Of the $23bn North American industrial gases market, packaged gases account for around a 44% share. In terms of market share, the total value of the 750 independent distributors is about $3bn, in value of gas (revenues).
When examining the financial structure of the market, the Tier One players (Air Liquide, Linde, Air Products et al) account for 72% of the gas side of the business, while the top 30 independent gas distributors account for another 10% of the market. Many distributors own stores and depots which are in the $2-5m turnover range, and that total includes the equipment side of the business too. The total gas-versus-equipment ratio is 40% gas and 60% equipment and the operating margins (EBIT) are in the range of 7-10%.
With these figures from gasworld Business Intelligence, the significance of the packaged gas business is quite clear and yet, analysis on industrial distribution from gasworld and Baird Research has shown that growth has been struggling. In terms of the pool of companies involved, the gas side of the business has continued to grow, whereas the hardgoods business, depending on various economic situations, has somewhat struggled.
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