Air Separation Plant Market Size, Share Global Analysis Report, 2023 – 2030

Industry Insights

[206+ Pages Report] According to Facts and Factors, the global air separation plant market size was valued at USD 5.32 billion in 2022 and is predicted to surpass USD 7.72 billion by the end of 2023. The air separation plant industry is expected to grow by a CAGR of 4.79%.

Market Overview

An air separation plant is used to separate the air into its various components like oxygen, nitrogen, argon, and others. The process includes the compression and cooling of the air, which is further sent to fractional distillation to filter its components on the basis of their boiling points. These components have a large number of applications in various end-user sectors like chemicals, electronics, metallurgy, healthcare, and more.

Key Insights

• As per the analysis shared by our research analyst, the global air separation plant market size is estimated to grow annually at a CAGR of around 4.79% over the forecast period (2023-2030).
• In terms of revenue, the global air separation plant market size was valued at around USD 5.32 billion in 2022 and is projected to reach USD 7.72 billion by 2030.
• Industrial and manufacturing expansion is expected to positively influence the growth of the global air separation plant market.
• Based on the type, the cryogenic segment is expected to swipe the largest share of the global market.
• Based on the gas, nitrogen is the fastest-growing segment in the global market.
• Based on the end user, the chemical industry segment accounts for the largest share of the global market.
• Based on region, North America is expected to dominate the global market during the forecast period.           

Growth Drivers

• Industrial and manufacturing expansion is expected to propel the growth of the global market.

The increasing demand for industrial gases from the end user sectors like electronics, chemicals, metallurgy, and a few others drives high demand for air separation plants, which is likely to increase the total revenue of the air separation plant industry in the coming years.

Additionally, the wide expansion of manufacturing industries poses a huge demand for gases like nitrogen and oxygen for the production process, which is also anticipated to expedite the demand for air separation plant installations.

Moreover, the high growth rate of the power and energy sector that involves both renewable energy and traditional energy sources is expected to contribute heavily towards the growth of the industry. These plants are vital for the production of oxygen, which is highly used in various power generation processes like gasification and combustion.

For instance, Emmerson Mnangagwa, the president of Zimbabwe, announced the launch of an innovative air separation plant to align with the growing need for medical oxygen. The launched unit holds the ability to produce 20 tonnes of oxygen gas.

Restraints

• High initial investment and low payback periods are expected to restrict the growth of the global market.

Air separation plants require high capital investment for the implementation of technology, framework, infrastructure, and equipment. However, such a landscape is likely to deter potential investors from entering the market. Moreover, these projects offer extended payback periods, which is a big factor expected to slow down the growth of the global air separation plant market.

Opportunities

• Development of the hydrogen economy is likely to offer lucrative growth opportunities in the global market.

The growing interest of giant companies and developed economies in hydrogen-based energy systems is likely to widen the scope of the air separation plant industry. Air separation plants play a vital role in producing high-purity hydrogen gas.

Therefore, the development of the hydrogen economy is likely to offer lucrative growth opportunities in the industry. For instance, Nippon Gases said to sign the agreement with Cogne Accicai Speciali in November 2021. The agreement will help the company to grow its efficiency and lower its energy consumption in production.

Challenges

• Technical expertise is a big challenge in the global market.

Operating the air separation plants needs specialized technical expertise. However, the lack of skilled personnel in the industry is a big challenge in the global air separation plant market. Additionally, maintaining these plants and efficient optimization of the facilities further requires qualified professionals. However, such a landscape is likely to hamper the growth of the industry.

Segmentation Analysis

The global air separation plant market can be segmented into type, gas, end user, and region.

By type, the market can be segmented into cryogenic air plants and non-cryogenic air separation plants. The noncryogenic air separation plants can further be bifurcated into membrane separation, vacuum pressure swing adsorption, pressure swing adsorption, and others.

The cryogenic segment is expected to swipe the largest share of the air separation plant industry during the forecast period because of the growing need for alloys and metal fabrication. The segment is likely to grow with a high CAGR because of its high efficiency in producing bulk quantities of high-quality gases.

