Industrial Gas Market Currently Valued at $85 Billion, Says Beroe Inc

RALEIGH, North Carolina, Oct. 3, 2019 /PRNewswire/ -- The global market size for industrial gas is currently growing at a CAGR of 5-7 percent, and is expected to reach a value of $102 billion by 2022, according to Beroe Inc., a procurement intelligence firm. The market is currently witnessing an acceleration in growth, due to positive growth in China, USA and Asian countries, along with a rise in profit margins due to low operating cost arising out of cheaper energy prices.

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North America, North Pacific Rim (China, Japan, etc.), and Western Europe are the biggest markets for industrial gas, contributing more than 75 percent of the global market. The U.S. has the highest projected growth rate of 4-6 percent CAGR till 2022. High market maturity regions include the U.S., Canada, and Australia, with the medium market maturity regions consisting of Brazil and South Africa.

https://www.beroeinc.com/category-intelligence/industrial-gas-market/

Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com

Healthcare and electronics, are major growth drivers for the industrial gas market, whereas the demands from the oil and gas, steel sector tend to be flat. Revival in economic activity and stabilizing oil and natural gas prices are driving the industrial gas market growth. However, the manufacturing sector is witnessing flat growth resulting in lower sales volume for larger players in Americas and Europe.

Different end-user industries of industrial gases have varied requirements in terms of volume, frequency of use and purity levels and hence, industrial gas companies are offering structured solutions to meet demands of different end-user industries. The Chemical and Petrochemical and Automobile industries are the two largest end-user segments for the industrial gas market, accounting for a market share of 22 percent each, followed by Metal Production and Fabrication for 21 percent.

Key Findings:

    --  Industrial gas production is capital intensive process and requires high
        upfront cost. The existing players also have robust distribution
        networks where the new players would have to invest in.
    --  Regulations for cleaner energy fuel and innovations in renewable space
        are driving the demand for hydrogen and on-site hydrogen market.
    --  The industrial gas market is consolidated with the top five players
        dominating around 80 percent of the global market share. The top players
        are looking to strengthen their position through mergers and
        acquisitions.
    --  Industrial gas companies price gases differently across different
        delivery types based on unit cost variations and local supply-demand
        scenario.  The cost variation across delivery types is greater depending
        upon the distance of the service location.
    --  The typical contract period varies based on the type of delivery mode,
        with a 15+ year contract for tonnage, 3-5 years for bulk and less than 1
        year for cylinder.

The research methodology adopted for the report included:·

    --  Experts with twenty years of domain experience
    --  Interaction with buyers
    --  Inputs from supply chain partnersElectricity cost accounts for around 50
        percent of the cost of generation and hence cost of production
        fluctuates with electricity prices. Recovery in crude oil prices are
        likely to exert upward pressure on distribution cost. Large scale
        operation provides lower production cost per unit of gas as compared to
        small independent Air Separation Units (ASUs) for producing industrial
        gases separately, especially for bulk purchases.

The report also includes:

Market Analysis:

    --  Global Market Size - Industrial Gas
    --  Global Demand by Application
    --  Global Market by Delivery Mode
    --  Porter's Five Forces Analysis
    --  Industrial Gas Value Chain - Air Gases
    --  Regional Market Analysis

Supplier Analysis:

    --  Assessment of Key Global Industrial Gas Suppliers
    --  Key Global Supplier Profile
    --  SWOT Analysis

Cost and Price Analysis:

    --  Industrial Gas Cost Structure
    --  Industrial Gas Price Drivers (1/2)
    --  Industrial Gas Price Drivers (2/2)
    --  Industrial Gas Price Trend
    --  The US Atmospheric Gases Price Drivers and Trend

Industry Best Practices:

    --  Industrial Gases Distribution Channel
    --  Contract Models
    --  Industrial Gas Sourcing Best Practices
    --  Best Practices in Engagement Option

About Beroe Inc.:

Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions--leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.

To learn more about Beroe Inc., please visit: http://www.beroeinc.com

Media Contact:
Debobrata Hembram
debobrata.hembram@beroe-inc.com

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SOURCE Beroe Inc.