxygen. In this chapter, readers can find information about the key trends and developments in the Industrial Oxygen Market, and market attractiveness analysis based on the purity.
This chapter provides details about the Industrial Oxygen Market based on the product type and has been categorized into compressed oxygen gas, liquefied oxygen, and oxygen gas mixtures. In this chapter, readers can understand the market attractive analysis based on the product type.
This chapter provides details about the Industrial Oxygen Market based on the production process and has been classified into cryogenic air separation process and non-cryogenic air separation process. In this chapter, readers can comprehend the market attractive analysis based on the production process.
In this chapter, the global Industrial Oxygen Market is segmented on the basis of end-use industries into automotive & aerospace, chemical processing, metallurgy, energy, construction materials, food & beverages, water & wastewater treatment, medical & healthcare, welding & metal fabrication, pharmaceuticals & bio-technology and others. In this chapter, readers can understand the market attractive analysis based on the end-use industry.
This chapter explains how the Industrial Oxygen Market will grow across several geographic regions such as North America, Latin America, Europe, East Asia, South Asia, Oceania, and Middle East & Africa (MEA).
This chapter includes a detailed analysis of the growth of the North America Industrial Oxygen Market, along with a country-wise assessment that includes the U.S. and Canada. Readers can also find the pricing analysis, regional trends, and market growth based on the application and countries in North America.
This chapter provides the growth scenario of the Industrial Oxygen Market in Latin American countries such as Brazil, Mexico, and the Rest of Latin America. Along with this, the assessment of the market across target segments has been provided.
Important growth prospects of the Industrial Oxygen Market based on its end users in several countries such as Germany, the U.K., France, Spain, Italy, Russia, BENELUX, and the Rest of Europe are included in this chapter.
In this chapter, India and ASEAN countries are the prominent countries in the South Asia region, which are the prime subjects of assessment to obtain growth prospects of the South Asia Industrial Oxygen Market. Readers can find detailed information about the growth parameters of the South Asia Industrial Oxygen Market during the forecast period of 2019-2029.
This chapter highlights the growth of the Industrial Oxygen Market in East Asia by focusing on China, Japan, and South Korea. This section also help readers understand key factors that are responsible for the growth of the Industrial Oxygen Market in East Asia.
This chapter highlights the growth of the Industrial Oxygen Market in the Oceania region by focusing on Australia and New Zealand. This section also help readers understand the key factors that are responsible for the growth of the Industrial Oxygen Market in Oceania.
This chapter provides information about how the Industrial Oxygen Market will grow in major countries of the MEA region such as GCC Countries, South Africa, Turkey, and the Rest of MEA during the forecast period of 2019-2029.
This section highlights the growth prospects of the Industrial Oxygen Market for emerging markets such as China and India.
In this chapter, readers can find detailed information about the tier analysis and market concentration of key players in the Industrial Oxygen Market, along with their market presence analysis by region and product portfolio.
In this chapter, readers can find a comprehensive list of all the prominent stakeholders in the Industrial Oxygen Market, along with a detailed information about each company, which includes the company overview, revenue shares, strategic overview, and recent company developments. Some of the market players featured in the report are Linde Plc, Air Liquide S.A., Air Products and Chemicals Inc., Matheson Tri-Gas Inc., and Showa Denko K.K, among others.
This chapter help readers understand the research methodology followed to obtain various conclusions as well as important qualitative and quantitative information about the Industrial Oxygen Market.
This chapter includes a list of acronyms and assumptions that provides a base to the information and statistics included in the Industrial Oxygen Market report.
How the research was conducted?
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