The neon gas market will be valued at USD 286.6 million in 2024 with the surging safety of storing and transporting the gas in cylinders. The industry is forecasted to surpass a 7.8% CAGR through 2034. The sector is anticipated to reach a 2x valuation of USD 605.4 million by 2034 contributing towards the sustainability and circular economy.
| Attributes | Key Insights |
|---|---|
| Estimated Value (2024) | USD 286.6 million |
| Projected Size (2034) | USD 605.4 million |
| Value-based CAGR (2024 to 2034) | 7.8% |
Industrial lasers consisting of neon gas are also gaining importance in the manufacturing sector. These lasers are proven to create fine structure on the industrial parts that are impossible to create using traditional machining equipment.
The applications of industrial lasers adopting neon gas include laser marking, surface texturing, laser ablation, laser drilling, laser cutting, laser welding, wire stripping, and others. All these industrial applications are driving the production and use of neon gas in the industrial laser application.
The adoption of recycled neon gas will not degrade the chip quality, as several studies support the use of recycled neon gas. Moreover, the majority of chip-producing companies are developing technologies to recover neon gas from laser waste streams. All these factors are foreseen to drive the demand for the global neon gas market.
Moreover, advancement in the industrial production has also widened the newer applications of laser containing neon gas. The Industry 4.0 trend is expected to promote the usage of industrial lasers. NIST developed more advanced industrial laser technology that has the capability of pulse repetition of 100 times faster than conventional industrial lasers.
Other industrial developments such as the integration of tiny lasers directly into the silicon chips will enhance the chip production rate and integration of AI to create smart lasers. All these factors support the growth of industrial lasers and thereby augment the demand for neon gas in industrial lasers.
Key companies are also investing in the development of recycling technology. For instance, in April 2024, SK Hynix and TEMC jointly declared progress in the innovation of technology for recycling neon gas. The system will facilitate a 25 percent use of reclaimed neon gas by the year 2025 with the intention of raising the figure to 30 percent by the year 2030.
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The neon gas market shows promising growth potential. From 2024 to 2034, the market is slated to grow variably. The first half of 2023 to 2033 expects a CAGR of 6.7%. The second half of this period projects a CAGR of 7.1%. This slight decrease indicates a steady fall in demand.
| Particular | Value CAGR |
|---|---|
| H1 2023 | 6.7% (2023 to 2033) |
| H2 2023 | 7.1% (2023 to 2033) |
| H1 2024 | 6.8% (2024 to 2034) |
| H2 2024 | 7.2% (2024 to 2034) |
In the next decade though, the first half maintains a steady CAGR of 6.8%. The second half of 2024 to 2034, however, sees a CAGR of 7.2%.
Growing Demand for Neon Gas in Chip Production and Development of Pioneering Neon Gas Recycling Tech are increasingly Shaping the Neon Gas Market
Lithography is a crucial chip production process widely adopted by prominent chip manufacturers globally. Neon gas plays a prominent role in the electronics industry as it is used in excimer lasers to complete the lithography process.
The formation of a uniform pattern on chips determines the product efficiency. The excimer lasers predominantly comprise 98% neon gas which further improves pattern formation on chips. Neon gas's shorter wavelength enables excimer lasers to create minute patterns of 193 nanometers.
The electronics industry is constantly evolving, demanding smaller chips. The capability of neon gas to produce a shorter wavelength will further amplify the demand for neon gas in chip production. Additionally, several chip-producing companies are sourcing recycled neon gas in chip manufacturing.
For instance, the Korean chip-producing giant, Samsung, announced in March 2024 the usage of recovered neon gas in the photolithography process. The adoption of recycled neon gas will stabilize the cost and supply of the rare noble gas, further contributing to the reduced carbon footprint.
Signage Applications Usage Augments the Demand in Global Landscape
Neon gas inherent property of emitting a bright red glow makes it the most widely adopted gas in signage applications. Although signage requires high working voltages, the use of neon gas cuts down voltage consumption as neon gas tends to emit bright colors, allowing minimal usage of neon gas in signage applications. Inertness and low chemical reactivity are prime properties of neon gas, making it the ideal gas adopted in the signage industry.
Predominantly, neon signs were used for advertising. However, technological developments have led to a wider adoption of neon signs in modern décor, driving the adoption of neon gas in signage applications.
