Industrial Gases-Metals & Metal Fabrication Market Outlook 2031
The global industrial gases-metals & metal fabrication market size was USD 52.94 Bn in 2022 and is likely to reach USD 89.97 Bn by 2031, expanding at a CAGR of 6.07% during the forecast period, 2023–2031. Technological advancements in the automotive and metal industries are expected to drive the market.
Rapidly growing automotive industry and increasing construction activities globally are expected to drive the industrial gases- metals & metal fabrication market. End-use industries such as automobile, aerospace & defense, and others require metals with different compositions for custom applications.
This directly impacts the market, as the physical properties of gases help metal manufacturers produce metal compositions that meet the requirement metrics for related end-use applications. Moreover, the rising demand for sturdy metals, such as iron and steel, to manufacture advanced industrial machinery and components is anticipated to drive the market. For instance,
- According to a report published on October 30, 2023, in 2022, the total volume of usable iron ore produced worldwide was about 2.6 billion metric tons.
Oxygen, nitrogen, CO2, argon, and acetylene are widely used in the manufacturing and fabrication activities of metals. Fabrication of metals includes cutting, bending, assembling, and framing metals in different shapes or manufacturing metal items out of raw metals. Items such as bolts, nuts and screws, hand tools, cans, cutlery, windows & doors, vehicle components, and others are a major part of the market. Increasing construction activities and the rapidly advancing automotive industry are expected to drive the market.
The COVID-19 pandemic hampered the market, due to the temporarily ceased production operations of several end-use industries. The market suffered major losses in the initial pandemic period, owing to the global travel restrictions. Industries such as construction, automotive, and others were facing a shortfall of raw materials and production essentials, due to the disruption in supply chains.
However, in the latter phase of the pandemic, the travel restrictions were lifted by various governments and the industrial operations gradually resumed, which eventually helped the market recover from initial losses. In the post-pandemic period, the market faced a surge in demand for electric vehicles and construction activities, which helped the market generate a large revenue share. For instance,
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According to a news published by the International Energy Agency (IEA) on April 23, 2023, about 10 million electric cars were sold worldwide in 2022, which is expected to grow by 35% in 2023.
Impact of Artificial Intelligence (AI) in Industrial Gases-Metals & Metal Fabrication Market
Artificial intelligence is likely to provide substantial propulsion to the industrial gases-metals and metal fabrication market. Metal fabrication includes operations such as metal heating, refining, melting, and others. These methods are complex, as a lack of compliance with the process on the minor level leads to metal loss. Raw metals need to be introduced with gases in a calculated amount at the right stage of the metallurgical process.
Integration of AI models into the machinery technology helps simplify the processes performed on metals. Higher algorithms automate the workflow in industries, thereby enhancing the operations of metal manufacturers. This is expected to save costs for the manufacturers, owing to the enhanced compliance with the steps of the process, leading to minimal loss, which is expected to drive the market in the coming years.
Industrial Gases-Metals & Metal Fabrication Market Dynamics
Major Drivers
Increasing demand from the automotive industry is driving the market. In the post-COVID-19 pandemic period, global inflation and the energy crisis resulted in a rapid spike in prices of petroleum and crude oil. This altered consumer choices, as the automotive industry registered a surge in demand for electronic vehicles (EVs). Electric vehicles, such as bikes, cars, buses, and others, are being launched with advanced features with every updated version. Technological advancements and rapidly expanding EV charging networks are expected to drive the market.
Existing Restraints
Stringent policies for industrial gas emissions are likely to hamper the market. This is majorly attributed to the uncontrolled emission of greenhouse gases during various processes on metals. Furthermore, frequent fluctuations in the prices of raw materials are likely to hamper the market during the forecast period.
Emerging Opportunities
Rising demand for eco-friendly metal-fabrication solutions is expected to create lucrative growth opportunities in the market. Increasing global environmental concerns and their awareness among people encourages players in the market to conduct studies on finding ways to promote sustainable development, which is likely to boost the market.
Scope of The Industrial Gases-Metals & Metal Fabrication Market Report
The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Industrial Gases-Metals & Metal Fabrication Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Type (Nitrogen, Hydrogen, Oxygen, Carbon dioxide, Acetylene, and Others), Function (Fabrication and Metal Manufacturing), End-use (Automotive, Metal, Aerospace & Defense, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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Airgas, Inc.; TAIYO NIPPON SANSO CORPORATION; Messer Holding GmbH; Iwatani Corporation; Air Products and Chemicals, Inc.; Southern Industrial Gas Sdn Bhd; Linde plc; NEXAIR; and Air Liquide
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Industrial Gases-Metals & Metal Fabrication Market Segment Insights
Type Segment Analysis
Based on type, the industrial gases-metals & metal fabrication market is divided into nitrogen, hydrogen, oxygen, carbon dioxide, acetylene, and others. The nitrogen segment held a major market share, owing to the rising demand from the metal fabrication industry for metal processing, blanketing, and welding purposes.
