The global argon gas market size is estimated to be worth USD 241.3 million in 2024. It is anticipated to reach a value of USD 408.4 million by 2034. Sales are projected to rise at a CAGR of 5.4% over the forecast period between 2024 and 2034. The revenue generated by the industry in 2023 was USD 229 million.
Argon (Ar), being a clear, odorless, and noble gas, sits third in Group 18 of the periodic table. Due to its inactive nature, it does not mix well with other elements. This property makes it highly preferable across industries that need their products to be kept safe from reacting elements.
Demand for the gas is anticipated to surge across welding and metal-making industries to keep the air away from hot metals, thereby preventing oxidation. In the electronics industry, it is set to be extensively used for the manufacturing of semiconductors and other delicate components.
| Attributes | Description |
|---|---|
| Estimated Global Argon Gas Market Size (2024E) | USD 241.3 million |
| Projected Global Argon Gas Market Value (2034F) | USD 408.4 million |
| Value-based CAGR (2024 to 2034) | 5.4% |
The argon gas industry is set to experience an upward growth trajectory during the forecast period. It is estimated to create an incremental opportunity of USD 167 million and is predicted to rise 1.6 times the current value through 2034.
The jump in value is due to an increasing need for the gas in several fields, including food and beverage, healthcare, and electronics. Rising production of electronic chips across the globe is anticipated to propel the need for argon gas to keep the air around them stable and non-reactive.
In the healthcare sector, the gas is likely to be utilized for a wide range of medical procedures, including retinal realignment, laser surgery, argon beam coagulator ablation, endoscopic procedures, and cryosurgery. In the field of metal manufacturing and fabrication, the gas is projected to be used to prevent air and dirt from spoiling the metal amid welding or metalwork.
It gives the final product a long operational life and superior quality. With increasing building and construction projects across the globe, the demand for this gas is anticipated to surge to make good-quality metal products.
In the food and beverage industry, argon gas is anticipated to be used to keep items fresh for a long period by keeping oxygen out of the packaging. With surging demand for less processed food, companies are likely to demand this gas to extend the shelf life of their products.
Asia Pacific is estimated to witness the most significant growth rate, followed by North America and Europe. This is due to the presence of an established electronics industry in countries like China and Japan. Booming healthcare sector in the United States and Germany is set to augment demand in the two latter regions.
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The table below presents a comparative assessment of the variation in CAGR over six months for the base year (2023) and current year (2024) for the global argon gas market. This analysis reveals crucial shifts in industry performance and indicates revenue realization patterns, thereby providing stakeholders with a better vision of the growth trajectory over the year. The first half of the year or H1, spans from January to June. The second half, i.e. H2, includes the months from July to December.
The industry, in the first half (H1) of 2023 to 2033 is set to surge at a CAGR of 5.3%, followed by a spike in the growth rate during the second half (H2) where the CAGR is estimated to be 5.7%.
| Particular | Value CAGR |
|---|---|
| H1 | 5.3% (2023 to 2033) |
| H2 | 5.7% (2023 to 2033) |
| H1 | 5.1% (2024 to 2034) |
| H2 | 5.9% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to dip slightly to 5.1% in the first half and remain relatively considerable at 5.9% in the second half. In the first half (H1), the industry witnessed a decrease of 20 BPS, while in the second half (H2), it exhibited an increase of 10 BPS.
Semiconductor Manufacturers to Bolster Demand with Need for High-quality Chips
The rising need for semiconductors and electronic components is set to push demand for argon gas. The stable nature of the gas has the ability to keep these items pure, which is pushing demand.
Key manufacturers of electronic chips are anticipated to seek Ar to help create a safe manufacturing atmosphere so that nitrogen and oxygen are kept away from the chips, which can otherwise hamper their quality. Increasing innovations in chip manufacturing technology with the rising need for cleaner processes are projected to bolster growth.
Semiconductors are nowadays being utilized in almost every gadget- right from smartphones and laptops to healthcare tools and in-vehicle systems. The rising demand for innovative gadgets, adoption of the Internet of Things (IoT), and expansion of 5G networks are creating a surging need for top-notch chips. This makes it important to use Ar in different chip-making stages, like coating and heating, to ensure the end products work well and last long.
For instance, United States-based Air Products and Chemicals, Inc. announced that it is making novel electronic materials to keep up with the semiconductor industry's needs. In 2023, the company launched a new facility in Chandler, Arizona, specifically designed to supply high-purity gases, including argon, to semiconductor manufacturers in the region. This move is anticipated to benefit the innovation plans of chipmaker Intel, which is set to invest USD 20 million in new plants across Arizona.
