Argon Gas Market Size, Share, Industry & Opportunities [2031]

Report Description

The global argon gas market size was valued at around USD 296.24 million in 2022 and is anticipated to reach USD 467.50 million by 2031, expanding at a CAGR of around 5.2% during the forecast period, 2023–2031. The market growth is attributed to the extensive consumption of argon gas in various industrial applications.

Argon is a colorless and odorless chemical element with the atomic number 18 in the periodic table. It is a noble gas and is predominantly inert to other chemical substances in its natural form under normal temperatures. Argon is the third most abundant gas available in the Earth's atmosphere.

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This gas is extracted industrially through the process of fractional distillation of liquid air. Argon is a high purity gas and available in form of gas and liquid. It is mainly used as a cooling, illumination, and illusion across various industries, especially in as inert shielding agent in welding. 

The gas has certain key properties such as non-toxic, non-reactive in normal temperature conditions, non-flammability, inert nature, cost-effectiveness, and colorlessness, which make it convenient to use in various industrial applications. Argon gas is also commonly utilized for manufacturing semiconductors, solar PV cells, microelectronic devices, and flat panels within the electronics industry as it offers resistance to the rapid heating and cooling of materials.

The gas is extensively used in various applications across diverse industries which, in turn, influences the rising argon gas demand in the global market. One key aspect of the market expansion is the rising use of argon gas in various industries as an alternative source, especially in the welding sector as it is abundantly available in nature.

The gas is mainly used in metal fabrication, lighting, 3D printing, lasers, gas discharge tubes, cinematography, refrigeration, windows, tires, chemicals, energy, healthcare, electrical & electronics, food & beverages, scuba diving, automotive, and transportation equipment. Manufacturers are increasingly using Argon ion lasers for high-speed printing, medicine, holography, forensics, laser shows in entertainment, and microscopy.

Due to its absolute inert and low conductivity nature, the gas is increasingly used in the metal industry as a shielding agent to prevent metals from oxidation during welding machine parts and frames. It is an essential gas for joining several nonferrous and ferrous alloys. The gas is being utilized as a carrier in cinematography, imaging & lighting, and food & beverages.

Additionally, it has better insulation properties than air and, hence, it is widely used for filling the dry suits used for scuba diving. The extensive use of gas in the electronics and electrical industry influences the increasing sales of argon gas in the global market.

COVID-19 Impact

The global argon gas market report finds that the outbreak of novel coronavirus has impacted the global argon gas demand negatively. The prolonged shutdowns of various manufacturing firms across industries due to the pandemic situation largely hampered the market. The movement restrictions and travel ban significantly disrupted the demand-supply chains and, hence, hindered numerous industrial processes.

The market performance had a sluggish growth rate due to the restriction on import and export activities, which resulted in a sharp decline in consumption and demand for argon gas from industries. Shortage of labor and delay in raw materials supply also poses challenges to the argon gas industry worldwide.

However, the market is now slowly recovering and is expected to exhibit the same growth pace as the pre-pandemic phase, owing to the rising lifting of COVID-19 restrictions globally. Various strategic promotional strategies and the continuous launching of new innovative products by argon gas companies are likely to accelerate the market growth in the coming years.

Market Dynamics

The market research report presents a complete market overview of the global argon gas market dynamics by focusing on the current market trends, existing market drivers, growth opportunities, and emerging challenges. This global argon gas market report offers key market insights into the global market outlook that can shape the outcome or overall performance of the market during the forecast period, 2022 to 2030.

Key Trends: Rising usage of noble gas in the manufacturing of semiconductors

Argon gases play a vital role in the semiconductor industry as it is widely applied in various semiconductor manufacturing processes and applications. Argon and krypton plasma are utilized for magnetron sputtering applications, owing to their inert reactivity, large atomic mass, and relatively low cost.

Surging consumption of noble gas in the semiconductor manufacturing industries is one of the key market trends that can lead to a significant impact on market growth during the projected period.

Moreover, the rapid urbanization process ultimately leads to an increase in massive infrastructural and manufacturing activities, which is further propelling the use of argon gas. Additionally, technological innovations and the increasing adoption of the Internet of Things (IoT) among industries to enhance their overall operations and productions further accelerates the use of noble gas globally.

