I I Industry xperts I RedefinesBusinessAcumen Construction&Manufacturing Industrial,Medical andspecialtygases AGlobalMarketOverview Thereportreviews,analyzesandprojects theglobalmarketforindustrial,medicaland SpecialtyGasesfortheperiod2010-2020 Published:Oct2014 ReportCode:MG007 Pages:261 Charts:106 Price:Sample 2014IndustryExperts,alrightsreserved industry-experts.com
Market Outlook by Geographic Region With an estimated market of US$xxx billion for Industrial, Medical and Specialty Gases (IMS Gases), Asia-Pacific ranks the largest market in 2014 and the region also expected to maintain its rank in 2020 by touching US$xxx billion. North America closely follows Asia-Pacific with an estimated market value of US$ xxx billion in 2014 while emerging markets in Middle East and Africa projected to record the fastest CAGRs of xxx % and xxx % respectively during 2014-20. Chart 2: Global Industrial, Medical and Specialty Gases Market (2014 & 2020) by Geographic Region North America, Western Europe, Asia-Pacific, South America, Eastern Europe, Middle East and Africa in USD Million Year 2014 2020 %CAGR (2014-20) North America xxxxxxxxxx xxxxxxxxx xxx Western Europe xxxxxxxxxx xxxxxxxxx xxx Asia Pacific xxxxxxxxxx xxxxxxxxx xxx South America xxxxxxxxxx xxxxxxxxx xxx Eastern Europe xxxxxxxxxx xxxxxxxxx xxx Middle East xxxxxxxxxx xxxxxxxxx xxx Africa xxxxxxxxxx xxxxxxxxx xxx Total xxxxxxxxxx xxxxxxxxx xxx 2014 2020 North America Western Europe Asia Pacific South America Eastern Europe Middle East Africa -3-
Product Outline Companies operating in Industrial Gases Industry supply a wide variety of gases. The industry supplies air gases and other associated gases often categorized as Industrial Gases, Medical Gases and Specialty Gases, though there is no universal agreement on the definition of these gases. Depending on the application of gases and factors such as complexity, level of purity and certainty of composition, industry commonly defines the difference between industrial gases, medical gases and specialty gases. Generally, there are five major categories of gases which include industrial gases used in industrial processes; medical gases used in medical and healthcare sector; specialty gases rare, high purity and specialty gases used in specialty industrial applications as well as analytical laboratories; fuel gases gases used as fuel such as LPG; and refrigerant gases used in cooling or freezing applications. This report only focuses on first three types of gases which are industrial, medical and specialty gases. Market analysis includes revenues generated by industrial gas companies from the sales of industrial, medical and specialty gases by companies producing them and does not include captive consumption and equipment sales and services offered by industrial gases companies. Industrial gases is estimated to be largest segment of IMS Gases market in 2014 with US$xxx billion accounting for about xxx % while specialty gases follow with xxx %. In terms of growth for the period 2014-20, Medical gases projected to witness the fastest with a CAGR of xxx % to reach US$ xxx billion by 2020 from an estimated US$ xxx billion in 2014. Chart 5: Global Industrial, Medical and Specialty Gases Market (2014 & 2020) by Major Category Industrial Gases, Medical Gases and Specialty Gases in USD Million Year 2014 2020 %CAGR (2014-20) Industrial Gases xxxxxxxxxx xxxxxxxxx xxx Medical Gases xxxxxxxxxx xxxxxxxxx xxx Specialty Gases xxxxxxxxxx xxxxxxxxx xxx Total xxxxxxxxxx xxxxxxxxx xxx Industrial Gases Medical Gases Specialty Gases 2014 2020-6-
Electronics Electronics manufacturing industry is the key customer of a wide variety of specialty gases. The electronics industry uses full range of bulk industrial gases and specialty gases in the production of semiconductors, photovoltaics, flat panel displays, LEDs, wafers and polysilicon. Key gases used in electronics industry include industrial gases such as nitrogen, hydrogen and argon to specialty gases such as silane, phosphine, arsine, dichlorosilane and trichlorosilane. Electronics industry employs these gases to improve yields, reduce costs and reduce environmental pollution. Below table shows major industrial and specialty gases and their key applications in the electronics industry. Gas Ammonia NH3 Argon Ar Arsine AsH3 Boron trichloride BCl3 Boron trifluoride BF3 Carbon dioxide CO2 Chlorine Cl2 Deuterium D2 Diborane B2H6 Dichlorosilane