South East Asia Industrial Gases Market – By Type , By Storage Method , By Distribution , By Application , By End-User , By Geography – Opportunity Analysis & Industry Forecast, 2024-2030.

South East Asia Industrial Gases Market Overview

The South East Asia Industrial Gases Market size is estimated to reach $11.4 billion by 2030, growing at a CAGR of 6.9% during the forecast period 2024-2030. Growth of the SEA Industrial Gases market can be attributed to improving economies of SEA countries’ economies, growing energy demand, and healthcare needs. The growing need for alternate sources of energy sources leads to investments in gasification plants that require high amount of gases which is set to drive industrial gases market. Gases used for various industrial and manufacturing processes are known as industrial gases. Most of these gases are manufactured relatively in large quantities and are found in all three states of matter that is solid, liquid and gas. These gases are supplied to customers in the form of liquid or gas via cryogenic cylinders, gas cylinders, or glass bottles/ampules and are used in a variety of industries according to their physical and chemical properties. Industrial gases such as liquid nitrogen, carbon dioxide, oxygen and argon welding gas have majority of applications in metal, polymer as well as food industries.

A major trend in this market is the increasing demand for industrial gases in healthcare, particularly oxygen, due to the COVID-19 pandemic and a rising focus on improving healthcare infrastructure. Another notable trend is the expanding application of industrial gases in the electronics and semiconductor industries, driven by the region’s burgeoning technology sector and increasing production of electronic devices. The push towards sustainability is also influencing the market, with a growing emphasis on the use of industrial gases in renewable energy applications, such as hydrogen for fuel cells and carbon capture and storage technologies. Additionally, advancements in gas production technologies, such as on-site gas generation and cryogenic air separation, are enhancing efficiency and reducing costs. There is also a trend towards consolidation in the market, with major players engaging in mergers and acquisitions to strengthen their market position and expand their geographic reach. These trends, coupled with supportive government policies and investments in infrastructure development, are expected to drive the growth of the industrial gases market in South East Asia in the coming years.

Market Snapshot: 

South East Asia Industrial Gases Market - Report Coverage:

The “South East Asia Industrial Gases Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the South East Asia Industrial Gases Market.

COVID-19 / Ukraine Crisis - Impact Analysis:  

• The South East Asia Industrial Gases market faced initial disruptions due to lockdowns and reduced industrial activities, impacting demand from sectors like manufacturing and healthcare. However, recovery was driven by increased medical oxygen needs and resuming industrial operations, especially in China and Southeast Asia, bolstering market growth post-2020.
• The Ukraine crisis prompted concerns over energy security and supply chain disruptions in APAC as well as South East Asia specifically, affecting industrial gas supply, particularly helium and natural gas imports. Geopolitical tensions and potential sanctions impacted market stability, leading to price volatility and strategic shifts in sourcing and production locations within the region to mitigate risks and ensure continuity in supply.

Key Takeaways:

• Indonesia to Register Largest Market

Indonesia is poised to emerge as the largest country in South East Asia for the Industrial Gases Market with a revenue share of 36.1% in 2023. The exploration of new applications for industrial gases, such as additive manufacturing, food processing, and water treatment, opens up opportunities for market expansion in Indonesia. Innovation and collaboration drive the adoption of gases in unconventional sectors, fostering market growth. For instance, In March 2023, Samator Indo Gas Tbk. announced a significant minority stake acquisition by CVC Capital Partners for approximately US$155 million, allowing the Harsono family to retain majority control. This strategic investment aims to enhance the company's position in Indonesia's industrial and medical gas sector, leveraging CVC's global expertise for growth and operational excellence, meeting the increasing demand for industrial gases.

•  Nitrogen Type is Leading the Market:

The Nitrogen segment accounted for the largest share in 2023 at 37.2% share. Growing demand for chemical analysis drives the use of nitrogen for sample preparation, spurring market growth for nitrogen gas suppliers catering to laboratories and research facilities. Nitrogen's versatile applications in fertilizer, nylon, and dye production fuel market growth in the chemical industry, with increasing demand for nitrogen as a key industrial gas. Nitrogen plays a critical role in steel manufacturing processes like melting, ladle treatment, and casting. It directly influences steel's hardness, formability, and aging properties, contributing to the production of high-quality steel products in various industries. The growing Nitrogen plants across the region is anticipated to satisfy the need for nitrogen gas across the region for instance, June 2023, in the Bayan Lepas Free Industrial Zone and Batu Kawan Industrial Park in Penang, two nitrogen facilities will be constructed, owned, and run by Air Products, a globally renowned industrial gases firm that has been providing services to Malaysia for almost 50 years.

