The GCC industrial gases market is projected to reach around US$ 2,307.6 million by the end of 2030, in terms of revenue, growing at a CAGR of 7.8% during the forecast period (2023-2030).
GCC Industrial Gases Market: Growth Driver
Growing Regional Chemical Industry Demand
In the chemical industry, industrial gases have numerous and significant uses. These are used extensively in the chemical industry for cryogenic applications, transportation, and logistics of chemical and related goods, numerous synthesis processes, and the creation of modified atmospheres during reactions, and as feed stock.
The GCC area has become a prominent center in the worldwide chemical industry, and it is projected that it will continue to expand in the near future. As a result, the regional industrial gases market participants are likely to see considerable possibilities throughout the course of the projection period. For instance, in 2022, Nikkiso Clean Energy & Industrial Gases Group (CE&IG), expanded its Middle East presence by opening a new service center in Qatar’s Business Innovation Park in Ras Bufontas. The mission of the new service center is to support local and regional customers for all projects and services related to cryogenic pumps, turbo expanders, and equipment for liquefied natural gas (LNG), ethylene, ammonia, hydrocarbon gas liquids, and industrial gases.
The need for high-tech and healthcare applications is growing.
The GCC region's high average cost of medical care has compelled local governments to take action to lower the total cost of providing standard medical care. As a result, the GCC healthcare sector is undergoing significant infrastructure modifications. In the healthcare sector, industrial gases are employed for technical, cryogenic, and respiratory purposes. Thus, it is projected that throughout the projection period, there will be a significant demand for industrial gases due to the region's rapidly expanding healthcare sector. For instance, in 2022, Gulf Cryo Med Gas (GCMG), a subsidiary company of Gulf Cryo, provides a complete end-to-end solution for medical gas applications, including storage, an engineered delivery system, secondary equipment and accessories. This is a specialized applications group that works with other Gulf Cryo subsidiaries to deliver complete medical gas supply and delivery solutions to customers throughout the Middle East.
Due to the criticality of the healthcare segments, there are internationally stringent standards that govern the production and supply of medical gases. Gulf Cryo’s membership in the Compressed Gas Association (CGA) and the International Oxygen Manufacturing Association (IOMA) attest to our expertise in the medical gas field.
GCC Industrial Gases Market: Restraints
GCC Industrial Gases Market Report Coverage
Report Coverage | Details | ||
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Base Year: | 2022 | Market Size in 2022: | US$ 1,265.8 Mn |
Historical Data for: | 2018 to 2021 | Forecast Period: | 2023 to 2030 |
Forecast Period 2023 to 2030 CAGR: | 7.8% | 2030 Value Projection: | US$ 2,307.6 Mn |
Geographies covered: |
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Segments covered: |
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Companies covered: |
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. |
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Growth Drivers: |
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Restraints & Challenges: |
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GCC Industrial Gases Market: Covid 19 Pandemic Impact
COVID-19 negatively impacted the market in 2020. Carbon dioxide is used to produce carbonated soft drinks and soda water, which were affected by the pandemic scenario. However, the medical industry's demand for oxygen for resuscitation and inhalation therapy increased during the pandemic, stimulating the market's growth. Similar to other industries, the global industrial gases market was negatively affected by COVID-19. Lockdowns and shutting down businesses led to disruption in the value chain. Even though the coronavirus pandemic has weakened all the businesses in the industrial gases market, manufacturers are creating potential opportunities, owing to increasing applications of industrial gases in various end-use industries across the globe.
Increasing demand for oxygen, nitrogen, carbon dioxide, hydrogen, and argon in different end-use industries such as consumer electronics, semiconductors, food & beverages, healthcare, mining, etc. is generating revenue streams for manufacturers in the industrial gases market. Manufacturers are taking efforts to recover from losses due to the COVID-19 outbreak and exploring different opportunities to overcome challenges in the global industrial gases market. Countries such as India and China are expected to witness rapid growth due to industrialization and urbanization.
GCC Industrial Gases Market: Market Segmentation
On the basis of country, in 2022, the Kingdom of Saudi Arabia has accounted for the largest market share of 48% in terms of value, followed by U.A.E. and Qatar respectively.
Figure 1. Gcc Industrial Gases Market Share (%), by Region, 2022
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GCC Industrial Gases Market: By Gas Type
On the basis of gas type, in 2022, the oxygen segment accounted for the largest market share of 29.4% in terms of value, followed by nitrogen and carbon dioxide respectively.
Figure 2. GCC Industrial Gases Market Share (%), By Gas Type 2022
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GCC Industrial Gases Market: Market Opportunities
As a basic necessity for survival, the GCC region's expanding demand for packaged food and drinks is expected to open up new market possibilities. Over the course of the projected period, changes in food consumption patterns are also anticipated to boost the expansion of the regional market. A manufacturer may find growth prospects as a result of the introduction of cutting-edge technology for the production of industrial gases and the development of end-use applications, which will allow them to better service a sizable market in the area. It is anticipated that this would accelerate the expansion of GCC industrial gases Market
GCC Industrial Gases Market: Market Trend
A significant trend in the market is projected to be the establishment of new facilities by several manufacturers in the area to increase the production of industrial gases in order to satisfy the expanding demand. For instance, In February 2020, the industrial gases business Air Products began construction on a new Air Products Quadra industrial gases hub "megaproject" in Jubail, Saudi Arabia.
GCC Industrial Gases Market: Recent Development
GCC Industrial Gases Market: Key Companies
Definition: Industrial gases have been around and being used for many years now. They include pure gases and mixtures or compounds used for different purposes in a wide range of industries. They play a critical role in several industries around the globe, including steel, chemicals, electronics, automobiles, glass, construction, food and beverages, medicinal purposes, agriculture, and many more.
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About Author
Yash Doshi is a Senior Management Consultant. He has 12+ years of experience in conducting research and handling consulting projects across verticals in APAC, EMEA, and the Americas.
He brings strong acumen in helping chemical companies navigate complex challenges and identify growth opportunities. He has deep expertise across the chemicals value chain, including commodity, specialty and fine chemicals, plastics and polymers, and petrochemicals. Yash is a sought-after speaker at industry conferences and contributes to various publications on topics related commodity, specialty and fine chemicals, plastics and polymers, and petrochemicals.
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