Several countries have supported the growth of neon signs. For example, in India, the neon sign industry witnessed high demand owing to technological advancements. Neon signs are gaining fame in corporate branding, wedding functions, and other modern decor applications.
High Adoption of Neon Gas in Industrial Lasers is forefront of Driving the Demand of the Global Neon Gas Market
Neon gas with combination of other gases such as Helium, Argon, and others is widely used in industrial lasers. For instance, Helium-Neon laser is predominantly small scale laser with wide industrial and scientific applications such as surveying, supermarket checkout scanners, printers, and others. The adoption of helium-neon lasers in industrial applications is gaining heightened demand owing to their ease of operation and relatively low cost as compared to other lasers used for similar applications.
The applications of helium-neon lasers include barcode scanners, tool alignment, non-contract measuring and monitoring, blood analysis, food sorting, particle counting, alignment of high power CO2, YAG treatment lasers, pointing beams, and others. All these factors are amplifying the adoption of neon gas and thereby driving the demand for the global neon gas market.
Industrial lasers consisting of neon gas are also gaining importance in the manufacturing sector. These lasers are proven to create fine structures on industrial parts that are impossible to create using traditional machining equipment.
The applications of industrial lasers adopting neon gas include laser marking, surface texturing, laser ablation, laser drilling, laser cutting, laser welding, wire stripping, and others. All these industrial applications are driving the production and use of neon gas in the industrial laser application.
Neon Gas as a Coolant in Ultra-Sensitive IR (Infrared) Imaging and Detection Equipment is Key Trend
The gas is gaining fame in the aerospace and defense industry. It is widely used as a coolant in ultra-sensitive infrared imaging and detection equipment. High resolution IR imaging demand is increasing across several industries including defense and security, healthcare, and environmental monitoring. The demand for precise detection will further amplify the need for cooling methods thereby driving the adoption of neon gas as a coolant.
The detector materials such as quantum dots and mercury-cadmium-telluride are proven to increase the performance of detection. These technologies/detector materials need an effective cooling mechanism that in turn reduces thermal noise and improves image quality. All these factors are expected to offer new growth opportunities for neon gas in the forecast period.
The space exploration and astronomical research also require advanced detection systems. Inherent properties of neon gas such as low boiling point offers effective cooling in the cooling sensors used in the diverse astronomical research equipment.
Moreover, industrial applications such as manufacturing and quality control also adopt advanced IR imaging technology. The applications of IR imaging in manufacturing and quality control include non-destructive testing, and process monitoring, thereby driving the adoption of neon gas as coolant.
Fluctuating Price of Neon Gas and Minimal Production of Neon Gas as Compared to the Potential
Neon is a rare gas that is present in a low quantity as compared to other industrial gases. Also, the demand and supply side of Neon gas across the globe is quite bound. Thus it leads to a rise in the price of Neon gas in the global market.
Moreover, nearly more than 70% of the global demand for Neon gas is supplied by Ukraine. The ongoing Russian invasion of Ukraine has disrupted the production and supply chain of Ukraine hampering the supply of noble gases. This disruption raises concerns about the structure and robustness of the global supply network for various rare gasses including neon, krypton, and others.
Also, the price of Neon gas is usually high as compared to other gas like argon. So Consumers can move to the usage of other conventional gas due to a hike in price. Owing to these price fluctuations, the demand for Neon gas is expected to hamper over the forecast period.
Principal Consultant
Tier 1 companies comprise players with a revenue of above USD 100 million capturing a significant share of 45-50% in the global market. These players are characterized by high production capacity and a wide product portfolio.
These leaders are distinguished by their extensive expertise in manufacturing and reconditioning across multiple neon gas applications and a broad geographical reach, underpinned by a robust consumer base. Prominent companies within Tier 1 include Linde PLC, Air Products and Chemicals, Inc., Messer North America, Inc., Air Liquide, and other players.
Tier 2 companies include mid-size players with revenue of below USD 100 million having a presence in specific regions and highly influencing the local industry. These are characterized by a strong presence overseas and strong industry knowledge.
These players have good technology and ensure regulatory compliance but may not have advanced technology and wide global reach. Prominent companies in tier 2 include EFC Gases & Advanced Materials, Gruppo SIAD, Praxair Technology, Inc., Proton Gases and other players.
