GCC Industrial Gases Market Analysis Detailed Growth with Regional Expand by 2030

Posted by Pearl Smith on May 25th, 2023

The Gulf Cooperation Council (GCC) countries include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE). The industrial gases market in the GCC region encompasses various gases used in industrial applications, including oxygen, nitrogen, hydrogen, carbon dioxide, and specialty gases.

Key Factors Driving the GCC Industrial Gases Market:

Industrial Development: The GCC region has witnessed significant industrial development in sectors such as oil and gas, petrochemicals, chemicals, metallurgy, healthcare, and food processing. The growing industrial base drives the demand for industrial gases in manufacturing processes, cooling systems, and other applications.

Oil and Gas Industry: The GCC region is renowned for its vast reserves of oil and natural gas. The oil and gas industry requires industrial gases for applications like enhanced oil recovery (EOR), refining, and gas processing. The growth of this sector positively impacts the demand for industrial gases.

Healthcare and Pharmaceutical Industry: The GCC countries have been investing heavily in healthcare infrastructure, resulting in increased demand for medical gases such as oxygen and nitrogen for various medical procedures, including surgeries, respiratory therapies, and diagnostic tests.

Construction and Infrastructure Development: The GCC region has experienced rapid growth in construction and infrastructure projects, including commercial buildings, residential complexes, and transportation infrastructure. Industrial gases find application in welding, cutting, and other construction-related activities, further contributing to market growth.

Environmental Regulations: There is a growing emphasis on environmental regulations and sustainability in the GCC region. This drives the adoption of industrial gases in eco-friendly technologies, such as using nitrogen as an inert gas to prevent oxidation and purging pollutants.

The GCC industrial gases market is projected to reach around US$ 1,807.9 million by the end of 2027, in terms of revenue, growing at CAGR of 7.4% during the forecast period (2020-2027).

Key companies covered as a part of this study include Air Liquide, Air Products and Chemicals Inc., The Linde Group, Praxair Inc., Abdullah Hashim Industrial & Equipment Co. Ltd, Bristol Gases, Buzwair Industrial Gases factory, Dubai Industrial Gases, Gulf Cryo, Mohsin Haider Darwish LLC, National Industrial Gas Plants, and Yateem Oxygen

The demand for industrial gases is influenced by various factors, including economic growth, industrial activities, technological advancements, and environmental regulations. Industrial gases are essential in a wide range of industries and applications, such as manufacturing, healthcare, electronics, chemicals, food and beverage, and energy production.

Manufacturing: The manufacturing sector is one of the primary consumers of industrial gases. Gases like oxygen, nitrogen, and argon are used in various manufacturing processes, including metal fabrication, welding, heat treatment, and chemical reactions. The demand for industrial gases in manufacturing is closely tied to the overall economic conditions and production levels.

Healthcare: Industrial gases play a critical role in the healthcare industry, primarily in the form of medical gases such as oxygen and nitrous oxide. These gases are used in hospitals, clinics, and other healthcare facilities for patient care, anesthesia, respiratory therapy, and diagnostic purposes. The demand for medical gases is driven by population growth, advancements in medical technology, and increased healthcare access.

Electronics: The electronics industry relies heavily on industrial gases, particularly in semiconductor manufacturing. Gases like nitrogen, helium, and hydrogen are used in various stages of semiconductor production, including wafer cleaning, etching, and deposition. With the continuous growth of the electronics industry, driven by factors such as consumer demand for electronic devices and advancements in technologies like 5G and Internet of Things (IoT), the demand for industrial gases in this sector is expected to remain strong.

Chemicals: Industrial gases are utilized in the chemical industry for processes such as gas separation, inerting, and chemical reactions. Gases like hydrogen, oxygen, and carbon dioxide are crucial in chemical manufacturing, where they serve as raw materials, reactants, or process aids. The demand for industrial gases in the chemical sector is influenced by factors such as the production of fertilizers, plastics, and other chemical products.

Food and Beverage: Industrial gases find applications in the food and beverage industry, primarily for food preservation and packaging. Gases such as nitrogen and carbon dioxide are used to create controlled atmospheres, extend the shelf life of perishable products, and carbonate beverages. As the global population continues to grow, the demand for food and beverage products is expected to increase, thus driving the demand for industrial gases in this sector.

Energy Production: Industrial gases play a role in energy production processes like natural gas processing, oil refining, and power generation. Hydrogen, for example, is used in refining processes and fuel cell technologies. The demand for industrial gases in the energy sector is influenced by factors such as energy consumption patterns, renewable energy initiatives, and the need for cleaner and more efficient energy production methods.

Industrial gases have a wide range of applications across various industries. Here are some common applications of industrial gases:

Oxygen (O2):

Combustion: Oxygen is used in various industrial processes, such as combustion and oxidation reactions, to support burning and increase the efficiency of fuel combustion.
Metallurgy: Oxygen is utilized in steelmaking processes, such as basic oxygen furnaces (BOF) and electric arc furnaces (EAF), to react with impurities and enhance the production of steel.
Water treatment: Oxygen is employed in wastewater treatment to increase the dissolved oxygen levels and promote biological processes for the removal of pollutants.

Nitrogen (N2):

Inerting: Nitrogen is commonly used to create an inert atmosphere in manufacturing processes to prevent oxidation, combustion, and degradation of sensitive materials and products.
Food preservation: Nitrogen is utilized in the food industry to displace oxygen and create a modified atmosphere packaging (MAP), extending the shelf life of packaged foods and preventing spoilage.
Electronics manufacturing: Nitrogen is employed in the electronics industry during soldering, wave soldering, and reflow processes to prevent oxidation of sensitive electronic components.

Hydrogen (H2):

Chemical manufacturing: Hydrogen is used as a reactant in the production of various chemicals, such as ammonia, methanol, and hydrogen peroxide.
Refining: Hydrogen is used in oil refining processes, such as hydrocracking and hydrotreating, to remove impurities and improve the quality of fuels.
Energy storage: Hydrogen is gaining attention as a clean energy carrier and can be used in fuel cells for electricity generation and in hydrogen-powered vehicles.

Carbon Dioxide (CO2):

Carbonation: Carbon dioxide is used to carbonate beverages such as soda and beer.
Food processing: Carbon dioxide is employed in food processing and freezing to maintain low temperatures and inhibit microbial growth.
Fire extinguishing: Carbon dioxide is utilized as a fire suppression agent, especially in areas with sensitive equipment or where water-based systems are not suitable.

Argon (Ar):

Welding: Argon is commonly used as a shielding gas in welding processes, such as gas tungsten arc welding (GTAW) and gas metal arc welding (GMAW), to protect the weld area from atmospheric contamination.
Electronics manufacturing: Argon is used in the production of semiconductors, where it acts as a carrier gas and assists in creating the necessary high-purity environments.

These are just a few examples of the applications of industrial gases. Depending on the specific industry and process, other gases such as helium, acetylene, ammonia, and specialty gases may also be used.