Liquid Nitrogen Market Trends
Growth Drivers
- Increasing Demand for Liquid Nitrogen in Industrial Gas and Electronic Product Applications – Increasing demand for liquid nitrogen is estimated to fuel the liquid nitrogen market over the forecast period in applications for industrial gases and electronic devices. According to a study, industrial gases are an essential component for any production industry, including the food, electronics, construction, and chemical industries. As per a report, the biggest industrial gas businesses in the world are Taiyo Nippon Sanso, Air Products, Linde, and Air Liquide. These four firms collectively control more than 80% of the industrial gas sector. In the electronics sector, it is also employed as a semiconductor. These factors are driving the market growth.
- Growing Infrastructural Activities – Around the world, liquid nitrogen is frequently employed in construction projects. Pharmaceutical, food processing, chemical, and manufacturing industries are a few of them. In addition, as infrastructure projects increase globally, liquid nitrogen is in great demand for a variety of engineering and construction projects.
- Growing Application in Automotive Sector – Liquid nitrogen can be utilized as a coolant for vehicles in the age of automotive emissions and air pollution. As a result, growing automotive production will fuel liquid nitrogen market expansion. For instance, around 68.21% of all motor vehicle sales worldwide were passenger automobiles, which accounted for the greatest percentage of sales.
Challenges
- Severe Effects of Liquid Nitrogen – If not utilized properly, at the proper temperature, and in the proper quantity, liquid nitrogen can be detrimental to the body. If cryogenic liquid gas comes into direct contact with the body, it can result in cold burns. Therefore, it is anticipated that its negative effects on human health will impede market expansion.
- High Cost Associated with the Production of Liquid Nitrogen
- Liquid nitrogen storage tank regulations
Liquid Nitrogen Market: Key Insights
The chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, Chemical industry in the U.S. accounted for 16.43% to manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in future. According to UNEP (United Nations Environment Program), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry, that accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favorable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labor as well as government subsidies and relaxed environmental norms have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for the investment in businesses in Asia Pacific countries in the upcoming years.
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
5.3% |
|
Base Year Market Size (2024) |
USD 18.42 billion |
|
Forecast Year Market Size (2037) |
USD 36.05 billion |
|
Regional Scope |
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