Asia-Pacific Air Separation Unit Market - Growth Trends and Forecasts (2018 - 2023)
In Asia-Pacific, China is expected to lead the air separation unit market. This factor can be attributed to the large domestic solar PV manufacturing and increasing refining & petrochemical capacities, and rising healthcare expenditure that has significantly increased the demand for industrial gases in the country. Based on technology, cryogenic distillation has a larger market share, when compared to non-cryogenic distillation, as the cryogenic unit produces high-purity oxygen gas and has a higher rate of production than the latter. Whereas, non-cryogenic unit possesses better energy efficiency traits as compared to the cryogenic ones.
Development of the Iron & Steel Infrastructure - Driving the Air Separation Unit Market
In Asia-Pacific, the iron & steel industry has witnessed a sluggish growth in the recent years. However, the industry has recovered, and is likely to grow in the coming years. This recovery has led to an increase in focus on the development of the iron & steel infrastructure. The construction of iron & steel plants could result in the installation of air separation units at the project sites, pertaining to iron & steel plants. Moreover, countries, such as India and China, have robust iron & steel infrastructure growth, with China accounting for around 50% of the global steel production. There are new iron & steel projects that are being developed in India.
China: A Country with the Highest Market Share
China is planning to increase the quantity of nitrogen, for the use in oil recovery activities, which is expected to further escalate the demand for industrial gases. The increasing use of industrial gases, such as nitrogen, and oxygen, is projected to emanate the demand for air separation units in the country during the forecast period. In order to reduce its dependence on fossil fuels, China is planning to switch over renewable energy sector, particularly solar. In 2009, the Chinese government identified solar PV manufacturing as a strategic industry and started to focus on accelerating its growth, through the combination of low-cost debt and subsidy. The growing domestic solar PV cell and module manufacturing have resulted in the growth in demand for argon, which, in turn, is likely to boost the demand for air separation units in China, during the forecast period.
Lack of Skilled Manpower: A Market Restraining Factor
Asia-Pacific lacks skilled work force pertaining to industrial gases sector, and proper training facilities are also rare. Therefore, the operations of industrial gas production facilities are hamstrung. The existing issue of skilled manpower shortage would increase, due to lack of training centers, which is a matter of serious concern for developers of air separation units. Therefore, the lack of skilled manpower would be a restrain for the development of air separation units in Asia-pacific in the coming years.
Key Developments in the market