Under pressure: Growing raw material costs and energy prices cause profit margins to shrink

Industrial gases are primarily used in petroleum refining, chemical processing and metal manufacturing. They are also employed in the food and beverage, health-care and electronics industries. As a result, the performance of the Industrial Gas Manufacturing industry largely reflects developments in these industries. This includes the UK Iron and Steel Manufacturing industry (IBISWorld report C24.100), which was adversely affected by lower activity in the construction, transportation and other heavy manufacturing industries following the economic downturn...read more.

Industry Statistics & Market Size
Revenue
£1.5bn
Annual Growth 14-19
1.7%
Forecast Growth 19-24
Profit
Employment
6,035
Businesses
12

Industry Threats & Opportunities

  • Despite referendum-related fears, revenue is expected to have grown over the past five years
  • Many firms have adjusted their operations to focus on more high-value or niche markets
  • Rising oil prices, primarily the result of the OPEC supply cut, are expected to cause profit to decline
  • Industry Report - Industry SWOT Analysis Chapter

    The industry is in the mature phase of its life cycle, because it is continuing to grow although at a slower rate than the UK economy. The maturity of a number of key downstream industries such as steel manufacturing, various mining industries and a number of chemical processing industries has restrained growth. The commodity nature of the product itself has also contributed to it being in the mature stage rather than declining as there are limited substitutes, meaning that demand is not likely to diminish past a certain level. Environmental regulations governing carbon emissions are also curbing growth in some product areas, including traditional refrigerant gases. Over the past decade the industry has consolidated. Lin...purchase to read more.

    Additional Insights for the Industrial Gas Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Industrial Gas Manufacturing Industry are

  • Effective cost controls
  • Having contacts within key markets
  • Provision of superior after sales service
  • IBISWorld analysts also discuss how external factors such as Industrial production index and Demand from iron and steel manufacturing in the Industrial Gas Manufacturing industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    What is the Industrial Gas Manufacturing Industry?

    This industry covers companies that manufacture liquefied or compressed inorganic industrial and medical gases. These are then mainly used in industrial processes. The most commonly used industrial gases are oxygen, nitrogen, hydrogen, carbon dioxide, acetylene, carbon monoxide, helium and mixtures of these.

    Industry Products
  • Hydrogen
  • Nitrogen
  • Argon and rare gases
  • Oxygen
  • Carbon dioxide
  • Industry Activities
  • Manufacturing elemental gases
  • Manufacturing liquid or compressed air
  • Manufacturing refrigerant gases
  • Manufacturing inert gases
  • Isolating gases
  • Manufacturing mixed industrial gases
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Industrial production index
  • Demand from iron and steel manufacturing
  • Industrial electricity prices
  • World price of crude oil

  • Current Performance
  • Profit slips
  • Switching focus
  • Environmental issues
  • Chart: Revenue Growth

  • Industry Outlook
  • Profit pressures
  • International influences
  • Green concerns
  • Further developments
  • Table: Industrial Gas Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Industrial Gas Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Basic Steel Processing
  • Aluminium Production
  • Water Collection, Treatment & Supply
  • Non-Hazardous Waste Treatment & Disposal
  • Hospitals
  • Specialist Medical Practices
  • Dental Practices

  • Key Selling Industries
  • Electricity Production

  • Products & Services
  • Nitrogen
  • Other
  • Argon and rare gases
  • Oxygen
  • Carbon dioxide
  • Hydrogen
  • Chart: Industrial Gas Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Industrial users
  • Other and specialised users
  • Food and beverage industries
  • Medical industries
  • Electronics industries
  • Chart: Major Market Segmentation for the Industrial Gas Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciationUtilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Industrial Gas Manufacturing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Industrial Gas Manufacturing Industry

  • Industry Globalization
    BOC Ltd, Air Products plc, Air Liquide UK Ltd,
  • Table: BOC Ltd - financial performance
  • Table: Air Products plc - financial performance
  • Table: Air Liquide UK Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Industrial Gas Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Industrial Gas Manufacturing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Industrial Gases
  • A group of gases that are commercially manufactured and sold for uses in other applications, usually industrial processes. They can take various forms including compressed, liquid or solid forms.
  • Inert Gases
  • Any gas, either elemental or molecular in structure, that does not react under normal circumstances. The noble gases are sometimes referred to as inert, but only helium and neon are truly inert.
  • Noble Gases
  • Gases including helium, krypton, neon and xenon.
  • Olefin
  • Any unsaturated hydrocarbon containing one or more pairs of carbon atoms linked by a double bond. Also referred to as an alkene.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industrial Gas Manufacturing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Industrial Gas Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Industrial Gas Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Industrial Gas Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Would you like to speak to an IBISWorld representative?

    clear