Global Air Separation Unit Market - Growth Trends and Forecasts (2018 - 2023)
A typical air separation unit/plant divides atmospheric air into the three pure gaseous components of nitrogen (N2), oxygen (O2), and argon (Ar). In addition, the plant separates other rare inert gases (krypton, xenon, helium, neon) through cryogenic rectification of air. The growing demand for industrial & specialty gases in the oil & gas industry and increased purity level of gases, owing to technological advancements in distillation and filtration capabilities, are some of the factors that are expected to drive the air separation unit market during the forecast period.
Increasing Usage of Industrial Gases in Various Industries - Driving the Air Separation Unit Market
The demand for industrial gases, such as nitrogen, oxygen, argon, and others, have been increasing for application in various industries. Nitrogen is used to improve oil & gas recovery. One of the drivers for nitrogen demand is the expansion of the global infrastructure to enable the production, transport, and use of liquefied natural gas (LNG). Nitrogen has heavy usage at every stage of LNG supply chain. The increasing establishments of commercial gasification facilities will have massive oxygen requirements. Moreover, developments in the Oxyfuel Combustion process are expected to drive demand for tonnage oxygen, during 2018-2023 (the forecast period). The increasing usage in the electronic and food industries is accelerating the demand for argon, which is anticipated to drive the global demand for air separation units.
Asia-Pacific to Dominate the Market Growth
In 2016, Asia-Pacific accounted for the largest share of the global air separation unit market. The growth of Asia-Pacific can be attributed to the increasing demand for air separation units from the iron & steel, oil & gas and chemical end-user segments. This region is projected to dominate the global air separation unit market, during the forecast period. Moreover, North America is projected to be the fastest-growing region, during the forecast period. The stringent environmental regulations are also driving the market, owing to the increased use of pure oxygen over the ambient air, to burn coal or natural gas in power stations, in order, to promote clean technology initiatives and curb pollution, worldwide.
China to Dominate the Air Separation Unit Market in Asia-Pacific
In Asia Pacific, China dominates the air separation unit market. The increasing demand for industrial gases from industries, such as chemicals & fertilizers, petrochemicals, metal, electronics & semiconductors, refinery, automotive, and food & beverage, drives the demand for air separation unit in the country. In terms of demand, China dominates the chemical industry. The increasing demand for chemicals contributes majorly to the demand for industrial gases. Hence, the rising demand for industrial gases is expected to positively influence the demand for air separation unit in the country. In addition, China is increasing the production of steel to cater to the growing demand, which is likely to add to the demand for the air separation unit in the country in the coming years.
Key Developments in the market