Use of the Gas to Surge in Cryosurgery and Cryopreservation Procedures
With rising cryosurgery and cryopreservation procedures, Ar is set to be highly demanded across the globe. The gas plays a significant role in cryosurgery, which uses extreme cold to kill bad tissues like warts or tumors. The gas is anticipated to be utilized in several tools like argon beam coagulators for quickly freezing bad cells and killing them off without damaging the good cells nearby.
Increasing prevalence of cancer and skin problems is projected to push the demand for cryosurgery as it is non-invasive and requires short hospital stays. This is further projected to augment the demand for Ar.
Healthcare facilities involved in cryopreservation, on the other hand, are projected to demand Ar as the procedure helps in maintaining tissues and living cells at an extremely low temperature so that they remain metabolically and structurally intact.
The gas helps in keeping the low temperature needed for the safe storage of sperm, eggs, stem cells, and even whole organs for transplantation. With the rise of regenerative and personalized medicine as well as long-term bioresearch, the field of cryopreservation is growing, thereby creating a rising demand for Ar.
For instance, United States-based Cryoport, Inc. supports life-saving cell and gene therapies across the clinical and commercial spectrum. The company recently acquired CellandCo BioServices, a bioservice business providing biorepository, kitting, and logistics services to the life science industry.
The company’s move shows how important cryopreservation is in medicine and the key role of Ar in keeping the stored biomaterials safe. Rising cases of chronic diseases, increasing adoption of regen therapies, and surging use of cryopreservation for having babies or inducing organ swaps are augmenting the need for the gas.
Booming Metal Manufacturing and Fabrication Industries to Create New Opportunities
The rise of metal manufacturing and fabrication industries is pushing the need for argon gas. This is because it plays a key role in preventing oxidation from reacting with molten metal during metallurgical processes. Being inert, the gas can form a shield around hot metals, keeping them safe from external gases. This shielding is set to be important for keeping the final metal products in good shape and quality.
In the field of welding, Ar is projected to be used in methods like metal inert gas (MIG) and tungsten inert gas (TIG) welding. These techniques are considered key for making innovative welds in car manufacturing and construction activities. The growing need for good-quality metal products, pushed by rapid construction activities worldwide, is making the metallurgy industry surge.
Surging Demand for Minimally Processed Foods Compelling Firms to Use Argon in Packaging
Modern consumers often prefer fresh, less processed food, which is anticipated to augment the argon gas market. Being an inert gas, Ar helps in preventing bacteria from growing inside the food packaging to give it a long shelf life and maintain its taste.
With growing need for healthy and natural food items, companies are striving to launch preservative-free fruits, meats, and dairy products. This transformation of the food industry is estimated to compel manufacturers to come up with new packaging methods that use Ar. One method called modified atmosphere packaging (MAP) is gaining impetus as it replaces oxygen with argon in the packaging.
For instance, in January 2024, Israel’s fresh produce packaging pioneer StePacPPC customized its MAP films to preserve fresh, whole, and sliced white mushrooms as well as whole exotic mushrooms. The lean MAP system fulfills consumer demand for sustainable packaging that slows deterioration and eventually reduces waste of this highly perishable item.
High Transportation Costs Due to Complex Nature of Argon May Limit Demand
Transporting argon gas in large quantities is difficult and costly due to the need for special care. The gas is stored and transported at an extremely cold temperature (below -185°C or -301°F), requiring unique cold storage tanks. Production of these tanks is expensive, and these must be handled carefully, which raises the cost of moving the gas from one place to another.
The need for cryogenic containers stems from argon's physical properties. At room temperature, the chemical element is in a gaseous phase which needs to be liquefied if transported in bulk. This liquefaction of gas is very costly and requires cutting-edge technology. When the gas is in the liquid phase, it needs to be stored in highly insulated containers that can sustain extreme cold temperatures so that the evaporation phase can be stalled.
Transportation complications extend beyond the containers as there are various safety protocols to be followed while handling this cryogenic liquid. These regulations are usually implemented to prevent accidents due to the high pressure and low temperature of the containers. Hence, specialized trucks are needed to safely carry these cryogenic containers to their desired location. Due to the aforementioned factors, the transportation cost of argon gas is much higher than any regular gas.
