Global Industrial Gases Market Impacted by Ukraine Conflict and Decarbonization Drive

One sentence summary – The global industrial gases business in 2022 has been significantly impacted by the Ukraine conflict and the ongoing decarbonization drive, leading to a surge in natural gas prices, disruptions in gas transportation, and shortages of CO2, prompting diversification strategies and increased interest in alternative sources, such as biogenic ones and hydrogen-related projects, while government initiatives promote carbon capture and utilization; however, the market in Eastern Europe is expected to decline in the short term but stabilize and grow in the future, and the decommissioning of carbon-intensive plants has created CO2 shortages in certain regions.

At a glance

• The global industrial gases business in 2022 has been significantly impacted by the Ukraine conflict and the ongoing decarbonization drive.
• In 2022, the global industrial gas market achieved a valuation of $96 billion, with a year-on-year growth rate of 12.6%.
• The conflict in Ukraine caused a surge in natural gas prices and disruptions in gas transportation, affecting industries such as crude oil, wheat, and specialized gases like neon.
• The reliability of Russian natural gas supplies became uncertain, leading European countries to adopt diversification strategies.
• The Ukraine conflict resulted in a shortage of CO2, leading to increased prices and a heightened interest in alternative sources.

The details

The global industrial gases business in 2022 has been significantly impacted by the Ukraine conflict and the ongoing decarbonization drive.

These two major factors, along with advancements in digitization and increasing semiconductor supply chain demand, have shaped the industry’s landscape.

In 2022, the global industrial gas market achieved a valuation of $96 billion.

This represents a year-on-year growth rate of 12.6%.

The conflict in Ukraine has had a significant impact on the industry.

It caused a sudden surge in natural gas prices and disruptions in the transportation of gas from Russia to Europe.

Industries such as crude oil, wheat, and specialized gases like neon were significantly affected by the conflict.

The reliability of Russian natural gas supplies became uncertain due to the conflict.

This prompted European countries to adopt diversification strategies.

In terms of regional market analysis, Eastern Europe is expected to witness a decline in the industrial gases market in 2023 due to the ongoing conflict in Ukraine.

However, the market is projected to stabilize and experience growth in subsequent years.

The Ukraine conflict also resulted in a shortage of CO2.

This led to increased prices and a heightened interest in alternative sources, including biogenic ones.

The growing focus on diversification and sustainability has spurred the carbon capture, utilization, and storage (CCUS) market.

Government initiatives have also played a role in shaping the industry.

The UK government has committed £20 billion to CCS projects and aims to capture 20-30 million tonnes per annum (mtpa) of CO2 by 2030.

The European Commission has proposed the Net Zero Industry Act, which includes a regional target of 50 million tonnes of carbon injection capacity by 2030.

The energy transition has led to an increase in hydrogen-related projects worldwide.

This highlights the industry’s shift towards cleaner energy sources.

The decommissioning of plants in carbon-intensive industries has resulted in CO2 shortages in certain regions.

The confluence of the Ukraine conflict, decarbonization efforts, and advancements in digitization and semiconductor supply chain demand has significantly shaped the global industrial gases business in 2022.

As the conflict persists, the market in Eastern Europe is expected to experience short-term decline but is likely to stabilize and grow in the coming years.

The scarcity of CO2 due to the conflict has led to rising prices and increased interest in alternative sources.

Governments and industry bodies are taking active steps to promote carbon capture and utilization.

The energy transition has also spurred hydrogen-related projects globally.

Furthermore, the decommissioning of carbon-intensive plants has created CO2 shortages in specific regions.

This comprehensive overview provides a detailed understanding of the current landscape, assisting stakeholders and industry professionals in navigating the evolving dynamics of the global industrial gases sector.

Article X-ray