Major Drivers:

Usage of argon gas in various electronics and electrical applications
Argon, as an abundantly available noble gas, is used in several applications such as manufacturing semiconductors, solar PV cells, microelectronic devices, and flat panels within the electronics & electrical industry as it offers resistance to rapid heating and cooling of materials.

The gas is extensively used in the metal fabrication and manufacturing sectors, which in turn boosts the growth of the market. The increasing price of Helium is driving the demand for Argon as it serves as an alternative source in welding processes.

Moreover, the rapid urbanization has led to the increasing development of numerous infrastructural and manufacturing activities, resulting in the massive growth of the argon gas industry worldwide. The gas is frequently deployed for filling gas in fluorescent tubes and electronic components and corroding prevention of the hot tungsten filament.

Additionally, argon gas is majorly used in the metal fabrication and manufacturing sectors, which in turn boosts the growth of the market. Furthermore, the rising adoption of argon gas in automotive and other different applications helps in the market growth.

Growing argon gas demand from the metal manufacturing & fabrication industry
Argon gas is widely adopted in the metal fabrication & manufacturing industry for various applications, especially in the welding, casting, manufacturing, and repairing of the parts and components of motorbikes and cars. It is used as a shielding gas that creates an inert barrier during arc welding and protects the metal from chemical contamination.

Due to its high resistance capacity to heat cracking and high thermal conductivity, argon gas acts as a major insulation agent in the welding process, which provides a vital means for welding stainless steel production. In fact, the steel industry is one of the major application segments of argon gas as it provides good stabilization on electric arc in metal fabrication and creates an oxygen and nitrogen-free environment for the rolling process.

Rising use of argon gas in the healthcare sector
Argon gas is a key agent of narcotic effect and offers certain advantageous properties as compared to helium and nitrogen at high pressure. As a defensive and neuroprotective agent, argon gas is widely used as raw materials in various applications in the medical sector.

Argon, acting as a plasma gas, is majorly applied for analysis and quality control, especially in emission spectrometry, inductively coupled plasma (ICP), graphite furnace spectrometry, and gas chromatography. As a result, the rising usage of argon gas in the healthcare sector results in increasing sales of argon gas, which help in generating a tremendous growth opportunity for the market.

Existing Restraints:

Health risks associated with argon gas pose a great challenge
Argon gas is associated with certain health risk effects. This omnipresent gas has the potential of causing side effects as it is an anesthetic agent. Long exposure to the gas can create an oxygen-deficient atmosphere, which in turn, leads to a significant risk of suffocation with symptoms of rapid breathing, headache, loss of judgment, and coordination.

Argon gas can be absorbed into the body through inhalation. Moreover, excessive inhalation can lead to nausea, vomiting, dizziness, loss of consciousness, and even death. Contact with argon gas can burn and irritate the eyes and skin. This harmful risk of argon gas poses a great challenge that hampers the global argon gas market growth.

High costs of argon gas production
Rising costs of argon gas production had a negative impact on the market expansion. The high cost of extraction operation for commercial and industrial use along with the reducing funding available for new product development and research are major restraining factors hampering the market. Additionally, the high cost of transportation due to increasing fuel costs and lack of global commercialization of the gas limit the overall market growth.

Wide availability of substitute materials
Manufacturers are switching to krypton, which is more affordable as compared to argon as Krypton offers more thermal efficiency and denser volume than argon. Moreover, the sales decline of argon is largely impacted by the introduction of nitrogen microwave inductively coupled atmospheric pressure plasma (MICAP), as it facilitates an easier method for separating oxygen from various chemical compounds. This wide presence of alternative materials acts as a key challenge to the global argon gas market.

Emerging Opportunities:

Increasing adoption of the Internet of Things
Argon gas companies are increasingly integrating the IoT technologies that connect smart devices and other innovative machinery to get real-time insights to help reduce the manufacturing process gaps. The data obtained through these devices provide information on working conditions that can enhance the performance of chemical reactors and make urgent alerts to the plant managers and operators of potential machine failures.

Air Products and Praxair-Linde are two major industrial gas companies to use IoT technology for industrial processes. The rapid integration of such innovative technology is projected to create lucrative growth opportunities due to increasing sales of argon gas.

