REPORT ATTRIBUTE |
DETAILS |
Historical Period |
2019-2022 |
Base Year |
2023 |
Forecast Period |
2024-2032 |
Australia Industrial Gases Market Size 2023 |
USD 2,209.13 Million |
Australia Industrial Gases Market, CAGR |
3.9% |
Australia Industrial Gases Market Size 2032 |
USD 5,019.77 Million |
Market Overview:
The Australian industrial gases market is on a trajectory of steady growth, with a projected compound annual growth rate (CAGR) of 3.9% from USD 2,209.13 million in 2023 to USD 5,019.77 million by 2032. This upward trend reflects the increasing demand for industrial gases across diverse sectors such as manufacturing, healthcare, food and beverage, construction, oil & gas, and chemicals within Australia. The burgeoning manufacturing sector, infrastructure development initiatives, and the expanding healthcare industry are among the primary drivers propelling this growth, highlighting the pivotal role industrial gases play in various industrial processes and applications.
The market segmentation of the Australian industrial gases industry encompasses gas types, applications, and end-use industries. Oxygen, nitrogen, hydrogen, argon, carbon dioxide, and specialty gases are among the major gas types utilized across welding, cutting, inerting, purging, medical, food processing, and chemical production applications. This diverse range of applications underscores the widespread utility of industrial gases, further emphasizing their significance in sustaining and advancing various industrial activities and processes within Australia. Moreover, the competitive landscape is characterized by key players such as Linde plc, Air Liquide S.A., and Messer Group GmbH, alongside smaller regional and specialty gas suppliers, contributing to a dynamic and competitive market environment.
Despite the promising growth prospects, the Australian industrial gas market faces challenges such as fluctuations in energy prices, intense competition, and stringent regulatory requirements. However, amidst these challenges lie opportunities for market expansion, including the exploration of new application areas, initiatives for import substitution to support domestic production, and advancements in gas separation and purification technologies. These opportunities, coupled with the market’s projected growth trajectory and evolving industrial landscape, position the Australian industrial gases sector for continued development and innovation in the coming years.
Access crucial information at unmatched prices!
Request your free sample report today & start making informed decisions powered by Credence Research!
Download Free Sample
Segmentation Analysis:
By Gas Types:
Industrial gases are classified into various types, each serving specific purposes across different industries. Oxygen holds the largest segment due to its essential role in combustion processes, particularly in metal fabrication, steel production, and chemical processing. Nitrogen is widely utilized for inerting, purging, and creating controlled atmospheres in applications such as food preservation, pharmaceuticals, and electronics manufacturing. Hydrogen is gaining traction in sectors like metal processing and welding, thanks to its low carbon footprint and potential as a clean fuel source. Carbon dioxide finds applications in food and beverage carbonation, welding, and creating inert atmospheres in specific industrial processes. Helium is primarily used in cryogenic applications, welding, and leak detection. Additionally, specialty gases, including argon, acetylene, and others, cater to niche applications in industries like research and development, medical applications, and specialty welding techniques.
By Applications:
Industrial gases are utilized across a wide range of applications, reflecting their versatility and importance in various industries. In metal fabrication, they are crucial for cutting, welding, and heat treatment processes, with oxygen, nitrogen, and specialty gases being significant contributors. Chemical processing relies on gases like oxygen, nitrogen, and hydrogen for various reactions, inerting processes, and gas chromatography analysis. The food and beverage industry utilizes carbon dioxide and nitrogen for food preservation, inerting packaging environments, and carbonating beverages. In the oil and gas sector, nitrogen is employed for well completion, enhanced oil recovery, and pipeline purging. Healthcare facilities utilize gases like oxygen, medical-grade nitrous oxide, and specialty gases for medical procedures and respiratory support. Additionally, in electronics manufacturing, high-purity gases like nitrogen, hydrogen, and specialty gases are essential for semiconductor fabrication and creating inert atmospheres. Industrial gases also find applications in other sectors, such as mining, glass production, and wastewater treatment.
Shape Your Report to Specific Countries or Regions & Enjoy 30% Off!
Segments:
By Gas Types
- Oxygen
- Nitrogen
- Hydrogen
- carbon dioxide
- Argon
- Helium
Mode of Distribution:
Market Drivers:
Rising Demand from Core Industries:
Australia’s core industries, particularly manufacturing and construction, are witnessing significant growth, driving the demand for industrial gases. In the manufacturing sector, which encompasses metal fabrication, chemicals, and food and beverage processing, gases like oxygen, nitrogen, and welding gases are integral to various processes. A specific example is the use of oxygen in steel manufacturing for the basic oxygen furnace process. Concurrently, the construction sector is experiencing a boom propelled by infrastructure development projects and urbanization. For instance, industrial gases like oxygen, acetylene, and inert gases are used for welding, cutting, and metal fabrication processes in the construction of skyscrapers and bridges.
