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In-Depth Analysis of the Air Separation Unit Market: Growth Opportunities, Key Trends, and Forecast 2025-2034
Get 20% off on all our 2025 Global Market Reports with code FY25SAVE - Offer valid till March 31st! What market dynamics are playing a key role in accelerating the growth of the air separation unit market?An upsurge in energy requirements is likely to drive the expansion of the air separation unit market in the future. The rise in energy demand can be attributed to the global population surge, mounting industrial activities, and increased usage of energy-consuming technologies and appliances. Air separation units play a vital role in meeting energy needs by supplying crucial gases like oxygen and nitrogen, which are necessary for effective combustion and process optimization in energy generation and industrial applications. For instance, as per the Energy Information Administration, a governmental agency from the United States, the total energy consumption in the United States is predicted to rise anywhere between 0% and 15% from 2022 to 2050. More specifically, the industrial sector's energy utilization is projected to surge approximately between 5% to 32% within this timeframe. Henceforth, the escalating energy demand is propelling the growth of the air separation unit market.
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How will the growth rate of the air separation unit market shape industry trends by 2034?
The market size for air separation units has seen vigorous growth in recent times. It is projected to rise from $5.59 billion in 2024 to $5.93 billion in 2025, with a compound annual growth rate (CAGR) of 6.0%. The expansion throughout the historic period can be credited to the increased production of metals, growth in the chemical manufacturing sector, surge in chemical production, escalating industrialization and urbanization, and an increase in governmental investments and policies.
In the forthcoming years, the market size of the air separation unit is set for robust growth, with a projection to reach $7.42 billion by 2029, courtesy of a 5.8% CAGR. The driving factors for this growth during the predicted period can be the increased industrial sectors, intensified demand for industrial gases, growing energy industry, mounting needs for medical oxygen in health facilities, and elevated utilization of nitrogen in food preservation and packaging. Key trends for the forecast period encompass advancements in energy-saving technologies, incorporation of AI for enhanced process optimization, the trend towards modular and compact designs, breakthroughs in cryogenic air separation technology, improved safety components, and the evolution of more environmentally-friendly solutions to lower carbon emissions.
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What trends are poised to drive the future success of the air separation unit market?
Large firms active in the air separation unit market are resorting to strategic alliances in order to boost the supply of argon, oxygen, and nitrogen in Eastern European markets. These alliances involve companies leveraging each other's capabilities and resources for mutual benefit and achievement of shared objectives. For example, in August 2023, the SIAD Group, a chemical conglomerate based in Italy, entered into a partnership with the SOL Group, another Italy-based chemical entity, to establish a joint venture known as OXY Technical Gases in Croatia. SIAD has a majority stake of 60% in this venture, with SOL owning the remaining 40%. Their goal is to improve the access to nitrogen, oxygen, and argon in Eastern Europe, primarily in Croatia and its surrounding nations. OXY Technical Gases, as part of the joint venture, will allocate $56.1 million to construct an air separation unit (ASU) in Velika Gorica, Croatia, in proximity to Zagreb. This facility will augment the availability of high-purity liquid oxygen, nitrogen, and argon made at cryogenic temperatures to hospitals, industrial plants, and other customers in the region.
Which primary segments of the air separation unit market are driving growth and industry transformations?
The air separation unitmarket covered in this report is segmented -
1) By Process: Cryogenic, Non-Cryogenic
2) By Gas: Nitrogen, Oxygen, Argon, Other Gases
3) By End Use: Iron And Steel, Oil And Gas, Healthcare, Chemicals, Other End Uses
Subsegments:
1) By Cryogenic Air Separation Units: Single-Column Cryogenic Units, Double-Column Cryogenic Units, Mixed Refrigerant Systems
2) By Non-Cryogenic Air Separation Units: Pressure Swing Adsorption (PSA) Systems, Membrane Separation Systems, Vacuum Pressure Swing Adsorption (VPSA) Systems
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Which geographical regions are pioneering growth in the air separation unit market?
Asia-Pacific was the largest region in the air separation unit market in 2024 and it is expected to be the fastest-growing region in the forecast period. The regions covered in the air separation unit market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Who are the influential players reshaping the air separation unit market landscape?
Major companies operating in the air separation unit market are Linde Plc, Air Liquide S.A., Parker Hannifin Corporation, Atlas Copco AB, Air Products and Chemicals Inc., Nippon Sanso Holdings Corporation, Messer Group GmbH, Matheson Tri-Gas Inc., Yingde Gases Group Co. Ltd., Enerflex Ltd., Gulf Cryo, Cryogenmash, SIAD Macchine Impianti S.p.A., Bhoruka Gases Limited, MVS Engineering Pvt. Ltd., Novair Industries AB, CRYOTEC Anlagenbau GmbH, AMCS Corporation, Ranch Cryogenics Inc., Buzwair Industrial Gases Factories, The Southern Gas Limited, Shanghai Chinllenge Gases Co. Ltd., Kaifeng Air Separation Group Company Limited, AMCS Corporation, Sichuan Air Separation Plant Group
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What Is Covered In The Air Separation Unit Global Market Report?
•Market Size Forecast: Examine the air separation unit market size across key regions, countries, product categories, and applications.
•Segmentation Insights: Identify and classify subsegments within the air separation unit market for a structured understanding.
•Key Players Overview: Analyze major players in the air separation unit market, including their market value, share, and competitive positioning.
•Growth Trends Exploration: Assess individual growth patterns and future opportunities in the air separation unit market.
•Segment Contributions: Evaluate how different segments drive overall growth in the air separation unit market.
•Growth Factors: Highlight key drivers and opportunities influencing the expansion of the air separation unit market.
•Industry Challenges: Identify potential risks and obstacles affecting the air separation unit market.
•Competitive Landscape: Review strategic developments in the air separation unit market, including expansions, agreements, and new product launches.
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