Europe Air Separation Unit Market | Market – Overview, Size, Share, Growth, Trends, and Forecasts (2017-2022)
European air separation unit market, valued at USD XX million in 2016, is projected to reach USD XX million by 2022, registering a CAGR of XX%, during 2017-2022 (the forecast period). The growing demand for industrial & specialty gases in oil & gas industry and increased purity level of gases, owing to technological advancements in distillation and filtration capabilities, are some of the factors that drive the air separation unit market.
A typical air separation unit/plant divides atmospheric air into the three pure gaseous components of nitrogen (N2), oxygen (O2) and argon (Ar). Moreover, the plant separates other rare inert gases (krypton, xenon, helium, neon) through cryogenic rectification of air.
The air separation techniques, used around the world, are constantly being re-engineered. Further, the ongoing optimization efforts are aimed at raising the overall operating efficiencies and increasing the production capacity that is possible with a single air separation unit, to reduce the energy consumption and high capital costs associated with producing oxygen and nitrogen. The active R&D activities reduce the energy requirements of air separation units in tonnage quantities.
There are two types of plants involved in the process of separating air into various components, i.e. cryogenic air separation units and non-cryogenic air separation units. The cryogenic air separation processes are used in medium to large scale plants to produce nitrogen, oxygen, argon and other atmospheric gases in liquid or gaseous form. It is the most typical and largest process segment of air separation unit market. The primary factors for the selection of cryogenic process, over other process technology, are low capital and operating expenditure, ease of operation, low maintenance cost, plant and component reliability, process control features and relatively higher capacity.
The European air separation market, based on the type of gases, is segmented into Nitrogen, Oxygen, Argon and others. Nitrogen is used to improve oil & gas recovery. One of the drivers for nitrogen demand is the expansion of planned LNG terminals in the region. Nitrogen has heavy usage at every stage of LNG supply chain, which involves purging, chilling and liquefaction of natural gas; and inerting the LNG during shipboard transportation. Oxygen is utilized during the production of chemicals and for the disposal of waste streams. Growth in the chemical industry, in European countries, drives the demand for air separation units. Moreover, developments in the Oxyfuel Combustion process are expected to drive demand for tonnage oxygen, during 2017-2022 (the forecast period). The efficiency of combustion processes is essential all through the production of iron & steel, oil & gas, non-ferrous metals, brick & concrete and glass.
The European air separation unit market, based on the end-users, is divided into oil & gas industry, steel industry, chemical industry, food & beverage industry, health care industry and others. The chemical and petrochemical industry occupied the largest market share of 17%, with Germany, France and Italy representing two-thirds of this industry’s gas demand. Further, the oil & gas sub-sector was the second largest, among all, with 14% of European industrial gas demand in 2015. The demand for industrial gases, in chemical and oil & gas industry, is fueling the growth of air separation units in Europe. Demand for air separation units for steel industry is projected to grow at a reasonable rate, during 2017-2022 (the forecast period).
Europe is the second largest producer of steel in the world, accounting for 11% of the global output, after China. Steel industries use oxygen for the primary steel making process, which, in turn, will drive the market for air separation unit. The European Commission is working on boosting the industry. The growth in numerous industrial sectors, linked with the steel industries such as automotive, construction, electronics and renewable industries, increases the demand for air separation units in the region. The chemical industry is expected to remain the dominant end-user market for air separation units, throughout the forecast period as well.
The market, based on geographic area, is segmented into Germany, Italy, France, the United Kingdom and Russia. Germany is leading the air separation unit market in the European region. The country is a hub for industrial gases in Europe, with the headquarters of two major international companies, namely Linde and Messer. The European governments, such as Germany and France, allocated a significant share of funds on infrastructure, ranging from 20% to 35%. The increased investments in infrastructure development is a strong area of growth for industrial gases. Recovery of Russia from recession is expected to raise the demand for industrial gases, during 2017-2022 (the forecast period). The growth in Russian petrochemical industry is driving the demand for industrial gases. Moreover, this demand in the United Kingdom is fluctuating every year and growing at an average rate of 2% per annum. The UK market is dominated by BOC/the Linde Group with approximately 50% of market share.
The market for air separation unit is expanding at a rapid pace, however, it is facing some obstacles. Some of the factors that hinder the growth of air separation unit market are high energy consumption, high capital costs, among others. Energy efficiency improvements, structural shifts in the European industry and rising gas prices were some of the factors decelerating the industrial gas demand, which in turn affected the growth of air separation unit market.
The Key Players Active in the European Air Separation Unit Market are:
Air Liquide S.A.
Air Products and Chemicals, Inc.
Messer Group GmbH
Taiyo Nippon Sanso Corporation
Key Deliverables in the Study
Market overview - market analysis and identification of key drivers, restraints and opportunities
Major trends and economic outlook
Value chain analysis
Porter’s five force analysis
Comprehensive summary on the industry sectors and regions poised for the fastest growth
European air separation unit market analysis by process type, gases type, country and industries served
Future outlook of the market
Extensively researched competitive landscape section with profiles of major companies
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