Industrial Gas AMEA Market Trends
Category Intelligence on Industrial Gas AMEA covers the following
- Information relating to market, supply, cost, and pricing analysis
- Hard to find data on cost and TCO models, supplier details, and performance benchmarks
- Macroeconomic and regional trends impacting cost, supply, and other market dynamics
- Category-specific negotiation and sourcing advice
Industry Outlook & Drivers
Regional Market Outlook on Industrial Market Size
The North Pacific region consisting of China, Japan, etc., and South Pacific region, consisting of Australia, Singapore, etc., account for almost 80 percent of the industrial gas market in AMEA
Industrial Gas Market Size - AMEA
- The industrial gas market in AMEA (APAC, Africa, and Middle East) was around $28 billion in 2016 and it is estimated to grow at CAGR of 5–6 percent until 2019. The region contributed to more than 35 percent of the global industrial gas market
- Metallurgy, manufacturing, refining, chemicals, electronics, health care, food & beverage, etc., are the major end consuming sectors of industrial gas products in the region
- North Pacific region consisting of China, Japan, South Korea, and Taiwan is the largest market in the region, with close to $18 billion market size
- The market became the second largest in 2016 after the North American market crossing the European market. This is driven by the expansion of Chinese market and the strength of the Japanese Yen in the last one year
AMEA Market by Delivery Mode
Cylinder gases and onsite gas delivery are the major delivery options in the AMEA region
Key Trends
- The developing markets the region, such as China, are witnessing a trend towards more commercial market delivery from captive supply
- In less matured markets, bulk gas delivery tends to be lower than matured markets of North America and Europe
Market Snapshot – North Pacific
China
Insights
- The Chinese market grew by 3.3 percent in 2016 to reach $9.4 billion from $9.1 billion in 2015
- Cylinder business in China accounts for 33 percent of the industrial gas sales, which is a lower share than the developed countries
- In the North Pacific region, cylinder gas business contributed to 39 percent of the market, followed by 35 percent of the bulk sales
- China market faced slow down in the recent years. However, the market is expected to grow by more than 8 percent for the next two years, driven by refinery and other manufacturing industries
South Korea
Insights
- Air gases constitute around 61 percent of industrial gas sales. Unlike many other markets, gases other than air gases also contribute to a significant demand, which is driven mainly by the acetylene demand, arising from the ship-building industry
- Semiconductor/electronics, hydrogen fueling market, etc., also contributes to the industrial gas growth in the region
- The suppliers in the country announced new investment last year, the major ones being the ASU plant by Air Products in Ulsan, Praxair's ASU for Hyundai Oilbank, etc.
Assessment of Key Industrial Gas Suppliers - AMEA
- The top five players in the AMEA market account for around 60 percent of the market share
- The proposed merger between Linde and Praxair will change market share landscape in most of the countries. In China, Praxair and Linde will make 22 percent market share, post the merger
