Oxygen gas segment is projected to grow at a CAGR of 6% by 2026- Will India’s Industrial Gas market be able to achieve this mark?: Ken Research
Among the various industrial gases in the market, Oxygen, Nitrogen and Argon dominate the Indian industrial gases market with oxygen taking the lead owing to its use in a wide range of applications, as per a report by Ken Research.
1. Transportation of Gases and Impact of COVID-19 has been two major challenges in India Industrial Gas Market
Solutions to overcome challenges faced by the industrial gas market
India does not have enough cryogenic tankers to ensure 24×7 road transport. The increase in cost for transport and logistics has increased the cost of refilling cylinder. A cylinder that would earlier cost INR 100-150 for refiling, now costs INR 500-2000.
Amid Covid-19 the demand for oxygen started rising, but there were not enough cylinders and tankers to store and transport, 2021. Amid COVID-19, there was a sudden requirement for high production of Oxygen Gas which made the suppliers under pressure to produce oxygen with it’s maximum capability. To tackle the situation, most top players almost stopped making Nitrogen and Argon gases. This situation created a major hurdle for the end users of Nitrogen and Argon Industry.
2. Oxygen will be the most profitable industrial gas due to the versatilities and demand in various industries
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Ease in transportation will help in the increased supply of oxygen in different geographical regions. Industry experts in MP said they plan to use trains to transport oxygen faster instead of solely depending on traditional road transport.
Major companies such as INOX Air Products’ new plants will be strategically located in proximity of high demand growth areas in the states of Maharashtra, Tamil Nadu, Madhya Pradesh, Uttar Pradesh, Andhra Pradesh and West Bengal.
Increasing usage of liquid nitrogen in varied range of medical activities such as cryosurgeries, cryotherapies and cryopreservation, etc., is expected to spur the demand for liquid nitrogen during forecast period. Growing energy market is likely to increase demand of argon due to its application in insulated window and solar energy.
3. Trends and Developments in India’s Industrial Gases Market
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IoT integration has helped in monitoring level and pressure of Gases in the tanks, but also helps in controlling the flowrate downstream of vaporizers, to avoid liquid breakthrough oxygen in the piping and to avoid reaching unsafe velocity of oxygen. This integration technique has been adopted by few big players in the industry. Linde & Praxair the leaders of the industry came together as a monopoly which will give a cut throat competition to other players in the industry.
