Australia Specialty Gas Market – Industry Trends and Forecast to 2031

Australia Specialty Gas Market Analysis and Size

The specialty gas industry is expected to increase steadily going forward, consistent with the close relationship between its growth and the developments in the Australian healthcare system. Specialty gases are essential parts of the healthcare ecosystem because of the ongoing emphasis on patient-centric and precision medicine and the continued prioritization of healthcare advances. Essentially, the trajectory of the market is closely linked to the endeavor to achieve healthcare excellence, rendering it a crucial facilitator of advancement within the more expansive framework of medical diagnosis and therapies.

For instance,

helium is essential for medical care. It helps MRI devices provide high-resolution images when it is in liquid form. It works well as a tracer gas in laboratory settings to find leaks. The dependability of helium is guaranteed by OSC's dedication to quality, highlighting its leadership in supplying necessary gases to enhance medical diagnostics and preserve equipment integrity.

Data Bridge Market Research analyzes that the Australia specialty gas market is expected to reach USD 2,091.80 million by 2031 from USD  1,507.77 million in 2023, growing at a CAGR of 4.2% during the forecast period of 2024 to 2031.

Australia Specialty Gas Market Definition

Specialty gases, crucial in precision industries, refer to meticulously produced gases with specific compositions meeting stringent purity and accuracy requirements. These gases include calibration, zero, carrier, span, instrumentation, and bump test gases. Ranging from pure gases to intricate mixtures, they feature concentrations from the percent range down to part per billion or even part per trillion. They are used in analytical procedures such as chromatography and infrared spectroscopy, and their purity requires specific equipment such as regulators.

Australia Specialty Gas Market Dynamics

Drivers

• New Technological Advancements for Gas Purification and Production Processes

Modern inventions that improve the quality of specialty gases while simultaneously promoting environmental preservation are causing a revolutionary change in the industry. The use of cutting-edge membrane separation technologies is one major factor propelling the market growth. These technologies provide an environmentally benign and more energy-efficient substitute for conventional gas separation techniques. High-performance polymeric membranes can be incorporated to enable exact gas molecule separation to ensure the production of ultra-pure specialized gases. This reduces energy consumption and the overall environmental impact of producing gas, in addition to meeting stringent industry criteria.

• Growing Demand for Electronics and Semiconductors

The rising technical landscape, where advancements in electronic devices and semiconductor production are becoming increasingly vital to numerous businesses, can be linked to this rapid rise. The thriving electronics sector is a primary driver of Australia's expanding demand for specialty gases. The demand for specialty gases used in the production processes of consumer electronics, communication devices, and smart technologies increases as they evolve. For instance, the manufacture of modern microelectronics such as integrated circuits and microprocessors necessitates a precise and controlled environment that can only be achieved by using specialty gases. This comprises gases such as high-purity nitrogen, argon, and a variety of dopant gases used in semiconductor production. The specialty gas market is anticipated to expand gradually as these industries continue to shift, providing providers with a unique opportunity to fulfill the specific needs of this developing market. Thus, the rising demand for semiconductors and electronics is fuelling the market growth.

Opportunities

• Shift Towards Eco-Friendly Energy Sources

Specialty gases are vital to many industries, enabling cleaner energy solutions and technological improvements. The country understands the significance of cutting its carbon footprint and adopting sustainable policies. The renewable energy industry increases the need for specialty gases. Australia is a leader in the development and use of wind turbines and solar panels due to its commitment to increasing the proportion of renewable energy in its power generation mix. Specific gases are vital to various green energy technologies. Examples include high-purity gases used in photovoltaic cell manufacture and specialty mixes used in wind turbine maintenance. The Australian government's continued emphasis on environmental preservation means that the specialty gas industry will be essential to supporting the country's green ambitions. Thus, the transition to more environmentally friendly energy sources is expected to provide an opportunity for market growth and expand the business.

• Growing Packaged Food and Petrochemical Industry

Specialty gases are essential in the packaged food business because their quality and shelf life are highly valued. Modified Atmosphere Container (MAP), for instance, uses specialty gases to change the atmosphere inside the packaging, extending the shelf life of perishable items. This lessens the need for preservatives while simultaneously guaranteeing the products' freshness. Specialty gases such as carbon dioxide and nitrogen are in high demand as Australia experiences a growing trend toward packaged foods that are ready to eat.

