The industrial oxygen market is on the rise as industries seek out new, efficient ways to achieve their goals.
The drivers of the Industrial Oxygen Market are
1. Growing Demand from Chemical & Metallurgical Industries: The increasing demand for industrial oxygen in the chemical and metallurgical industries is a major driver of the market, as oxygen is used in the production of several chemicals and metals.
2. Increasing Automation in Manufacturing Processes: Automation in manufacturing processes has increased the efficiency and performance of industrial operations, thus driving up demand for industrial oxygen to power these machines.
3. Government Regulations: Many governments have implemented stringent regulations concerning air pollution and emissions, which has led to an increased demand for industrial oxygen as a way to reduce emissions.
Some of the advantages of the Industrial Oxygen Market are as follows:
1. Cost Savings: Industrial oxygen is usually much cheaper than other forms of oxygen, and therefore companies can save money by purchasing industrial oxygen instead of other forms of oxygen.
2. Quality: Industrial oxygen is typically of a higher quality than other forms of oxygen and thus provides better performance for many industrial applications.
3. Customization: Many industrial oxygen suppliers offer custom blends to meet the needs of their customers, allowing for greater flexibility in operations and production processes.
4. Safety: Since industrial oxygen is used in so many industries, there are strict regulations regarding its use and distribution which help to ensure safety in the workplace through the control and monitoring of proper usage.
5. Availability: Industrial oxygen is widely available in many parts of the world, meaning that companies have access to reliable sources that they can rely on at any time without worrying about supply disruptions or delays due to shipment problems.
Market Value and CAGR of the Industrial Oxygen Market (2022-2032)
The market value and CAGR of the Industrial Oxygen Market is expected to reach USD 32.2 billion by 2032, and a CAGR of 5.7% between 2022 and 2032.
This can be attributed to the growing demand for industrial oxygen in various end-user industries such as chemical, manufacturing, healthcare, and food & beverage. The increasing popularity of green production processes that require the use of industrial oxygen is expected to significantly drive the market growth over the forecast period. The rising number of construction projects in urban areas, along with the increasing gasification rate of steel production are some other factors driving the demand for industrial oxygen.
Challenges of the Industrial Oxygen Market
Some of the challenges of the Industrial Oxygen Market are as follows:
1. Limited Supply: Industrial oxygen is a finite resource and is not renewable, which can create a supply issue for industrial users. This is especially true for remote areas or locations where production plants are located far away from natural sources of oxygen.
2. High Cost: Industrial oxygen is expensive due to the cost of production, storage, and transportation. The cost of industrial oxygen can be prohibitively high for certain industries or applications that require large amounts of oxygen on an ongoing basis.
3. Equipment Requirements: Industrial oxygen requires specialized equipment to store, transport, and use safely, which can add additional costs to utilizing industrial oxygen.
4. Safety Concerns: Working with or around industrial oxygen presents significant safety concerns due to the combustible nature of the gas. Specialized training and safety protocols must be followed in order to ensure safe operation and use of industrial oxygen systems.
Key Players in the Industrial Oxygen Market
Some of the key players in the Industrial Oxygen Market are Air Liquide, Linde Group, Air Products and Chemicals, Inc., Praxair Technology, Inc., Messer Group GmbH, Taiyo Nippon Sanso Corporation, The BOC Group, Matheson Tri-Gas, Inc., and NuCO2.
These companies specialize in providing the industrial oxygen used in various applications such as welding, cutting, heating, combustion and medical purposes. They offer a wide range of products to suit different customer needs. These companies have been investing heavily in research and development to develop new technology that can improve the efficiency of their products. They have also been focusing on increasing their production capacity to meet the rising global demand for industrial oxygen.
Segment Analysis into type, application, end user and region of Industrial Oxygen Market
The most demanded product of the Industrial Oxygen Market is Liquid Oxygen. It is used in a variety of industrial and medical applications, including welding, as a reducing agent in chemical reactions and to produce high-purity oxygen for medical use.
By application, the most demanded application of the Industrial Oxygen Market is welding. It is used in various welding processes, such as oxy-fuel welding, arc welding, and plasma arc welding. Other applications include medical use, chemical reaction, oxygen enrichment process, and others.
By end user, the major end users of Industrial Oxygen are metal processing industry, chemical industry, food industry and medical industry. Metal processing industry use it for welding processes while chemical industry uses it for manufacturing chemicals and petrochemicals. Food industry also uses industrial oxygen for packaging purpose. Medical sector uses it for oxygen therapy and other life-saving treatments.
By region, Asia Pacific region holds the highest market share in terms of revenue in the Industrial Oxygen Market followed by Europe and North America. The increasing demand from industrial sector in China and India is driving growth in this region. The rising demand from oil & gas sector in Middle East countries also contributes to the growth of the market in this region.
Impact of Covid-19 on the Industrial Oxygen Market
Covid-19 has had a significant impact on the industrial oxygen market. The demand for industrial oxygen has decreased due to the slowdown in manufacturing and construction activity. This has led to a decrease in the price of oxygen, which is expected to continue in the short term. However, the long-term outlook for the industrial oxygen market is positive, as the world economy is expected to recover from the Covid-19 pandemic.
Key developments in the Industrial Oxygen Market
In January, 2021, major industry players such as Linde and Air Liquide expanded their presence in the industrial oxygen market by expanding production capacity to meet growing demand.
In December, 2020, Ox air introduced its new range of portable oxygen generators to deliver oxygen on-site, reducing reliance on traditional gas cylinders and improving cost efficiency.
In November, 2020, Air Products and Chemicals launched an online store for its industrial gases, including nitrogen and oxygen for a variety of applications.
In October 2020, Praxair launched a cloud-based digital platform for customers to better manage their industrial oxygen supply chain. The platform was created to optimize delivery schedules and reduce costs.
In September 2020, SOL Group announced the launch of Proxygene – an automated system that uses advanced analytics and sensor technology to monitor industrial oxygen levels in real-time and provide notifications when levels fall below a certain threshold.
Industrial Oxygen Market Scope
|Revenue forecast in 2032
|USD 32.2 billion
|CAGR of 5.7 % during 2022-2032
|Type, Application, Regions
|North America, Europe, Asia Pacific, South America, Middle East and Africa
|Key Players Profiled
|Air Liquide, Linde Group, Air Products and Chemicals, Inc., Praxair Technology, Inc., Messer Group GmbH, Taiyo Nippon Sanso Corporation, The BOC Group, Matheson Tri-Gas, Inc., and NuCO2.
Key Segments of the Industrial Oxygen Market
Type Overview, (USD Billion)
• On-Site Type
• Bulk Type
• Cylinder Type
Application Overview, (USD Billion)
• Steel Industry
• Chemical Industry
• Copper and Aluminium
• Glass Industry
• Waste Water Treatment
• Pulp and Paper Industry
• Food & Beverage
• Plastic Industry
Regional Overview,(USD Billion)
• Rest of Europe
• Rest of Asia Pacific
• Rest of South America
• Middle East and South Africa