• Cryogenics is to Register the Highest Growth:

The Cryogenics segment is analyzed to grow with the highest CAGR of 8.2% in South East Asia Industrial Gases from 2024 to 2030. The growing emphasis on renewable energy sources, particularly hydrogen-based technologies, coupled with advancements in cryogenic applications across industries, is expected to drive the demand for liquid hydrogen in the South East Asia industrial gases market, promotes substantial growth opportunities in the coming future. The cryogenic industry is continuously evolving, with the development of advanced technologies and applications, such as cryogenic energy storage, cryogenic fuel systems, and cryogenic waste treatment. These advancements are driving the demand for specialized cryogenic gases and equipment.

• Expanding Uses in the Pharmaceutical Sector:

The pharmaceutical industry's burgeoning demand for industrial gases stands as a pivotal driver of accelerating growth in the South East Asia industrial gas market. These gases, crucial for various pharmaceutical processes such as manufacturing, packaging, and preservation, play an indispensable role in ensuring product quality and efficacy. Technological advancements in medical devices and equipment require precise and reliable gas supply systems. Industrial gases such as oxygen, nitrogen, and carbon dioxide are essential for medical gas therapy, diagnostic imaging, and cryopreservation, driving the demand for these gases in the SEA healthcare industry. There is a growing emphasis on preventive healthcare in South East Asian countries, leading to increased awareness and adoption of wellness programs and health screenings. Industrial gases are used in medical gas mixtures for diagnostic testing, therapeutic treatments, and medical research, supporting preventive healthcare initiatives in the region.

• Growing Need for Industrial Gases in Food & Beverage Industry:

The demand for industrial gases in the food and beverage industry in the South East Asian region is experiencing significant growth driven by several key factors. There is a growing emphasis on sustainable packaging solutions in the food and beverage industry to reduce environmental impact. Industrial gases enable the use of eco-friendly packaging materials and processes, supporting the adoption of sustainable packaging practices across the region. The rise of food delivery services and online food platforms in SEA countries increases the demand for packaged and ready-to-eat foods. Industrial gases facilitate food preservation and packaging, ensuring the quality and safety of food products during transit and storage in the delivery supply chain. The expansion of food retail chains and supermarkets in these countries creates opportunities for food and beverage manufacturers to supply a diverse range of products. Industrial gases support the efficient production and storage of packaged foods, enabling manufacturers to meet the demands of retail distribution networks. The demand for food manufacturing sector, glass and steel industries are growing. For instance, In April 2023, Air Products, a leading industrial gases company, constructed two nitrogen plants in Penang's industrial zones to meet the growing demand from the food, steel and glass industries. This strategic investment aims to support Air Products' position in Northern Malaysia and support the region's food manufacturing sector, contributing to its sustainable growth.

• Limitations on the Hazardous Effects of Industrial Gases on Environment:

The hazardous effects of industrial gases on the environment have made them a major environmental concern. the damaging impacts of industrial gases on the environment, emphasizing pollution and its aftereffects. For their part in greenhouse gas emissions and climate change, the main offenders such as carbon dioxide and methane are being looked at, and also emphasize the harmful effects of nitrogen oxides, sulfur dioxide, and fluorinated chemicals on acid rain, ozone depletion, and air quality. For instance, as per Echo Credit Ltd., Methane remains in the atmosphere for around 12 years and contributes about 16% of greenhouse gas emissions. The main issue with industrial gases is that they are a contributing factor to global warming. Methane and carbon dioxide, two of the main culprits, are greenhouse gases (GHGs). Greenhouse gases (GHGs) are responsible for trapping heat in the Earth's atmosphere, which results in global warming. The burning of fossil fuels, deforestation, and intensive farming have increased CO2 levels alarmingly, which is directly related to the rising average global temperature. Carbon capture and storage (CCS), energy efficiency, renewable energy adoption, and green chemistry practices are just a few of the mitigation techniques and sustainable alternatives that are urgently needed to combat the environmental threat posed by industrial gases, stringent emission restrictions must be put into place.
  

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Key Market Players: 

Product launches, approvals, patents and events, acquisitions, partnerships and collaborations are key strategies adopted by players in the South East Asia Industrial Gases market. The top 10 companies in this industry are listed below:

1. Linde PLC
2. Air Liquide S.A.
3. Taiyo Nippon Sanso Corporation
4. Air Products and Chemicals, Inc.
5. Yingde Gases
6. Iwatani Corporation
7. Air Water Inc.
8. HangYang
9. The Messer Group GmbH
10. BASF SE

Scope of the Report: