Booming Manufacturing Industry Driving Demand for Industrial Gases in APAC

With the expansion of petroleum, heavy metal, healthcare, food and beverage, electronics, and chemical industries, the demand for industrial gases is shooting up. This is because these gases are extensively used in these industries. For instance, carbon dioxide is heavily used in the food and beverage industry for carbonating beer and soft drinks and making decaffeinated coffee. Similarly, acetylene is also extensively used in the oxy-acetylene flame in the heavy metal industry for welding and cutting.

Furthermore, the surging demand for petrochemicals is also driving the need for industrial gases across the world. For instance, Invest India, which is a national investment promotion & facilitation agency, forecasts that the demand for petrochemicals will grow at a CAGR of 7.5% between 2019 and 2023, with the demand for polymer advancing at a CAGR of 8.0%. As hydrogen is required in petroleum refining and chemical production, the soaring requirement for petrochemicals will fuel its demand in the coming years.

Besides the aforementioned factors, the increasing implementation of favorable government measures regarding the adoption of alternative energy sources is also propelling the demand for industrial gases. As per the data released by the World Bank in 2015, South Africa, India, the U.K., China, Chile, and Japan invested 1.4%, 0.5%, 0.8%, 0.9%, 1.4%, and 0.8% of their total gross domestic product (GDP), respectively, in renewable energy sources. Moreover, many private and public organizations are making huge investments in the development of solar photovoltaic (PV) cells, which are one of the major sources of green energy.

Hence, it is safe to say that the demand for industrial gases will rise tremendously in the coming years, mainly because of the surge in several end-use industries such as chemical, oil & gas, and food & beverage, rising requirement for petrochemicals, and the mushrooming adoption of renewable energy sources all over the world.