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Middle East Industrial Gases Market

Middle East Market Study on Industrial Gases: Hydrogen Accounts for 70% of Overall Consumption

Middle East Industrial Gases Market by Type (Oxygen, Nitrogen, Helium, Hydrogen, Argon, Methane and Xenon)

Middle East Industrial Gases Market Outlook (2023 to 2033)

According to Persistence Market Research, the Middle East industrial gases Market is valued at US$ 4.02 billion in 2023. Demand for industrial gases in the region is expected to rise at a CAGR of 7.2% and reach a market valuation of US$ 8.03 billion by the end of 2033.

During the forecast period, expansion of the healthcare, energy, oil & gas, and metal manufacturing industries in the Middle East is expected to propel the demand for industrial gases.

Use of industrial gases in the healthcare sector is rising significantly. Oxygen gas is crucial in clinics and healthcare facilities for surgeries and other treatments, while nitrogen plays a critical role as a medical gas mixture for lung function tests and powering gas-operated medical devices due to its ability to provide pneumatic pressure.

Attribute Key Insights

Middle East Industrial Gases Market Size (2018A)

US$ 3.3 Billion

Estimated Market Value (2023E)

US$ 4.02 Billion

Projected Market Value (2033F)

US$ 8.03 Billion

Market Growth Rate (2023 to 2033)

7.2%

Collective Market Share of Top 3 Countries (2023E)

50% to 55%

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Demand Analysis of Industrial Gases in Middle East (2018 to 2022) Vs. Market Projections (2023 to 2033)

From 2018 to 2022, the Middle East industrial gases market expanded at a CAGR of 3.6% and is predicted to grow much faster at 7.2% CAGR from 2023 to 2033. This high growth is primarily due to the rapid expansion of electronics industries and the increased adoption of gases in industrial processes.

The market is growing due to high demand from various sectors including energy and oil and gas, metal manufacturing & fabrication, food and beverages, electronics, and healthcare, as well as the growing need for industrial gases for handling emergency medical situations. There are untapped potential end users for industry players to target.

Utilization of industrial gases in the electronics industry is predicted to increase substantially as demand for electronic devices rises and new technologies such as 5G emerge.

In the coming years, market participants are expected to be presented with growth opportunities in the expanding manufacturing and processing sectors worldwide. The steel, glass, oil, and fiber optics industries are among those that extensively use industrial gases. Growth of these industries in developing nations is boosting the demand for industrial gases.

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What are the Factors Influencing the Demand for Industrial Gases in the Middle East?

“Rising Demand from Non-oil Sectors in the Regions”

Demand for industrial gases in the Middle East is driven by the strengthening of non-oil sectors. The oil-producing countries in the region have acknowledged the global movement towards sustainable energy and net-zero carbon industries, which will decrease their reliance on oil and gas and minimize manufacturers' control over oil and gas prices.

To sustain their economy in an oil- and gas-independent environment, several countries are investing in the expansion of non-oil sectors such as automotive, pharmaceuticals, and general manufacturing. The United Arab Emirates, Saudi Arabia, Bahrain, and Qatar are among the countries leading the way in these investments.

  • For instance, Saudi Arabia has invested a significant amount of US$ 70 billion in building six cities that have regulatory adjustments and infrastructure to attract and support manufacturing companies in the long run. As these non-oil sectors continue to expand, demand for industrial gases, which are essential for various manufacturing processes, is expected to grow.

“Food & Beverage Sector to Be a Key End User”

In the coming years, the food and beverages industry is expected to flourish due to the expanding population and changes in dietary patterns. To meet the demand for food from distant locations, it is necessary to package and transport the food in a modified environment, which necessitates the use of industrial gases.

Growing demand for carbonated drinks is driving the Middle East industrial gases market, largely due to the rapid growth of the food and beverages sector. This growth is aided by the increasing population, changing food habits, and increased global exposure.

One of the main factors driving the growth of the food and beverages industry in the Middle East is the increasing desire for processed and packaged foods. This trend is expected to persist as customers seek convenient, pre-prepared meals that require less effort to prepare. The use of nitrogen and carbon dioxide is critical in food packaging as they help extend the shelf life of products and prevent spoilage.

Another factor driving demand for industrial gases from the food and beverages industry is the increased emphasis on food safety and quality. Ozone and carbon dioxide are used to clean and sanitize food processing equipment and minimize the risk of contamination, thus ensuring food safety.

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What are the Hindrances to the Demand Growth for Industrial Gases?

“High Costs Related to Logistics”

In the Middle East, several factors influence the demand for industrial gases, such as distribution costs, transportation expenses, safety concerns, labor expertise, and energy expenses. Due to the impracticality of long-distance transport, gas pipelines, tanks, and cylinders are necessary for distribution. It can be difficult and costly to maintain and improve the efficiency of these transportation methods.

