Middle East Industrial Gases Market to Accumulate US$ 8.03 Billion in Value by 2033, Registering an 7.2% CAGR| Persistence Market Research
Middle East Industrial Gases Market growth is fuelled by factors like increasing demand for oil and gas, rising urbanization, and investments in sectors like chemicals, metals, and power generation
New York, Jan. 16, 2024 (GLOBE NEWSWIRE) -- According to a report by Persistence Market Research, the Middle East industrial gases market is worth $4.02 billion in 2023. The demand for these gases in the region is set to increase at a rate of 7.2%, reaching a total market value of $8.03 billion by 2033.The anticipated growth in demand is attributed to the expansion of industries such as healthcare, energy, oil & gas, and metal manufacturing in the Middle East. In particular, the healthcare sector is experiencing a significant rise in the use of industrial gases. Oxygen is crucial for surgeries and treatments in clinics, while nitrogen is essential for medical gas mixtures used in lung function tests and to power gas-operated medical devices.
When comparing the demand for industrial gases in the Middle East from 2018 to 2022 (which grew at a rate of 3.6%), the forecast for 2023 to 2033 predicts a faster growth rate of 7.2%. This acceleration is mainly driven by the expanding electronics industry and the increased adoption of gases in industrial processes.
The market's growth is fuelled by high demand from various sectors such as energy, oil and gas, metal manufacturing, food and beverages, electronics, and healthcare. Additionally, there is a growing need for industrial gases in handling emergency medical situations. This presents untapped potential for industry players to target new end users.
The electronics industry is expected to see a substantial increase in the utilization of industrial gases due to the rising demand for electronic devices and the emergence of new technologies like 5G.
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*Market Scope:*
* Report Coverage* * Details*Market Revenue 2023 US$ 4.02 BillionEstimated Revenue 2033 US$ 8.03 BillionGrowth Rate – CAGR 7.2% Forecast Period 2023-2033No. of Pages 250 PagesMarket Segmentation By Type, Supply Mode, Application, CountryRegions Covered North America, Latin America, Europe, South Asia & Pacific, East Asia, The Middle East & AfricaKey Companies Profiled · Air Liquide Middle East
· Air Products Middle East
· Arabian Industrial Gases
· Brothers Gas
· Cryogenic Equipment & Services
· Dubai Industrial Gases
· Emirates Industrial Gases
· GasTech Engineering Corporation
· Gazprom Export
· Gulf Cryo Holding
*Top Key Trends from the Middle East Industrial Gases Market:*
*The Oil and Gas Industry Leading the Way*
In the Middle East, nitrogen and carbon dioxide are widely used in the oil and gas sector, especially in activities related to extracting and exploring oil and natural gas. These gases play a significant role in induced hydraulic fracturing, commonly known as fracking.
Nitrogen and carbon dioxide, considered as bulk gases, are employed in large quantities for various purposes in the oil and gas industry. Nitrogen finds applications in drilling, workover, completion phases of oil and gas wells, as well as in pipeline pigging and purging. Its uses range from well stimulation, injection and pressure testing, enhanced oil recovery (EOR), reservoir pressure maintenance, nitrogen floods, to inert gas lift, both in onshore and offshore settings.
Carbon dioxide (CO2) is utilized as a tertiary oil recovery method, and it also plays a role in energized fluid fracturing (fracking) for conventional reservoirs, especially in long-reach horizontal and vertical wells. Additionally, ammonia is used in the oil and gas industry to neutralize acidic chemicals during the oil refining process.
The Middle East is home to five of the world's top oil-producing countries, contributing to approximately 27% of global oil output. Key players in the oil production sector, such as Saudi Arabia, the United Arab Emirates, and Iraq, are located in the region.
According to the Energy Institute Statistical Review of World Energy 2023, oil production in the Middle East saw a 9.5% increase in 2022 compared to 2021, reaching 1441.6 million tons. Gas production also experienced growth, rising by 5.4% from 3504 thousand barrels a day in 2021 to 3691 thousand barrels a day in 2022.
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*Factors Influencing Industrial Gases Demand in the Middle East:*
The demand for industrial gases in the Middle East is rising due to the growth of non-oil sectors. Countries like the United Arab Emirates, Saudi Arabia, Bahrain, and Qatar are investing in industries like automotive, pharmaceuticals, and general manufacturing to reduce reliance on oil and gas. Saudi Arabia, for instance, invested $70 billion in building cities to attract manufacturing companies. As these non-oil sectors expand, the need for industrial gases for manufacturing processes is expected to increase.
*Food & Beverage Sector as Key User*
The food and beverages industry in the Middle East is set to thrive due to a growing population and changing dietary habits. To meet the demand for food from distant places, industrial gases are necessary for packaging and transportation in a controlled environment. The Middle East industrial gases market is driven by the rising demand for carbonated drinks, thanks to the rapid growth of the food and beverages sector. This growth is fueled by a growing population, evolving food preferences, and increased global exposure.
One major factor behind the food and beverages industry's growth is the increasing preference for processed and packaged foods. This trend is expected to continue as consumers seek convenient, ready-to-eat meals. Nitrogen and carbon dioxide play a crucial role in food packaging by extending the shelf life of products and preventing spoilage.