Expanding Applications in Emerging Sectors:
Emerging sectors such as food and beverage and electronics are increasingly adopting advanced processing and packaging techniques, leading to a surge in demand for specialty gases like nitrogen and carbon dioxide. In the food and beverage industry, nitrogen is used in modified-atmosphere packaging to extend the shelf life and preserve the quality of packaged foods like potato chips. Additionally, Australia’s growing electronics industry requires high-purity gases like nitrogen, argon, and helium for various processes in electronics manufacturing. For example, nitrogen is used in the production of semiconductors and printed circuit boards to prevent oxidation during the manufacturing process. These instances highlight the expanding applications of industrial gases in various sectors.
Infrastructure Development and Resource Exploration:
Government initiatives focusing on infrastructure development, renewable energy projects, and resource exploration drive the demand for industrial gases in Australia. These gases are essential for welding, cutting, and inert gas purging during the construction and maintenance of pipelines, transportation networks, and renewable energy infrastructure. Moreover, Australia’s robust mining industry heavily relies on oxygen, nitrogen, and inert gases for mining processes such as blasting, inerting, and mineral processing.
Growing Adoption of Advanced Technologies and Focus on Safety:
Advanced technologies like automation, robotics, and additive manufacturing (3D printing) are creating new opportunities for industrial gas applications. Robotics and automation require specialty gases for processes like robotic welding, while additive manufacturing necessitates inert gas environments to ensure product quality. Furthermore, stringent regulations and a growing emphasis on workplace safety are driving the demand for high-quality industrial gases and safety equipment. Manufacturers are increasingly seeking ways to optimize processes and improve efficiency, leading to innovations in gas mixtures and on-site generation plants offered by industrial gas suppliers.
Market Trends:
Growing Demand in Manufacturing Sectors:
The rise of automation and advanced manufacturing techniques in sectors like automotive, construction, and metal fabrication is leading to increased demand for industrial gases like oxygen, nitrogen, and welding gases. These gases play a crucial role in various industrial processes, including metal cutting, welding, and inerting atmospheres. For instance, in the automotive industry, the use of industrial gases in laser cutting processes for vehicle parts has been a significant factor in market growth.
Focus on Clean Energy Technologies:
The growing focus on clean energy solutions in Australia is driving demand for industrial gases used in renewable energy production and storage. For instance, hydrogen gas is gaining traction as a clean fuel source, and its production and utilization require specialized industrial gas technologies. In fact, Australia has been investing heavily in hydrogen production facilities, with several large-scale projects already underway.
Stricter Environmental Regulations:
Increasing environmental regulations are prompting industries to adopt cleaner production processes. This trend is leading to a rise in demand for specialty gases used in emission control technologies and flue gas treatment. Additionally, regulations around gas storage and transportation are influencing market dynamics.
Advancements in Gas Separation and Purification Technologies:
Technological advancements in gas separation and purification techniques are improving the efficiency and cost-effectiveness of industrial gas production. This allows for the production of higher-purity gases, catering to the specific needs of various industries.
Evolving Distribution and Logistics Landscape:
The Australian industrial gas market is witnessing a shift towards on-site gas generation and microbulk distribution models. These models offer greater flexibility and cost-efficiency for customers compared to traditional bulk gas deliveries. Additionally, the adoption of digital technologies in logistics management is optimizing delivery routes and inventory control.
Market Restraints and Challenges:
Stringent Regulations and Environmental Concerns:
The Australian industrial gas market operates within a regulatory framework that governs safety, emissions, and environmental impact. Compliance with these regulations can significantly increase operational costs for gas producers and distributors. Additionally, growing environmental concerns regarding greenhouse gas emissions may lead to stricter regulations or carbon pricing mechanisms, potentially impacting production costs and demand in certain sectors.
Fluctuations in Energy Prices and Supply Chain Disruptions:
The industrial gas market in Australia heavily relies on natural gas as a feedstock for production. Fluctuations in global energy prices can lead to significant variability in production costs, consequently affecting market prices. Moreover, disruptions in global supply chains due to geopolitical events or trade tensions can impact the availability and cost of raw materials, potentially leading to shortages of certain industrial gases.
Maturing the Manufacturing Sector and Competition from Low-Cost Producers:
Australia’s manufacturing sector, a major consumer of industrial gases, is evolving, with potential shifts towards automation and increased efficiency. This evolution could result in a slowdown in the growth rate of industrial gas demand in the long term. Additionally, competition from low-cost producers in neighboring Asian countries may exert pressure on Australian producers’ pricing strategies, especially for commoditized gases.
