Air Separation Plant Market

Air Separation Plant Market Outlook from 2024 to 2034

Industrialization, especially in emerging economies such as India, Brazil, China, and South Korea, has taken the Air Separation Plant Market to an all-time-high revenue of USD 6,515.40 million in 2024.

With the further expansion of the steel and chemical industry, the market is set to reach USD 10,512.26 million by 2034, developing at a CAGR of 4.90% over the forecast period.

Air Separation Plant Industry Analysis

• Factory units, especially those dealing with steel, chemicals, healthcare, electronics, etc. industries, generally require an enormous quantity of oxygen and other gases, generating huge demand for air separation plants.
• Factory units across industries are also acquiring and installing air separation units at their shop floors as they provide important feedstock to the manufacturing process. For instance, oxygen is used in steel production, argon in welding, and nitrogen in food and metal processing.
• Lenient government policies in countries like India, Australia, Brazil, etc., have also led to massive industrialization. This further leads to the requirement of air separation units in these countries.
• The food and beverage industry, which extensively uses nitrogen gas for gas packaging, rapid refrigeration, and freezing technologies is also harnessing the full potential of air separation units to its fullest.
• Companies in the manufacturing world, due to scientific breakthroughs and the advent of Industry 4.0, are also demanding air separation units to increase efficiency, enhance precision, and save financial capital spent on energy.

Attributes	Details
Air Separation Plant Market Value in 2024	USD 6,515.40 million
Projected Market Value by 2034	USD 10,512.26 million
Value-based CAGR from 2024 to 2034	4.90%

Main Challenges Faced by Factory Units in Adopting Air Separation Units

• Air separation units often take air from the atmosphere which also contains water vapor and moisture. This can lead to freezing or obstruction of air separation equipment, significantly impeding the adoption.
• Outer air, due to pollution and climate change, also contains enormous quantities of impurities and contaminants like CO2, H2, and other trace gases. These gases have an adverse effect on the workings of air separation plants.
• Another challenge these factory units face while operating air separation units is maintaining optimal temperature and pressure throughout the process. Failure to do so affects the efficiency and purity of air, which can be detrimental to the final outputs.

Manufacturers using air separation plants in their factory units can thus install molecular sieves to eliminate impurities, water vapor, moisture, and other pollutants in their separation units.

Category-wise Insights

Cryogenic Air Separation Units Earn the Go-ahead from Manufacturing Companies

Air separation units, across the world, come in only two variants, cryogenic and non-cryogenic. The former holds the largest share, 57.40% of the market in 2024.

Attributes	Details
Top Type	Cryogenic
Market Share (2024)	57.40%

• The demand for cryogenic air separation plants, in the factory units, is touching the skies as they are considered to be one of the main components for producing industrial gases such as oxygen, nitrogen, and argon.
• As compared to non-cryogenic ASUs, cryogenic ones are also capable of producing gases with extremely high purity levels. Such levels of purity are quintessential in factory units involved in the manufacturing of high-tech electronics, pharmaceuticals, and specialty chemicals.

Rising Popularity of Air Separation Units for Oxygen Production

Manufacturing units utilize air separation plants for the production of varied gases, such as oxygen, nitrogen, argon, etc. Among these, air separation plants for oxygen production hold a market share of 57.80% in 2024.

Attributes	Details
Top Gas	Oxygen
Market Share (2024)	57.80%

• Factory units, especially those dealing with food processing require massive amounts of oxygen. These factory units often use air separation units to procure air from the atmosphere.
• The demand is also attributed to the increased usage of oxygen in metallurgical processes, such as steelmaking, where it is injected into furnaces to facilitate combustion and increase heat transfer efficiency.

Country-wise Insights

The performance of the air separation plant market is heavily dependent on the growth of the industrial sector in the region. More the growth, the higher the adoption of these units. The growth rates of India, China, South Korea, Canada, and the United States, for the next ten years, have been mentioned below.

Countries	CAGR (2024 to 2034)
China	5.70%
India	5.00%
South Korea	4.30%
Canada	3.80%
United States	3.70%

Exponentially Expanding Chemical Industry in China Proves to be a Boon for Air Separation Plants’ Manufacturers

The Chinese market for air separation plants is slated to grow at a CAGR of 5.70% for the forecasted period of 2024 to 2034.

• The Chinese chemical industry is one of the largest ones in the world. Each year, China, alone, contributes nearly forty percent to the overall market valuation of the global chemical sector.
• This dominance in the sector generates a huge demand for air separation units in the country as they form an essential part of producing industrial gases like nitrogen, oxygen, and argon.

Colossal Food Processing Industry Generates Great Demand for Air Separation Plants in India

India is also one of the most lucrative countries in this market. It is very likely to grow at a CAGR of 5.00%.

• India is a heaven for food processing companies due to its culinary diversity, enormous consumer base, and the emergence of multinational companies since its globalization reforms in the last decade of the twentieth century.
• Food processing industries, too, require substantial quantities of air separation units as they require huge amounts of oxygen, nitrogen, and argon gases for modified atmosphere packaging, cryogenic freezing, and inert gas blanketing.

Electronic Sector Brings Great Revenue to the South Korean Air Separation Plant Market

South Korea is one of the most vibrant markets for air separation plants. It is inclined to grow at a CAGR of 4.30% through 2034.

