The Most Attractive Industrial Gas Markets to InvestAug 29th, 2017
India and China are two greatest chemical hubs in Asia are considered to be huge off-takers of the industrial gases within the next three years. The Business Research Company (TBRC) reports that nitrogen and oxygen will be the most demanded gases in these regions.
For today, China is a breeding ground for many overseas investors. In 2016 the gas industrial market of China was valued at 17% share of the world’s gas market. By 2020 the share is expected to reach 30% which is $16 billion.
The experts expect that the demand for industrial gases will increase from the electronics sector. Therefore, new supply contracts and investments into electronic manufacturing industry will strengthen Chinese gas market. National companies produce industrial gases or commodity gases for multitude uses. They are engaged in manufacturing gases in liquid, solid and compressed forms.
Other investment-attractive markets are Indian, Russian and Brazilian. India shows the growth of nearly 10, 5% followed by Russia – over 9% and Brazil – 7% respectively. According to TBRC research, these markets will be the most fast-paced during the forecast time.
After the three year period, Indian industrial gas market is expected to reach $ 1.9 billion. Here industrial gasses are strongly demanded by a great number of food and beverages, motor-car and oil and gas producers. Along with them, investors see great opportunities in chemical, healthcare, metallurgical and refining industries.
A major driver for the Russian industrial gas market is a growing need for infrastructure modernization. As for Brazilian market, it is driven by the growth of construction and metallurgy industries together with the overall economic improvement.
The U.S. remains the most stable commodity gas market for investments mainly due to the presence of a large number of automotive, oil and gas and food-processing industries with the market share at 27% of the global industrial gas market.
As the most far-reaching trend in the commodity gas market, TBRC encourages food gas producers to increase their industrial capacity to be able to supply the growing demand for this type of gas from the nutrition sector. Carbon dioxide, nitrogen and oxygen are highly demanded food grade gases for chilling, freezing and packaging of food products. They can substitute chemical ingredients and other additives thus satisfying the need of health-conscious buyers for healthy food.