Industrial Oxygen Market Size, Share, Growth, and Industry Analysis, By Type (On-Site Type, Bulk Type and Cylinder Type), By Application (Steel Industry, Chemical Industry, Copper and Aluminium, Glass Industry, Waste Water Treatment, Pulp and Paper Industry, Food & Beverage, Plastic Industry and Semiconductors), Regional Insights and Forecast to 2031

Updated On: 08 April 2024

industrial oxygen market REPORT OVERVIEW

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The global industrial oxygen market size was in USD 35460 million 2020 and is expected to reach USD 55140 million by 2027, exhibiting a CAGR of 6.3% during the forecast period. The COVID-19 pandemic has been unprecedented and staggering, with experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden decline in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

Industrial oxygen, often referred to simply as "oxygen," is a type of oxygen gas that is produced and used for various industrial applications. It is not significantly different in chemical composition from the oxygen in the Earth's atmosphere, which consists of approximately 21% oxygen, but it is typically produced through specialized methods to ensure purity and is often stored and distributed in a compressed or liquid form. Manufacturing oxygen is usually produced through processes like cryogenic distillation, pressure swing adsorption (PSA), or membrane separation. These methods separate oxygen from the air, ensuring high purity levels. Engineered oxygen is typically much purer than the atmospheric oxygen. It often has a purity level of 99.5% or higher, depending on the specific industrial application.

Industrial oxygen is used in a wide range of industries and applications, including but not limited to Oxygen is used in processes like oxy-fuel welding, cutting, and brazing. Chemical and pharmaceutical industries: It is employed in various chemical reactions and processes. Engineered oxygen is stored and transported in specialized containers, such as compressed gas cylinders or cryogenic tanks when in liquid form. Handling engineered oxygen requires adherence to strict safety protocols due to its potential combustion hazard. It should be stored and used in well-ventilated areas away from flammable materials. The production, storage, and distribution of engineered oxygen are subject to regulatory standards to ensure its purity and safety.

COVID-19 Impact: Supply Chain Disruptions to Hinder Market Growth

The demand for medical oxygen surged during the pandemic as COVID-19 patients with severe respiratory symptoms required oxygen therapy. This strained the supply chain for medical oxygen, and some regions faced shortages, leading to temporary supply disruptions. The pandemic led to shifts in manufacturing priorities. Some industries, such as automotive, aerospace, and construction, saw reduced demand for their products, affecting their oxygen consumption. In contrast, industries related to healthcare, pharmaceuticals, and medical equipment experienced increased oxygen demand. The industrial gases industry, including the production and distribution of oxygen, faced supply chain disruptions due to lockdowns, travel restrictions, and the need for social distancing. These disruptions affected the timely delivery of oxygen to various industries.

LATEST TRENDS

"Clean Energy and Environmentally Friendly Initiatives to Enhance Market Growth"

Growing Healthcare Demand: The demand for medical oxygen in the healthcare sector was expected to continue growing. This was driven by an aging global population, increasing occurrences of respiratory diseases, and the ongoing need for medical oxygen in emergency situations. Industries involved in clean energy, such as hydrogen production and carbon capture and storage (CCS), were increasingly using oxygen in their processes. This trend was linked to the push for sustainable and environmentally friendly technologies. The hydrogen economy was gaining momentum, with a focus on green and blue hydrogen production. Oxygen plays a critical role in the electrolysis process for green hydrogen and in gasification for blue hydrogen. The shift towards hydrogen as a clean energy carrier was expected to impact the industrial oxygen industry.

industrial oxygen market SEGMENTATION

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• By Type

Based on type market is classified as on-site type, bulk type and cylinder type.

• By Application

Based on application market is classified as steel industry, chemical industry, copper and aluminium, glass industry, waste water treatment, pulp and paper industry, food & beverage, plastic industry and semiconductors.

DRIVING FACTORS

"Industrialization and Economic Growth to Augment Market Growth"

The healthcare sector is a significant driver of the industrial oxygen market growth. Oxygen is essential for various medical applications, including respiratory therapy, anaesthesia, and emergency medicine. The aging global population and the prevalence of respiratory diseases have been increasing the demand for medical oxygen. Economic growth and industrialization in developing regions have driven the demand for engineered oxygen. As countries and industries expand, they require oxygen for applications such as metal fabrication, chemicals, and electronics manufacturing. The growing focus on clean energy, including hydrogen production and carbon capture and storage (CCS), has increased the demand for oxygen in various processes. For instance, oxygen is used in the gasification process for the production of hydrogen and in CCS technologies for emissions reduction.

"Food and Beverage Industry to Propel Market Growth"

The chemical and pharmaceutical industries use oxygen in a wide range of applications, including chemical synthesis, fermentation, and wastewater treatment. The growth of these sectors contributes to the demand for industrial oxygen. Oxygen is used in the food and beverage industry for applications such as modified atmosphere packaging (MAP) to extend the shelf life of products. With the global food industry expanding, the need for oxygen in MAP and other processes is growing. Advances in air separation technologies and oxygen production methods have increased the efficiency of oxygen production. This has positively influenced the market by reducing production costs and improving availability. Stringent environmental regulations and emissions reduction targets have driven industries to adopt cleaner and more efficient processes. Oxygen is often used in environmental control systems to meet regulatory requirements.

RESTRAINING FACTORS

"Supply Chain Challenges to Impede Market Expansion"

Stringent safety regulations govern the production, storage, and transportation of industrial gases, including oxygen. Non-compliance with safety standards can lead to accidents and legal liabilities, which can restrain market growth. Industrial gases have complex supply chains, and disruptions in the supply chain, such as transportation issues, logistical challenges, or natural disasters, can affect the availability of industrial oxygen. The industrial production of oxygen can be energy-intensive, and fluctuations in energy prices can impact production costs and, consequently, the price of oxygen. Economic downturns can lead to reduced industrial activities, affecting the overall demand for oxygen. The COVID-19 pandemic, for example, disrupted economic activities and impacted the industrial oxygen industry.

industrial oxygen market REGIONAL INSIGHTS

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"North America to Dominate the Market Due to Strong Industrial Base"

The North America major players in the industrial oxygen market share. This is due to their strong industrial base, including sectors such as manufacturing, healthcare, chemicals, and metals and mining. North America also has a well-developed healthcare system that relies on medical oxygen, contributing to a substantial share of the market. It has a robust industrial presence, particularly in the automotive, aerospace, and chemical industries. Additionally, North America has been at the forefront of environmental and clean energy initiatives, which have driven demand for oxygen in hydrogen production and carbon capture and storage (CCS).

KEY INDUSTRY PLAYERS

"Key Players Focus on Partnerships to Gain a Competitive Advantage"

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

List of Market Players Profiled

• Linde Plc (U.K.)
• Air Liquide (France)
• Air Products and Chemicals (U.S.)
• Taiyo Nippon Sanso (Japan)
• Air Water (U.S.)

REPORT COVERAGE

The report anticipates a detailed analysis of the global market size at the regional and national level, the ssegmentation market growth and market share. The prime objective of the report is to help user understand the market in terms of definition, market potential, influencing trends, and the challenges faced by the market. Aanalysis of sales, the impact of the market players, recent developments, opportunity analysis, strategic market growth analysis, territorial market expansion, and technological innovations are the subject matter explained in the report.