Industrial gases are gaseous materials intend to be used across various end-user application such as food packaging, brazing, mining, welding, drug manufacturing, etc. oxygen, nitrogen, argon, helium, and hydrogen are some of the commonly used industrial gases. Oxygen gas is used in the brazing, cutting, and welding of metal products. Nitrogen has numerous application such as food packaging, light bulb production, and drug production. Hydrogen gas is used across treating metals, refining, and food processing. Moreover, nitrogen gas is also used to produce ammonia for the manufacturing of fertilizers.
GCC industrial gases market is estimated to account for around US$ 1021.5 million in terms of value in the year 2019 and it predicted to grow at a CAGR of 7.4% during the forecast period (2020-2027).
Growing chemical industry due to increasing production of chemical products in the GCC region is projected to augment the market growth of industrial gases. Industrial gases have a wide range of applications across the chemical industry. GCC region has emerged as a major a hub for the chemical sector and is projected to grow in the upcoming years. This is expected to accelerate the market growth over the forecast period.
The rising application of industrial gases in environmental protection in the GCC region is projected to accelerate market growth. Oxygen gas is used in the biological treatment of wastewater and carbon dioxide is used in for removal of paint from the surface. Thus emerging such application of industrial gases is expected to foster the market growth over the forecast timeframe.
The safe transportation of industrial gases is not viable for long distances and also the cost of transportation is very high. This is expected to hamper the market growth over the forecast period. High-pressure cylinders and liquid tanks have safety issues and required proper handling during transportation which is another major factor hindering the market growth.
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.
On the basis of the application, the refining segment dominated the GCC industrial gases market in 2019 with a 19.9% of market share in terms of value, followed by chemicals & petrochemicals and others.
The GCC industrial gas market has witnessed a handful of partnerships and agreements among major players in the region so as to expand their presence in the market. For instance, in December 2019, Sahara International Petrochemical Company (Sipchem) and Linde announced that they have entered into strategic partnerships for the supply of industrial gases, to meet growing demand from the refining and chemical industries in the Kingdom of Saudi Arabia.
Growth in the pharmaceutical industry in the GCC region is projected to propel the market growth of the industrial gases over the forecast period. According to The International report, the pharmaceutical sector in the Arabian Gulf continues to increase at a rapid pace and is estimated to almost double from $13.9 billion (Dh51bn) in 2018 to $25.7bn in the next decade on the account of increasing urbanization, an aging population and chronic lifestyle-related diseases that boost demand for pharmaceutical products.
The Linde Group
By Gas Type
Joining thousands of companies around the world committed to making the Excellent Business Solutions.