JEDDAH — The industrial gases market size in Saudi Arabia is anticipated to cross $1.6 billion (SR6 billion) by 2021, Research and Markets said in Saudi Arabia Industrial Gases Market Competition Forecast and Opportunities, 2021 report.
Industrial gases are often used as process enhancers due to their physical and chemical properties. Crude oil production and exports are the largest contributors to the GDP of Saudi Arabia.
The government has formulated plans to become second largest exporter of refined oil products in the world by 2017, and has opened the sector for private investments. With growing developments in petrochemical and refinery infrastructure, the demand for industrial gases is anticipated to increase at a robust pace during 2016-2021.
Growing demand from various end user industries such as refinery, metallurgy, food & beverage, paper & pulp, etc., coupled with implementation of favorable government policies are projected to increase demand for industrial gases in Saudi Arabia during 2016-2021.
The leading players operating in the market includes National Industrial Gases Company, Air Liquide, Linde, Praxair and many more. Furthermore, huge investments in Saudi Arabia for capacity additions at existing end user facilities coupled with launch of new projects is anticipated to further boost the Saudi Arabia industrial gases market through 2021.
According to a recently published TechSci Research report “Saudi Arabia Industrial Gases Market By Type, By End User, Competition Forecast and Opportunities, 2011 – 2021”, the industrial gases market in Saudi Arabia is anticipated to cross $1.6 billion/SR6 billion by 2021. Growth in the market is anticipated on account of growing demand from various end user industries such as refinery, metallurgy, food & beverage, paper & pulp, etc., coupled with implementation of favorable government policies to support petrochemicals sector. Moreover, huge investments in Saudi Arabia for capacity additions at existing end user facilities and new projects is expected to have a positive impact on Saudi Arabia industrial gases market through 2021.
On the basis of type, the market has been segmented into oxygen, nitrogen and argon. Among these categories, oxygen dominated the industrial gases market in Saudi Arabia in 2014, and is anticipated to continue its dominance through 2021, owing to its use in a wide range of applications in the metallurgy industry, such as welding, fabrication and other processes.
Region-wise, west region is forecast to dominate the industrial gases market in Saudi Arabia over the next five years on account of the presence of a large number of industrial units in this region. Moreover, the Oil-To-Chemical (OTC) complex, with an anticipated capacity of 200,000 barrels per day, is forecast to be completed by 2020, thereby expected to generate huge demand for industrial gases from this region.
“The Kingdom of Saudi Arabia is the only country among the GCC nations that has allowed participation of private players in refinery and petrochemical sectors. This has had a huge positive influence on the country’s industrial gases market. Moreover, industrial cities, such as Yanbu and Al Jubail, are expected to be major consumers of industrial gases during forecast period.” said Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
