Industrial gases are produced for industrial use to increase productivity and improve operational flexibility. Some of the industrial gases are oxygen, nitrogen, argon, helium, and hydrogen. Industrial gases play a crucial role in brazing, food processing, cutting, treating metals, refining, and welding. Industrial gases like nitrogen are used in light bulb production, tire inflation, mining, and food packaging applications. Moreover, nitrogen gas is also used in the pharmaceutical industry in the form of nitro oxide for the manufacturing of drugs.
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).
Increasing construction activities in the GCC region coupled with the lined-up various high-scale infrastructure projects is expected to fuel the market growth of industrial gases. Moreover, increasing investment in large-scale infrastructure projects and industrial sectors are further expected to drive the growth of the GCC industrial gases.
The rising demand for industrial gases for healthcare applications is expected to propel the market growth over the forecast period. Industrial gases are widely used in treating the various respiratory problems and also used in other technical applications. Thus, the rapid growth of the medical industry in the GCC region is expected to propel the market growth over the forecast period.
On the basis of the countries, Kingdom of Saudi Arabia dominated the GCC industrial gases market in 2019 with a 47.7% of market share in terms of value, followed by UAE and others.
The high cost of production is expected to hinder the market growth of industrial gases. The high cost of energy in the production of industrial is a major factor hindering the market growth of industrial gases. The cost of the energy is expected pose restraint to market growth.
Growing demand for packaged food and beverage in the GCC region as it is a basic need for survival is expected to open new avenues for market growth. Changes in food consumption habits coupled with the growth in the food industry in the region are further expected to fuel the regional market growth over the forecast period.
The advent of advanced technology in the production of industrial gases coupled with the advancement in end-use applications is projected to create potential growth opportunities for a manufacturer to serve a large market with enhanced solutions in the region. This is expected to augment the growth of the GCC industrial gases.
Figure 1. GCC Industrial Gases Market– Opportunity Analysis
Various manufacturers in the region are establishing new facilities for increasing the production of industrial gases in order to meet the rising demand is expected to be a major trend in the market. For instance, in February 2020, Industrial gases firm Air Products has begun construction on a new Air Products Qudra industrial gases hub “megaproject” in the Jubail Industrial City in Jubail, Saudi Arabia.
Figure 2. GCC Industrial Gases Market, Revenue Share (%), By Gas Type, in 2019
On the basis of gas type in 2019, the oxygen segment has accounted the largest market share of 29.4% in terms of value, followed by nitrogen and carbon dioxide respectively.
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