India Industrial Specialty and Shielding Gases Market Segmented By Application (Metallurgy, Refinery, Chemical & Petrochemical, Others), By Mode of Distribution (Tonnage, Bulk, Packaged), By Region, Competition, Forecast and Opportunities 2019-2029
Published Date: December - 2024 | Publisher: MIR | No of Pages: 320 | Industry: Chemicals | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationIndia Industrial Specialty and Shielding Gases Market Segmented By Application (Metallurgy, Refinery, Chemical & Petrochemical, Others), By Mode of Distribution (Tonnage, Bulk, Packaged), By Region, Competition, Forecast and Opportunities 2019-2029
| Forecast Period | 2025-2029 |
| Market Size (2023) | USD 1.58 Billion |
| Market Size (2029) | USD 2.14 Billion |
| CAGR (2024-2029) | 5.12% |
| Fastest Growing Segment | Metallurgy |
| Largest Market | West India |
Market Overview
India Industrial, Specialty & Shielding Gases Market has reached USD 1.58 billion by 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 5.12% through 2029.
The market benefits from continuous advancements in the metal industries, which fuel the demand for these gases. This consistent demand, combined with the current momentum of the market, ensures steady expansion. The market is on a positive trajectory, poised for substantial growth in the upcoming years due to increased demand from key industries.
Given this favorable outlook, the India market for industrial, specialty, and shielding gases presents attractive opportunities for both existing market players and potential newcomers. With its diverse product range, broad application scope, and growing demand, the market holds considerable potential for sustained growth and profitability.
Key Market Drivers
Growing Demand of Industrial, Specialty & Shielding Gases in Food & Beverage Industry
The industrial, specialty, and shielding gases market in India is experiencing robust growth, primarily driven by the increasing demand from the thriving food & beverage industry. These gases serve various applications across different segments of the food & beverage sector, playing a pivotal role in driving market expansion.
In particular, food-grade gases are essential in the food & beverage industry, contributing significantly to processes such as freezing, chilling, carbonation, and packaging of food and beverages. Incorporating these gases ensures the freshness, quality, and safety of products, meeting the growing consumer expectations for superior quality, diverse variety, and optimal freshness.
Notably, the COVID-19 pandemic has influenced market dynamics. Despite a decrease in restaurant dining, there has been a notable increase in the use of CO2 in the food sector, where it is a significant consumer of liquid CO2.
Growing Demand of Industrial, Specialty & Shielding Gases in Healthcare Industry
Industrial and specialty gases are indispensable in the healthcare sector, serving critical roles beyond providing life-supporting oxygen in hospitals. These gases are essential for various medical applications, including the production of medical devices requiring sterile gases to uphold stringent quality and safety standards.
As the healthcare industry undergoes rapid expansion, the demand for industrial and specialty gases continues to escalate, particularly for medical-grade gases crucial for optimal healthcare facility operations and patient care. Heightened awareness of these gases' importance in delivering safe and effective medical treatments further propels market growth.
Key Market Challenges
Volatility in Availability of Raw Materials
The industrial, specialty, and shielding gases market in India is witnessing substantial growth, primarily fueled by increased demand from metal industries, particularly the steel sector. However, amidst this promising growth, challenges have surfaced, notably concerning raw material availability volatility.
The production of industrial gases relies heavily on raw materials such as natural gas, air, and various feedstocks. Fluctuations in the availability and prices of these raw materials can significantly impact production costs and market dynamics.
Broader economic factors contribute to this challenge. Volatile raw material prices, inflation, geopolitical risks, and inadequate manufacturing capacities relative to domestic demand all influence market dynamics.
Key Market Trends
Rise in Hydrogen Economy
The industrial, specialty, and shielding gases market in India is currently experiencing rapid transformation, primarily propelled by the significant emergence of the hydrogen economy. As societies worldwide strive for cleaner and more sustainable energy sources, hydrogen has gained prominence across various sectors, including the industrial gases market.
India, with its ambitious renewable energy goals and firm commitment to the Paris Agreement, is actively exploring hydrogen's potential as an alternative energy source. This keen interest is evident in the growing demand for hydrogen within India's industrial gases market.
Within the industrial gases market, hydrogen is utilized across diverse sectors, including refining, chemical production, metallurgy, and more recently, as a clean energy carrier. The expanding presence of the hydrogen economy is thus significantly influencing the growth and development of this market.
Segmental Insights
Application Insights
Based on the category of application, the metallurgy segment emerged as the dominant player in the Indian market for Industrial, Specialty & Shielding Gases in 2023.
The increasing demand from metal industries, particularly the steel sector, is significantly boosting the usage of industrial gases. The Indian steel industry, acknowledged as one of the fastest-growing globally, heavily depends on industrial gases for diverse processes, including oxygen steelmaking. These gases, such as oxygen, play a pivotal role in facilitating the production of high-quality steel, ensuring efficient combustion and heat transfer, and contributing to the overall productivity and competitiveness of the steel industry.
Mode of Distribution Insights
The bulk segment is projected to experience rapid growth during the forecast period. One of the primary reasons for the dominance of bulk distribution in the industrial gases market is the high volume demand from various industries. Industries such as metallurgy, light engineering, and mining rely heavily on industrial gases to support their operations and processes. For instance, in metallurgy, large volumes of industrial gases like argon are required as shielding gases for the electric arc welding of nonferrous and specialty metals. This ensures the quality and integrity of the welds, making them suitable for critical applications. Due to the extensive use and demand for argon in such processes, it is supplied in bulk quantities to meet the needs of these industries effectively.
Regional Insights
West India emerged as the dominant player in the India Industrial, Specialty & Shielding Gases Market in 2023, holding the largest market share in terms of value. West India, known for its diverse industrial base, encompasses sectors such as metallurgy, refinery, chemical, petrochemical, and more, all of which play a significant role in the region's economic growth. These industries, driven by their unique requirements, have a high demand for various types of industrial gases to support their operations. For instance, argon, a versatile gas, finds its application as a shielding gas for electric arc welding, ensuring the quality and integrity of the welding process.
The region witnesses a consistent and substantial demand for industrial gases from end-user industries, particularly the metal industry, with a special emphasis on steel production. The critical processes involved in these industries, including refining, smelting, and shaping, rely heavily on the availability of significant volumes of industrial gases. Whether it's oxygen for the oxygen-enhanced combustion process or nitrogen for inerting and purging applications, the industrial gas requirements in West India are vital to sustain and propel the region's industrial growth.
Recent Developments
- Air Liquide India, a global leader in industrialgases and services, is making a significant investment in Gujarat, India. Theupcoming air separation unit (ASU) is designed to meet the growing demand foroxygen and nitrogen. With a production capacity of 1,500 tons per day of oxygenand 1,000 tons per day of nitrogen, the ASU is set to play a crucial role insupporting various industries and sectors. The commissioning of thisstate-of-the-art facility is anticipated in 2024, marking a significant milestonein Air Liquide's commitment to providing sustainable solutions for India'sindustrial gas needs.
Key Market Players
- PraxairIndia Private Limited
- LindeIndia Limited
- BhurukaGases Limited
- Bombay Oxygen Investments Ltd.
- SICGIL India Limited
| By Application | By Mode of Distribution | By Region |
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