Obtaining industrial gases from the atmosphere demands substantial energy expenses, and the industry is struggling with the cost and effectiveness of energy. Furthermore, handling gases during filling, transportation, and usage presents a considerable obstacle as high-pressure gases are susceptible to leaks, which can negatively affect gas prices and profit margins.

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Country-wise Insights

What is the Demand Outlook for Industrial Gases in GCC Countries?

Demand for industrial gases in the GCC countries is high due to their flourishing infrastructure development. These nations have invested a substantial portion of their oil and gas revenue in enhancing their infrastructure and amenities to entice manufacturing and service industries. Many applications in these projects employ industrial gases such as oxygen, nitrogen, acetylene, carbon dioxide, argon, and hydrogen.

  • According to a Kuwait-based non-banking organization, GCC countries were collectively awarded contracts worth US$ 93.6 billion in 2022 alone. This figure is expected to increase further in the coming years as more projects are awarded, and other countries will follow a similar pattern.

Rising demand for industrial gases will persist as infrastructure projects expand in GCC countries.

How is Geographical Location of Middle Eastern Countries Expected to Create Lucrative Opportunities for Manufacturers of Industrial Gases?

In terms of geography, the Middle East serves as a bridge for trade between Europe, Asia, and Africa. The Suez Canal, which connects the Red Sea and the Mediterranean Sea, is one of the most significant shipping transit points in the area. In 2022, over 22,000 ships passed through the Suez Canal.

The establishment of manufacturing hubs in countries like Saudi Arabia, Egypt, Yemen, and Türkiye is estimated to significantly decrease transportation expenses. Due to the abundance of oil and gas resources, energy costs in the Middle East are considerably lower than in other regions of the world.

The geographical location of Middle Eastern Countries holds significant opportunities for the growth of the manufacturing sector in the region. Expansion of the manufacturing sector is expected to boost the production and sales of industrial gases in the region.

Category-wise Insights

Why Does the Metal Manufacturing and Fabrication Sector Widely Use Industrial Gases?

The metal manufacturing and fabrication industry in the region heavily depends on industrial gases such as oxygen, nitrogen, argon, and hydrogen for various applications such as cutting, brazing, welding, and heat treatment. Oxygen, nitrogen, argon, and carbon dioxide are the most commonly used industrial gases in this sector. Oxygen is frequently employed in metal production for cutting, welding, and brazing applications. Nitrogen serves as a shielding gas in laser cutting, plasma cutting, and welding applications.

In welding and metal manufacturing, argon is mainly used as a shielding gas to safeguard the welding area against ambient gas impacts. Carbon dioxide is also extensively utilized in metal production processes as both a coolant and a shielding gas for welding.

The metal manufacturing and fabrication segment is witnessing an increasing demand for industrial gases due to the growth of the construction, automotive, and aerospace industries. Industrial gases are extensively used in metal manufacturing and fabrication processes to enhance product quality and reduce costs, making them a vital component of the industry.

The metal fabrication and manufacturing business in the Middle East is becoming more concerned with sustainability, which is boosting demand for industrial gases that can cut emissions and enhance energy efficiency. When compared to typical production processes, using oxygen in steel production can reduce greenhouse gas emissions by up to 70%.

Competitive Landscape

The Middle East industrial gases market is moderately consolidated with a significant number of prominent manufacturers operating within the market. The competition among manufacturers is intense, and thus, it is crucial for leading players to establish an optimized distribution network to gain a foothold in the market. Some manufacturers are adopting a strategic approach, such as acquiring local businesses or collaborating with local distributors, to expand their reach.

Other companies are divesting their low-margin businesses to focus on emerging sectors, such as renewable energy, to gain a competitive advantage. Key manufacturers are also expanding their production capacities to meet the rising demand for industrial gases across diverse end-use industries and prevent the entry of new competitors into the market.

  • In 2023, ADNOC signed agreements with 23 companies for local manufacturing opportunities worth US$ 4.6 billion.
  • In September 2022, Abdullah Hashim Industrial Gases & Equipment Co. Ltd., Air Products' merchant industrial gas joint venture in the Middle East, acquired Air Liquide's merchant industrial gases business in the Kingdom of Saudi Arabia.
  • In March 2021, Air Products announced its plans to establish a new industrial gas production facility in Jubail, Saudi Arabia, to address the country’s expanding need for industrial gases.
  • In September 2020, as part of its aim to expand its footprint in the Middle East, Air Liquide announced the acquisition of a 40% stake in Al-Can Oxygen Ltd., Saudi Arabia's largest independent industrial gas company.

More developments related to companies manufacturing industrial gases in the Middle East have been tracked by Persistence Market Research, which are available in the full report.