Surging demand for argon gas from the food & beverages industry
Argon gas is frequently utilized as a preservative for meat products, owing to its odorless and absolute inertness. This gas plays a vital part in packaging foods such as fruits and vegetables as it can create an oxygen-free environment, which helps in expanding the shelf life of packaged foods.

It is also widely employed in the preservation of beverage products including wine preservation, beer foam stability, and carbonation management. The growing expansion of the food & beverage industry across the globe and increasing demand for argon gas from this industry offer several growth opportunities for the market.

Scope of the Report

The report on the global argon gas market includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Insulation segment held a dominant market share in 2021

Based on the functions, the global argon gas market is segmented into insulation, illumination, and cooling. The insulation segment held a dominant market share, accounting for 58% share of the total market revenue in 2020, and is projected to expand at a high CAGR during the forecast period.

Argon gas is a vital component in insulation applications as it serves as an inert barrier to prevent indoor heat from escaping, which is more applicable in most insulating materials. Insulated windows filled with argon gas are less likely to produce condensation as this slow-moving gas helps in maintaining heat balance to ensure the proper transfer of heat, which results in producing reliable and efficient energy.

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Industrial grade segment accounted for a major revenue share in 2021

On the basis of grades, the global market is divided into food grade, industrial grade, scientific grade, ultra-high purity grade, and others. The industrial grade segment accounted for a major market share in 2021 and is expected to register a significant growth rate in the coming years owing to the rising demand for argon gas across industrial sectors.

Argon gas is frequently used in MIG and TIG welding methods and plasma cutting applications due to its inert reactivity and high thermal density. Industrial-grade argon gas has many applications such as welding gas, incandescent lamps, thyratron radio tubes, and phosphorescent tubes.

Argon-carbon dioxide mixture segment is in high demand

Based on mixtures, the global argon gas market is fragmented into Argon-carbon dioxide, Argon-helium, Argon-oxygen, Argon-nitrogen, Argon-hydrogen, and others. The argon-carbon dioxide mixture segment is anticipated to constitute a large market share in the coming years due to the increasing demand for mixtures in various industrial applications.

It is an odorless, colorless, and non-flammable gas mixture, which is ideal for low-treated and stainless-steel welding. Argon-carbon dioxide blends can be used to incorporate a large spectrum of material thicknesses with a number of metal transition modes. The rising use of argon-carbon dioxide mixture, due to its unique property, across industries is expected to boost segment growth during the projected period.

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Metal manufacturing and fabrication segment to register a significant growth rate

On the basis of end-users, the global argon gas market is segmented into metal manufacturing & fabrication, lighting, chemicals, energy, healthcare, electrical & electronics, food & beverages, automotive, and others.

The metal manufacturing and fabrication segment held a key market share in 2020 and is expected to expand at a CAGR of 5.2% during the forecast period owing to the wide use of argon gas in metal welding processes and other metal-related applications.

Argon gas is majorly deployed in the welding process of metal fabrication processes as a shielding gas to protect the metal from contamination. Extensive consumption and demand for gas from the automotive industry further fuel the metal manufacturing and fabrication segment.

Furthermore, rapid urbanization leads to increasing projects of infrastructure development that results in the rising demand for steel. This factor is expected to generate more market share and drive segment growth in the coming years.

Asia Pacific segment to register a large market revenue

In terms of regions, the global argon gas market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market in Asia Pacific accounted for a large market revenue in 2021 and is anticipated to expand at a CAGR of around 5.2% during the forecast period.

The regional market growth is attributed to the growing expansion of the metal fabrication sector and liquid air manufacturing industries in the region. Due to its inert reactivity, argon gas has significant applications in the metal fabricating industry.

The increasing demand for pharmaceuticals, food & beverages, automobile, electronics, and many others in the emerging economies of the region, especially in India and China presents a key driving force for the regional market growth.

According to the India Brand Equity Foundation, the healthcare sector comprises one of the largest sectors in terms of revenue and employment in India, which is leading to increase market sales of argon gas. The rising emerging markets of argon gas in Asia pacific are likely to play a crucial factor in the overall market expansion in the coming years.

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