Nitrous Oxide Market Size, Share & Trends Analysis Report By Application (Automotive, Medical, Electronics, Food & Beverages), By Region (North America, APAC), Competitive Landscape, And Segment Forecasts, 2018 - 2025

Industry Outlook

The global nitrous oxide market size was valued at USD 805.1 million in 2016. Increasing demand from various industries such as automotive, electronics, medical, and food & beverages is expected to be the key trend stimulating market growth. In addition, significant demand from Asia Pacific, owing to the high prevalence of chronic diseases and widening base of the geriatric population in major countries such as China and India, is benefitting the overall market.

Nitrous oxide or laughing gas is a colorless and non-flammable gas with a slightly sweet odor, which is widely used for various medical and non-medical applications. Some of the non-medical end uses include racing cars, the semiconductor industry, and food processing. In the medical industry, it is widely used in surgery and dentistry procedures as an analgesic and anesthetic. Upon inhaling, it has excellent euphoric effects and this property has led to its recreational use as a dissociative anesthetic.

The market in the U.S. was valued at USD 156.54 million in 2016. In the country, it is extensively used in the automotive, medical, and food & beverage sectors. Possession of nitrous oxide is legal in various states under federal law. However, the Food & Drug Administration regulates it under the Food Drug and Cosmetics Act, which prohibits the sale and distribution of human consumption.

The use of nitrous oxide in the medical sector has a minimal impact on the environment. Nitrous oxide accounts for 5% of the total greenhouse effects, with only 1% of nitrogen oxide released into the atmosphere coming from medicinal use. Medical nitrous oxide accounts for 0.05% of the total gas emissions affecting the environment globally.

However, stringent rules and regulations over the possession, transportation, and usage are posing a challenge to the growth of the market. The use of medical gases and their associated equipment are regulated by the Center for Drug Evaluation and Research and the U.S. Food and Drug Administration. These guidelines explain practices and procedures for compressed medical gas fillers, including home respiratory services. Manufacturers are obliged to comply with rules and guidelines laid down for the manufacturing and marketing of medical gases.

Application Insights

Medical was the largest segment in 2016 and the trend is anticipated to continue throughout the forecast period. Approximately 85 to 90% of nitrous oxide produced worldwide is utilized in the medical sector. It is extensively used in the medical sector as an anesthetic and analgesic agent in surgical and dentistry procedures. It is commonly used as a single agent for partial sedation in dentistry, mostly in pediatric dental applications. Increasing aging population across the world and the growing prevalence of dental problems are anticipated to contribute to the growth of the segment.

The automotive segment is estimated to register healthy growth over the forecast period. In modern automobiles, nitrous oxide is used to significantly boost engine power by increasing the oxygen content of the fuel mixture, thus enabling the engine to burn more fuel. The majority of nitrous oxide systems are installed on trucks, motorcycles, snowmobiles, all-terrain vehicle, and cars. However, legislation pertaining to the use of nitrous oxide in road vehicles varies from country to country, even within Europe.

Regional Insights

North America was the leading revenue contributor in the global nitrous oxide market in 2016. The region is poised to offer huge opportunities over the forecast period. Increasing prevalence of chronic diseases such as cancer, type 2 diabetes, stroke, heart disease, obesity, and arthritis is supplementing the growth of the regional market. It is used as a carrier gas for producing powerful general anesthesia. Airgas, a key manufacturer, and supplier, has a strong reach in North America with production facilities in Pensacola and Maitland in Florida, Ontario, Canada, and Mississippi.

Europe is also likely to be a prominent destination for global players. Chronic diseases are the major causes of mortality and morbidity in Europe. The majority of the aging population suffers from chronic diseases. In recent times, with an increase in income and sedentary lifestyles, young and middle-aged are also being diagnosed chronic diseases. These factors are projected to bolster the demand for nitrous oxide in the region.

Nitrous Oxide Market Share Insights

The market is highly competitive and fragmented in nature with the presence of several key players in the global arena. Praxair Technology, Inc.; Oxygen & Argon Works Ltd.; The Linde Group; Matheson Tri-Gas, Inc.; SOL Spa; Merck KGaA; Air Liquide; Airgas, Inc.; and Ellenbarrie Industrial Gases Ltd. are some of the key players engaged in extensive R&D and production of nitrous oxide. Moreover, Promas Engineers Pvt. Ltd., SS Gas Lab Asia, KVK Corporation, and Carbide and Chemicals are some of the key players engaged in the manufacturing of nitrous oxide.

Consumption of nitrous oxide is highly affected by regulations related to nitrous oxide in various countries. They vary from country to country for various application sectors. It is not illegal to sell or possess nitrous oxide; however, there are several laws pertaining to distribution to minors and to recreational inhalation. Its consumption in the automotive sector is also being affected by strict rules by the respective transport authorities of a country. Its usage in road vehicles to increase the power of an engine is not allowed.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global nitrous oxide market report on the basis of application and region:

• Application Outlook (Revenue, USD Million, 2014 - 2025)

  • Automotive

  • Medical

  • Electronics

  • Food & Beverage

  • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • The U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa