Industrial Gas Ecosystem Analysis in the Middle East
Study on Industrial Gas in the Middle East by Supply Mode (Pipeline, Bulk Gas Delivery, Cryogenic Tanks & Liquid Dewars), and By Country - 2024 to 2034
Analysis of Industrial Gas Covering Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, and Korea
Industrial Gas Sales Outlook for the Middle East (2024 to 2034)
Demand for industrial gas in the Middle East is likely to be valued at US$ 4,103.6 million for 2024. This value is projected to increase to US$ 8,135.6 million by 2034. The industrial gas ecosystem in the Middle East is forecast to expand at a CAGR of 7.4% from 2024 to 2034.
The industrial gas ecosystem in the Middle East is experiencing symbolic growth and transformation, driven by potential industrial sectors and rising demand for diverse gases. The expansion of the oil and gas industry and petrochemical and manufacturing activities fuel the demand for industrial gases like hydrogen, nitrogen, and oxygen.
Investment is made in the key players of the Middle East's advanced technologies, like gasification and cryogenic processes, to enhance production efficiency that meets the rising demand of the industries. The ecosystem is also characterized by a competitive landscape of major global and regional suppliers that helps in fostering innovation and strategic collaborations.
Furthermore, the rightward shift towards sustainable practices, including green hydrogen production, reflects the region's commitment and responsibility towards its environment. The industrial gas sector is important in supporting diverse applications, such as driving regional economic growth, making it a hub for industrial development.
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Key Industrial Growth Drivers
- The boom in infrastructural projects, including construction and transportation, contributes to the need for industrial gases in welding applications and materials processing.
- Continuous exploration and development in the oil and gas sector focuses on enhanced oil recovery and natural gas processing, raising the demand for specialized industrial gases.
- Advanced technologies, such as gasification and cryogenic processes, are adopted that improve production efficiency, thus driving the growth of the industrial gas ecosystem.
- The expansion of the healthcare sector requires industrial gases for medical applications, including oxygen required for respiratory therapy and nitrogen for medical device manufacturing.
- An increase in emphasis on sustainability and environmental responsibility has boosted investment in green technologies, particularly in the production of eco-friendly gases like green hydrogen.
With the expansion of these industries, a heightened need for industrial gases in various applications, ranging from metal fabrication to chemical processes, can be seen. The Middle East is also considered a strategic position as it is a global oil and gas industry hub. It substantially increases the demand for specialized gases in exploration, refining, and petrochemical production.
Furthermore, the ongoing adoption of advanced technologies, including green hydrogen production and innovative gas processing methods, aligned with global trends towards sustainability, amplifies the demand for eco-friendly industrial gases.
The evolution in the Middle East's industrial gas landscape trend is characterized by an upward shift towards greener solutions, a rise in technological advancements, and a dynamic industrial development driven by collaborative efforts and government support.
| Report Attributes | Details |
|---|---|
| Estimated Industrial Value (2024E) | US$ 4,103.6 million |
| Forecasted Industrial Value (2034F) | US$ 8,135.6 million |
| Global Industrial Growth Rate (2024 to 2034) | 7.4% CAGR |
| Pipeline Segment Growth Rate (2024 to 2034) | 7.9% CAGR |
| Bulk Gas Delivery Segment Growth Rate (2024 to 2034) | 7.4% CAGR |
| Key Companies Profiled |
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What Factors Drive the Usage of Industrial Gases in the Middle East?
“Industrial Gases Outpouring the Demand of Petrochemical and Oil Industry”
The surge in expansion of the petrochemical and oil industry in the Middle East is a major driver for the usage of industrial gases. Since the region is considered a global hub for oil and gas production, industrial gases like hydrogen and nitrogen play an important role in various processes.
For example, hydrogen is necessary for the refining processes, while nitrogen is used for blanketing and purging applications. The steady growth and investment in these sectors augment the demand for industrial gases, supporting exploration, extraction, and refining activities.