Technological Advancements and Substitution:
Advancements in welding technologies and the development of alternative materials have the potential to decrease the demand for certain industrial gases used in traditional welding processes. Furthermore, ongoing research and development efforts in renewable energy sources and energy storage could lead to the emergence of substitutes for some industrial gases currently used in industrial applications, impacting market demand.
Skilled Workforce Availability:
The safe and efficient operation of industrial gas production facilities requires a skilled workforce proficient in areas such as chemical engineering, process operations, and safety protocols. However, the industry may face challenges related to an aging workforce and potential skills gaps, which could impede the ability to maintain a qualified workforce to support future growth and innovation initiatives.
Key player:
- BASF Australia Ltd.
- SOL SpA
- Linde Material Handling Pty Limited
- Air Products & Chemicals, Inc.
- Messer & Opie Pty Ltd.
Recent Developments:
- In November 2023, Air Liquide partnered with Groupe ADP to support the development of hydrogen infrastructure in airports.
- In March 2023, Air Liquide announced the construction of an industrial-scale ammonia (NH3) cracking pilot plant in Belgium.
- In September 2022, Abdullah Hashim Industrial Gases & Equipment Co. Ltd. (a joint venture of Air Products & Chemicals, Inc.) announced the acquisition of Air Liquide’s Merchant Industrial Gases Business (i.e., Al Khafrah Industrial Gases).
- In 2022, the Linde Group, a renowned German multinational industrial gases and engineering company, entered into an exciting partnership with Fortescue Metals Group, an Australian iron ore mining company. Their joint venture aims to establish a cutting-edge green hydrogen production facility in Western Australia, leveraging the region’s abundant renewable energy resources, including solar and wind power. This state-of-the-art facility is projected to have an impressive annual production capacity of up to 30,000 metric tons of green hydrogen, thereby significantly contributing to the global shift towards sustainable and eco-friendly energy solutions.
Regional Analysis:
New South Wales (NSW) and Victoria (VIC) collectively account for the largest share of around 50% in the Australian industrial gases market. These two states are home to major manufacturing and industrial hubs, driving the demand for a wide range of industrial gases across sectors like chemicals, metals, automotive, and electronics.
Queensland (QLD) holds a market share of approximately 20% in the Australian industrial gases market. The state’s thriving mining and mineral processing industries, particularly coal and natural gas operations, are significant consumers of gases like nitrogen, oxygen, and argon for various applications.
Western Australia (WA) represents another significant market for industrial gases in Australia, with a share of around 15%. The state’s robust mining sector, including iron ore, gold, and other mineral extraction activities, extensively utilizes industrial gases for processes such as cutting, welding, and metallurgy.
South Australia (SA) contributes to about 8% of the Australian industrial gases market share. The state’s diverse industrial base, including automotive manufacturing, defense, and food processing industries, drives the demand for gases like carbon dioxide, nitrogen, and hydrogen.
Tasmania (TAS) holds a relatively smaller market share of approximately 5% in the Australian industrial gases market. However, the state’s growing renewable energy sector, including wind and hydropower projects, along with its manufacturing and food processing industries, presents opportunities for industrial gas applications.
.
Future Outlook:
- The anticipated expansion of the Australian manufacturing and construction sectors will fuel demand for industrial gases like oxygen, nitrogen, and welding gases used in various industrial processes.
- Continued investment in infrastructure projects across Australia will require industrial gases for metal fabrication, welding, and other applications, supporting market growth.
- Technological advancements in fields like renewable energy, food processing, and electronics manufacturing will create opportunities for the use of specialized industrial gas applications, propelling market diversification.
- Growing emphasis on sustainable practices will lead to increased demand for environment-friendly industrial gases like biogas and hydrogen, offering new avenues for market expansion.
- Industry players are expected to engage in strategic acquisitions and collaborations to enhance their product portfolios, geographic reach, and technical expertise, fostering market consolidation.
- As regulations pertaining to gas production, storage, and transportation evolve, market participants will need to adapt their operations to comply with stricter safety and environmental standards.
- The market will likely be impacted by fluctuations in energy prices, as these costs significantly influence the production and transportation of industrial gases.
- The increasing adoption of automation in industrial processes may lead to a shift in workforce skill requirements. The industry will need to address potential skill gaps through targeted training programs.
- Market participants are expected to focus on optimizing production processes, logistics, and distribution channels to enhance efficiency and cost competitiveness in a dynamic market environment.
- The adoption of e-commerce platforms for ordering and delivery of industrial gases is anticipated to gain traction, offering convenience and improved customer service.