New spark: New applications for industrial gases are likely to open avenues for growth

Industrial gases are primarily used in downstream petroleum refining, chemical processing and metal manufacturing industries. They have also developed applications in food and beverage, health-care and electronics industries. As a result, the performance of the Industrial Gas Manufacturing industry largely reflects demand conditions in these downstream markets. Weak growth in industrial production activity has constrained demand over the past five years, although the essential nature of industry products in many downstream manufacturing processes, in addition to the proliferation of new applications for industrial gases, has provided some resilience to revenue.Revenue is expected to increase at a compound annual rate of 1.2% over the five years through 2019-20, reaching £1.5...read more.

Industry Statistics & Market Size
Revenue
£1.5bn
Annual Growth 15-20
1.2%
Forecast Growth 20-25
Profit
Employment
6,115
Businesses
13

Industry Threats & Opportunities

  • Uncertainty surrounding the EU referendum weighed on growth in the middle of the period
  • The use of oxygen as an enabler in production has risen amid increasing environmental concerns
  • Increasing competition from low-cost overseas firms is expected to increase globalisation
  • Industry Report - Industry Locations Chapter

    Given the nature of the product involved, industry participants tend to locate close to downstream customers. In the case of industrial gases supplied in bulk, transport costs can account for as much as 10% to 20% of the selling price, which effectively means they can only be transported economically within a very limited area. In the case of low-value bulk industrial gases such as oxygen, nitrogen and carbon dioxide, economic transportation distances are thought to be approximately 200 kilometres from the production plant. In the case of higher value bulk gases, the distances can be longer. Travelling distance constraints also exist for cylinder gases with shipping distances determined via the ratio between production costs and end customer prices. It ...purchase to read more.

    Additional Insights for the Industrial Gas Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Industrial Gas Manufacturing Industry are

  • Effective cost controls
  • Having contacts within key markets
  • Provision of superior after sales service
  • IBISWorld analysts also discuss how external factors such as Industrial production index and Demand from iron and steel manufacturing in the Industrial Gas Manufacturing industry impact industry performance..

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    What's in this report

    What is the Industrial Gas Manufacturing Industry?

    This industry covers companies that manufacture liquefied or compressed inorganic industrial and medical gases. These are then mainly used in industrial processes. The most commonly used industrial gases are oxygen, nitrogen, hydrogen, carbon dioxide, acetylene, carbon monoxide, helium and mixtures of these.

    Industry Products
  • Hydrogen
  • Nitrogen
  • Argon and other noble gases
  • Oxygen
  • Carbon dioxide
  • Industry Activities
  • Manufacturing elemental gases
  • Manufacturing liquid or compressed air
  • Manufacturing refrigerant gases
  • Manufacturing inert gases
  • Isolating gases
  • Manufacturing mixed industrial gases
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Industrial production index
  • Demand from iron and steel manufacturing
  • Industrial electricity prices
  • World price of crude oil

  • Current Performance
  • Downstream conditions
  • Switching focus
  • Environmental issues
  • Profit slips
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand trends
  • International influences
  • Green concerns
  • Profit pressures
  • Table: Industrial Gas Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Industrial Gas Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Basic Steel Processing
  • Aluminium Production
  • Water Collection, Treatment & Supply
  • Non-Hazardous Waste Treatment & Disposal
  • Hospitals
  • Specialist Medical Practices
  • Dental Practices

  • Key Selling Industries
  • Electricity Production

  • Products & Services
  • Nitrogen
  • Other
  • Argon and other noble gases
  • Carbon dioxide
  • Oxygen
  • Hydrogen
  • Chart: Industrial Gas Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Industrial users
  • Other and specialised users
  • Food and beverage industries
  • Medical industries
  • Electronics industries
  • Chart: Major Market Segmentation for the Industrial Gas Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitIndustry returns will vary on a year-to-year basis in line with changing energy and raw material costs. However, the industry tends to be a highly profitable one relative to other chemical industries. Expanding demand conditions and historically low oil prices caused margins to expand in the early part of the period. However, input price inflation caused by the devaluation of the pound, in conjunction with rising oil and electricity costs, is expected to cause average profit margins to decline to 10% in the current year, marginally lower than the 10.3% recorded during the base year. WagesPurchasesDepreciationUtilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Industrial Gas Manufacturing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Industrial Gas Manufacturing Industry

  • Industry Globalization
    BOC Ltd, Air Products plc, Air Liquide UK Ltd,
  • Table: BOC Ltd - financial performance
  • Table: Air Products plc - financial performance
  • Table: Air Liquide UK Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Industrial Gas Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Industrial Gas Manufacturing Industry
    Includes:
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Exports (2011-2025)
  • Imports (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Marketing (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Industrial Gases
  • A group of gases that are commercially manufactured and sold for uses in other applications, usually industrial processes. They can take various forms including compressed, liquid or solid forms.
  • Inert Gases
  • Any gas, either elemental or molecular in structure, that does not react under normal circumstances. The noble gases are sometimes referred to as inert, but only helium and neon are truly inert.
  • Noble Gases
  • Gases including helium, krypton, neon and xenon.
  • Olefin
  • Any unsaturated hydrocarbon containing one or more pairs of carbon atoms linked by a double bond. Also referred to as an alkene.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industrial Gas Manufacturing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Industrial Gas Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Industrial Gas Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Industrial Gas Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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