World Industrial Gases

Global demand to expand 5% annually through 2014
World demand for industrial gases will increase eight percent annually to $52 billion in 2014. Volumetric consumption will expand five percent per year to 530 billion cubic meters in the same year. Industrial gases are used throughout the world in numerous applications, but the nations of fastest growth will be the emerging industrial economies of the Asia/Pacific region, especially China and India. Countries with advanced, highly developed industrial economies will grow more slowly. Other developing regions (Central & South America and Africa/ Mideast) will also experience aboveaverage growth.

Chemical processing and petroleum refining is the top market
Industrial gases used by the chemical processing and petroleum refining industries comprise the largest gasconsuming category, accounting for 40 percent of merchant industrial gas consumption. The chemical manufacturing sector uses industrial gases as feed stocks or process gases for the production of a huge array of chemicals and petrochemicals. In petroleum refining, the drive toward cleaner burning, low-sulfur fuels will stimulate demand for hydrogen. Countries with strict mandates for clean fuel are already using voluminous amounts of hydrogen. Those where clean fuel standards are still to be implemented will require similar amounts of hydrogen, as they strive to reduce harmful environmental emissions. Much of this incremental hydrogen will be supplied by merchant producers of the gas, and the supply of merchant hydrogen to refiners represents the largest growth opportunity for this industry.

Metal production and fabricating is the second-largest market segment for industrial gas consumption, and will account for 24 percent of total demand value in 2014. Global recession caused steel output to fall drastically in recent years in many mature economies. However, as the steel industry recovers and returns to normal production levels, industrial gas demand in the metal market will register the fastest growth of any other segment. Geographically, the best growth opportunities will exist in China, Japan, the US, Germany and India.

Electronics, health care markets to grow the fastest
The electronics and health care industries will exhibit the most rapid market gains. Advances in electronics applications will benefit from rising demand for semiconductors and integrated circuits used in a growing number of smart electronic devices such as cellular phones. The industry’s move toward the production of 300mm semiconductor wafers will benefit industrial gases, as will the recent focus on photovoltaic technologies. Bulk gases are used by the industry primarily as inert blanketing atmospheres. Geographically, the highest growth for electronics applications will be in China and Taiwan, although the US, Japan and South Korea also represent significant markets.

In medical and health care applications, demand will be driven by the expansion of health care services in developing nations, rapidly increasing use of home health care respiratory therapies in advanced economies, and technological advancement in medical imaging, surgical and other practices.

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