Industrial gases market in India to reach US$2.2 billion by 2021

According to the TechSci Research report, ‘India Industrial Gases Market By Type, By End User, Competition Forecast and Opportunities, 2011 - 2021,’ the market for industrial gases in India is projected to reach US$2.2 billion by 2021, on account of implementation of various favourable government policies to support manufacturing sector, coupled with growing demand from various end user industries, especially metallurgy and petrochemicals. Various upcoming steel projects are integrating industrial gas production units to address the bulk requirements for industrial gases, thereby positively influencing the Indian industrial gases market.

In order to remain sustainable in highly the competitive Indian industrial gases market, companies are investing heavily in establishing industrial gas plants all across the country. For instance, Tata Steel is building a 55 000 tpy ferrochrome plant at Gopalpur, Odisha. By the end of 2020, steel production in India is forecast to reach 200 million t. Consequently, industrial gas companies are collaborating with various steel producers for addressing their industrial gas requirements. In 2015, Praxair announced its long term contract with Gerdau, a US based leading steel manufacturer, for the supply of gaseous oxygen to its facility located at Tadipatri, Andhra Pradesh.

In 2015, oxygen dominated the Indian industrial gases market, owing to its wide applications in metallurgy industry, such as welding, fabrication and other processes. Oxygen enriched atmosphere is used in chemical refining and heating associated with carbon removal from materials. In India, oxygen is often stored as a liquid, although it is used primarily as a gas. In 2015, the eastern region dominated the industrial gases market in the country on account of various upcoming metallurgical projects, coupled with the presence of major steel production units in this region.

"The Government of India is focusing on continuing economic development in the country. With huge initiatives like 'Make in India', the iron and steel sector is projected to grow at a CAGR of more than 15%, in volume terms, during 2015 - 2020. With new iron and steel plants anticipated to become operational over the next five years, the demand for industrial gases is further forecast to increase at a robust pace during the forecast period." said Karan Chechi, Research Director with TechSci Research.

Adapted from press release by Rosalie Starling

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/18052016/industrial-gases-market-in-india-to-reach-us22-billion-by-2021-3331/