SiH2Cl2 Difluoromethane CH2F2 Dimethylsilane Disilane Si2H6 Table 11: Applications for industrial and specialty gases in electronics industry Major Applications used in semiconductor manufacturing and advanced materials for the deposition of silicon nitride by Chemical Vapor Deposition (CVD) used as carrier gas for reactive molecules, as inert gas to protect semiconductors against impurities used under ionic state, for sputtering, ion implantation, annealing and etching processes in semiconductor or high performance material manufacturing mainly used in semiconductor manufacturing as an n-type dopant for epitaxial silicon mainly used in semiconductor manufacturing as an p-type dopant for epitaxial silicon mainly used in semiconductor manufacturing as an p-type dopant for epitaxial silicon used as a cooling medium in environmental testing of electronic devices; used to add conductivity to ultrapure water, for CO 2 snow abrasive cleaning of parts or residues on wafers; used as an environmentally friendly supercritical fluid for removing photo-resist from wafers used in plasma etching of aluminum and other metal layers in semiconductor manufacturing; Chlorine trifluoride is used in semiconductor manufacturing to clean the deposition reactors by oxides removal used in electronics as a replacement for hydrogen in the annealing or sintering of silicon based semiconductors, flat panel displays, and solar panels mainly used in semiconductor manufacturing as an p-type dopant for epitaxial silicon; used for the production of borophosphosilicate glasses (BPS) used as a silicon-precursor gas for chemical vapor deposition processes with oxygen, nitrogen or metallic (tungsten) compounds to deposit layers of silicon dioxide, silicon nitride or oxinitride or metal (tungsten) silicide layers in semiconductor manufacturing used in plasma etching of silicon layers used as a Chemical Vapor Deposition (CVD) silicon precursor for low k dielectric layers in damascene metallization applications used for the deposition of silicon in semiconductor manufacturing Germane GeH4 used for the deposition of epitaxial and amorphous silicon-germanium alloy layers -29-
THE MARKET DRIVERS The key trends that are shaping the global IMS gases (or combinely called the industrial gases) market include the global economic growth in the recent past, increasing production indexes and most importantly the demand for these gases by both developed as well as the developing nations in the industries such as Energy, Environment, Healthcare, Electronics and Outsourcing Gas Supply. The key factors of growth in these industries are briefly explained below. Energy Industry Main growth drivers in the energy industry include enhanced oil recovery to maximize oil reserves, hydrogen for refineries to comply with stringent fuel emissions legislation and heavier crude feedstock, and gasification projects in several countries striving to find alternate sources of energy motivated by a desire for greater energy self sufficiency. Continued increases in global energy demand thus create significant demand for industrial gases in the refining and gasification production processes. The oil and gas industry is now facing challenges such as heavier crude oil feedstock which making difficult to extract and refine and stringent emission control standards. As the oil fields are getting older, the difficulty of extracting the crude oil is also growing. Enhanced oil recovery technologies are being used to recover crude oil more easily, improve yields and also reduce environmental impact. Industrial gases such as nitrogen and carbon dioxide play crucial role in enhanced oil recovery. When injected into low pressure or underperforming reservoirs, nitrogen or carbon dioxide can improve oil flow and increase yields. CO 2 or N 2, in certain conditions, can become miscible with crude oil and reduce the viscosity of the oil and thereby further enhancing recovery. In the refining industry, environmental legislations are playing crucial role in reducing the sulfur content to produce cleaner burning fuels. These legislations are driving demand for hydrogen in refining processes to break up heavier hydrocarbons and reduce sulfur content. Hydrogen is used to process crude oil into refined fuels, such as petrol and diesel, and for removing contaminants, such as sulfur, from these fuels. The other driver for hydrogen growth in refineries is increased consumption of low quality heavy crude oil, which requires more hydrogen to refine. Soaring demand for power and desire for greater energy self sufficiency, countries such as China are now investing in alternative source of energy. China, with abundant coal reserves is now leading the way in coal gasification technologies. Also in other parts of the world, rising energy prices have forced to search for alternative sources, such as the United States with the exploitation of shale gas. -42-
