Specialty Gas Market Size, Share & Industry Analysis, By Type (Electronic Gas, Gas & Liquid Mixtures, Pure Gases, and Others), By End-Use Industry (Semiconductors, Petroleum & Chemical, Healthcare, and Others), and Regional Forecast, 2024-2032

The global specialty gas market size was valued at USD 12.57 billion in 2023 and is expected to grow from USD 13.71 billion in 2024 to USD 26.58 billion by 2032, exhibiting a CAGR of 8.6% during the forecast period. Asia Pacific dominated the specialty gas market with a market share of 66.59% in 2023. Moreover, the specialty gas market in the U.S. is projected to grow significantly, reaching an estimated value of USD 2,954.6 million by 2032, driven by the growing demand from electronic and healthcare industry. 

Specialty gases are generally considered highly pure gases ranging from 99.2N% to 99.5N%. Specialty gases include calibration gases, carrier gases, instrumentation gases, noble gases, and others. Due to its highly pure nature, it is used in various applications, including analytical & calibration instruments, aviation, chemical, electronic devices, and medical. As every sector strives to become more efficient in its production and safety process, thus it creates more demand in this industry. For instance, these gases reduce the risk by maintaining the pressure levels in aircraft cabins and fuel tanks. Apart from safety, these gases can significantly increase the efficiency of medical research due to their highly pure nature. The advantages and wide range of applications shape the global market.

Surging demand for smartphones and tablets fuels the consumption of these gases in the semiconductor industry as integrated circuit chips are shrinking from centimeters to nanometers to increase their speed and reduce power consumption. Such high-performance chips require new materials deposited in Chemical Vapor Deposition (CVD) and Atomic Layer Deposition (ALD) processes. In addition, nano-scale semiconductor chip structures require multiple patterning processes. Increasing demand for personal devices and faster processing chips are poised to fuel the sales of deposition and etching gases over the assessment period.

During the COVID-19 outbreak, when almost every industry was facing turbulence, the semiconductor industry experienced growth of nearly 10% in 2020 from the previous year, 2019. Specialty gas, an essential raw material in the semiconductor chip manufacturing process, has driven the demand for these gases during the pandemic.

Specialty Gas Market Trends

Megatrends such as 5G and Electric Vehicle are set to Create Progressive Environment for the Market

As we enter the 5G era, it will enable new application areas such as augmented reality, edge computing, and the Internet of Things. To establish these technologies, we need new high-performance semiconductors that can enable data transfer at high speeds providing better connectivity between devices.

High-performance computing has experienced significant demand in recent years due to increasing usage across all industries for real-time insights and solving complex problems. For instance, credit card fraud detection can only be done by using HPC, and as the tactics constantly change fraudsters, it will require more complex programming to deal with it. Similarly, HPC is used in cancer diagnosis, genome sequencing, and molecular modeling in healthcare and life science industries.

Electric vehicles have as many as twice the semiconductors as IC-based vehicles. This has created a new stream of demand for semiconductors and is set to create humongous demand in the future, owing to the high adoption rate of electric vehicles globally. As we move toward electric mobility, it has propelled the momentum of autonomous mobility. These trends will not only create huge demand for semiconductors but will also require high-performance semiconductor chips. Specialty gas, the essential element in producing many semiconductors, will experience explosive growth in its consumption throughout the assessment period.

Specialty Gas Market Growth Factors

Specialty Gas to become an Ideal Ingredient in the Petrochemical Industry, Driving the Market Growth

Advancements in production technology and rising demand for petrochemicals are set to assist the specialty gas market growth over the assessment period. Petrochemical products are used across various applications, including clothing, digital devices, detergents, fertilizers, medical equipment, packaging, plastics, and tires. In addition, petrochemicals are also used in many modern systems such as batteries, electric vehicle parts, solar panels, and others. Owing to such a wide range of applications, today's petrochemical feedstock consumes nearly 12% of the global oil demand and is set to account for over one third of the global oil demand by 2030. This growth is attributed to increasing demand for petrochemicals, mainly from fertilizers, plastics, and rubber industries. These gases are used in the petrochemical industry to optimize performance, resulting in improved yields and lower costs.

