Air Separation Plant Market

Updated on : June 17, 2024

Air Separation Plant Market

The global air separation plant market was valued at USD 5.4 billion in 2023 and is projected to reach USD 6.8 billion by 2028, growing at 4.6% cagr from 2023 to 2028. The demand for air separation plants is closely linked to the growth of various end-use industries. For instance, the need for air separation plants is very high in the steel industry since steelmaking processes require a lot of oxygen.

Attractive Opportunities in the Air Separation Plant Market

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Air Separation Plant Market Dynamics

Driver: Growing demand for industrial gases from dynamic manufacturing sectors

Air separation plants are in greater demand due to the rising need for industrial gases like oxygen, nitrogen, and argon in several industries. Industrial gases are essential to steel, chemical, and oil & gas production processes. The use of industrial gases in environmental applications has expanded as a result of the growing focus on environmental sustainability and energy efficiency. The need for industrial gases and air separation facilities rises in tandem with the expansion of these sectors.

Restraint: High costs associated with fabrication, component assembly, and operations

Large-scale machinery, including distillation columns, heat exchangers, compressors, and storage tanks, are produced as part of the manufacture and fabrication of air separation plants. These parts frequently require specialized production techniques, which raises the cost. Air separation systems are frequently modified to meet unique application needs and site requirements. The cost of fabrication may go up if the design is customized and site-specific factors are taken into account. Specific materials that can withstand high temperatures and pressures are needed for air separation plants. These materials are frequently more expensive than conventional materials.

Opportunity: Transition to green technologies

As part of broader efforts to minimize carbon emissions and promote sustainability, the industry has placed much importance on converting air separation plants to green technologies. Air separation facilities are looking into integrating renewable energy sources like wind and solar power to meet their energy needs. Installing on-site renewable energy systems or obtaining renewable energy from the grid might be part of this. The carbon footprint connected to the operation of air separation plants can be significantly decreased by employing renewable energy.

Challenge: Hazards associated with cryogenic air separation technology

There are some risks associated with cryogenic air separation technology, which is often used in air separation plants and must be managed appropriately. One of the leading products of air separation facilities is high-purity oxygen. Oxygen enrichment in the atmosphere or small areas can provide a highly combustible atmosphere. Hazards from fire or explosion are now becoming more probable. Stringent safety precautions must be in place to avoid oxygen enrichment and guarantee optimum ventilation.

Air Separation Plant Market Ecosystem

Linde Plc (UK), Air Liquide SA (France), Air Products and Chemicals, Inc. (US), Taiyo Nippon Sanso Corporation (Japan), and Messer Group GmbH (Germany) are the prominent companies in the air separation plant market. These companies are well-established, financially stable, and have a global presence in the market.

Based on the process, the cryogenic segment is projected to grow at a significant CAGR during the forecast period.

Industries that depend on generating industrial gases are some of the factors driving the demand for cryogenic air separation plants. Regulations, economic conditions, and industrial growth impact the market for cryogenic air separation plants. The production of gases that satisfy certain industry requirements and applications is made possible by cryogenic air separation systems' adaptability. The flexibility provided by the ability to change the gas production ratio for various industrial purposes ensures the availability of the necessary gas compositions. The need for industrial gases produced by cryogenic air separation plants is anticipated to stay high as companies grow and technology progresses.

Based on gas, the nitrogen segment accounts for the largest share of the overall market.

Air separation plants produce nitrogen gas in response to the demand for nitrogen, which is interconnected. Nitrogen is a vital industrial gas with many uses in numerous sectors of the economy. As businesses expand, more nitrogen-based processes are adopted, and many industries need better quality control and safety measures; the demand for nitrogen has been constantly rising. These are a few of the crucial applications for nitrogen in the steel sector. The properties of nitrogen, such as its inertness, cooling prowess, and impacts on surface treatment, make it a significant resource at various stages of steel manufacturing, improving the general quality and performance of steel products.

Based on the end-use industry, the iron & gas segment accounts for the largest share of the overall market

Due to the industry’s heavy reliance on industrial gases, air separation plants are in high demand in the iron and steel sector. Global infrastructure development, construction projects, the automobile industry, and other industries are driving up demand for iron and steel. Air separation plants are extensively used in the metallurgical and steel industry for oxygen and nitrogen supply. The need for industrial gases supplied by air separation plants, particularly oxygen, rises in tandem with the expansion of the iron and steel industry.

Asia Pacific is expected to account for the largest share of the global market during the forecast period.

Based on the region, Asia Pacific accounts for the largest share. Because of its rapid industrialization, growing economy, and rising need for industrial gases, the Asia Pacific region represents a sizable market for air separation plants. In terms of technological breakthroughs, the Asia Pacific region is in the lead, and this is also applicable to the market for air separation plants. To increase efficiency, dependability, and cost-effectiveness, advanced air separation technologies such as cryogenic distillation, pressure swing adsorption (PSA), and membrane separation are being used in the region.

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Air Separation Plant Market Players

Linde Plc (UK), Air Liquide SA (France), Air Products and Chemicals, Inc. (US), Taiyo Nippon Sanso Corporation (Japan), Messer Group GmbH (Germany), Daesung Industrial Co., Ltd. (South Korea), Air Water Inc. (Japan), Enerflex Ltd. (Canada), Yingde Gases Group Co., Ltd. (Hong Kong), Inox Air Products Private Limited (India), Hangzhou Hangyang Co., Ltd. (China), Universal Industrial Gases, Inc. (US), Nikkiso Cosmodyne, LLC. (US) and others.

Air Separation Plant Market Report Scope

This research report categorizes the air separation plant market based on process, gas, end-use industry, and region.

Based on the process, the air separation plant market has been segmented as follows:

• Cryogenic
• Non-Cryogenic

Based on gas, the air separation plant market has been segmented as follows:

• Nitrogen
• Oxygen
• Argon
• Others

Based on the end-use industry, the air separation plant market has been segmented as follows:

• Iron & Steel
• Oil & Gas
• Chemical
• Healthcare
• Others

Based on the region, the air separation plant market has been segmented as follows:

• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia & New Zealand
  • Rest of Asia Pacific (Malaysia, Thailand, and Taiwan)
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe (Russia, Ukraine, Poland, and Belgium)
• Middle East
  • Saudi Arabia
  • UAE
  • Qatar
  • Kuwait
  • Oman
  • Rest of the Middle East (Algeria and Egypt)
• North America
  • US
  • Canada
  • Mexico
• Africa
  • South Africa
  • Rest of Africa
• South America
  • Brazil
  • Argentina
  • Chile
  • Rest of South America (Peru, Colombia, and Venezuela)

Recent Developments

• In January 2023, Linde Plc acquired remaining interests in NexAir, LLC to expand its presence in US.
• In May 2023, Air Products and Chemicals Inc. signed an investment agreement with the Government of the Republic of Uzbekistan and Uzbekneftegaz JSC to acquire, own, and operate an industrial gas complex.
• In February 2021, Air Liquide and BASF signed a new long-term contract for the supply of oxygen and nitrogen.

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