Nitrogen Gas Market Size, Share & Trends Analysis Report By Form (Compressed Gas, Liquid Nitrogen Gas), By Application (Food & Beverages, Chemicals, Pharmaceuticals, Electronics), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global nitrogen gas market size was valued at USD 40.2 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 7.1% from 2023 to 2030. Nitrogen gas is widely used in various industrial sectors, such as chemicals, pharmaceuticals, electronics, and metal fabrication. The growth of the nitrogen gas industry is driven by the expansion of industrial activities and the rising demand for nitrogen gas in various sectors. In the pharmaceutical industry, the market plays a crucial role in the packaging of various medications to extend their shelf life and to secure their quality and integrity. It is used during the manufacturing process to create an inert environment, preventing oxidation or degradation of sensitive pharmaceutical compounds. It is commonly used in packaging to displace oxygen and extend the shelf life of medications and drug products.The expansion of industrial activities and the increasing demand for products in these sectors contribute to the growth of the market.

The U.S. emerged as one of the major countries utilizing industrial gases, especially nitrogen gas as the country has the presence in large number of major industrial gas suppliers such as Linde, Air Liquide, Messer, and Air Products & Chemicals. The growing healthcare industry in the U.S., coupled with growing R&D in the healthcare sector owing to the recent outbreak of the COVID-19 pandemic, is expected to propel the demand for the market in the U.S.

Nitrogen gas is used on a large scale for the manufacturing and testing processes of semiconductors. Liquid nitrogen gas is utilized to reduce heat from manufacturing processes. Cryogenic gases are often employed for the creation of inert environments and to eliminate undesirable gases involved in manufacturing processes.Presence of major food & beverages, and electronics companies in the U.S. is also one of the major reasons driving the product demand. In the U.S., the usage of electronics is increasing day by day, with an ever-growing number of electronic devices and gadgets being manufactured for the convenience of consumers. Thus, the growing electronic industry in the U.S. is expected to propel the U.S. market.

Application Insights

The food & beverage application segment dominated the market with a revenue share of 49.8 % in 2022. This is attributed to the fact that nitrogen gas is used in the food & beverage industry for food packaging preservation and by creating a nitrogen-rich environment that inhibits the growth of spoilage-causing microorganisms. The product is also utilized in the packaging of perishable food products to maintain freshness and extend shelf life. In the beverage industry, nitrogen gas is utilized in carbonated and non-carbonated drinks such as soft drinks, sparkling water, beer, wine, juice, and sports drinks, to name a few. It offers distinct benefits such as reducing foam and preserving flavors.

Furthermore, the product is a fundamental element in the chemical industry. It is widely used in the production of ammonia, which serves as a building block for various chemical compounds, including fertilizers, explosives, and plastics. Additionally, it plays a crucial role in the pharmaceutical industry as it is employed in the manufacturing process to create an inert atmosphere, eliminating the risk of unwanted reactions in sensitive pharmaceutical compounds. Nitrogen gas is also used during the packaging and storage of medications to protect them from moisture, oxidation, and degradation.

Moreover, it finds its application in the electronic industry to provide an oxygen-free and moisture-free environment during various manufacturing processes. It is utilized in the production of semiconductors, printed circuit boards, and other electronic components. It helps in minimizing the oxidation of sensitive materials, enhances the quality and reliability of electronic devices, and prevents the formation of defects.

Form Insights

The compressed gas form segment dominated the market with a revenue share of 54.3 % in 2022. This is attributable to the fact that compressed gas plays a pivotal role as a key component in industrial gas systems. These systems employ both high purity and low purity gases in processes such as cryogenic fractional distillation, pressure swing adsorption, and membrane separation. The utilization of compressed gas offers a cost-effective and efficient solution for high-production-rate facilities, making cryogenic fractional distillation a widely adopted technology for the production of high-purity industrial gases. The demand for compressed gas is anticipated to increase in cylinder systems associated with cryogenic fractional distillation, pressure swing adsorption, and membrane separation, throughout the entirety of the projected period.

