The industrial nitrogen market is estimated to reach $5.71 billion by 2031, growing at a CAGR of 5.2% from 2022 to 2031. Rise in usage of nitrogen across the oil & gas industry for well stimulation, inertization, and drilling to improve process efficiency and surge in adoption in the food & beverages industry for modified atmosphere packaging applications drive the growth of the global industrial nitrogen market. However, high costs of nitrogen production restrain the market growth. On the other hand, significant increase in demand for industrial nitrogen in the chemical industry creates new opportunities for the growth of the market in the coming years.
The major players operating in the global industrial nitrogen market include Air Products and Chemicals, Inc.; Axcel Gases; Dubai Industrial Gases; Ellenbarrie Industrial Gases Ltd; Gulf Cryo; Linde plc; Messer Group; nexAir; Omega Air; Parker Hannifin Corp.; Praxair; Southern Industrial Gas; Taiyo Nippon Sanso; Universal Industrial Gases, Inc.; and Yingde Gases Group.
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The growth of the global industrial nitrogen market is majorly attributable to its wide applications in various industries such as pharmaceutical & healthcare, oil & gas, metal manufacturing & fabrication, food & beverage, electronics, and chemical. Nitrogen liquid is used to maintain flammable or explosive substances and liquids away from air. Certain chemicals, solid surfaces, and stored food products have qualities that must be safeguarded from degradation caused by environmental oxygen and moisture. Cooling concrete with liquid nitrogen results in better-cured characteristics. When performing construction activities on soft, water-soaked ground, such as tunnel building beneath streams, liquid nitrogen can efficiently freeze the earth. Nitrogen is used in the manufacturing of steel and other metals to treat the melt and as a shield gas in the heat treatment of iron, steel, and other metals. It is also utilized as a process gas in conjunction with other gases for carbonization and nitriding reduction. Further, nitrogen is utilized in food preservation and in the electronics sector to make diodes and transistors. Nitrogen is used in large quantities to anneal stainless steel and other steel mill products. Annealing is a thermal treatment that improves steel processing.
Furthermore, nitrogen is required for manufacturing chemicals and resins. Nitrogen being a gas with exceptional inert properties is extensively employed in chemical industry for processes including prevention of oxidation of raw materials, preservation of chemicals, and prevention of combustion during storage of chemicals and for purging machines prior to and during the manufacturing process. Numerous chemical industries handle volatile and combustible chemicals. Nitrogen is used for elimination of oxygen which is a key concern as absence of oxygen largely alleviates the fire hazard. Consequently, the growing demand for industrial nitrogen in the chemical industry is anticipated to create ample growth opportunities for industrial nitrogen market in the coming years. However, high production costs of nitrogen is projected to hinder the expansion of the industrial nitrogen industry.
The industrial nitrogen market is segmented into form, application, and region.
Based on form, the compressed gas segment contributed to the highest market share in 2021, contributing to nearly two-thirds of the global industrial nitrogen market, and is expected to continue its leadership status during the forecast period. Moreover, this segment is estimated to register the highest CAGR of 5.6% from 2022 to 2031. This is due to cost-effective and economical processes for high-production-rate facilities along with surge in demand for compressed nitrogen gas for cylinder systems of cryogenic fractional distillation, pressure swing adsorption, and membrane separation. The research also analyzes the liquid nitrogen segment.
Based on application, the food and beverages segment accounted for the highest market share in 2021, contributing to nearly one-third of the global industrial nitrogen market, and is expected to maintain its lead position during the forecast period. This is due to rise in usage in modified atmosphere packaging for maintaining commercially made food items fresh for a long period of time. It in addition, nitrogen is used for extending product shelf life and retaining freshness to assist in packing and storage of food and drinks. The research also analyzes the segments including metal manufacturing and fabrication, oil and gas, pharmaceutical and healthcare, chemical, electronics, and others.
Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.The industrial nitrogen market share is analyzed across all significant regions and countries.
Get detailed COVID-19 impact analysis on the Industrial Nitrogen Market: https://www.alliedmarketresearch.com/request-for-customization/17502?reqfor=covid
Covid-19 Scenario
- The demand for industrial nitrogen surged considerably during the Covid-19 pandemic from various sectors such as oil & gas, metal manufacturing & fabrication, chemical, food & beverages, pharmaceutical & healthcare, and electronics. This was due to its application in these sectors to reduce financial losses and oxidation of machineries.
- Owing to transportation restrictions and ban on travel activities during the lockdown, the supply-demand gap occurred as transportation activities of industrial nitrogen to domestic and inter-state locations were hindered.
- Moreover, owing to economic uncertainty, the market players put the plans of expansion and installation of new manufacturing facilities on hold. Many projected were either canceled or postponed due to lack of investments. However, the market is expected to recover soon in post-pandemic.