USD 5.57 billion
Air Separation Unit Market Size, Share, Growth Analysis, By Process(Cryogenic and Non-cryogenic), By Gases(Nitrogen, Oxygen, Argon, and Others.), By Region - Industry Forecast 2025-2032
Report ID:
SQMIG20I2272 |
Region:
Global |
Published Date: May, 2024
Pages:
202
|Tables:
62
|Figures:
75
Air Separation Unit Market Insights
Air Separation Unit Market size was valued at USD 5.9 Billion in 2023 and is poised to grow from USD 6.17 Billion in 2024 to USD 8.35 Billion by 2032, growing at a CAGR of 4.62% during the forecast period (2025-2032).
Over the past few decades, the global air separation unit markets have undergone a notable transformation, leading to an increase in consumerism. This trend promotes the idea that higher consumption of goods and services is always desirable. Consumer spending has become a primary driver of economic growth, and policymakers often prioritize initiatives aimed at encouraging consumers to spend as a key policy goal.
The air separation unit market is significantly influenced by industrial and innovation factors, such as the growth of the iron and steel industry, developments in the chemical sector, and the expanding economies of emerging countries coupled with increased foreign direct investment (FDI) in industrial sectors. While the market's growth outlook remains uneven, India and China are expected to experience substantial year-over-year growth prospects.
Therefore, increasing demand for industrial gasses from dynamic manufacturing sectors. The growth of the industrial sector has led to the demand for utility gasses, which are critical components used in the fabrication of goods.
Government initiatives and policies aimed at environmental safety are propelling the growth of the air separation unit market, particularly in industrial regions like the Middle East, including Saudi Arabia and the UAE. These regions play a significant role in driving global market expansion. The increasing demand in the chemical sector and the emergence of economies further contribute to creating opportunities for market growth. Additionally, the advancement of industrialization and the growing utilization of industrial gases are key factors aiding the market in achieving its objectives.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
Cryogenic
Fastest Growth
Non-Cryogenic
Growth Rate
4.62% CAGR
Global Air Separation Unit Market ($ Bn)
Country Share for Asia-Pacific Region (%)
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Air Separation Unit Market Segmental Analysis
The global air separation unit market is by process, gases and region. Based on process, the market is segmented into cryogenic and non-cryogenic Based on gases, the market is segmented into nitrogen, oxygen, argon and others. And lastly, based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Analysis by Process
Based on process, the market is segmented into cryogenic and non-cryogenic. The cryogenic process stands as the leading method in the global air separation unit market due to its unparalleled efficiency in producing high-purity gases at large scales. This method is particularly adept at producing high-purity nitrogen, oxygen, and argon, which are essential in a myriad of industries such as healthcare, electronics, metallurgy, and aerospace. The cryogenic process enables the production of gases with stringent purity requirements, crucial for applications like medical oxygen therapy and semiconductor manufacturing. Additionally, advancements in cryogenic technology have led to improved energy efficiency and reduced operational costs, further bolstering its dominance in the market. The logic behind the dominance is driven by the increasing demand for industrial gasses and the growth of key end-user industries. As the cryogenic process enables efficient and reliable separation of air components, it remains the go-to choose for industries seeking high-quality gasses for their operations.
The non-cryogenic process is the fastest-growing segment in the global air separation unit market. The non-cryogenic processes such as pressure swing adsorption (PSA) and membrane separation offer advantages such as lower energy consumption, smaller footprint, and flexibility in production capacities. These attributes make them increasingly attractive for applications which need smaller-scale production or where portability is important. Additionally, advancements in membrane technology and improvements in PSA systems have enhanced their efficiency and reliability, further driving their adoption rate. Moreover, the growing demand for gases such as nitrogen and oxygen across various industries, including healthcare, food and beverage, and electronics also drives the need for more cost-effective and versatile production methods provided by non-cryogenic processes. As a result, the non-cryogenic segment is experiencing rapid growth in the ASU market.
Analysis by Gases
Based on gases, the market is segmented into nitrogen, oxygen, argon and others. Nitrogen stands as the leading segment in the global air separation unit market owing to its wide range of usage across various industries. Nitrogen finds extensive utilization in the food and beverage sector for packaging, preservation, and inverting purposes which ensures product freshness and safety. It is also crucial in the electronics industry for preventing oxidation during semiconductor manufacturing processes, thus maintaining product quality. Additionally, nitrogen is pivotal in the oil and gas sector for enhanced oil recovery techniques and in the pharmaceutical industry for purging and blanketing applications. This versatile nature of nitrogen and its important role across so many sectors drive its prominence, making it the leading segment in the market. Furthermore, its relatively lower cost compared to other gases like oxygen and argon further contributes to its widespread adoption.