Principal Consultant
The global argon gas market recorded a CAGR of 5.1% during the historical period between 2019 and 2023. Growth was positive as it reached a value of USD 229 million in 2023 from USD 187.7 million in 2019.
From 2019 to 2023, the industry witnessed steady growth due to the booming electronics and semiconductor industries. The gas played an important role as it was used for producing an inert atmosphere essential in the manufacturing processes of components in these industries.
Development of metal manufacturing and fabrication industries, especially across emerging countries such as China and India also augmented demand. Constant innovations in the healthcare sector also drove demand in the historical period.
With high demand for minimally invasive surgical procedures worldwide, the need for Ar soared. At the same time, innovations in regenerative medicines accelerated demand. Rapid evolution of the food and beverage industry further bolstered the demand for Ar. Rising demand for renewable energy sources augmented sales.
In September 2023, for instance, Surrey-based Gas Recovery and Recycle Ltd (GR2L), a cleantech start-up, bagged around USD 4.48 million to provide Mundra Solar with its argon recycling technology. The gas will be supplied for the latter’s estimated 2GW solar facility in India. Ar will be used in solar panels to purify silicon crystals. Such innovative applications of the gas are likely to create new opportunities in the forecast period.
Tier 1 companies comprise industry leaders with a revenue of USD 50 to 100 million, capturing a significant value share of 15% to 20% globally. These leaders are characterized by high production capacity and a wide product portfolio.
The leaders are distinguished by their extensive expertise in manufacturing and a broad geographical reach, underpinned by a robust consumer base. They provide a wide range of products by utilizing the latest technology and meeting regulatory standards. Prominent companies within Tier 1 include Greif, Inc., Air Products, Airgas, Air Liquide, and Messer.
Tier 2 includes most of the mid-sized companies operating at the local level and serving niche areas with revenue below USD 50 million. These companies are notably oriented toward fulfilling local demands and are consequently classified within the Tier 2 segment.
They are small-scale players and have limited geographical reach. Tier 2 within this context, is recognized as an unorganized sector, which is mainly characterized by a lack of extensive structure and formalization when compared to organized competitors.
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The section below covers the analysis of the argon gas market for different countries. Demand analysis of key countries in several regions of the globe, including North America, Asia Pacific, Europe, and others, is provided.
Germany is thriving as the leading exporter of Ar, with an estimated CAGR of 5.6% from 2024 to 2034. In East Asia, China is anticipated to witness a steady CAGR of around 5.4% through 2034.
| Countries | CAGR 2024 to 2034 |
|---|---|
| Germany | 5.6% |
| China | 5.4% |
| United States | 4% |
| Canada | 3.8% |
| Spain | 3.7% |
Germany’s argon gas market is poised to exhibit a CAGR of 5.6% between 2024 and 2034. The country is becoming an increasingly significant consumer of this gas due to its robust industrial base and surging investments in industrial gas infrastructure.
The country has a strong presence in industries, such as automotive, electronics, and metal fabrication. With constant innovations in advanced manufacturing technologies, Germany is projected to remain at the forefront.
The country is well known for its high-quality and precision production processes, which require both superior-quality equipment and products. Industries, such as metal fabrication and welding are anticipated to demand Ar to maintain product integrity.
In the United States, electronics manufacturers like Dell, Apple, Cisco, and AMD are set to be the key consumers of argon gas. As per the United States Department of Commerce, in 2012, electronic product and computer manufacturing shipments reached USD 339.4 billion. These accounted for around 5.9% of the total manufacturing shipments in the country. Shipments of electronic computers alone were valued at around USD 9.7 billion in the same year.
Local firms in the United States are also focusing on research and development activities to either come up with new applications of argon or innovate existing technologies associated with the gas. These initiatives are anticipated to bolster growth in the country.
China’s argon gas industry is projected to surge at a fast pace in the estimated period amid the use of Ar in several high-growth industries like food, healthcare, and electronics. The country’s electronics and semiconductor industries are set to be the leading consumers of Ar.
With the presence of key companies, such as Huawei and Semiconductor Manufacturing International Corporation (SMIC), China is a leading production hub for electronics globally. Precision and high-purity requirements in semiconductor manufacturing result in significant consumption of Ar, creating an inert environment to ensure the integrity and performance of electronic components.
