The UK industrial gases market is expected to have stabilised in 2024, reaching $1.98bn, according to the UK Country Report from gasworld Business Intelligence.
Key factors shaping the market include price stabilisation following the extreme volatility of recent years, reducing cost pressures on industrial gas producers; industrial sector recovery with gradual improvements in key industries, such as aerospace and advanced manufacturing likely to drive incremental growth in gas demand; and sustainability and Innovation, with ongoing shift towards renewable energy and green hydrogen reshaping the market and providing growth opportunities.
“The UK’s industrial gases market remains sensitive to macroeconomic conditions, but offers prospects for stabilisation and innovation, underpinned by emerging technologies and sustainability initiatives,” the report states.
The country’s industrial gas sector is dominated by three majors, who between them control over 90% of the market.
The largest industrial gas company is Linde plc (operating under BOC) with a market share of 60%; equating to just over $1.18bn in estimated revenues, according to the report.
Thereafter comes Air Products and Air Liquide commanding market shares of 22% ($430m) and 9% ($170m) respectively. Air Liquide’s market segments are dominated by packaged gases (63%), followed by bulk (32%).
Source: UK Country Report / gasworld Business Intelligence
Nippon Gases UK are recent entrants to the market after having bought Praxair’s gas business in the country when Linde was required to divest that as part of the Linde-Praxair merger in 2019 – it has a market share of 6% ($112m).
The rest of the market is fragmented between smaller local producers and distributors, with this amount collectively estimated at $54m (3%).
Medical oxygen understandably soared during the pandemic years, rising to 472 and 474 tonnes per day (tpd) in 2020 and 2021 respectively, but has since stabilised to 248 tpd in 2024.
Estimated total merchant CO2 demand totalled around 1,512 tpd in 2024 with the majority supplied to F&B manufacturers.
Source: UK Country Report / gasworld Business Intelligence
The report also contains insights on ASUs, oxygen and nitrogen, CO2 and hydrogen plants, along with latest market developments.
In September 2024, Tata Steel closed its last remaining blast furnace at the Port Talbot steelworks, ending over a century of traditional steelmaking in the region.
But the report forecasts there will still be production at the BOC Margam ASU location to continue serving their other customers.
“Then, in 2027, when the electric arc furnace (EAF) for Tata Steel is scheduled to come online, we expect some more gas will once again be required … from this Margam location – albeit not as much as they required with the blast furnaces, due to the fact that EAFs use far less oxygen.”
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