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