Fastest Growing Market:
The market for air separation unit is expected to grow approximately at a CAGR of 3.14% during the forecast period of 2020 – 2025. Major factors driving the market include the rising demand for industrial gases, increasing need for alternate energy sources. On the other hand, the associated technical and cost challenges, are likely to hinder the market growth.
- Oil and Gas Industry set to be the fastest growing segment as most of the oil and gas projects are located in rural or remote areas, the operators opt for industrial gas generation on the site, which creates demand for ASUs.
- Countries such as Saudi Arabia, UAE, and South Africa have been witnessing high growth rate of urbanization and industrialization activities and is expected to continue with the similar pattern, which is expected to offer growth opportunities for ASUs players, particularly from sectors, such as refinery, manufacturing, healthcare, electronics (solar PV wafers in particular), and food and beverages, among others. The Increase in Industrial Development Activities in Middle East & Africa presents a good market opportunity to ASU market players to expand their consumer base.
- North America and Asia-Pacific are the regional hotspots for the ASU market, in which countries such as The United States, India, and China are the hotspots for ASU market. The demand for industrial gases in the United States is expected to be driven by favorable performance of several end-user industries, such as oil and gas, chemical, automotive, food and beverage, electronics, and solar PV, among various others.
Scope of the Report
The global air separation unit market report include:
| Process (Qualitative Analysis) |
| ||Cryogenic Distillation |
| ||Non-cryogenic Distillation |
| Gas (Qualitative Analysis) |
| ||Nitrogen |
| ||Oxygen |
| ||Argon |
| ||Other Gases |
| End User |
| ||Chemical Industry |
| ||Oil and Gas Industry |
| ||Iron and Steel Industry |
| ||Other End Users |
| Geography |
| ||North America |
| ||Asia-Pacific |
| ||Europe |
| ||Middle East and Africa |
| ||South America |
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Key Market Trends
Oil and Gas Industry set to be the Fastest Growing Segment
- The industrial gases find various applications in upstream, midstream, and downstream sectors of the oil and gas industry. The Industrial gases are used for various applications such as drilling, improving the oil recovery, waste treatment, and well stimulation.
- Further, as most of the oil and gas projects are located in rural or remote areas, the operators opt for industrial gas generation on the site, which creates demand for ASUs.
- With recovering oil prices, which is expected to reach stability in coming years, the operators are investing in methods to increase the oil production, including EOR techniques, which is expected to drive the demand for industrial gasses, in turn, supporting the market growth of air separation units during the forecast period.
- Further, in the midstream oil & gas industry, nitrogen is mainly used for the gas pipelines for drying purposes. The gas is highly combustible, and hence, gas pipelines require inert gases, like nitrogen for drying purposes. As of 2017, the gas pipeline amounted to 40% of the global pipeline. But during the forecast period, gas pipeline installation is expected to contribute to 80% of the total new installed pipeline. Therefore, with the increasing share of the gas pipeline, the demand for nitrogen, and in turn, air separation units is expected to increase during the forecast period.
- With the growth of the downstream sector, particularly in Asia-Pacific, Latin America, Middle East & Africa, the demand for air separation units for the oil and gas industry is expected to increase substantially during the forecast period.
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North America Driving the Market Demand
- In North America lies two of the most significant oil & gas countries, the US and Canada, out of which US is expected to be a net oil exporter in the world by 2022. According to the International Energy Agency (IEA), the country is expected to export 5 million barrels a day around the world by 2023.
- US has been actively utilizing techniques, such as Enhanced Oil Recovery (EOR) to pump out a greater volume of oil and gas, which requires extensive use of industrial gases, and is expected to supplement the demand for ASUs in the country.
- Encouraged by the vast availability of natural gas from the shale revolution, the United States has been significantly strengthening its midstream capabilities, such as uptake of more LNG liquefaction project, and strengthening of its pipeline infrastructure, in order to cater to its domestic energy demand, as well as to emerge as a global hotspot of natural gas supply, primarily through LNG.
- Canada is the seventh-largest crude oil producer in the world. Despite this, Canadian refineries process less than 30% of that crude oil, owing to the size of Canada’s refining industry, when compared to the resource size, the location of its refineries, and the lack of cross-country pipeline connectivity.
- North America is likely to be the dominant player in ASU market, supported by industrial growth in the region. The US is likely to be a major player in chemical manufacturing, as a result of the hydraulic fracturing and natural gas production. Petrochemical plants with ethylene capacity of more than 5 million ton/year are expected to start operations this year, along the Gulf of Coast. Five more petrochemical units are under construction and are likely to come online before the end of 2019.
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The market for ASUs remains moderately fragmented, with the presence of multiple big players including Linde AG, Messer Group GmbH, Praxair Inc., Shanghai Chinllenge Gases Co. Ltd, Taiyo Nippon Sanso Corporation, and Air Liquide SA.
Table Of Contents
1.1 Scope of Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.2 Market Size and Demand Forecast in USD billion, till 2025
4.3 Recent Trends and Developments
4.4 Market Dynamics
4.5 Industry Supply Chain Analysis
4.6 Porter's Five Forces Analysis
4.6.1 Bargaining Power of Suppliers
4.6.2 Bargaining Power of Consumers
4.6.3 Threat of New Entrants
4.6.4 Threat of Substitute Products and Services
4.6.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Process (Qualitative Analysis)
5.1.1 Cryogenic Distillation
5.1.2 Non-cryogenic Distillation
5.2 Gas (Qualitative Analysis)
5.2.4 Other Gases
5.3 End User
5.3.1 Chemical Industry
5.3.2 Oil and Gas Industry
5.3.3 Iron and Steel Industry
5.3.4 Other End Users
5.4.1 North America
5.4.4 Middle East and Africa
5.4.5 South America
6. COMPETITIVE LANDSCAPE
6.1 Mergers & Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Linde AG
6.3.2 Messer Group GmbH
6.3.3 Praxair Inc.
6.3.4 Shanghai Chinllenge Gases Co. Ltd
6.3.5 Taiyo Nippon Sanso Corporation
6.3.6 Air Liquide SA
6.3.7 Air Products & Chemicals Inc.
6.3.8 Universal Industrial Plants Mfg. Co. Pvt Ltd
6.3.9 Ellenbarrie Industrial Gases Ltd
6.3.10 Sichuan Air Separation Group
*List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject to Availability