Middle East Industrial Gases Industry Report Scope

Attribute Details

Forecast Period

2023 to 2033

Historical Data Available for

2018 to 2022

Market Analysis

  • US$ Billion for Value
  • Tons for Volume

Key Countries Covered

  • United Arab Emirates
  • Saudi Arabia
  • Qatar
  • Oman
  • Kuwait
  • Bahrain
  • Egypt
  • Jordan
  • Iraq
  • Türkiye
  • Rest of the Middle East

Key Market Segments Covered

  • Type
  • Supply Mode
  • Application
  • Country

Key Companies Profiled

  • Air Liquide Middle East
  • Air Products Middle East
  • Arabian Industrial Gases
  • Brothers Gas
  • Cryogenic Equipment & Services
  • Dubai Industrial Gases
  • Emirates Industrial Gases
  • GasTech Engineering Corporation
  • Gazprom Export
  • Gulf Cryo Holding
  • Industrial Gases Company
  • Juffali Chemical Products Trading
  • Linde Middle East
  • MIGC LLC
  • National Industrial Gas Plants
  • National Industrial Gases Company
  • Noble Gas
  • Praxair Middle East
  • Saudi Industrial Gas
  • Taiyo Nippon Sanso

Report Coverage

  • Market Forecast
  • Company Share Analysis
  • Competition Intelligence
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives

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Middle East Industrial Gases Industry Research Segmentation

By Type:

  • Oxygen
  • Nitrogen
  • Helium
  • Acetylene
  • Argon
  • Hydrogen
  • Carbon Dioxide
  • Methane
  • Florine Gases
  • Krypton
  • Xenon
  • Others

By Supply Mode:

  • Pipeline
  • Bulk Gas Delivery
    • High & Low Pressure Gas Cylinders
    • Compressed Liquid Gas Cylinders
    • Microbulk Systems
    • Portable Bottles & Cartridges
    • Tube Trailers
  • Cryogenic Tanks & Liquid Dewars

By Application:

  • Metal Manufacturing and Fabrication
  • Healthcare
  • Automotive & Aerospace
  • Electronics
  • Energy, Oil & Gas
  • Food & Beverages
  • Pulp & Paper
  • Chemicals
  • Pharmaceuticals & Biotechnology
  • Other Industrial

By Country:

  • United Arab Emirates
  • Saudi Arabia
  • Qatar
  • Oman
  • Kuwait
  • Bahrain
  • Egypt
  • Jordan
  • Iraq
  • Türkiye
  • Rest of the Middle East

- Companies Covered in This Report -

  • Air Liquide Middle East and North Africa (MENA).
  • Linde Middle East
  • Air Products Middle East
  • Praxair Middle East and Africa
  • Gulf Cryo
  • Messer Group
  • Abdullah Hashim Industrial Gases & Equipment Co. Ltd.
  • National Industrial Gas Plants
  • Al Waha Petrochemicals Company
  • Al Khaleej Gas
  • Gulf Industrial Gases Co. (GIG)
  • Sharjah Oxygen Company (SOC)
  • Buzwair Industrial Gases Factories
  • Al Faisaliah Industrial Gases (AFIG)
  • Al Kafaa Ltd. for Industrial Gases
  • Emirates Industrial Gases Co. LLC
  • Emirates Industrial Gas Company
  • Abdullah Al-Shuwayer Group of Companies
  • International Gas Services Est.
  • Kuwait Oxygen & Acetylene Co. W.L.L.
  • Abu Dhabi Oxygen Company
  • Al Manhal Gas
  • Qatargas Operating Company Limited (Qatargas)
  • Sabic Industrial Gases
  • Saudi Industrial Gas Co. (SIGAS)
  • Technical Gas Products
  • Taif Industrial Gases Factory (TIGF)
  • Universal Industrial Gases, Inc.
  • Yemen LNG Company Ltd.
  • Air Water Middle East & Africa (AWMEA)
  • Taiyo Nippon Sanso

- Frequently Asked Questions -

The Middle East industrial gases market was valued at US$ 3.76 billion in 2022.

Sales of industrial gases in the Middle East increased at 3.6% CAGR between 2018 and 2022.

The industrial gases market in the Middle East stands at US$ 4.02 billion in 2023.

Key manufacturers of industrial gases account for a market share of 70% to 75%.

The energy and oil & gas segment is expected to occupy a leading share of the market.

Demand for industrial gases is expected to reach US$ 8.03 billion by the end of 2033.

Sales of industrial gases are anticipated to increase at 7.2% CAGR through 2033.

Air Liquide Middle East and North Africa, Linde Middle East, Air Products Middle East, Gulf Cryo, National Industrial Gas Plants (NIGP), and Al Wefaq National Company for Oxygen and Industrial Gases account for 43.5% market share.

UAE, Qatar, Kuwait, Oman, and Bahrain, and Saudi Arabia generate high demand for industrial gases.

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