Air Separation Plant Market Size, Share & Trends Analysis Report By Process (Cryogenic, Non-cryogenic), By Gas (Nitrogen, Oxygen, Argon), By End-use (Iron & Steel, Oil & Gas), By Region, And Segment Forecasts, 2023 - 2030

Air Separation Plant Market Size & Trends

The global air separation plant market size was estimated at USD 5.76 billion in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 4.6% from 2023 to 2030. The market is predominantly shaped by specific industrial and innovation-related factors, including the expansion of the iron & steel industry, the advancement in the chemical industry, the burgeoning economies of emerging nations, and increased Foreign Direct Investment (FDI) inflows into the industrial sector. Increased awareness of workplace safety and the importance of providing workers with high-purity gases contribute to the growth of air separation plant installations. In addition, ensuring a reliable and consistent supply of industrial gases has become a priority for many industries. This drives investment in air separation infrastructure to secure the supply chain.

Infrastructure projects, such as Liquefied Natural Gas (LNG) facilities, require substantial quantity of oxygen and nitrogen, supporting the demand for air separation plants. In addition, the petrochemical and oil & gas industries require large quantity of nitrogen and oxygen for various processes. Expansion and development in these sectors lead to a higher demand for air separation plants. The healthcare industry also relies on medical gases for patient care and treatment. As the global population continues to grow and age, there is a rising demand for medical gases, driving the growth of air separation plants. The expansion of various industries, such as steel manufacturing, chemical processing, and healthcare, requires a consistent supply of these gases, which are produced by air separation plants.

Various industries, including oil & gas, mining, chemicals, energy and power, electronics, aerospace, biotechnology, and pharmaceuticals, utilize air separation plants. The increasing levels of industrialization heightened environmental awareness, and continuous technological advancements have significantly propelled the sales of air separation plants worldwide. This surge in demand for pure gases to enhance manufacturing processes and their expanding use in emerging applications contributes to the growth of the market. Additionally, mounting environmental concerns and the implementation of strict government regulations have further facilitated the expansion of the market.

The increasing imperative to enhance manufacturing efficiency and the ongoing modernization of manufacturing methods are driving the widespread adoption of air separation plants on a global scale. Notably, there has been a substantial surge in the market requirement for oxygen, particularly from the healthcare sector, to address the needs of patients in emergency rooms and intensive care units. Furthermore, the implementation of stringent industrial emissions and environmental regulations has led to heightened demand for air separation plants within the industrial and manufacturing sectors.

Gas Insights

The nitrogen gas segment is expected to show lucrative growth from 2023-2030. Nitrogen gas is essential in various industrial sectors, including chemicals, petrochemicals, metallurgy, and electronics manufacturing. The growth of these industries drives the demand for nitrogen gas. Further, rapid industrialization in emerging economies increases the demand for industrial gases, including nitrogen, to support manufacturing and infrastructure development.

Oxygen gas is essential in the healthcare industry for various medical treatments, including respiratory support for patients with breathing difficulties. The increasing demand for medical oxygen, especially during health crises, drives the oxygen gas segment. In addition, oxygen gas is also used in Modified Atmosphere Packaging (MAP) to extend the shelf life of food products. The expanding packaged food and beverage industry contributes to oxygen gas demand.

End-use Insights

Advancements in iron & steel production techniques, including oxygen-enhanced combustion and oxygen steelmaking processes, drive the need for high-purity oxygen from air separation plants to improve production efficiency. In addition, stricter environmental regulations in the iron & steel industry have led to the adoption of cleaner and more efficient production processes, often involving the use of industrial gases like oxygen and nitrogen from air separation plants.

The oil & gas sector is a primary source of energy for various industries and transportation. As global energy demand continues to rise, the exploration, production, and refining of oil & gas require substantial quantity of industrial gases, such as oxygen and nitrogen, produced by air separation plants. Moreover, the oil & gas industry employs techniques like EOR, where nitrogen is injected into reservoirs to increase oil recovery. The demand for nitrogen for such purposes supports the growth of air separation plant usage.

Process Insights

The cryogenic process segment accounted for a market share of 65.4%, in terms of revenue, in 2022. The increasing industrialization and expansion of industries like steel, chemicals, and healthcare drive the demand for cryogenic air separation plants. Moreover, cryogenic processes can adhere to strict environmental regulations and emission standards, making them a preferred choice in industries that prioritize sustainability.

The non-cryogenic process segment accounted for a market share of 34.6%, in terms of revenue, in 2022. Non-cryogenic air separation processes are often more cost-effective to set up and operate, compared to cryogenic methods. This makes them an attractive option for industries with budget constraints. Moreover, in regions where cryogenic infrastructure is less developed or where there are supply chain challenges, non-cryogenic air separation plants can provide a reliable source of industrial gases.

Regional Insights

Asia Pacific dominated the global market and accounted for the largest revenue share of 51.4% in 2022. The APAC region is a hub for electronics and semiconductor manufacturing. These industries require ultra-pure gases like nitrogen, which are produced by air separation plants, for various processes. Furthermore, Asia Pacific countries were investing heavily in their energy sector, including the construction of power plants, both traditional and renewable. Oxygen and nitrogen are used in various energy production processes, contributing to the demand for air separation plants.

Industries in North America are increasingly adopting sustainable and environment-friendly practices, including the use of industrial gases for cleaner and more efficient processes. The development of renewable energy sources, such as wind and solar power, requires the production and storage of gases like nitrogen. Air separation plants play a significant role in supporting these clean energy initiatives. Additionally, stringent environmental regulations in North America necessitate the use of industrial gases for emissions control and pollution abatement, driving the adoption of air separation plants.

Europe boasts a diverse industrial base, including manufacturing, chemicals, automotive, and aerospace. The need for industrial gases, such as oxygen and nitrogen, for various processes within these industries drove the demand for air separation plants. In addition, Europe has a significant steel and metals industry that relies on oxygen and nitrogen for steelmaking and related processes. Infrastructure development and construction projects supported the demand for steel and, consequently, oxygen from air separation plants.

Key Companies & Market Share Insights

The market is highly fragmented, with numerous small to large manufacturers and suppliers competing for market share. This fragmentation offers a wide selection of equipment, and customization choices to buyers while catering to specific industry needs. To meet the rising demand from a diverse range of industries, the market players are pursuing business growth through strategies such as mergers and acquisitions, the establishment of new manufacturing facilities, and geographic expansion initiatives. In February 2023, Veeco Instruments Inc. acquired Epiluvac AB to collaborate with Epiluvac’s technology platform. With this, Veeco’s global go-to-market capabilities are expected to show significant long-term growth. Some prominent players in the global air separation plant market include:

• Air Liquide S.A.

• Linde AG

• Messer Group GmbH

• Air Products and Chemicals, Inc.

• E Taiyo Nippon Sanso Corporation

• Praxair, Inc.

• Oxyplants

• AMCS Corporation

• Enerflex Ltd

• Technex Ltd.

Air Separation Plant Market Report Scope

Global Air Separation Plant Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global air separation plant market report based on process, gas, end-use, and region:

• Process Outlook (Revenue, USD Million, 2018 - 2030)

  • Cryogenic

  • Non-cryogenic

• Gas Outlook (Revenue, USD Million, 2018 - 2030)

  • Nitrogen

  • Oxygen

  • Argon

  • Others

• End-use Outlook (Revenue, USD Million, 2018 - 2030)

  • Iron & steel

  • Oil & Gas

  • Chemical

  • Healthcare

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

    • Spain

    • Italy

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East and Africa

    • UAE

    • South Africa