According to the Gas Review, it is estimated that the size of the Japanese industrial gas market in 2016 was up by 2.2% over the previous year, totalling ¥548.2bn ($4.8bn). This is the estimated total sales price of the main gases, carbon dioxide (CO2), hydrogen (H2), helium (He), acetylene, and electronics specialty gases.
The three air separation gases that make up 48.1% of the market; oxygen (O2), nitrogen (N2) and argon (Ar), showed promising recovery in 2016. Crude steel production was the largest use throughout the second half of the year, and capital investments in semiconductors and other electronics also experienced resurgence. However, market gas consumption has not yet been fully realised, and a full recovery is expected in 2017.
Many Japanese steel companies, such as Yawata Works of Nippon Steel, Sumitomo Metal, Kurashiki Works of JFE Steel, and Kakogawa Works of Kobe Steel, are switching to onsite supply. This is leading to expansion in the gas piping market and greater outsourcing to industrial gas companies.
Air gases
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