Under the pump: Falling investment in the Mining division has hindered industry demand

Forming a small but significant part of Australia's chemical sector, the Industrial Gas Manufacturing industry produces organic and inorganic gases used for feedstocks, production inputs and a range of other uses, including health care. In addition to the bulk gases most commonly associated with industrial gas production (oxygen, nitrogen, carbon dioxide, hydrogen and argon), the industry also produces a range of specialty, medical and refrigerant gases.Several factors have shaped the industry over the past five years, including new products and technologies, growing environmental concerns, and changing demand patterns among key markets. Activity in key markets, including Australia's resources, manufacturing and healthcare sectors, has also influenced the industry's performance...read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 13-18
-2.4%
Forecast Growth 18-23
Profit
Employment
2,885
Businesses
42

Industry Threats & Opportunities

  • Weak conditions across the manufacturing and mining sectors have constrained industry demand
  • Capacity expansions have been a defining feature of the industry over the past five years
  • Employment numbers are expected to fall as operators increase automation to enhance efficiencies
  • Industry Report - Starting a New Business Chapter

    Barriers to entry tend to be high given the concentrated nature of the industry and the mature nature of the manufacturing and mining industries, which comprise the bulk of the industry's downstream customers. The dominance of the existing major players (including the likes of BOC Gases with its established network of customers and strong knowledge of the local market) can also act as an entry barrier, leaving little scope for potential new entrants (except possibly in a few niche segments such as specialty environmental gases). Moreover, given the nature of the product, freight costs are prohibitive, thereby eliminating imports as a potential source of competition. In Australia, imports tend to be limited to small amounts of helium and various specialty gases...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
  • Access to highly skilled workforce
  • IBISWorld analysts also discuss how external factors such as Demand from health services and Demand from manufacturing in the Industrial Gas Manufacturing industry impact industry performance..

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    What's in this report

    What is the Industrial Gas Manufacturing Industry?

    The industry manufactures industrial organic and inorganic gases in compressed, liquid or solid forms. These include atmospheric gases (oxygen, nitrogen and argon), non-atmospheric gases (carbon dioxide, helium, hydrogen and acetylene), rare gases (neon, krypton and xenon) and medicinal gases.

    Industry Products
  • Bulk industrial gases
  • Liquefied industrial gases
  • Other industrial gases
  • Industry Activities
  • air gases such as nitrogen, oxygen and argon
  • noble gases including helium, argon, krypton, neon and xenon
  • compound gases including ammonia, carbon dioxide, carbon monoxide, hydrogen chloride, nitrous oxide
  • hydrocarbon gases such as methane, acetylene, ethane, propane and butane
  • elemental gases including hydrogen, chlorine and fluorine
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from health services
  • Demand from manufacturing
  • Electricity service price
  • Demand from mining
  • Demand from petroleum refining and petroleum fuel manufacturing

  • Current Performance
  • Profit and participation
  • Capacity expansions
  • Ongoing technological change
  • Climate change
  • Chart: Revenue Growth

  • Industry Outlook
  • Environment and markets
  • Technological opportunities
  • 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
  • Mining
  • Water Supply
  • Construction
  • General Hospitals
  • Specialist Medical Services
  • Dental Services
  • Waste Remediation and Materials Recovery Services

  • Key Selling Industries
  • Basic Inorganic Chemical Manufacturing
  • Fertiliser Manufacturing
  • Fossil Fuel Electricity Generation

  • Products & Services
  • Bulk industrial gases
  • Liquefied industrial gases
  • Other industrial gases
  • Chart: Industrial Gas Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Industrial sector
  • Healthcare sector
  • Specialised users
  • 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
  • Chart: Cost Structure Benchmarking – Sector vs Industrial Gas Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Industrial Gas Manufacturing Industry

  • Industry Globalization
    BOC Limited, Air Liquide Australia Limited,
  • Table: BOC Limited - financial performance
  • Table: Air Liquide Australia Limited - 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 (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)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Air Separation Unit (Asu)
  • ASUs separate atmospheric air into its primary components namely oxygen and nitrogen. They can also co-produce argon and other rare inert gases.
  • Compound Gases
  • Gases including ammonia, carbon dioxide, carbon monoxide, hydrogen chloride, nitrous oxide, nitrogen trifluoride and sulphur dioxide.
  • 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.
  • Noble Gases
  • Gases including helium, krypton, neon and xenon.
  • What Our Customers Say

    Why buy this report?

    The Industrial Gas Manufacturing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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 of 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.

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