Rising Prevalence of Chronic Condition to Drive the Market Growth

The healthcare industry is among the prominent consumers of specialty gas. Specialty gases are utilized in a wide range of applications, including but not limited to anaesthesia calibration, pulmonary function, blood gas calibration, respiratory calibration, etc. Many gases, such as oxygen, carbon dioxide, and other specialty gas mixtures, are used in hospitals and clinics. Oxygen in its purest form plays various important roles, such as treating hypoxia or chronic obstructive pulmonary disease (COPD), as nebulization for respiratory aerosol medications and in hyperbaric oxygen therapy. In addition, the prevalence of chronic diseases is increasing all across the globe. For instance, according to the American Hospital Association, nearly 133 million Americans are living with at least one chronic condition. The rising prevalence of chronic diseases and specialty gas being an essential ingredient in it will drive market growth.

RESTRAINING FACTORS

Customized Demand and Many Complexities Attached to Specialty Gases Act as a Restraining Factor

As per the nature of specialty gases, in many cases, it is manufactured for specific applications and a specific customer. This requires a great amount of effort and investment in comparison to industrial or medical gas products. Owing to this nature, it is not one of the shelf items that can be ordered whenever the customer requires it. Sometimes, it requires weeks to produce the perfect blend of specialty gas for the required application.

Apart from customization, high purity standards make it more complex and expensive to produce. As these gases are highly pure, i.e., from 3N to 6N, their packaging creates another issue. Few ppm impurities can result in serious consequences to the end-user as these gases are highly reactive, flammable, and corrosive or it can be toxic in nature. Thus, these gases require a tremendous amount of care even when it is introduced into the cylinder. The aforementioned factors create various challenges in specialty gas production, making it a highly expensive and complex product to produce.

Specialty Gas Market Segmentation Analysis

By Type Analysis

Growing Demand for Electronic Devices to Fuel the Consumption of Electronic Gas  

Based on type, the market is segmented into electronic gas, gas & liquid mixtures, pure gases, and others. The electronic gas segment accounted for the largest specialty gas market share in 2023 and is poised to maintain its dominance during the assessment period. Electronic gases are used in the electronic industry for various applications such as fiber optics, microelectronics, surface coatings, and others. Gases such as ammonia, silane, sulfur hexafluoride, hydrogen bromide, and hydrogen chloride are a few electronic gases widely used in the aforementioned applications.

The gas & liquid mixtures segment is estimated to hold a significant share of the global market in 2023. These gases are generally categorized as binary mixtures and multi-component mixtures made using different types of gases with dissimilar molecules. These gases are mainly used in calibration & testing, laser, and lighting applications. Pure gases deal in various gas types, including but not limited to acetylene, argon, carbon dioxide, helium, hydrogen, nitrogen, and oxygen. Owing to its highly pure nature, it is in demand from various industries such as petrochemicals, pharmaceuticals, research & development, laser, steel industry, and others.

By End Use Industry Analysis

Heightened Growth in Semiconductor Industry to Lead the Market

The market is segmented by end use industry into semiconductors, petroleum & chemical, healthcare, and others. Growing demand for smartphones, electric vehicles, autonomous vehicles, and high-performance computing fuel semiconductor chip production is set to experience high growth in the foreseen period. The semiconductor industry is receiving billions of dollars of investment to meet its growing demand, allowing it to grow rapidly compared to any other industry. The semiconductor industry has remained one of the prominent consumers of these gases. Due to its future expansion, it is set to dominate the market.

The petroleum & chemical segment is anticipated to create a demand for specialty gases at a significant rate owing to its increasing consumption as a feedstock, fuel, and in heating applications. Various kinds of carbon gases and hydrocarbon mixtures are used in this application. Since the past decade, the petrochemical industry has enjoyed prolonged growth and has grown at a CAGR of nearly 10%. The healthcare industry consumes specialty gases in their pure form for various levels of analysis and quality control applications.  Apart from the above-listed applications, these gases are used in other industrial applications such as food & beverage, automotive, aviation, and steel production.

