Gassed up: Improvements in commodity prices will spur industry revenue growth

The Oxygen and Hydrogen Gas Manufacturing industry in Canada has experienced slow performance over the five years to 2018. Performance is closely tied to the health of domestic energy markets. Demand from extraction markets was strong early in the reporting period, as burgeoning oil sand extraction activity in Alberta increased demand for various industry gases. In response, major companies, such as Air Liquide and Linde opened several new steam-methane reforming gas plants petroleum-producing regions. However, falling world prices of crude oil and a variety of other commodities constrained energy activity over the second half of the reporting period, diminishing demand from heavy industrial markets, including domestic petroleum refineries and steel more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • The collapse in natural gas prices has placed downward pressure on the selling price of process gases
  • This industry is characterized by significant barriers to entry and a high level of capital intensity
  • Expected improvements in the domestic steel market are likely to benefit industry operators
  • Industry Report - Starting a New Business Chapter

    Barriers to entry are very high for this industry. The Canadian market for industrial gases is dominated by four vertically integrated major players, all of which have a well-established global presence. Furthermore, all four of these companies design and manufacture their own air separation units (ASUs), steam methane reformers (SMRs), gas pipelines and other required machinery and equipment.To enter the industry, potential entrants must decide whether to focus on air-separated gases (i.e. oxygen, nitrogen and argon), process gases (i.e. hydrogen, helium or carbon monoxide), specialty gases (refrigerants and gaseous chemical precursors) or a combination of these three categories. Dep...purchase to read more.

    Additional Insights for the Oxygen & Hydrogen Gas Manufacturing Industry

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

  • Proximity to key markets
  • Ability to pass on cost increases
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Industrial capacity utilization and Price of electric power in the Oxygen & Hydrogen Gas Manufacturing industry impact industry performance..

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    What's in this report

    What is the Oxygen & Hydrogen Gas Manufacturing Industry?

    This industry manufactures the following industrial gas products: carbon dioxide (dry ice); air-separated gases, such as nitrogen, oxygen and argon; steam-reformed gases, such as hydrogen, carbon monoxide and helium; and specialty gases, such as refrigerants and propellants. These gases are then supplied to customers via on-site air production plants, pipelines, rail or compressed cylinders. This industry does not include the production of natural gas-based fuels such as methane or propane.

    Industry Products
  • Specialty gases
  • Oxygen
  • Nitrogen
  • Noble gases (excluding helium)
  • Hydrogen and CO2
  • Industry Activities
  • Manufacturing industrial gases in general
  • Separating atmospheric air into its gaseous components
  • Extracting hydrogen, carbon monoxide and helium from natural gas
  • Designing and producing advanced gases for specialized, technical or medical purposes
  • Reclaiming carbon dioxide and other byproduct gases from other industries
  • Manufacturing, recycling or reclaiming ozone-depleting chlorofluorocarbon gases
  • Manufacturing acetylene and other welding gases
  • Purifying and distilling atmospheric air to reclaim rare gases such as xenon, krypton or neon
  • Purifying liquid or compressed oxygen for medical use
  • Operating refill stations, gas production plants and gas storage and distribution centres
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Industrial capacity utilization
  • Price of electric power
  • World price of natural gas
  • Canadian effective exchange rate index
  • Total health expenditure

  • Current Performance
  • Key markets and demand drivers
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Downstream markets
  • Growing environmental concerns
  • Rising energy and operating costs
  • More consolidation
  • Table: Oxygen & Hydrogen Gas Manufacturing Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Construction In Canada
  • Manufacturing In Canada
  • Petroleum Refining in Canada
  • Hospitals in Canada

  • Key Selling Industries
  • Electric Power Transmission in Canada
  • Natural Gas Distribution in Canada

  • Products & Services
  • Hydrogen and CO2
  • Nitrogen
  • Other
  • Specialty gases
  • Oxygen
  • Noble gases (excluding helium)
  • Chart: Oxygen & Hydrogen Gas Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other general manufacturing
  • Petrochemicals and energy
  • Heavy industrial manufacturing
  • Exports
  • Other
  • Food and beverage production
  • Healthcare
  • Chart: Major Market Segmentation for the Oxygen & Hydrogen Gas Manufacturing Industry

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

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

  • Industry Globalization
    Air Liquide, Praxair Technology Inc., Air Products and Chemicals Inc., The Linde Group,
  • Table: Air Liquide - financial performance
  • Table: Praxair Technology Inc. - financial performance
  • Table: Air Products and Chemicals Inc. - financial performance
  • Table: The Linde Group - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Oxygen & Hydrogen 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 Oxygen & Hydrogen Gas Manufacturing Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Industrial capacity utilization (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Air Separated Gases (Asg's)
  • A broad class of industrial gases which include (in order of production volume): nitrogen, oxygen, argon and other rare gases.
  • Air Separation Unit (Asu)
  • Equipment that cryogenically compresses, liquefies and separates normal air into its main constituents: nitrogen, oxygen and noble gases.
  • Cryogenic Distillation
  • A method used to separate atmospheric gases where the gas is subjected to extremely low temperatures (usually below -150 C or -240 F) and high air pressure.
  • Natural Helium Reserve
  • The United States' strategic reserve of helium located in Amarillo, Texas, which accounts for over one-third of global helium supply. Canada imports almost all of its helium from the United States.
  • Process Gases
  • A broad classification of industrial gases that includes hydrogen, carbon monoxide, carbon dioxide (dry ice), helium and several rare gases such as radon.
  • Steam Methane Reformer (Smr)
  • The most common method of separating carbon dioxide, carbon monoxide, helium and other industrial byproduct gases from petroleum or natural gas.
  • Sublimation
  • A physical process in which a solid chemical changes directly into a gas without entering the liquid phase. Carbon dioxide (dry ice) is the most common chemical that exhibits this property.
  • Tonnage Users
  • Large-volume customers that purchase industrial gases by the tonne via pipeline or on-site air production facilities. Examples: petroleum refining, coal-powered power plants and steelmaking.
  • What Our Customers Say

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    IBISWorld’s Oxygen & Hydrogen 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.

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    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
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