Industrial Gases Category - Procurement Intelligence

In this Industrial Gases procurement intelligence report, we have estimated the pricing of the key cost components as feedstock (natural gas), energy, labor, logistics, storage, equipment, depreciation, taxes & profits, and other expenses.

The average price of natural gas in the United States was approximately USD 6.4 per million British thermal units in the year 2022, whereas in Europe it was USD 40.3 per million British thermal units. The conflict between Russia and Ukraine and the lack of energy supplies that started in 2021 have caused a sharp increase in prices. Given that the United States generates more natural gas than Europe does, prices in Europe are predicted to continue to be higher than in the United States.

The United States has benefited greatly from the application of horizontal drilling and hydraulic fracturing technologies to extract previously unheard-of levels of gas from tar sands and shale formations. This has made it possible to produce enormous amounts of natural gas. By 2050, it is anticipated that the United States would produce 33.67 trillion cubic feet of shale gas. Future pricing for the category will be lower as a result of this mass production.

Order your copy of the Industrial Gases category procurement intelligence report 2023-2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

Operational Capabilities - Industrial Gases

• Industries served - 35%
• Revenue Generated - 18%
• Employee Strength - 15%
• Certifications - 12%
• Years in Service - 12%
• Geographical Service Provision - 8%

Functional Capabilities - Industrial Gases

• Production Capacity - 50%

Types of Gases

• CO2 - 10%
• Nitrogen - 10%
• Hydrogen - 10%
• Oxygen - 10%
• Others - 10%

Rate Benchmarking

In China, prices of liquid nitrogen and oxygen decreased in March 2023 due to market demand, whereas liquid argon costs increased significantly. April 2023 saw a 1% year-over-year decline in retail gas prices and a 4% quarterly decrease. In addition, for the same month, the unit price of liquid oxygen was CNY 460/ton, decreasing by 10% month over month; the unit price of liquid nitrogen was CNY 499/ton, decreasing by 3% month over month; and the unit price of liquid argon was 1,201 Yuan/ton, increasing by 1% month over month.

In North America, the price of nitrogen fluctuated throughout the third quarter of 2023, initially rising and then falling during the beginning and second halves of the period. A bleak demand picture and a fall in inquiries from producers of nitrogen gas contributed to the price decline. However, the average cost of inputs has increased at a faster rate during this quarter. Output prices rose as a result of these higher costs which are transferred to consumers.

In Asia-Pacific, prices for nitrogen remained steady in the third quarter of 2023 as a result of rising demand from a number of industries, including electronics, mining, fertilizers, and metals. Prices for natural gas likewise held steady during the course of the quarter. The packaging and pharmaceutical industries' increased demand caused a spike in nitrogen costs in the Indian market. There were plenty of stocks on hand, and the nation's industrial production was trending upward.

Supplier Newsletter

In January 2023, Iwatani Corporation's fully owned subsidiary, Iwatani Corporation of America announced acquisition of Aspen Air U.S., LLC. The acquisition has enabled Iwatani to enter into the industrial gases industry in the United States. Iwatani will get Aspen’s wide range of industrial and medical clients, such as hospitals, the energy and chemical industries, packaged gases, and independent distributor networks.

In December 2022, Yingde Gases Group Company Limited announced the acquisition of Shanghai Nanhua Industrial Gas Company, Ltd. This acquisition will significantly increase the company's clout in the industrial packaged gas and medical oxygen sectors. It is a significant point in the company's strategic packaged-gas strategy, supporting the company in branching out into new packaged gas markets.

In April 2022, Air Products and Chemicals, Inc. announced the acquisition of L’Air Liquide S.A.’s industrial gas business division in the U.A.E. The acquisition is helping Air Products to strengthen its presence in Middle-East, growing its reach and regional presence in Bahrain and U.A.E, also improving the sourcing and reliability of its products.

List of Key Suppliers

• Air Products and Chemicals, Inc.
• BOC Limited
• Coregas Pty Ltd
• Iwatani Corporation
• L’Air Liquide S.A.
• Linde plc
• Matheson Tri-Gas, Inc.
• Messer SE & Co. KGaA
• Strandmøllen A/S
• Taiyo Nippon Sanso Corporation
• Universal Industrial Gases, Inc.
• Yingde Gases Group Company Limited 

Browse through Grand View Research’s collection of procurement intelligence studies:

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Industrial Gases Procurement Intelligence Report Scope

• Industrial Gases Category Growth Rate : CAGR of 7.42% from 2023 to 2030
• Pricing Growth Outlook : 5% - 10% increase (Annually)
• Pricing Models : Cost-plus pricing, fixed pricing
• Supplier Selection Scope : Cost and pricing, past engagements, productivity, geographical presence
• Supplier Selection Criteria : Industries served, revenue, employee strength, certifications, production capacity, types of gases (carbon dioxide, nitrogen, hydrogen, oxygen, etc.), and others.
• Report Coverage : Revenue forecast, supplier ranking, supplier matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model 

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions. 

Our services include (not limited to):

• Market Intelligence involving – market size and forecast, growth factors, and driving trends
• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions