Product Code: 68249
The Specialty Gas market is projected to register a CAGR of more than 4% during the forecast period (2021-2026).
The market was negatively impacted by COVID-19 in 2020. Due to lockdowns in various countries, most of the manufacturing units were temporarily shut down which led to decreasing demand for various specialty gases. Additionally, construction works were put to on halt amid rising coronavirus cases, which led to the decreasing consumption of gases such as hydrogen and argon which are used for welding purposes. According to OICA, global automotive production has witnessed a decline of approximately 23% in Q3 of 2020 compared to Q3 of 2019, which has further reduced the demand of specialty gases. On the other hand, the pandemic has provided new opportunities in the healthcare sector due to the rise in demand for high-purity gases such as oxygen, nitrogen, and other specialty gases.
- Over the medium term, the growth of the specialty gas market is likely to be driven by the increasing demand in manufacturing semiconductor devices and flat panel displays, and its usage as cleaning gas for Plasma Enhanced Chemical Vapor Deposition (PECVD) for high-tech thin films. Furthermore, significant growth and rising expenditure in the medical and healthcare sectors is also boosting the market growth.
- Stringent environmental regulations and restrictions on the production and quality control of specialty gases, coupled with the growing threat of specialty gas substitutes are likely to hinder the market growth. Also, the plunge in the automotive sector has somewhat affected growth of the market.
- The major end-user industry for the market is the electronics industry, as specialty gases find a wide range of applications, ranging from semiconductors to photovoltaic cells and from LEDs to flat panel displays.
- Owing to their ultra-high purity (99.995% and above), these gases are extensively used in the healthcare sector, which witnessed high government spending in recent times, due to the rising population levels.
- Applications in the pharmaceutical/biotechnology sector may act as opportunities for the market during forecast period.
- Asia-Pacific region is expected to dominate the market and is also likely to witness the highest CAGR during the forecast period, owing to the booming electronics industry in the region, where specialty gases find wide applications.
Key Market Trends
Electronics Sector to Drive the Specialty Gas Market
- In the electronics industry, one of the major applications of specialty gas is in LEDs, which find major demand from consumers, due to their advantages like lower energy consumption level and longer operating life, as compared to other traditional lighting sources.
- Ammonia is used in nitride-based thin films and epitaxial crystals. In the application of LEDs, ultra-high purity of epitaxial crystals is critical.
- Furthermore, the use of semiconductors in the production of processors for personal computers (PCs) and smartphones is constantly increasing, thus, propelling the growth of the specialty gas market.
- The global consumer electronics industry has been growing rapidly across the world, over the years, owing to the consistently increasing demand for cellular phones, portable computing devices, gaming systems, and other personal electronic devices.
- According to JEITA, the global consumer electronics revenue witnessed a growth of over 17% in 2020, when compared to 2019, and it is predicted to register a CAGR of around 7% and generate USD 565.3 billion, as market revenue, by 2024.
- For instance, the Indian electronics market is expected to reach USD 400 billion by 2025. Additionally, India is expected to become the fifth largest consumer electronics and appliances industry in the world by 2025.
- Furthermore, the number of smartphone users in China is multiplying. The number of smartphone users in the country is expected to reach 868.2 million by 2023.
- The MENA region is expected to be a huge market for e-commerce, especially in the Gulf region, which is expected to grow exponentially within the next couple of years. This, in turn, may increase the consumption of electronics and appliances in the region.
- All the aforementioned factors are expected to drive the specialty gas market during the forecast period.
Asia-Pacific Dominated the Specialty Gas Market
- Asia-Pacific is expected to be the fastest-growing specialty gas market during the forecast period, due to the wide consumption of specialty gases in the electronics and healthcare industries, which are among the booming sectors in the region.
- China has the world's largest electronics production base, and it offers tough competition to the existing upstream producers, such as South Korea, Singapore, and Taiwan. With the increase in the middle-class population's disposable incomes, the demand for electronic products is projected to increase steadily in the future, thereby driving the market studied.
- The electronics manufacturing industry is constantly expanding in China as a result of low cost and increasing demand for electronics products. With the increase in the disposable income of the middle-class population, the demand for electronic products is projected to grow in the near future.
- The overall population level in countries, like China and India, is more than 2.5 billion, due to which the governments of these countries have increased the spending in the healthcare sector in their budgets.