The specialty gas market has a significant application in the packaged food and petrochemical sectors. The specialty gas sector can take advantage of this trend, driving economic growth and establishing Australia as a major participant in the specialty gas market by collaborating strategically, innovating, and putting sustainability first. Thus, the developing petrochemical and packaged food industries are expected to provide an opportunity for market growth.

Restraints/Challenges

• High Production Costs and Complex Manufacturing Processes

One of the major hurdles is the exorbitant production costs associated with specialty gas manufacturing. The raw materials required for producing high-purity specialty gases often involve intricate extraction and purification processes, driving up overall expenses. For instance, gases such as ultra-high purity nitrogen or specialty calibration gases demand stringent quality control measures and necessitate the use of advanced technologies, making production cost-intensive. This financial burden is subsequently transferred to consumers, making specialty gases less economically viable for various industries. Thus, the complex manufacturing process and high production costs are limiting market expansion and growth.

• Competition from the Global and Regional Market Players

Multinational companies entering the market with significant financial resources, cutting-edge technologies, and vast distribution networks present one significant barrier. These multinational corporations are able to provide low pricing together with a wide range of products by utilizing economies of scale. It might be difficult for local Australian companies to match these multinational companies’ price methods without losing money. Local competitors may find it challenging to match the economies of scale if a multinational firm introduces bulk purchasing arrangements or long-term relationships with customers.

Competing with both regional and international firms presents challenges for the specialty gas sector. Overcoming these obstacles calls for a blend of innovation, distinction, and strategic partnership to ensure the sustained growth and prosperity of local firms in this dynamic market scenario. Specialty gas producers must prioritize cost-effectiveness, innovation, and environmental sustainability in response to shifting industry preferences. Failure to do so will limit their market share and increase competition from both local and international players, which could seriously impede the market growth. Thus, competition from the global and regional market players is expected to act as a challenge to market growth.

Recent Development

• In March 2023, Coregas, a subsidiary of WESFARMERS LIMITED, was honored to be one of the 180 suppliers named to the 2023 awards. The company was chosen for this award because of its participation in Rio's campaign to provide much-needed medical oxygen to Indian communities affected by COVID-19 and medical oxygen shortages around the country. This helped the company in gaining customer awareness.
• In July 2021, Iwatani Corporation established Iwatani Australia Pty. Ltd. in Brisbane, Queensland, Australia with the intention of conducting local market and infrastructure research and strengthening relationships with affiliated companies and the state government to procure a large amount of hydrogen. This helped the company in developing a large-scale supply network.

Market Scope

Australia specialty gas market is segmented into two notable segments based on type and application. The growth amongst these segments will help you analyze major growth segments in the industries and provide the users with a valuable market overview and market insights to make strategic decisions to identify core market applications.

Type

• Pure Gases
• Noble Gases/Rare Gases
• Mixture
• Carbon Gases
• Halogen Gases
• Others

On the basis of type, the market is segmented into pure gases, noble gases/rare gases, mixture, carbon gases, halogen gases, and others.

Application

• Electronics
• Healthcare
• Chemical
• Oil & Gas
• Manufacturing
• Refrigeration
• Food & Beverage
• Analytical and Calibration
• Academics
• Others

On the basis of application, the market is segmented into electronics, healthcare, chemical, oil & gas, manufacturing, refrigeration, food & beverage, analytical and calibration, academics, and others.

Competitive Landscape and Australia Specialty Gas Market Share Analysis

Australia specialty gas market competitive landscape provides details of competitors. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, production sites and facilities, company strengths and weaknesses, product launch, product trials pipelines, product approvals, patents, product width and breadth, application dominance, and technology lifeline curve. The above data points provided are only related to the companies’ focus related to the market.

Some of the major players operating in Australia specialty gas market are CAC Gas & Instrumentation, Scientific Gas Australia Pty Ltd, Linde plc, Air Liquide, NIPPON SANSO HOLDINGS CORPORATION, WESFARMERS LIMITED, Iwatani Corporation, BASF SE, Supagas, and OSGas, among others.

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