Additionally, the emphasis on food safety and quality is another factor driving the demand for industrial gases in the food and beverages industry. Ozone and carbon dioxide are used to clean and sanitize food processing equipment, reducing the risk of contamination and ensuring food safety.
*Challenges Affecting Industrial Gases Demand Growth*
Several factors impact the demand for industrial gases in the Middle East, including distribution costs, transportation expenses, safety concerns, labor expertise, and energy expenses. The need for gas pipelines, tanks, and cylinders for distribution due to impractical long-distance transport can be both challenging and costly to maintain and improve.
Obtaining industrial gases from the atmosphere requires significant energy expenses, posing a challenge in terms of cost and efficiency. Additionally, handling gases during filling, transportation, and usage presents a significant obstacle due to the potential for leaks in high-pressure gases, negatively affecting gas prices and profit margins.
*Competitive Scenario in the Middle East Industrial Gases Market*
The Middle East industrial gases market has several prominent manufacturers, creating moderate consolidation. These manufacturers face intense competition, making it vital for leading players to establish efficient distribution networks. Some are strategically acquiring local businesses or partnering with local distributors to expand their presence.
To gain a competitive edge, certain companies are divesting low-margin businesses and focusing on emerging sectors like renewable energy. Key manufacturers are also increasing production capacities to meet growing demand for industrial gases and discourage new competitors.
· In 2023, ADNOC secured agreements with 23 companies, amounting to US$ 4.6 billion in local manufacturing opportunities. In September 2022, Abdullah Hashim Industrial Gases & Equipment Co. Ltd. acquired Air Liquide's merchant industrial gases business in Saudi Arabia.
· In March 2021, Air Products announced plans for a new industrial gas production facility in Jubail, Saudi Arabia, addressing the country's increasing demand. In September 2020, Air Liquide expanded its presence in the Middle East by acquiring a 40% stake in Al-Can Oxygen Ltd., Saudi Arabia's largest independent industrial gas company.
*Category-wise Insights:*
Why Industrial Gases are Essential in Metal Manufacturing and Fabrication
The metal manufacturing and fabrication industry in the region relies heavily on industrial gases like oxygen, nitrogen, argon, and hydrogen for various applications such as cutting, welding, brazing, and heat treatment. Oxygen, nitrogen, argon, and carbon dioxide are commonly used in this sector. Oxygen is frequently used for cutting, welding, and brazing in metal production. Nitrogen acts as a shielding gas in laser cutting, plasma cutting, and welding.
Argon is a key shielding gas in welding and metal manufacturing, protecting the welding area from ambient gas impacts. Carbon dioxide is widely used in metal production as both a coolant and a shielding gas for welding.
The metal manufacturing and fabrication sector is experiencing growing demand for industrial gases due to the expansion of the construction, automotive, and aerospace industries. These gases play a crucial role in enhancing product quality and reducing costs in metal manufacturing processes.
As sustainability becomes a greater concern in the metal fabrication and manufacturing business in the Middle East, there is an increased demand for industrial gases that can reduce emissions and improve energy efficiency. Using oxygen in steel production, for example, can cut greenhouse gas emissions by up to 70% compared to traditional production processes.
*Insights on Industrial Gases Demand in GCC Countries:*
The demand for industrial gases in GCC countries is high due to their ongoing infrastructure development. These nations are investing a substantial portion of their oil and gas revenue to improve infrastructure and attract manufacturing and service industries. Industrial gases like oxygen, nitrogen, acetylene, carbon dioxide, argon, and hydrogen are widely used in various applications within these projects.
In 2022 alone, GCC countries were awarded contracts worth US$ 93.6 billion, as reported by a Kuwait-based non-banking organization. This figure is expected to rise further in the coming years as more projects are awarded, sustaining the demand for industrial gases.
*Geographical Advantage for Industrial Gases Manufacturers in the Middle East*
The Middle East, strategically located as a trade bridge between Europe, Asia, and Africa, offers lucrative opportunities for industrial gases manufacturers. The Suez Canal, a crucial shipping transit point connecting the Red Sea and the Mediterranean Sea, witnessed over 22,000 ships in 2022.
Establishing manufacturing hubs in countries like Saudi Arabia, Egypt, Yemen, and Türkiye is expected to significantly reduce transportation expenses. With abundant oil and gas resources, the Middle East enjoys lower energy costs compared to other regions worldwide.
The geographical location of Middle Eastern countries presents substantial opportunities for the growth of the manufacturing sector, consequently boosting the production and sales of industrial gases in the region.
*Key Questions Answered in the Report:*
1. What are the factors contributing to the growth trends in the market?
2. What is the current market size, and how do experts expect it to change in the coming years?
3. What are the key elements that are currently influencing the market?
4. How is the Middle East Industrial Gases market categorized, considering factors such as types, fuels, applications, or other relevant criteria?
5. Who are the main participants in the Middle East Industrial Gases market?
6. What strategies are these players employing to establish a competitive advantage?
7. What factors are propelling the expansion of the Middle East Industrial Gases market?
8. Which regions are projected to experience significant growth, and what are the underlying reasons for it?
9. What recent technological advancements are making an impact on the Middle East Industrial Gases industry?*About Persistence Market Research:*
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