Oxygen emerges as the fastest-growing segment in the global air separation unit market due to its role in various industries and their applications. One significant factor driving the rapid growth of oxygen is its increasing demand in healthcare, particularly for medical oxygen therapy and respiratory support systems. As well as the rapidly growing industrial sector, including steel manufacturing, chemical production and wastewater treatment also relies heavily on oxygen for combustion and oxidation processes. Additionally, the expansion of aerospace and automotive industries, where oxygen is used in rocket propulsion and welding operations, respectively also contributes to the growth of the oxygen segment in the market. These factors collectively drive oxygen to be the fastest-growing segment.
Global Air Separation Unit Market By Process
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Air Separation Unit Market Regional Insights
Based on geography, the global air separation unit market is segmented into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa. Asia-Pacific emerges as both the dominating and fastest growing region in the market. This dominance is mainly due to rapid industrialization, a strong manufacturing sector and growing investments in key industries like iron and steel, oil and gas, and chemicals with countries like China and India with significant economic growth and industrial expansion. This surge in industrial activity drives substantial demand for industrial gases such as nitrogen, oxygen, and argon, needed for various manufacturing processes across industries. Moreover, APAC benefits from a large consumer base and its huge manufacturing sector, which further drives the need for air separation plants to meet the growing demand for industrial gases. With countries like China and India leading the industrial growth, this region commands a substantial market share in this market. Its strategic location, favourable government policies, and growing demand for industrial gasses contribute to its dominance, making it a hub for air separation plant installations.
North America emerges as both a leading and fast-growing region in the global air separation plant market. North America's leadership is due to its well-established industrial base, technological advancements, and high demand for industrial gases across various sectors. The region poses mature industries such as manufacturing, healthcare, electronics and aerospace, and all of them heavily depend on industrial gases produced by air separation plants. This region's strong focus on innovation and sustainability drives investments in advanced air separation technologies, enhancing efficiency and reducing environmental impact. Additionally, the region's healthcare sector and strict quality standards contribute to the steady demand for medical gases produced by air separation plants. While North America may not experience the same rapid growth rate as the Asia Pacific region is experiencing, its stable and diversified industrial landscape strengthen its position as a leading and continuously growing market for air separation plants.
Global Air Separation Unit Market By Region
- Largest
- Fastest
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Air Separation Unit Market Dynamics
Drivers
Industrial Growth and Infrastructure Development
- The expansion of industries such as manufacturing, chemicals, metallurgy, healthcare, and electronics as well as infrastructure development projects drives the demand for industrial gases produced by air separation plants. As industrialization continues worldwide, particularly in regions like Asia-Pacific and the Middle East, the need for air separation plants grows accordingly.
Increasing Demand for Industrial Gases
- Industrial gases such as nitrogen, oxygen, and argon find widespread applications across various industries, including healthcare, food and beverage, automotive, aerospace, and electronics. The growing need for these gases for processes such as inverting, welding, cutting, and packaging fuels the demand for air separation plants.
Restraints
Energy Intensive Processes
- Air separation processes, particularly cryogenic methods, are energy-intensive, requiring large amounts of electricity or other energy sources for operation. Rising energy costs can impact the profitability of air separation plants and make them less competitive, especially in regions with high energy prices or unreliable power grids.
High Initial Investments Costs
- The installation of air separation plants involves significant upfront capital investment, including equipment costs, infrastructure development, and operational expenses. High initial investment costs can deter potential buyers, especially for smaller-scale applications or in regions with limited financial resources.
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Air Separation Unit Market Competitive Landscape
The competitive landscape of the global air separation unit market is characterized by intense competition among key players struggling to capture a significant market share. The market is highly consolidated, with several established players dominating the industry. These companies are focusing on strengthening their market position through strategies such as mergers and acquisitions, partnerships, and new product developments. Moreover, technological advancements and innovation also play an important role in gaining a competitive edge. Key players invest in R&D activities to introduce more efficient and sustainable air separation unit solutions. Additionally, expanding their geographical presence through strategic collaborations and alliances allows companies to tap into new markets and cater to a broader customer base. The competitive landscape is further intensified by the presence of local and regional players who offer cost-effective solutions, challenging the market share of established players. As the demand for air separation units continues to grow, the competitive landscape is expected to witness increased rivalry and a focus on differentiation through product quality, reliability, and customer service.
