Report Overview

Increasing investments in mega projects, growing demand from oil and gas midstream sector and rising urbanization & industrialization, and growing application of gases are projected to propel the expansion of Saudi Arabia industrial gases market during the forecast period between 2023 and 2029.

Saudi Arabia Industrial Gases Market - Industry Trends & Forecast Report, 2029

Saudi Arabia industrial gases market size was estimated at USD 2,154.013 million in 2022. During the forecast period between 2023 and 2029, the size of Saudi Arabia industrial gases market is projected to grow at CAGR of 5.53% reaching a value of USD 3,125.003 million by 2029. Major growth drivers for Saudi Arabia industrial gases market include rising investment in mega projects in the Saudi Arabia kingdom. The medical and food processing industries are driving the expansion of the Saudi industrial gases market. According to the chemical company Air Products, industrial gases can be applied to food production processes to increase productivity and aid in the creation of healthy, natural, and organic food products, and they use liquid nitrogen and carbon dioxide in the freezing and chilling of any food product. These gases also assist in the grinding of spices, nutraceuticals, and other compounds. Liquid nitrogen is primarily effective in lowering frictional heat during the grinding process, hence enhancing output and uniformity. It also prevents flavor and fragrance loss during food processing. Also, increased industrialization and urbanization, as well as rising consumer demand from the processing and manufacturing industries, is projected to generate profitable growth prospects for the industry during the period in analysis.

Saudi Arabia Industrial Gases Market – Overview

Elements, molecular compounds, or combinations make up industrial gases. Oxygen, nitrogen, carbon dioxide, hydrogen, and noble gases such as argon, neon, and helium are the most prevalent industrial gases. Oil and gas, chemicals, petrochemicals, metals, fertilizers, nuclear power, electronics, and aerospace are all businesses that employ industrial gases. Air separation facilities, for example, refine air in a separation process, allowing for the bulk production of numerous gases. The Saudi government is investing in megaprojects around the nation. The submittal of industrial gases is fairly common in the construction industry. Saudi Arabia's industrial gas condition will improve in support of not just the energy sector, but also the expanding non-energy industries such as industrial, gas, and chemical. Megaprojects such as the Al Jubail Petrochemical Complex are propelling Saudi Arabia's industrial gases market forward.

Saudi Arabia Industrial Gases Market

Growth Drivers

Growing demand from oil and gas midstream sector

Industrial gases are employed in all three stages of oil refining: separation, conversion, and treatment. High-quality gases improve the quality of the end products refined in an oil refinery as well as the process itself. Nitrogen is used in refineries to blanket tanks, block the discharge of hydrocarbon emissions, and prevent the admission of oxygen into vacuum units. Nitrogen is also utilized to quiet chemical processes and safely shut down or restart the refinery's various units. With the most recent technological advances in the oil and gas upstream industry, world leaders are almost ready to explore previously untapped reserves that they were unable to exploit due to a lack of technology or fluctuating crude prices, implying that the refining industry will also grow with this notion, driving the market growth of industrial gases as well.

Restraints

Stringent laws

Rigorous laws and regulations governing the manufacturing, storage, and transportation of gases are anticipated to stymie market growth throughout the forecast period. Also, industrial gas prices increased in Q4 2021 and Q1 2021 as a result of protracted environmental inspections and the subsequent closure of production facilities, as well as sharp increases in transit costs following the recovery of the markets following COVID-19. Some businesses have voluntarily cut back on production to avoid paying penalties for not meeting pollution standards. As a result, during the projection period, the market's expansion is projected to be significantly hampered by the growing price of industrial gases.

Impact of COVID-19 on Saudi Arabia Industrial Gases Market

COVID-19 had a detrimental impact on almost every industry, resulting in a global health calamity. The investment made for gases in FY2020 dropped as a result of lost operational time due to a lack of staff and reduced profits from end-use sectors as a result of the nationwide lockdown to prevent the virus from spreading. The development of the disease also drastically altered the demand for crude oil, causing oil prices to set new highs. For example, the price of a barrel of oil fell to USD 20.37 in May 2020. It is the lowest since February 2002. As a result of the reduced demand period, the cessation of operations, and international travel bans, production has been affected in a variety of businesses. As a direct result of this, demand for different gases from various end-use industries has plummeted.