Industry Financial Analysis The year 2013 witnessed an average combined revenue growth of around xx% compared to the prior year for the top 6 leaders in industrial, medical and specialty gases industry, where it was only about xx % in 2012 compared to 2011. But, the revenue growth in the year 2013 is significantly below the growth March in 2011 and 2010, stood at xx % and xx % compared to previous year respectively. In terms of average operating income, the year 2013 witnessed a growth of xx % from 2012. In 2013, the highest revenue growth was recorded by Linde at xx % year-on-year from 2012. All of the top players performed well in 2013 except Taiyo Nippon, which registered a xx % drop in revenue from 2012. Top 5 players average operating income share of revenue stood at xx % in 2013 which slightly increased that of previous years. Chart 17: Five Year Financial Analysis for Top 6 Industry Players change change change 10- change In million US $ 2013 2012 2011 2010 2009 12-13 11-12 11 09-10 L'Air Liquide SA Revenue xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx 17,898 6.8% 16,684 Operating Income xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx 2,988 9.1% 2,715 Operating Income as % of Revenue 17.0% 16.7% 16.7% 16.7% 16.3% The Linde Group Revenue xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx 17,076 8.5% 15,618 Operating Income xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx 3,881 14.4% 3,323 Operating Income as % of Revenue 23.8% 23.3% 23.3% 22.7% 21.3% Praxair Inc Revenue xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx 10,116 11.5% 8,956 Operating Income xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx 2,082 24.4% 1,575 Operating Income as % of Revenue 22.0% 21.7% 21.9% 20.6% 17.6% Air Products and Chemicals Inc Revenue xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx 8,616 8.9% 7,847 Operating Income xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx 1,422 21.1% 1,122 Operating Income as % of Revenue 15.4% 16.0% 16.1% 16.5% 14.3% Taiyo Nippon Sanso Corp* Revenue xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx 5,521 16.0% 4,635 Operating Income xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx 405 27.2% 295 Operating Income as % of Revenue 6.0% 5.3% 6.5% 7.3% 6.4% Airgas Inc* Revenue xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx 4,251 8.8% 3,875 Operating Income xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx 469 14.9% 399 Operating Income as % of Revenue 12.0% 12.0% 11.7% 11.0% 10.3% Average Revenue xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx Operating Income xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx Operating Income as % of Revenue 16.0% 15.8% 16.0% 15.8% 14.4% * Financial year ends in -47-
Market Overview by End-use Application Sector Growing by a robust xxx% CAGR between 2014 and 2020, Energy sector is projected to be the fastest growing market for IMS gases and expected to reach US$ xxx billion by 2020 from an estimated US$ xxx billion in 2014. Manufacturing is being the largest end-use market for IMS gases with US$ xxx billion in 2014, Chemicals is estimated the second largest with US$ xxx billion in 2014. By 2020, Medical & Healthcare is to surpass Chemicals sector to become the second largest market with US$ xxx billion which is also projected the second fastest growing market with a CAGR of xxx % for the same analysis period. Chart 34: Global Industrial, Medical and Specialty Gases Market Overview (2010-2020) by End-use Application Sector Manufacturing, Chemicals, Metals, Electronics, Healthcare, Food & Beverages, Energy and Other in USD Million Year Manufacturing Chemicals Metals Electronics Medical & Healthcare Food & Beverages Energy Other Total 2010 xxxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxx xxxxxxxx xxxxxxxxx xxxxxxxxxxx 2011 xxxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxx xxxxxxxx xxxxxxxxx xxxxxxxxxxx 2012 xxxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxx xxxxxxxx xxxxxxxxx xxxxxxxxxxx 2013 xxxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxx xxxxxxxx xxxxxxxxx xxxxxxxxxxx 2014 xxxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxx xxxxxxxx xxxxxxxxx xxxxxxxxxxx 2015 xxxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxx xxxxxxxx xxxxxxxxx xxxxxxxxxxx 2016 xxxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxx xxxxxxxx xxxxxxxxx xxxxxxxxxxx 2017 xxxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxx xxxxxxxx xxxxxxxxx xxxxxxxxxxx 2018 xxxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxx xxxxxxxx xxxxxxxxx xxxxxxxxxxx 2019 xxxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxx xxxxxxxx xxxxxxxxx xxxxxxxxxxx 2020 xxxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxx xxxxxxxx xxxxxxxxx xxxxxxxxxxx %CAGR (2010-13) xxxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxx xxxxxxxx xxxxxxxxx xxxxxxxxxxx %CAGR (2014-20) xxxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxx xxxxxxxx xxxxxxxxx xxxxxxxxxxx 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Manufacturing Chemicals Metals Electronics Medical & Healthcare Food & Beverages Energy Other -120-
Eastern Europe - Market Overview by Country Market for IMS gases in Eastern Europe, estimated at US$xx billion in 2014 and forecast to be US$xx billion in 2015, is further projected to reach US$xx billion by 2020, registering a CAGR of xx%, the fastest in Europe, over 2014-2020. Russia, accounting for an estimated 2014 share of xx.x%, translating into US$xx.x billion, is the largest independent market in Eastern Europe while Poland is expected to be the fastest growing individual region with a CAGR of x.x% during the above mentioned period. Chart 67: Eastern European Industrial, Medical and Specialty Gases Market Overview (2010-2020) by Country Russia, Poland and Rest of Eastern Europe in USD Million Year Russia Poland Rest of Eastern Europe Total 2010 xxxxxxxx xxxxxxx xxxxxxxx xxxxxxxx 2011 xxxxxxxx xxxxxxx xxxxxxxx xxxxxxxx 2012 xxxxxxxx xxxxxxx xxxxxxxx xxxxxxxx 2013 xxxxxxxx xxxxxxx xxxxxxxx xxxxxxxx 2014 xxxxxxxx xxxxxxx xxxxxxxx xxxxxxxx 2015 xxxxxxxx xxxxxxx xxxxxxxx xxxxxxxx 2016 xxxxxxxx xxxxxxx xxxxxxxx xxxxxxxx 2017 xxxxxxxx xxxxxxx xxxxxxxx xxxxxxxx 2018 xxxxxxxx xxxxxxx xxxxxxxx xxxxxxxx 2019 xxxxxxxx xxxxxxx xxxxxxxx xxxxxxxx 2020 xxxxxxxx xxxxxxx xxxxxxxx xxxxxxxx %CAGR (2010-13) xxxxxxxx xxxxxxx xxxxxxxx xxxxxxxx %CAGR (2014-20) xxxxxxxx xxxxxxx xxxxxxxx xxxxxxxx 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Russia Poland Rest of Eastern Europe -161-
Middle East - Market Overview by Country On the growth front, United Arab Emirates is anticipated to be the fastest growing region, registering xx.x% CAGR over 2014-2020 figured to stand at US$xxxx million by 2020 from an estimated US$xxxx million in 2014, Middle East IMS gases marekt. However, Saudi Arabia is set to emerge as the slowest growing region in the Middle East, in addition being a highest demanded region (following rest of ME) experiencing an estimated value sales of US$xxxx million in 2014, which further exhibits a demand of US$xx billion by 2020 and maintaining a compounded annual growth rate of xx% between 2014 and 2020. Chart 101: Middle East Industrial, Medical and Specialty Gases Market Overview (2010-2020) by Country Saudi Arabia, United Arab Emirates, Turkey and Rest of Middle East in USD Million Year Saudi Arabia United Arab Emirates Turkey Rest of ME Total 2010 xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxxx 2011 xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxxx 2012 xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxxx 2013 xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxxx 2014 xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxxx 2015 xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxxx 2016 xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxxx 2017 xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxxx 2018 xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxxx 2019 xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxxx 2020 xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxxx %CAGR (2010-13) xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxxx %CAGR (2014-20) xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxxx 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Saudi Arabia United Arab Emirates Turkey Rest of ME -236-