Air Separation Plant Market by Process (Cryogenic, Non-cryogenic), Gas (Nitrogen, Oxygen, Argon), End-Use Industry (Iron & Steel, Oil & Gas, Chemical, Healthcare), and Region (North America, APAC, Europe, RoW) - Global Forecast to 2028
The air separation plant market is projected to grow from USD 5.4 billion in 2023 to USD 6.8 billion by 2028, at a CAGR of 4.6% from 2023 to 2028. The demand for air separation plants is closely linked to the growth of various end-use industries. For instance, the need for air separation plants is very high in the steel industry since steelmaking processes require a lot of oxygen.
Attractive Opportunities in the Air Separation Plant Market
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Market Dynamics:
Driver: Growing demand for industrial gases from dynamic manufacturing sectors
Air separation plants are in greater demand due to the rising need for industrial gases like oxygen, nitrogen, and argon in several industries. Industrial gases are essential to steel, chemical, and oil & gas production processes. The use of industrial gases in environmental applications has expanded as a result of the growing focus on environmental sustainability and energy efficiency. The need for industrial gases and air separation facilities rises in tandem with the expansion of these sectors.
Restraint: High costs associated with fabrication, component assembly, and operations
Large-scale machinery, including distillation columns, heat exchangers, compressors, and storage tanks, are produced as part of the manufacture and fabrication of air separation plants. These parts frequently require specialized production techniques, which raises the cost. Air separation systems are frequently modified to meet unique application needs and site requirements. The cost of fabrication may go up if the design is customized and site-specific factors are taken into account. Specific materials that can withstand high temperatures and pressures are needed for air separation plants. These materials are frequently more expensive than conventional materials.
Opportunity: Transition to green technologies
As part of broader efforts to minimize carbon emissions and promote sustainability, the industry has placed much importance on converting air separation plants to green technologies. Air separation facilities are looking into integrating renewable energy sources like wind and solar power to meet their energy needs. Installing on-site renewable energy systems or obtaining renewable energy from the grid might be part of this. The carbon footprint connected to the operation of air separation plants can be significantly decreased by employing renewable energy.
Challenge: Hazards associated with cryogenic air separation technology
There are some risks associated with cryogenic air separation technology, which is often used in air separation plants and must be managed appropriately. One of the leading products of air separation facilities is high-purity oxygen. Oxygen enrichment in the atmosphere or small areas can provide a highly combustible atmosphere. Hazards from fire or explosion are now becoming more probable. Stringent safety precautions must be in place to avoid oxygen enrichment and guarantee optimum ventilation.
Air Separation Plant Market: Ecosystem
Linde Plc (UK), Air Liquide SA (France), Air Products and Chemicals, Inc. (US), Taiyo Nippon Sanso Corporation (Japan), and Messer Group GmbH (Germany) are the prominent companies in the air separation plant market. These companies are well-established, financially stable, and have a global presence in the market.
Based on the process, the cryogenic segment is projected to grow at a significant CAGR during the forecast period.
Industries that depend on generating industrial gases are some of the factors driving the demand for cryogenic air separation plants. Regulations, economic conditions, and industrial growth impact the market for cryogenic air separation plants. The production of gases that satisfy certain industry requirements and applications is made possible by cryogenic air separation systems' adaptability. The flexibility provided by the ability to change the gas production ratio for various industrial purposes ensures the availability of the necessary gas compositions. The need for industrial gases produced by cryogenic air separation plants is anticipated to stay high as companies grow and technology progresses.
Based on gas, the nitrogen segment accounts for the largest share of the overall market.
Air separation plants produce nitrogen gas in response to the demand for nitrogen, which is interconnected. Nitrogen is a vital industrial gas with many uses in numerous sectors of the economy. As businesses expand, more nitrogen-based processes are adopted, and many industries need better quality control and safety measures; the demand for nitrogen has been constantly rising. These are a few of the crucial applications for nitrogen in the steel sector. The properties of nitrogen, such as its inertness, cooling prowess, and impacts on surface treatment, make it a significant resource at various stages of steel manufacturing, improving the general quality and performance of steel products.
Based on the end-use industry, the iron & gas segment accounts for the largest share of the overall market
Due to the industry’s heavy reliance on industrial gases, air separation plants are in high demand in the iron and steel sector. Global infrastructure development, construction projects, the automobile industry, and other industries are driving up demand for iron and steel. Air separation plants are extensively used in the metallurgical and steel industry for oxygen and nitrogen supply. The need for industrial gases supplied by air separation plants, particularly oxygen, rises in tandem with the expansion of the iron and steel industry.
