The GCC industrial gases market is likely to account for $1 billion by the end of this year and will grow at a CAGR of 6 per cent over the next 10 years, mainly with the backing from regional heavyweight Saudi Arabia, according to a report by Persistence Market Research (PMR).
Among different types of gases, oxygen, nitrogen, carbon dioxide, and hydrogen are estimated to witness significant adoption throughout the forecast period of 2019-29, stated PMR in its report.
In addition, rapidly growing sales of Argon is likely to result in increased market share in the years ahead, it added.
According to the report, the demand for industrial gases is expected to be driven majorly by the expansion of the healthcare industry, automotive and aerospace industry, growing metallurgy activities, chemical industry, and surging demand from other end-use industries.
Total value of contracts awarded for large-scale projects in GCC has been estimated at $172 billion in 2015. Ongoing investments in large-scale infrastructure projects and rampant investment in the core industrial sector is expected to drive the demand for industrial gases through 2029.
In addition, several large-scale infrastructural projects, as a part of the government’s development programme in line with key events such as Dubai Expo 2020 and FIFA World Cup 2022, Qatar, are expected to emerge as major drivers for rise in demand for industrial gases in the region, stated the PMR report.
Furthermore, global players are focusing on increasing their market shares in the GCC region by entering into strategic partnerships and joint ventures with regional players as well as investment groups.
Moreover, refining, chemicals, welding and metal fabrication and energy, and oil and gas are estimated to remain key application sectors of the industrial gases, it added.
On the basis of geographical outlook, Saudi Arabia is projected to be a significant market for industrial gases in the GCC region, and is anticipated to grow at a CAGR of 6% during the forecast period, said experts.
The whole focus is on reducing economic dependency on the energy sector by empowering the other sectors, they added.
Recent turmoil in the global oil and gas industry has led the regional government to rethink and brood over its dependency on this industry, said PMR in its report.
Governments of GCC countries are focusing on increasing investments in other sectors such as manufacturing, tourism, and medical and healthcare, in addition to reducing their economic dependency on oil and gas/petroleum sectors.
This economic shift requires significant infrastructural development, which consequentially, is expected to drive the demand for industrial gases in the GCC region throughout the forecast period.
Industrial gases are expected to find significant demand in GCC, particularly driven by increasing capital expenditure for construction activities and mega infrastructure projects planned in the region in the near future.
In the region, Saudi industrial gases market is expected to reign supreme in the overall GCC industrial gases market with largest volume of industrial gas consumption by the country over the next 10 years.
Significant industrial activities in the region is estimated to contribute towards the increasing demand for industrial gases, stated the report.
After Saudi Arabia, the UAE and Qatar are projected to hold prominent market shares in terms of both volume and value, owing to various infrastructural developments and growing chemical industry in the two countries, it added.
The prominent market players in the region are global giants Air Liquide, Linde, Air Products and Chemicals and Praxair besides regional players such as Gulf Cryo, Buzwair Industrial Gases Factory, Bristol Gases, Dubai Industrial Gases, Abdullah Hashim Industrial & Equipment, Mohsin Haider Darwish, National Industrial Gas Plants and Yateem Oxygen.