What Hinders the Industrial Gas Ecosystem from Growing in the Middle East?
“Disruption of Limited Transportation and Distribution Networks Disturbs the Ecosystem”
Limited transport and distribution networks for industrial gases can disrupt the seamless supply to various industries. The vast geographical expansion and remote locations of certain industrial facilities will result in logistical constraints, thus affecting the timely and efficient delivery of industrial gases.
Addressing these infrastructural gaps becomes important for establishing a steady and reliable supply chain, especially for the expansion of the industries in the region.
“Regulatory Involvement and Compliance Issues Obstruct the Growth of Industrial Gases”
Regulatory complexities and compliance issues hinder the growth of the industrial gas ecosystem in the Middle East. The industry eventually navigates a vast regulatory landscape across different regional countries, each with its own rules and standards.
In accordance with safety, environmental, and quality regulations are superior, where regulatory framework variations add complexity to operations. Harmonizing standards tend to have transparent regulatory processes, which are important for creating a favorable environment promoting the sustainable and compliant growth of the industrial gas sector in the Middle East.
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Country-wise Insights
What Attracts the Industrial Gas Ecosystem across the United Arab Emirates?
“Growth of Industrial Gas Manufacturers”
| Attribute | The United Arab Emirates |
|---|---|
| Industrial Value (2024) | US$ 603.2 million |
| Growth Rate (2024-2034) | 6.6% CAGR |
| Projected Value (2034) | US$ 1,147.1 million |
Industrial gas manufacturers are attracted to the United Arab Emirates (UAE) because of its strategic geographic location comprising of well-established infrastructure.
The United Arab Emirates' central location in the Middle East positions it as a logistical hub for the entire region, as it facilitates efficient distribution networks for industrial gases. The advanced transportation facilities make it easier for manufacturers to import raw materials, distribute products, and serve a broad customer base across the Middle East and beyond.
This strategic advantage leads to the enhancement of the appeal of the UAE as a prime location for industrial gas manufacturing, thus allowing companies to optimize supply chain operations and reach diverse industries in a cost-effective manner.
Will Industrial Gas Suppliers Do Well in Saudi Arabia?
“Need for Industrial Gas Suppliers Rises due to Petrochemical Industry "
| Attribute | Saudi Arabia |
|---|---|
| Industrial Value (2024) | US$ 295.5 million |
| Growth Rate (2024-2034) | 7.2% CAGR |
| Projected Value (2034) | US$ 593.9 million |
Industrial gas suppliers are poised for success in Saudi Arabia due to the country's thriving petrochemical industry. Saudi Arabia, a global leader in oil and gas production, has led to a surge in demand for industrial gases, such as hydrogen and nitrogen, which are essential for various processes in petrochemical facilities.
The continuous growth and expansion of the petrochemical sector creates a consistent and significant economy for industrial gas suppliers. It establishes a strong presence in Saudi Arabia. It allows suppliers to play a crucial role in supporting the critical operations of petrochemical plants, contributing to the country's overall economic development.
Category-wise Insights
Based on the supply mode, the pipeline segment is estimated to hold a 36.3% industrial share in 2024. It reflects a growing preference for the seamless and has a continuous supply of industrial gases that ensures operational stability and safety across diverse manufacturing sectors.
The bulk gas delivery segment marks its dominance in industrial gases, with a share of 25.7% in 2024. It underscores the industrial shift towards flexible and scalable solutions, meeting industrial users' dynamic demand patterns and optimizing gas delivery cost-efficiency.
How is the Increasing Adoption of Pipelines Impacting Growth?
“Increase in Adoption of Pipelines Result in Cost–Effective Solutions”
| Attribute | Pipeline |
|---|---|
| Industrial Value (2024) | US$ 1,489.6 million |
| Growth Rate (2024-2034) | 7.9% CAGR |
| Projected Value (2034) | US$ 3,124.1 million |
The dominance of the pipeline segment, holding a 36.3% revenue share in 2024, can be attributed to the efficiency and reliability of this supply mode. Pipelines offer a continuous and uninterrupted flow of industrial gases, ensuring a stable and constant supply to manufacturing and processing facilities.