Asia Pacific is expected to account for the largest share of the global market during the forecast period.
Based on the region, Asia Pacific accounts for the largest share. Because of its rapid industrialization, growing economy, and rising need for industrial gases, the Asia Pacific region represents a sizable market for air separation plants. In terms of technological breakthroughs, the Asia Pacific region is in the lead, and this is also applicable to the market for air separation plants. To increase efficiency, dependability, and cost-effectiveness, advanced air separation technologies such as cryogenic distillation, pressure swing adsorption (PSA), and membrane separation are being used in the region.
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Key Market Players
Linde Plc (UK), Air Liquide SA (France), Air Products and Chemicals, Inc. (US), Taiyo Nippon Sanso Corporation (Japan), Messer Group GmbH (Germany), Daesung Industrial Co., Ltd. (South Korea), Air Water Inc. (Japan), Enerflex Ltd. (Canada), Yingde Gases Group Co., Ltd. (Hong Kong), Inox Air Products Private Limited (India), Hangzhou Hangyang Co., Ltd. (China), Universal Industrial Gases, Inc. (US), Nikkiso Cosmodyne, LLC. (US) and others.
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- Competitor Analysis with Interactive dashboard
- Latest News, Updates & Trend analysis
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Report Metric |
Details |
|
Market Size Available for Years |
2016 to 2028 |
|
Base Year Considered |
2022 |
|
Forecast Period |
2023–2028 |
|
Forecast Units |
Value (USD Million/Billion) |
|
Segments Covered |
Process, Gas, End-Use Industry and Region |
|
Geographies Covered |
Asia Pacific, North America, Europe, the Middle East, South America, and Africa |
|
Companies Covered |
The major market players include Linde Plc (UK), Air Liquide SA (France), Air Products and Chemicals, Inc. (US), Taiyo Nippon Sanso Corporation (Japan), Messer Group GmbH (Germany), Daesung Industrial Co., Ltd. (South Korea), Air Water Inc. (Japan), Enerflex Ltd. (Canada), Yingde Gases Group Co., Ltd. (Hong Kong), Inox Air Products Private Limited (India), Hangzhou Hangyang Co., Ltd. (China), Universal Industrial Gases, Inc. (US), Nikkiso Cosmodyne, LLC. (US) and others. |
This research report categorizes the air separation plant market based on process, gas, end-use industry, and region.
Based on the process, the air separation plant market has been segmented as follows:
- Cryogenic
- Non-Cryogenic
Based on gas, the air separation plant market has been segmented as follows:
- Nitrogen
- Oxygen
- Argon
- Others
Based on the end-use industry, the air separation plant market has been segmented as follows:
- Iron & Steel
- Oil & Gas
- Chemical
- Healthcare
- Others
Based on the region, the air separation plant market has been segmented as follows:
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Asia Pacific
- China
- India
- Japan
- South Korea
- Australia & New Zealand
- Rest of Asia Pacific (Malaysia, Thailand, and Taiwan)
-
Europe
- Germany
- UK
- France
- Italy
- Spain
- Rest of Europe (Russia, Ukraine, Poland, and Belgium)
-
Middle East
- Saudi Arabia
- UAE
- Qatar
- Kuwait
- Oman
- Rest of the Middle East (Algeria and Egypt)
-
North America
- US
- Canada
- Mexico
-
Africa
- South Africa
- Rest of Africa
-
South America
- Brazil
- Argentina
- Chile
- Rest of South America (Peru, Colombia, and Venezuela)
Recent Developments
- In January 2023, Linde Plc acquired remaining interests in NexAir, LLC to expand its presence in US.
- In May 2023, Air Products and Chemicals Inc. signed an investment agreement with the Government of the Republic of Uzbekistan and Uzbekneftegaz JSC to acquire, own, and operate an industrial gas complex.
- In February 2021, Air Liquide and BASF signed a new long-term contract for the supply of oxygen and nitrogen.
Frequently Asked Questions (FAQ):
What is the key driver for the air separation plant market?
Growing demand for industrial gases from dynamic manufacturing sectors
Which region is expected to hold the highest market share in the air separation plant market?
Asia Pacific
What are the end-use industries of air separation plants?
Iron & steel and chemical
Who are the major manufacturers of air separation plants?
Linde Plc (UK), Air Liquide SA (France), Air Products and Chemicals, Inc. (US), Taiyo Nippon Sanso Corporation (Japan), Messer Group GmbH (Germany)
What is the total CAGR expected to record for the air separation plant market during 2023-2028?