The section below contains information about the leading segments in the industry. By end-use, the metal manufacturing and fabrication segment is estimated to surge at a CAGR of 5.4% through 2034. In terms of product grade, the high-purity segment is projected to surge at 5.1% CAGR by 2034.
| Segment | Metal Manufacturing and Fabrication (End-use) |
|---|---|
| Value CAGR (2024 to 2034) | 5.4% |
Argon is set to be extensively used in welding processes, especially in metal manufacturing. It serves as a protective cover between the metal piece and the air in gas tungsten arc welding (GTAW) and gas metal arc welding (GMAW). This would help companies to lower the risks of contamination from the surroundings.
Contaminant-free surroundings are set to be required to make high-quality welds, including simple steel and special materials with complex properties, especially in the automotive and aerospace industries. The gas needs to be present at all times in the metal manufacturing and fabrication industry to prevent oxidation residues from entering the finished piece. This is especially important in the manufacturing of metal products with high-quality finishes required for industrial machinery.
| Segment | High Purity (Grade) |
|---|---|
| Value CAGR (2024 to 2034) | 5.1% |
The demand for high-purity argon gas is increasing rapidly as this element plays a critical part in multiple high-tech, accuracy-driven fields. For a few applications, the slightest impurities can lead to poor quality, performance, and safety in final commodities.
Increasing demand is set to be partly driven by the booming electronics and semiconductor industries. As technology progresses, there is a surging requirement for ultra-clean environments in the manufacturing of semiconductor chips and electronic components to avoid contamination issues. Leading chemical companies are hence offering high-purity argon gas to meet the specific requirements of the aforementioned industries.
Key players operating in the argon gas market are investing in the development of new manufacturing facilities and entering into partnerships. They are also engaging in mergers and acquisitions with small-scale companies to co-develop unique products by taking into consideration each other’s expertise.
A few other players are signing distribution agreements with reputed firms to fulfill the surging demand for their in-house products across specific geographical locations. They are primarily embracing operationally flexible, reliable, and affordable solutions to manufacture new products with the gas. They are also constantly focusing on the exploration of niche application areas to gain a competitive edge.
Industry Updates
In terms of product grade, the industry is divided into high purity, carrier-grade, and research grade.
In terms of supply mode, the industry is segregated into cylinder/cylinder bundles, cryogenic storage/bulk, and on-site production.
In terms of sales channels, the industry is divided into direct sales and distributor sales.
Based on end-use, the industry is segregated into metal manufacturing and fabrication, chemicals, energy, healthcare, electronics, food and beverage, and others.
Key countries of North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia, and the Middle East and Africa have been covered in the report.
The industry is projected to witness a CAGR of 5.4% through 2034.
The industry stood at a value of around USD 229 million in 2023.
The industry is anticipated to reach USD 408.4 million by 2034.
Germany is set to record a prominent CAGR of 5.6% through 2034.
A few key suppliers include Air Products, Airgas, Air Liquide, and Messer.
It is mainly used when an inert atmosphere is required for the production of reactive elements like titanium.
Food and beverage companies, welding and metal fabrication firms, and research institutes are the key consumers.
1. Executive Summary 2. Industry Introduction, including Taxonomy and Market Definition 3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments 4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections 5. Pricing Analysis 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034 6.1. Grade 6.2. Supply Type 6.3. Sales Channel 6.4. End Use Industry 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Grade 7.1. High Purity 7.2. Carrier Grade 7.3. Research Grade 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Supply Type 8.1. Cylinder/Cylinder Bundles 8.2. Cryogenic Storage/Bulk 8.3. On-Site Production 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Sales Channel 9.1. Direct Sales 9.2. Distributor Sales 10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By End Use Industry 10.1. Metal Manufacturing & Fabrication 10.2. Fabrication 10.3. Chemicals 10.4. Energy 10.5. Healthcare 10.6. Electronics 10.7. Food & Beverage 10.8. Others 11. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 11.1. North America 11.2. Latin America 11.3. Western Europe 11.4. South Asia 11.5. East Asia 11.6. Eastern Europe 11.7. Middle East & Africa 12. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 13. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 14. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 15. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 16. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 17. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 18. Middle East & Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 19. Sales Forecast 2024 to 2034 by Grade, Supply Type, Sales Channel, and End Use Industry for 30 Countries 20. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 21. Company Profile 21.1. Air Products 21.2. Airgas 21.3. Air Liquide 21.4. Messer 21.5. American Gas Products 21.6. Linde 21.7. SOS Gases Inc. 21.8. Mil-Spec Industries
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Argon Gas Market