The reliability minimizes disruptions in operations by enhancing safety and providing a cost-effective solution for transporting large volumes of gases over extended distances. The convenience and efficiency of pipeline infrastructure make it a preferred choice, especially for industries with high and consistent demand for industrial gases.
What Drives the Steady Expansion of Bulk Gas Delivery?
“Industrial Gas Leads Due to Demand for Large Quantities of Gases "
| Attribute | Bulk Gas Delivery |
|---|---|
| Industrial Value (2024) | US$ 1,054.6 million |
| Growth Rate (2024-2034) | 7.4% CAGR |
| Projected Value (2034) | US$ 2,310.5 million |
The bulk gas delivery industry is accounted to have an industrial share of 25.7% in 2024. The flexibility and scalability offered to industrial gas users drive the bulk gas delivery segment. Bulk gas delivery involves transporting large quantities of gases, such as nitrogen and oxygen, in cryogenic liquid form.
This mode caters to industries with fluctuating demand or those requiring intermittent access to industrial gases. Thus, the ability to adjust delivery quantities based on demand fluctuations makes bulk gas delivery particularly suitable for industries with variable production cycles.
Henceforth, this flexibility allows businesses to optimize costs and efficiently manage their industrial gas requirements, contributing to the segment's dominance in the industry.
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Competitive landscape highlights only certain players
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Competitive Landscape
The competitive landscape of the industrial gas environment in the Middle East is characterized by major global and regional players relative to the industrial share and its prominence.
Engagement of companies in continuous research and development enhances production processes, meets the evolving industrial demands, and adheres to stringent quality standards. Strategic partnerships and collaborations contribute to technological advancements and the development of specialized gas solutions.
Government initiatives and regulations influence the competitive dynamics, as adherence to environmental standards and safety protocols thus becomes a competitive advantage. The commitment to sustainability includes producing eco-friendly gases that further shape the competitive landscape.
Some of the recent developments of the industrial gas ecosystem are:Top of Form
- In July 2022, Linde signed a MoU with the United Arab Emirates' Ministry of Energy and Infrastructure. The MoU comprised identifying and developing green hydrogen and sustainability projects to contribute to the UAE Net Zero Initiative and achieve net-zero emissions by 2050 and MOEI's Energy Strategy 2050.
- In December 2023, Gulf Cryo and Petro Rabigh announced the inauguration of a new carbon capture and utilization (CCU) facility plant to start up and is located in the Kingdom’s Western Region.
Segmentation of the Industrial Gas Industry Report
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By Supply Mode:
- Pipeline
- Bulk Gas Delivery
- Cryogenic Tanks & Liquid Dewars
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By Country:
- United Arab Emirates
- Saudi Arabia
- Qatar
- Oman
- Kuwait
- Bahrain
- Rest of the Middle East
- FAQs -
What is the expected value of the industrial gas ecosystem in the Middle East in 2024?
By 2024, the estimated valuation of the Middle East industrial gas ecosystem is US$ 4,103.6 million.
At what rate is the industrial gas ecosystem growing in the Middle East?
The anticipated CAGR for industrial gas demand in the Middle East through 2034 is 7.4%.
What will be the anticipated value of the industrial gas landscape in the Middle East in 2034?
By 2034, demand for industrial gas in the Middle East will reach US$ 8,135.6 million.
Which is the preferred supply mode for industrial gases in the Middle East?
Pipelines are estimated to surpass the valuation of the on-premise model soon.
What is the estimated sales value of industrial gases in Saudi Arabia?
The industrial gas ecosystem in Saudi Arabia is expected to reach US$ 295.5 million in 2024.
Industrial Gas Ecosystem Analysis in the Middle East