CAGR of 4.6% .
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The study involved four major activities in estimating the current market size of air separation plants. Exhaustive secondary research was done to collect information on the market, peer, and parent markets. The next step was to validate these findings, assumptions, and sizes with industry experts across the value chain of air separation plants through primary research. Both top-down and bottom-up approaches were employed to estimate the total market size. After that, market breakdown and data triangulation were used to estimate the size of the segments and sub-segments of the market.
Secondary Research
The research methodology used to estimate and forecast the access control market begins with capturing data on the revenues of critical vendors in the market through secondary research. In the secondary research process, various secondary sources, such as Hoovers, Bloomberg BusinessWeek, Factiva, World Bank, and Industry Journals, were referred to for identifying and collecting information for this study. These secondary sources included annual reports, press releases & investor presentations of companies; white papers; certified publications; articles by recognized authors; notifications by regulatory bodies; trade directories; and databases. Vendor offerings have also been taken into consideration to determine market segmentation.
Primary Research
The air separation plant market comprises several stakeholders, such as manufacturers, suppliers, associations, and regulatory organizations, in the supply chain. The demand side of this market is characterized by the development of various end-use industries such as iron & steel, oil & gas, chemical, and healthcare, among others. Advancements in technology illustrate the supply side. Various primary sources from the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. Following is the breakdown of the primary respondents:
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Market Size Estimation
The top-down and bottom-up approaches were used to estimate and validate the total size of the air separation plant market. These methods were also used extensively to determine the extent of various sub-segments in the market. The research methodology used to estimate the market size included the following:
- The key players in the industry and market were identified through extensive secondary research.
- The supply chain of the industry and the market size in terms of value were determined through primary and secondary research.
- All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
- The research includes studying the key market players’ reports, reviews, newsletters, and extensive interviews for opinions from leaders, such as directors and marketing executives.
Global Air separation plant Market Size: Bottom-Up Approach
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Global Air separation plant Market Size: Top-Down Approach
Data Triangulation
The market was split into several segments and sub-segments after arriving at the overall market size using the market size estimation processes as explained above. Data triangulation and market breakdown procedures were employed to complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment. The data was triangulated by studying various factors and trends from the demand and supply sides. It was then verified through primary interviews.
Market Definition
According to the Compressed Gas Association (CGA), air separation plants, or air separation units (ASUs), are industrial equipment/ facilities that produce one or both the most common atmospheric industrial gases, namely, nitrogen and oxygen, and can co-produce liquid products. Some air separation plants also have compressed dry air, argon, ultra-high purity (UHP) oxygen, or, occasionally, rare gases such as neon, krypton, and xenon. Air separation plant products are delivered to customers as gases through local pipelines or regional networks. They are also offered as liquids in bulk liquid trailers or compressed gases in high-pressure cylinders.
Key Stakeholder
- Carbon Steel, Aluminium, and Copper Suppliers
- Instrumentation Suppliers
- Industrial Gas Suppliers
- Air Separation Plant Component Suppliers
- European Industrial Gas Association (EIGA), Compressed Gas Association (CGA), Asia Industrial Gas Association (AIGA), American Gas Association (AGA), and Gas Industries Association (GIA)
- Market Research and Consulting Firms
- NGOs, Governments, Investment Banks, Venture Capitalists, and Private Equity Firms
Report Objectives:
- To define, describe, and forecast the air separation plant market based on the process, gas, end-use industry, and region.
- To provide detailed information regarding the key factors influencing the market growth, such as drivers, restraints, opportunities, and industry-specific challenges
- To strategically analyze the market concerning individual growth trends, prospects, and contributions to the total market
- To analyze opportunities in the market for stakeholders and draw a competitive landscape of the market.
- To forecast the market size in terms of value for central regions (along with countries), namely, Asia Pacific, North America, Europe, the Middle East & Africa, and South America
- To strategically profile critical companies and comprehensively evaluate their market share and core competencies.
- To analyze competitive developments, such as acquisitions, agreements, contracts, divestments, expansions, investments, joint ventures, mergers, and new product launches, in the market
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to client-specific needs.
The following customization options are available for the report:
- Additional country-level analysis of the air separation plant market
- Profiling of additional market players (up to 5)
Product Analysis
- Product matrix, which gives a detailed comparison of the product portfolio of each company.
Generating Response ...
Growth opportunities and latent adjacency in Air Separation Plant Market