Industrial Gases Market in Europe 2017-2021
About Industrial Gases
Industrial gases are a group of elemental and chemical gases (inorganic or organic) that are used for industrial applications. These gases usually have low molecular weight. They possess diverse physical and chemical properties that are expanding their applicability in new end-uses, as well as the existing field of end-uses. The market encompasses the mode of distribution of industrial gases in Europe, including packaged, merchant, and tonnage, to end-use industries such as manufacturing, chemical processing, metallurgy, medical and healthcare, food and beverage, refining, electronics, and others.
Technavio’s analysts forecast the industrial gases market in Europe to grow at a CAGR of 6.19% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the industrial gases market in Europe for 2017-2021. To calculate the market size, the report considers the sales of industrial gases through the three supply modes (packaged, merchant, and tonnage) to various end-use industries. The market estimates exclude sales of gas equipment, power generation, liquefied petroleum gas, and natural gas businesses.
The market is divided into the cities based on geography:
Technavio Announces the Publication of its Research Report – Industrial Gases Market in Europe 2017-2021
Technavio recognizes the following companies as the key players in the industrial gases market in Europe: Air Liquide, Air Products and Chemicals, Messer, The Linde Group, and Praxair.
Other Prominent Vendors in the market are: Chart Industries, Iwatani, Oknal Industrial & Medical Gases, SOL, TAIYO NIPPON SANSO, and Westfalen Group (SERgroup Holding International).
Commenting on the report, an analyst from Technavio’s team said: “The latest trend gaining momentum in the market is vulnerable European refinery sector. Overcapacity, underutilization, thin margins, and shifting ownerships are some of the challenges faced by European oil and gas refineries. European refineries were relatively unprofitable or marginally profitable during 2004-2008. Additionally, European refineries have a structural problem (refining overcapacity and increasing diesel imports), and the problem is further fueled by stiff competition from extremely sophisticated Middle Eastern and Asian refineries.”
According to the report, one of the major drivers for this market is conversion of captive production facilities to on-site manufacturing facilities. Rising oil prices have had a mixed impact on investments, which increased the number of projects involving ASUs. Currently, Central and Southeast European economies are anticipated to witness robust growth. The key contributing factors include favorable macroeconomic policies and strong domestic demand for industrial gases in these regions will drive economic growth.
Further, the report states that one of the major factors hindering the growth of this market is production of industrial gases is energy intensive. The operating costs (particularly variable costs) of producing industrial gases significantly go up due to high costs of energy. Energy purchases for smooth operations account for approximately 70% of the production cost for certain industrial gases. The majority of these costs can be attributed to the wholesale cost of electricity. The quality and cost of power are major issues. Additionally, the bulk of the energy to the ASU is supplied through electricity. To optimize costs, grid-connected heat pumps should be economical. This can be achieved if they are operated at high utilization factors.
Air Liquide, Air Products and Chemicals, Messer, The Linde Group, Praxair, Chart Industries, Iwatani, Oknal Industrial & Medical Gases, SOL, TAIYO NIPPON SANSO, and Westfalen Group (SERgroup Holding International).
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