The section below covers the industry analysis for neon gas demand in different countries. The demand analysis on key countries in several regions of the globe, including North America, Latin America, East Asia, South Asia Pacific, Western Europe, Eastern Europe, Middle East, and Africa is provided.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| Mexico | 8.4% |
| Nordic | 7.1% |
| Poland | 6.8% |
| South Korea | 7.9% |
| Japan | 7.1% |
The neon gas market in China is projected to reach USD 103.8 million with an estimated CAGR of 7.5% by 2034.
China holds a commanding position in the semiconductor industry with a large number of chip manufacturers. Neon gas is predominantly used in semiconductor and display production, large number of electronic producers is prime factor driving the neon gas market growth in China.
The country is also investing in technological advancement leading to production of high output neon gas. For instance, advancements in neon gas extraction and purification have further led to efficient production amplifying the neon gas output.
The sales in the United States are projected to reach USD 88.6 million by 2034. Over the forecast period, demand for the neon gas industry within the United States is predicted to grow at a 7.2% CAGR.
The semiconductor industry is the prime user of neon gas. The semiconductor industry is the United States has been growing swiftly driving the consumption of neon gas in the United States. The neon gas is crucial during chip production mainly photolithography.
The neon production capacity across the United States has increased dramatically further contributing to the growth of neon gas across the United States. For instance, set up new neon gas production facilities and production capacity expansion by existing key players will further augment the industry growth in the near future.
The sale of neon gas market in Germany is projected to reach USD 39.3 million and grow at a CAGR of 6.8% by 2034.
Neon gas is widely used in the high powered lasers that are used across precision production processes. The renewable energy industry requires precise equipment and utilizes high powered lenses across different value chains in renewable energy equipment production. This factor is escalating the high demand for the growth of neon gas in Germany.
Germany has prominent neon gas producers such as Air Liquide and EFC Gases & Advanced Materials. These key players are investing to increase their existing neon gas production capacities to meet the country and global demand. All these factors collectively drive the demand for neon gas across Germany.
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The section explains the growth trajectories of the leading segments in the industry. In terms of supply mode, the cylinders will likely dominate and generate a share of around 60% in 2024.
Based on the application, the laser segment is projected to hold a major share of 76% in 2024. The analysis would enable potential clients to make effective business decisions for investment purposes.
| Segment | Cylinder (Supply Mode) |
|---|---|
| Value Share (2024) | 60% |
The green technologies are been implemented across every industry. Likewise, the cylinders are also considered as green technologies as the cylinders can be re-used once the filled none gas is exhausted. Moreover, the cylinders are considered as the safest mode of transporting neon gas as these reduce the risk associated with neon gas transportation.
Majority of the neon gas manufacturers are using cylinders for storing and transporting the manufactured neon gas thereby driving the cylinder segment in the neon gas market.
| Segment | Construction (End Use) |
|---|---|
| Value Share (2024) | 76% |
Neon gas, along with Helium, Argon, and other gases, is commonly employed in industrial lasers. An example would be the Helium-Neon laser, which is mainly a compact laser used in a variety of industrial and scientific fields like surveying, supermarket scanners, printing, and more.
The increased popularity of helium-neon lasers in industrial settings is due to their simplicity and cheaper price compared to other lasers for the same purposes.
Helium-neon lasers are used in a variety of applications such as barcode scanners, tool alignment, non-contact measuring and monitoring, blood analysis, food sorting, particle counting, aligning high power CO2 and YAG treatment lasers, pointing beams, and more. All of these factors are increasing the use of neon gas and in turn, boosting the market demand for neon gas on a global scale.
Key companies producing barium carbonate consolidate the market with about 65-70% share that are prioritizing technological advancements, integrating sustainable practices, and expanding their footprints in the region.
Customer satisfaction remains paramount, with a keen focus on producing neon gas to meet diverse applications across laser, electronics, lighting, and others. These industry leaders actively foster collaborations to stay at the forefront of innovation, ensuring their products align with the evolving demands and maintain the highest standards of quality and adaptability.
Overall Strategy and Product Strategy
The supply mode segment is further categorized into cylinders, bulk and micro tanks, drum tanks, and on-site.
The application segment is classified into laser, electronics, lighting, and others.
Regions include North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia & Pacific, and the Middle East and Africa.
The laser application was valued at USD 217.9 million in 2023.
The industry is set to reach USD 288.6 million in 2024.
High adoption of neon gas in industrial lasers is forefront of driving the demand of the global neon gas industry.
The demand is projected to reach USD 605.4 million by 2034.
Laser application is expected to lead during the forecast period.
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