- China has one of the largest healthcare sectors in the world. In 2019, the medical market reached CNY 7.82 trillion (USD 1.1 trillion), an increase of 10% compared to the previous year. Moreover, the country's 13th five-year plan prioritized health and innovation, which is expected to increase investments in the healthcare sector during the forecast period. This, in turn, is expected to raise the demand for gases, like oxygen, nitrogen, nitrogen peroxide, medical air, and carbon dioxide, are used extensively in the medical industry for various treatment purposes
- The medical sector in India is expected to reach USD 372 billion by 2022, mainly driven by increasing health awareness, access to insurance, rising income, and diseases. The medical sector in India is benefiting from a growing population at a rate of 1.6% per year. An aging population of over 100 million, rising incidences of lifestyle diseases, rising incomes, and increased penetration of health insurance are fueling the growth of the industry.
- In 2018, Japanese automobile production witnessed a rise of 0.4% over the previous year, reaching 9.7 million units. There was an increase in motor vehicle sales and the number of motor vehicles in use in recent years. In 2018, the Japanese new vehicle market (sale of domestically produced vehicles in Japan) exceeded five million vehicles for the second consecutive year, reaching 5,272,067 vehicles, with a growth of 0.7% over the previous year.
- However, in 2019, the automotive production recorded a decline of about 0.5% Y-o-Y to 9,684,298 units, owing to decreasing sales in the domestic and foreign markets. In Japan, the automobile sales recorded a decline of 1.5%, registering sales of about 5,195,216 vehicles. The weak demand for vehicles has further kept the trend similar during 2020. However, from 2021, the industry may resume its growth trajectory.
- Thus, the rising demand from various industries is expected to drive the market in the region during the forecast period.
The specialty gas market is partially consolidated. Some of the players operating in the market are Linde plc, Air Liquide, Messer Group GmbH, SHOWA DENKO K.K., and Air Products Inc.
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TABLE OF CONTENTS
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Drivers
- 4.1.1 Wide Applications in the Electronics Industry
- 4.1.2 Increasing Demand from the Healthcare Sector
- 4.2 Restraints
- 4.2.1 Slowdown in Global Automotive Production
- 4.2.2 Stringent Government Regulations and Threat of Substitutes
- 4.2.3 Impact of COVID-19 Impact
- 4.3 Industry Value Chain Analysis
- 4.4 Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Consumers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products and Services
- 4.4.5 Degree of Competition
5 MARKET SEGMENTATION
- 5.1 Type
- 5.1.1 High-purity Gases
- 5.1.2 Noble Gases
- 5.1.3 Carbon Gases
- 5.1.4 Halogen Gases
- 5.1.5 Other Types
- 5.2 End-user Industry
- 5.2.1 Automotive
- 5.2.2 Electronics
- 5.2.3 Medical and Healthcare
- 5.2.4 Food and Beverage
- 5.2.5 Oil and Gas
- 5.2.6 Other End-user Industries
- 5.3 Geography
- 5.3.1 Asia-Pacific
- 184.108.40.206 China
- 220.127.116.11 India
- 18.104.22.168 Japan
- 22.214.171.124 South Korea
- 126.96.36.199 Rest of Asia-Pacific
- 5.3.2 North America
- 188.8.131.52 United States
- 184.108.40.206 Canada
- 220.127.116.11 Mexico
- 5.3.3 Europe
- 18.104.22.168 Germany
- 22.214.171.124 United Kingdom
- 126.96.36.199 Italy
- 188.8.131.52 France
- 184.108.40.206 Rest of Europe
- 5.3.4 South America
- 220.127.116.11 Brazil
- 18.104.22.168 Aregentina
- 22.214.171.124 Rest of South America
- 5.3.5 Middle-East and Africa
- 126.96.36.199 Saudi Arabia
- 188.8.131.52 South Africa
- 184.108.40.206 Rest of Middle-East and Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Share (%)**/Ranking Analysis
- 6.3 Strategies Adopted by Leading Players
- 6.4 Company Profiles
- 6.4.1 Air Liquide
- 6.4.2 Air Products Inc.
- 6.4.3 Coregas
- 6.4.4 Gasco Precision Calibration Mixtures
- 6.4.5 Iwatani Corporation of America
- 6.4.6 Linde plc
- 6.4.7 MESA Specialty Gases & Equipment
- 6.4.8 Messer Group GmbH
- 6.4.9 Mitsui Chemicals, Inc.
- 6.4.10 Norco Inc.
- 6.4.11 SHOWA DENKO K.K.
- 6.4.12 Southern Industrial Gas Sdn Bhd
- 6.4.13 TAIYO NIPPON SANSO CORPORATION
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Use in the Pharmaceutical/Biotechnology Sector
- 7.2 Other Opportunities