REGIONAL INSIGHTS

The market size in Asia Pacific stood at USD 8.37 billion in 2023, dominating the global market share. Asia Pacific, the manufacturing hub for many semiconductor and chemical products, has made it a leading specialty gas consumer. Fast-growing countries, such as China, India, and Singapore, mainly fuel this region. These countries are attracting huge investments in industrial sectors, such as semiconductors, chemical, and healthcare, creating many opportunities for market players.

North America is one of the largest oil & gas, chemical, and semiconductor producers, which has become a prominent consumer of these gases. Also, it is the home of leading gas manufacturers such as Air Products and Merck. High growth in this region's semiconductor and healthcare industry is poised to fuel the demand for these type of gases during the forecast period.

Europe is the second largest chemical producer and home of advanced healthcare technologies & facilities but lags in the semiconductor industry. However, a few European countries, such as the Netherlands, Germany, France, and the U.K., surge the demand for electronic gases.

Latin America is projected to grow at a moderate growth rate over the assessment period. The growth is anticipated to be led by Brazil, the eighth largest chemical manufacturer globally, representing 10% of Brazil’s total GDP. Brazil is the largest healthcare market in Latin America, and these two factors will spur the demand for these type of gases. Foreign companies ' growing investments in the Middle East & Africa region are set to create a progressive environment for the market growth.

List of Key Companies in Specialty Gas Market

Capacity Expansion in Lucrative Regions to Remain Prominent Strategy by Market Players

Air Liquide, Air Products, Linde, and Nippon Sanso Holdings Corporation are some of the major specialty gas manufacturers operating in the market. It is observed that leading companies are involved in various organic and inorganic strategies to enhance their stance in the market over their competitors. Companies, such as Merck, Yingde Gases, and Linde have been involved in many production capacity expansion projects in the past two to three years. For instance, in 2021, Linde won projects worth USD 1 billion from semiconductor manufacturers, including several capacity expansions in leading economies such as the U.S., China, Taiwan, and Singapore. Similarly, other companies are anchoring their presence in lucrative regions to grab high profits.

LIST OF KEY COMPANIES PROFILED:

• Air Liquide (France)


• Air Products (U.S.)


• Linde (U.K.)


• Merck (U.S.)


• Messer (Germany)


• MESA Specialty Gases (U.S.)


• Nippon Sanso Holdings Corporation (Japan)


• Samatorgas (Indonesia)


• Showa Denko (Japan)


• Yingde Gases (China)

KEY INDUSTRY DEVELOPMENTS:

• June 2023- Linde plans to acquire three Air Separation Units (ASU) from Wanhua, in which two ASUs are currently under construction and are set to start by 2024 and 2025. This will allow Linde to strengthen its position in the China market.


• April 2023- Air Liquide India acquired an Indian company named EffecTech, which specializes in calibration and testing services. This will allow Air Liquide to extend its offerings precisely to existing and new customers.


• April 2023- Linde announced expanding its production capacity in Tangjeong, South Korea to increase its supply of specialty industrial gases to Samsung Display.


• October 2022- Nippon Sanso launched a product named CLifter. It is a high-pressure gas cylinder transport system that will consume less energy than other existing transportation systems.


• August 2022- Merck entered into a joint venture with Micron Company for a research & development project to produce sustainable gas solutions for the semiconductor industry.

REPORT COVERAGE

The research report provides detailed market analysis and focuses on crucial aspects such as leading companies, types, applications, end-user industries, and products. Also, it provides quantitative data regarding value, market analysis, research methodology for market data, and insights into market trends and highlights vital industry developments and competitive landscape. In addition to the abovementioned factors, the report encompasses various factors contributing to the market growth in recent years.

Report Scope & Segmentation