Liquid nitrogen gas, which is obtained through commercial fractional distillation of liquid air, represents a liquefied state of nitrogen. It finds extensive application in cooling and cryogenic applications. Due to its non-toxic, odorless, colorless, chemically inert, and non-flammable properties, liquid nitrogen is commonly employed in the chemical and pharmaceutical industry.

It is frequently used during the manufacturing of pharmaceuticals to facilitate the safe transfer of reaction mixtures from one container to another. The use of a safe and inert gas is crucial when handling and delivering liquid or powdered medications, as exposure to oxygen or water vapor can lead to potential hazards. Furthermore, certain pharmaceutical chemicals can be compromised or undergo explosive reactions if they come into contact with oxygen or water vapor.

Regional Insights

Asia Pacific region dominated market with a revenue share of 39.3% in 2022. This is attributable to the fact that the region is experiencing rapid industrialization and urbanization, contributing to the exponential growth of the market. Countries such as China, Japan, India, and South Korea are witnessing significant demand for nitrogen gas in various sectors, including electronics, metallurgy, chemicals, and healthcare. The expanding manufacturing sector, coupled with the increasing need for nitrogen in oil and gas exploration, is propelling the market growth in this region.

North America holds a significant share in the nitrogen gas market and is expected to witness steady growth in the coming years. The region's strong presence in the manufacturing, oil and gas, pharmaceutical, and food and beverage sectors drives the demand for nitrogen gas for applications such as blanketing, purging, and inerting. The U.S. and Canada are the key contributors to the market, with a well-established industrial infrastructure and technological advancements.

Moreover, Europe region comprises Germany, France, the UK, and the Netherlands, are the leading markets for nitrogen gas in this region. The stringent regulations emphasizing environmental sustainability are driving the demand for on-site nitrogen generation systems and nitrogen recovery from waste gases, promoting the growth of the market.

Key Companies & Market Share Insights

The market for nitrogen gas is characterized by intense competition. Major players expanding into different regions are engaged in diversifying their product portfolio and extending their global reach. These manufacturing companies are forming various strategic partnerships and distribution agreements to cater to the growing demand for their products in new geographical markets. For instance, in 2022, Linde plc has entered into a new long-term agreement with a major space launch company located in Florida to supply bulk industrial gases. The air separation facility in Mims, Florida, will serve as the source for the delivery of liquid nitrogen to the client. Linde plc plans to expand production capacity by up to 50% and expects the additional capacity to be operational in 2023. Some of the prominent players in the global nitrogen gas market include:

• Air Products and Chemicals, Inc.

• Gulf Cyro,

• Universal Industrial Gases, Inc.

• NEXAIR

• Southern Industrial Gas

• Praxair Technology, Inc.

• Taiyo Nippon Sanso

• Axcel Gases

• Linde Plc

• Omega Air

• Ellenbarrie industrial Gases.

• Messer Group

• Parker Hannifin Corp.

• Dubai Industrial Gases

• Yingde Gases Group

Nitrogen gas Market Report Scope

Global Nitrogen Gas Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global nitrogen gas market report based on form, application, and region:

• Form Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Compressed Gas

  • Liquid Nitrogen Gas

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Food & Beverages

  • Chemicals

  • Pharmaceuticals

  • Electronics

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • Switzerland

    • France

    • Italy

    • Spain

    • The Netherlands

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Southeast Asia

    • Malaysia

    • Indonesia

    • Vietnam

  •  Oceania

    • Australia

    • New Zealand

  • Central & South America

    • Brazil

    • Argentina

    • Chile

    • Colombia

  • Middle East & Africa

    • Saudi Arabia

    • South Africa

    • Iran

    • Oman

    • UAE

    • Qatar

    • Kuwait

    • Nigeria

    • Angola