• South Korea, due to its proximity to Taiwan and China, has become one of the largest suppliers of electronic components in the past few decades. Their giant leap in this sector is generating excellent demand for air separation plants.
• Factory units involved in the manufacturing of electronic components such as semiconductors, integrated circuits (ICs), and display panels rely heavily on air separation plants for the production of high-purity gases.

Canada’s Mining Sector Benefits the Air Separation Plant Market

The Canadian market for air separation plants is also a promising one. It is slated to grow at a CAGR of 3.80% through 2034.

• The mining sector in Canada is one of the top three industries in the country, with a major part of its GDP coming from it. Canada’s vast land use and mechanization of this industry have led to the expansion of the mining industry beyond expectations.
• Equipment involved in the mining industry also uses ASUs for smelting and refining. Air separation units are also in high demand as they play a crucial role in nitrogen generation.

The United States Air Separation Plant Market Gains from its Expanding Manufacturing Sector

The United States air separation plant market is also very likely to flourish in the coming years. It is slated to grow at a CAGR of 3.70% through 2034.

• The manufacturing sector in the United States is blossoming, thanks to the hefty investments by stakeholders in the country. These units utilize air separation units extensively to produce industrial gases such as oxygen, nitrogen, and argon, which are critical for various manufacturing processes.

Competitive Landscape

The market for air separation plants is still in its nascent stages, with very few companies dominating the international marketplace.

Some of the most prominent companies in the market are Linde AG, Air Products and Chemicals Inc., Air Liquide SA, Praxair Inc., Messer Group GmbH, Universal Industrial Gases Inc., Taiyo Nippon Sanso Corporation., etc.

There are still a lot of regions in the world where the proliferation of these units is not found at the level it is found in the developed industrial regions. To tackle this problem, ASU manufacturing companies must tap into untapped regions to expand their consumer base.

Recent Developments

• In January 2024, EuroChem built an air separation unit at Nevinnomysskiy, with major process equipment weighing over 1,000 tons delivered to Nevinnomysskiy Azot. The unit produces gaseous oxygen and nitrogen, liquid oxygen, nitrogen, and argon, enhancing efficiency and reducing environmental impact.
• In September 2020, industrial gases firm Messer Group announced plans to invest over €35 million to construct a new air separation plant in Vila-Seca, Spain. The facility, capable of producing 2,400 ton/day of oxygen, nitrogen, and argon, was set to be located south of the Tarragona Chemical Complex.
• In February 2023, INOXAP commissioned its 5th air separation facility in Hosur, Tamil Nadu, doubling its Liquid Oxygen production capacity to 300 TPD. The new plant, inaugurated by Tamil Nadu Chief Minister M K Stalin, will meet oxygen demand for hospitals and industrial needs, creating 150 jobs.
• In October 2023, Linde's subsidiary Praxair India commenced commercial production at its air separation unit in Hyderabad. The plant, completed within 18 months, will produce 250 tonnes of gases daily, serving healthcare, pharma, and industrial sectors in the region.

Key Companies

• Linde AG
• Air Products and Chemicals Inc.
• Air Liquide SA
• Praxair Inc.
• Messer Group GmbH
• Universal Industrial Gases Inc.
• Taiyo Nippon Sanso Corporation
• Technex Limited
• Sichuan Air Separation Plant Group
• Ranch Cryogenics Inc.
• AMCS Corporation
• Yingde Gases Group Company Limited

Key Coverage in the Processed Fruits and Vegetables Market

• Demand Analysis of Air Separation Plants
• Air separation plants Industry
• Market dynamics of cryogenic air separation
• Overview of the oxygen nitrogen plant market
• Adoption of air separation plants in the Chemical Industry

Key Segments in the Air Separation Plant Industry

By Type:

• Cryogenic Air Separation Plants
• Non-cryogenic Air Separation Plants
• Pressure Swing Adsorption (PSA)
• Vacuum Pressure Swing Adsorption (VPSA)
• Membrane Separation

By Gas:

• Oxygen
• Nitrogen
• Argon
• Diesel

By End-use Industry:

• Chemical Industry
• Iron & Steel Industry
• Healthcare Industry
• Food & Beverage Industry
• Paper & Pulp Industry
• Oil and Gas Industry
• Others

By Region:

• North America
• Latin America
• Europe
• Asia Pacific
• Middle East and Africa (MEA)

Frequently Asked Questions

How Big is the Air Separation Plant Market in 2024?

The air separation plant market is expected to be worth USD 6,515.40 million in 2024.

What is the Sales Forecast for the Air Separation Plants through 2034?

The air separation plant market is expected to reach USD 10,512.26 million by 2034.

At What Rate is the Air Separation Plant Market Expected to Grow?

The air separation plant market is projected to rise at a CAGR of 4.90% from 2024 to 2034.

Which are the Key Companies in the Air Separation Plant Market?

Linde AG, Air Products and Chemicals Inc., Air Liquide SA, Praxair Inc., Messer Group GmbH, Universal Industrial Gases Inc., Taiyo Nippon Sanso Corporation., etc., are some of the major players in the global air separation plant market.

What was the Overall Value of the Air Separation Plant Market in 2023?

The market valuation was USD 6,199.30 million in 2023.