Top Player’s Company Profiles
- Linde plc (Germany)
- Air Liquide S.A. (France)
- Praxair Technology, Inc. (US)
- Air Products and Chemicals, Inc. (US)
- Taiyo Nippon Sanso Corporation (Japan)
- Messer Group GmbH (Germany)
- Yingde Gases Group Company Limited (China)
- Enerflex Ltd. (Canada)
- Universal Industrial Gases, Inc. (US)
- Novair Industries AB (Sweden)
- Matheson Tri-Gas, Inc. (US)
- Gulf Cryo (Bahrain)
- The Southern Gas Limited (India)
- Cryotec Anlagenbau GmbH (Germany)
- Cryogenmash JSC (Russia)
- Parker Hannifin Corporation (US)
- Buzwair Industrial Gases Factories (Qatar)
- Xuzhou Huaxing Gas Co., Ltd. (China)
- MVS Engineering Pvt. Ltd. (India)
- Atlas Copco AB (Sweden)
Recent Developments
- May 2022: Air Products San Fu, a subsidiary of Air Products and Chemicals Inc., brought two new air separation units on stream. The project is part of a long-term agreement to provide ultra-high purity industrial gases to one of Asia's largest semiconductor manufacturers. Air Products San Fu may invest approximately USD 400 million to build, own, and operate large air separation units to provide ultra-high purity oxygen, argon, nitrogen, and hydrogen in Tainan Science Park, southern Taiwan.
- May 2022: PKN Orlen announced plans to invest in an ASU for oxygen and nitrogen production at the Plock refinery in Poland. The ASU will be built by the German company Linde GmbH. The project investment is estimated to cost around USD 187 million (EUR 164 million) and is expected to be completed by early 2025. The plant will produce 38,500 cubic meters of oxygen and 75,000 cubic meters of nitrogen per hour.
- In March 2022, INOX Air Products Ltd announced that it had won a contract to construct India's largest Greenfield Oxygen Plant in India at the Steel Authority of India's (SAIL) Bokaro plant in Jharkhand. Being built at a total investment of INR 750 crore, the plant will generate 2150 tonnes per day (TPD) of Industrial Gases, including 2000 TPD of Gaseous Oxygen, 150 TPD of Liquid Oxygen, 1200 TPD of Gaseous Nitrogen & 100 TPD of argon.
- In February 2022, Linde India Limited entered into a 15-year agreement with ESL Steel Limited to supply about 800 mt per day of oxygen and 900 mt per day of nitrogen to the steel mill. Linde India will set up an on-site air separation unit at ESL Limited's steel mill at Bokaro.
- In January 2022, Air Liquide announced an investment of about INR 350 crore in a new air separation unit dedicated to industrial merchant activities in Kosi, Uttar Pradesh, India. This unit will have a production capacity of 350 tons per day with a maximum of 300 tons of oxygen. The plant is likely to be operational by the end of this year.
Air Separation Unit Key Market Trends
- Expansion into Emerging Markets: Emerging markets, particularly in Asia-Pacific, Latin America, and Africa, present significant growth opportunities for air separation plant manufacturers and suppliers. Rapid industrialization, urbanization, and infrastructure development in these regions drive demand for industrial gases and create opportunities for market expansion.
- Healthcare Sector Growth: The expanding healthcare sector, particularly in regions with aging populations, presents opportunities for air separation plant manufacturers to supply medical gases such as oxygen and nitrogen for respiratory therapy, anaesthesia, and other medical applications. Companies can leverage this growing demand by offering specialized equipment and services tailored to the healthcare industry.
- Environmental Sustainability: Increasing focus on environmental sustainability and reduction of carbon footprint creates opportunities for air separation plant operators to implement cleaner and more energy-efficient technologies. Companies are offering eco-friendly solutions and carbon capture technologies can capitalize on growing demand from environmentally conscious industries and consumers.
Air Separation Unit Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global air separation unit market analysis, the global air separation unit market is expected to experience substantial growth in the coming years, driven by advancements in technologies and processes dependent on industrial gases. To meet the rapidly growing demand and ensure consistent supply of high-quality industrial gases across various sectors, companies are heavily investing in the development of efficient air separation unit solutions. Additionally, the market is supported by increasing focus on sustainable practices and the adoption of clean energy sources, which is driving demand for air separation plants powered by renewable energy. This shift towards cleaner energy alternatives not only aligns with environmental goals but also presents lucrative opportunities for industry players to innovate and capture a larger market share. Moreover, as industries continue to prioritize efficiency and environmental sustainability, the demand for modern, eco-friendly air separation solutions is expected to soar, further driving the growth of the market.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 5.9 Billion |
| Market size value in 2032 | USD 8.35 Billion |
| Growth Rate | 4.62% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Air Separation Unit Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Air Separation Unit Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Air Separation Unit Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Air Separation Unit Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Air Separation Unit Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Air Separation Unit Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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