The global air separation plant market size was valued at USD 4.36 billion in 2020 and is expected to grow at a CAGR of 5.0% during the forecast period. Air separation plants are used to extract high purity gases such as nitrogen, oxygen, and argon from the atmosphere. The separation process includes a mix of adsorption purification, cryogenic distillation, and internal compression at high pressure.
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The outbreak of COVID-19 has resulted in a significant increase in air separation plants across the globe. With the considerable increase in the number of cases, healthcare facilities are in dire need of medical oxygen to treat affected patients.
The global COVID-19 outbreak has disrupted the supply chain across the globe leading to scarcity of raw material, decreased deliveries, roadblocks, and other logistic issues, especially in developing economies. The supply of oxygen from industrial sectors is being diverted to healthcare facilities to cater to the growing requirements.
To overcome the shortage of medical oxygen, air separation units are being established to ensure the continuous supply of medical oxygen to hospitals. However, the pandemic has severely affected industries such as industrial manufacturing, transportation, oil and gas, chemical, and automotive, hampering the separation market growth.
The different industries that use the plants include oil & gas, mining, chemicals, energy and power, electronics, aerospace, biotechnology, and pharmaceuticals, among others. The rising industrialization, growing environmental concerns, and technological advancements have further boosted the sale of air separation plants across the globe. The rise in demand for pure gases for improved manufacturing and growing use in emerging applications supports market growth. Increasing environmental concerns and stringent government regulations have further aided separation market growth.
The different separation processes used in air separation plants are cryogenic and non-cryogenic. The cryogenic process is majorly used in medium to large-scale plants to produce pure gases or liquid products. It is a cost-effective process for the production of high-quality gases by high production rate plants.
The growth in chemical, oil & gas, and iron & steel industries is expected to drive the air separation plant market. Growing disposable income coupled with changing lifestyles has resulted in increased demand for food & beverages, resulting in more significant oxygen, nitrogen, and carbon dioxide requirements from the sector. The growing need to improve manufacturing productivity and increasing modernization of manufacturing processes accelerates the adoption of air separation plants across the globe.
There has been considerable growth in market demand for oxygen from the healthcare industry to cater to patients in emergency rooms and intensive care units. The introduction of strict industrial emissions and environmental regulations has increased the demand for air separation plants from the industrial and manufacturing sectors.
The market is primarily segmented on the basis of gas, process, end-use, and region.
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On the basis of gas, the market is segmented into oxygen, nitrogen, argon, and others. The demand for nitrogen is expected to increase during the forecast period. Its application has increased in the chemicals and food & beverages market sectors. The separation plants are used to produce high purity nitrogen for laser cutting, electronics soldering, and pharmaceutical applications. It is added during the process of manufacturing steel for melting, ladle processing, and casting operations. It can be utilized for the removal of contaminants from process streams through stripping and sparring.
On the basis of process, the market is segmented into cryogenic distillation and non-cryogenic distillation. Cryogenic separation processes are primarily utilized in medium to large-scale plants to produce gases such as nitrogen, oxygen, and argon. This process yields extremely high purity oxygen and nitrogen. It is used by high production rate plants owing to its high efficiency and cost-effectiveness. Gas-producing plants use less power as compared to plants producing liquids.
On the basis of the end-use, the separation market is segmented into healthcare, chemical, iron and steel, oil and gas, and others. The iron and steel segment accounted for a significant share in 2020. The growth in the global iron and steel industry coupled with the increasing application of iron and steel in diverse industries such as aerospace, construction, and automotive drives the growth of this segment. Investments in R&D and technological advancements further boost the growth of this market segment.
Asia Pacific market is expected to grow at a significant rate during the forecast period. Increasing industrialization coupled with growing metal production in the region has fueled the adoption of air separation plants. The demand for air separation plants has increased from industries such as iron & steel, chemical, and oil & gas in the region.
Air separation plants have been utilized in the healthcare sector during the COVID-19 outbreak to care for critically ill patients. The market growth in manufacturing activities, increasing demand for photovoltaic cells, and application of specialty gases in the industrial sector are factors expected to provide growth opportunities in the region during the forecast period.
The leading players in the air separation plant market include Air Liquide SA, Air Products and Chemicals, Inc., Air Water Inc., AMCS Corporation, China air separation equipment Co., Ltd., CRYOTEC Anlagenbau GmbH, Daesung Industrial Co., Ltd., Enerflex Ltd., Gas Engineering, LLC, Gulf Gases, Inc., Hangzhou Hangyang Co., Ltd., Linde Plc, Messer Group GmbH, NOVAIR MEDICAL, Phoenix Corporation, Praxair Technology, Inc., Taiyo Nippon Sanso Corporation, Technex, Toro Equipment, WesTech Engineering, Inc., and Yingde Gases Group Co., Ltd.
These market companies are taking initiatives to strengthen their market presence by introducing advanced solutions for its customers. These market players are also collaborating with other market leaders to expand their offerings and acquire new customers.
Market size value in 2020
USD 4.36 billion
Revenue forecast in 2028
USD 6.37 billion
5.0% from 2021 - 2028
2016 - 2019
2021 - 2028
Revenue in USD million/billion and CAGR from 2021 to 2028
By Gas, By Process, By, End-Use, By Region
North America, Europe, Asia Pacific, Latin America, Middle East & Africa
Air Liquide SA, Air Products and Chemicals, Inc., Air Water Inc., AMCS Corporation, China air separation equipment Co., Ltd., CRYOTEC Anlagenbau GmbH, Daesung Industrial Co., Ltd., Enerflex Ltd., Gas Engineering, LLC, Gulf Gases, Inc., Hangzhou Hangyang Co., Ltd., Linde Plc, Messer Group GmbH, NOVAIR MEDICAL, Phoenix Corporation, Praxair Technology, Inc., Taiyo Nippon Sanso Corporation, Technex, Toro Equipment, WesTech Engineering, Inc., and Yingde Gases Group Co., Ltd.