By gas, the market can be segmented into diesel, argon, nitrogen, and oxygen. Nitrogen is the fastest-growing segment in the global air separation plant market because of the high demand for this particular gas. Nitrogen is a crucial industrial gas that is used in several end-user sectors. It has a large number of applications like inserting, purging, blanketing, etc.

The electronics sector poses a high demand for pure nitrogen for manufacturing semiconductors. However, the demand for semiconductors and electronic devices is growing exponentially, which is likely to further raise the demand in the segment. Nitrogen is widely used for food preservation and packaging purposes in order to extend the product’s shelf life.

Additionally, the oiling & gas sector is further posing a high demand for nitrogen because the gas is widely used in oil recovery and well-stimulation processes. Also, nitrogen, such as cryotherapy and cryopreservation, is likely to further be expected to foster new developments in the segment.

By end user, the market can be segmented into oil & gas, paper & pulp, food & beverage, health care, iron & steel, chemical, and other industries. The chemical industry segment accounts for the largest share of the air separation plant industry because of the high significance of various gases like argon, oxygen, nitrogen, and other sectors. These gases are widely used in the industrial process of cooling, inverting, and oxidation.

Moreover, these plants help companies offer a reliable source of high-quality gases needed for producing chemicals. These plants are crucial for maintaining the process efficiency and quality of products. The segment is likely to see significant growth in the forthcoming years due to its growing domination in various industries in the global marketplace.

Furthermore, the healthcare sector is also expected to witness notable growth in the forthcoming years due to the high growth rate of the healthcare industry in the market. The pandemic in 2020 has significantly increased the demand for medical oxygen, which is likely to positively impact the growth of the segment in the coming years. The underdeveloped and emerging economies are working heavily towards improving the healthcare infrastructure, which is likely to offer lucrative growth opportunities in the forthcoming years.

Report Scope

Regional Analysis

• North America accounts for the largest share of the global market.

North America is expected to witness huge growth in the air separation plant market during the forthcoming years due to the high growth rate of various end-user sectors in the region. Air separation plants play a vital role in supplying gasses like argon, oxygen, and nitrogen to different sectors like food processing, electronics, chemicals, and metallurgy.

The fast-growing healthcare sector is another major factor positively impacting the growth of the regional market. Oxygen is a critical component in medical applications like surgeries and respiratory therapies. Therefore, the high demand for medical-grade oxygen further contributes to the growth of the market.

Additionally, the growing investments by major market players in expanding their production capacity and upgrading their existing plants to meet the increasing need for industrial gases are further likely to foster developments in the regional market.

Asia Pacific is also likely to see significant developments in the forthcoming years due to the fast-growing economic infrastructure in the region. Furthermore, the region is witnessing rapid industrialization in the growing economies like India, China, Japan, and other Southeast Nations, which is likely to boost demand for industrial gases like oxygen and nitrogen

Consequently, the landscape is expected to contribute heavily towards the growth of the regional market. Increasing regulatory pressures and environmental awareness are further anticipated to develop more environment-friendly and energy-efficient air separation processes. For instance, Air Liquide, in January 2022, is said to have made an INR 350 crore investment in the air separation unit, particularly functioning for industrial merchant activities in Uttar Pradesh, India.

Competitive Analysis

The key players in the global air separation plant market include:

• Hangzhou Hangyang Co. Ltd. 
• Messer Group GmbH 
• Taiyo Nippon Sanso Corporation 
• Universal Industrial Gases Inc. 
• Enerflex Ltd. 
• Cryogenmash JSC 
• Air Products and Chemicals Inc. 
• Praxair Inc. 
• Air Liquide S.A. 
• Linde plc.

For instance, Linde India Ltd signed a 15-year agreement in February 2022 with ESL Steel Ltd to supply around 900 mt of nitrogen and 800 mt of oxygen to the steel mill.

The global air separation plant market is segmented as follows:

By Type Segment Analysis

• Cryogenic Air Separation Plants
• Non Cryogenic Air Separation Plants

By Gas Segment Analysis

• Diesel
• Argon
• Nitrogen
• Oxygen

By End User Segment Analysis

• Oil & Gas
• Paper & Pulp
• Food & Beverage
• Health Care
• Iron & Steel
• Chemical
• Other Industries

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America