Saudi Arabia Industrial Gases Market

Segmental Coverage

Saudi Arabia Industrial Gases Market – By Gas Type

By gas type, Saudi Arabia industrial gases market is segmented Oxygen, Nitrogen, Carbon Dioxide, Acetylene, and Argon. The nitrogen segment dominated the market in 2021. The growing use of nitrogen gas in the cooling of pharmaceuticals and vaccines is expected to have a positive impact on demand during the forecast years. The GCC industrial gas market will see increased demand as a result of possible applications in manufacturing and the growing demand for food processing and packaging. Due to its excellent cryogenic properties, nitrogen gas is frequently used to develop processing and storage processes for food and beverages. In addition to the factors mentioned above, the growing focus of gas providers and manufacturers on establishing onsite units for manufacturing commonly used gases close to industrial clients for ease of delivery will boost product consumption in the Saudi Arabia region.

Saudi Arabia Industrial Gases Market – By Application

Based on application, Saudi Arabia industrial gases market is divided into Healthcare, Manufacturing, Food & Beverages, Metallurgy & Glasses, and Chemicals and Energy. The manufacturing application sector held the highest market share and is expected to expand significantly throughout the forecast period. Because of the rising manufacturing industries in developing countries demand industrial gases such as nitrogen, oxygen, carbon dioxide, and hydrogen is expected to grow significantly in developing economies. The growing need for advanced industrial gases in the electronic industry is likely to drive this segment's growth even further. Over the projected period, the healthcare application segment is expected to develop the fastest. Furthermore, the current COVID-19 pandemic has increased demand for medical-grade industrial gases, particularly oxygen. The market has a high development potential due to a rise in global healthcare spending.

Saudi Arabia Industrial Gases Market – By Distribution & Transportation

Based on distribution and transportation, Saudi Arabia industrial gases market is divided into On-Site, Liquid Gas Transport (Bulk Transport), and Cylinder (Merchant). The on-site segment dominated the market in 2021. Nitrogen gas has shown significant potential in the processing and manufacturing industries, enhancing customer demand. The expanding implementations in food and beverage production, packaging, and storage have given the nitrogen gas application market a large business share. As a result, increased industrial consumer demand for onsite nitrogen gas supply has had an impact on Saudi Arabia region.

Saudi Arabia Industrial Gases Market – By Region

Regionally, Saudi Arabia industrial gases market is segmented into North & Central Region, Eastern Region, Western Region, and Southern Region.

Competitive Landscape

Major players operating in Saudi Arabia Industrial Gases Market Linde SIGAS, Air Products & Chemicals Inc, Air Liquide S.A., Gulf Cryo Saudi, Saudi Basic Industries Corporation, Aldakheel Industrial Gases Plant (DIGAS), Jubail Gas Plant Co., Ltd, ACWA Holding, Taiyo Nippon Sanso Corporation, and Barrak Industrial Gases Factory. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Development

• In January 2021- The Gulf Cryocompany in Saudi Arabia announced its plans to purchase, construct, and operate a CO2 emissions capture system. To produce high-purity, food-grade green CO2, the company plans to triple its present CO2 production capacity in Saudi Arabia and capture over 250,000 tons of CO2 emissions each year.

• In April 2021- Aramco and SABIC announced intentions to reorganize marketing and sales, as well as commercial and supply chain functions, to optimize efficiency and improve customer value. The purpose of this project was to align SABIC with Aramco's strategies.

Scope of the Report

By Gas Type

• Oxygen

• Nitrogen

• Carbon Dioxide

• Acetylene

• Argon

By Application

• Healthcare

• Manufacturing

• Food & Beverages

• Metallurgy & Glasses

• Chemicals and Energy

By Distribution & Transportation

• On-Site

• Liquid Gas Transport (Bulk Transport)

• Cylinder (Merchant)

By Region

• North & Central Region

• Eastern Region

• Western Region

• Southern Region