It helps manufacturers prevent metal oxidation during welding, as metals suspended at high temperatures react with oxygen and other impurities. Nitrogen is widely used in the food & beverage industry for packaging frozen foods. Food packaging technology called as Modified Atmosphere Packaging (MAP) uses nitrogen gas as a protective gas, which helps to prevent the oxidation of food, thereby enhancing the shelf life of the product.
According to an article published by Messer in 2017, nitrogen is one of the highly used food-grade gases that help prevent packaged food from external humidity, light, climate, and oxidation. Rising demand for frozen and ready-to-make food from the global urban population is driving the segment. The oxygen segment is projected to hold a major share of the market during the projection period, due to the increasing demand for steel in major industries, such as automotive and manufacturing industries.
Oxygen is widely used in thermal cutting applications of a range of metals, due to its property of supporting combustion. It reacts with carbon present in steel, thereby generating heat for the continuation of the process. Furthermore, when combined in small portions with argon, oxygen aids in the welding of carbon, steel, or alloys of steel. Rising demand for steel from the metal manufacturing industry is expected to drive the market.
Function Segment Analysis
On the basis of function, the global market is segregated into fabrication and metal manufacturing. The metal manufacturing segment is projected to expand at a high CAGR during the forecast period, due to the rising demand from the metal, power, construction, and automotive industries.
Metals such as copper, silver, and aluminum are used majorly in power plants, electronics, jewelry, and utensils. The automobile industry mainly uses iron and steel to manufacture the main bodies of vehicles, due to their physical properties such as strength, durability, and high impact strength. For instance,
Furthermore, the increasing global population is directly proportional to the rising residential, industrial, and commercial construction worldwide. This results in rapid global industrialization, which is likely to boost the market in the coming years.
End-Use Segment Analysis
Based on end-use, the market is divided into automotive, metal, aerospace, and others. The metal industry held a key share of the market in 2022, due to the rising metallurgical applications of various metals in several industries. Steel and iron have a wide range of applications in the machine manufacturing industry.
These companies produce and supply large amounts of metals in different compositions by performing simple to complex processes to get the desired outcomes. Rising demand for metals in the automotive as well as in industrial machine applications is driving the market. The automotive segment is expected to generate a major revenue share of the market, owing to the rising demand for commercial as well as private vehicles globally.
The rise in the global population is boosting the consumer demand for transportation. Additionally, the trend of owning private transport vehicles such as private cars, mopeds, and bikes is fueling the segment. Furthermore, rapid globalization encourages local as well as international travel, which leads to the increasing demand for commercial vehicles, such as passenger vehicles, trains, buses, and airplanes, which is expected to boost the segment in the coming years.
Regional Outlook
In terms of region, the global industrial gases-metals & metal fabrication market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America held a major revenue share of the market in 2022. This is attributed to the increasing number of construction projects to build unique buildings for residential and commercial use in the region. Countries such as Canada and the US use advanced machinery and equipment to implement advanced technology in a wide range of applications. For instance,
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According to data published on August 8, 2023, the US spent about USD 57 billion in construction projects for building power installations, streets, and highways in 2022.
Moreover, increasing government investments in research and studies to develop clean and green metallurgical processes is expected to drive the market.
Asia Pacific is expected to dominate the market during the projection period, owing to advanced industrialization in the region. Rapidly growing automotive and construction industries are major factors that are contributing to the market growth in the region. Developing countries such as India and China own a majority of metal manufacturing industries, owing to the rapid industrialization and skilled workforce in the countries. For instance,
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According to data published on March 23, 2023, China exported about 54 million tons of steel and steel products in 2020, which steadily grows each year.
Moreover, the increasing demand for passenger, electronic, and commercial vehicles in the region is expected to drive the market in the coming years.
Segments
The industrial gases-metals & metal fabrication market has been segmented based on
Type
- Nitrogen
- Hydrogen
- Oxygen
- Carbon dioxide
- Acetylene
- Others
Function
- Fabrication
- Metal Manufacturing
End-Use
- Automotive
- Metal
- Aerospace & Defense
- Others
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Airgas, Inc.
- TAIYO NIPPON SANSO CORPORATION
- Messer Holding GmbH
- Iwatani Corporation
- Air Products and Chemicals, Inc.
- Southern Industrial Gas Sdn Bhd
- Linde plc
- NEXAIR
- Air Liquide
Competitive Landscape
Key players competing in the global industrial gases- metals & metal fabrication market are Airgas, Inc.; TAIYO NIPPON SANSO CORPORATION; Messer Holding GmbH; Iwatani Corporation; Air Products and Chemicals, Inc.; Southern Industrial Gas Sdn Bhd; Linde plc; NEXAIR; and Air Liquide.
These companies opted for development strategies, such as mergers, product launches, partnerships, collaborations, acquisitions, and production expansion, to cater to maximum customers worldwide. For instance,
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On July 11, 2023, Airgas, Inc. announced the strategic addition of Argon nodes to increase the storage capacity of rails and trucking supply chains. The company aims to increase the reliability of argon gas for supply chain networks, automotive, aeronautics, and other clients.
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