Asia-Pacific Air Separation Unit Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

The r Asia-Pacific air separation unit market is expected to record a CAGR of more than 4.74% during the forecast period of 2020 – 2025. The increasing infrastructure development activities, particularly in China and India, have resulted in the growth of the iron and steel sector. This is expected to promulgate the air separation unit market in the Asia-Pacific region, during the forecast period. The price point of industrial gases in India is the lowest in the Asia-Pacific region, due to a large number of local players in the country. Due to stiff competition, the price point of industrial gases is very low, thereby, leading to reduced profit margins for the companies. Due to the aforementioned factor, the industrial gases sector in India may witness a recession. Moreover, the COVID-19 pandemic has slowed down many industrial activities owing to the increased infection rate, country shutdowns, and transportation halts across the nation. Thus, this is expected to decrease the new investment rate, which, in turn, is likely to hinder the growth of the market studied.

• The chemical industry accounted for the significant market share in the air separation unit market in 2019, owing to the increasing demand for chemicals and commissioning of new ASUs.
• Many countries across the region are developing new industrial zones to promulgate economic development. Therefore, the policy level initiatives to drive industrial growth are expected to create significant opportunities for the air separation unit market in Asia-Pacific in the near future.
• China is expected to dominate the market over the forecast period owing to the rapid industrialization in the country.

Scope of the Report

The Asia-Pacific air separation unit market report includes:

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Key Market Trends

Chemical Industry to Witness Significant Growth

• Industrial gases, like oxygen and nitrogen, are an integral part of the chemical industry. They are used for various applications, such as to facilitate the reactions, improve efficiency, and reduce the risks related to explosions.
• The chemical plants require a continuous supply of industrial gases to run their operations. To meet these demands, the chemical plants, particularly large chemical plants, comprise air separation units.
• Nitrogen is an essential ingredient in fertilizers. It is used to improve soil fertility. It is also used in other fertilizers, such as ammonia and urea, to promote plant growth and, in turn, yield.
• Oxygen is used in various chemical reactions as an oxidizing agent, and for coal gasification to generate synthesis gas that can be used as a chemical feedstock for different fuels.
• The Asia-Pacific region is a leading manufacturer of chemicals. The commoditized chemical production takes the major share of total chemical production in the region. However, the share of specialty chemicals is increasing, and it is expected to continue during the forecast period.
• Hence, owing to this transition in the chemical manufacturing industry, the Asia-Pacific region is expected to see major investments in the construction of new plants. For instance, in October 2019, Linde company launched two air separation units (ASUs) in a chemical park in Taixing, China. The two plants have a combined production capacity of 29,000 Nm³ per hour and will primarily supply oxygen and nitrogen to Taixing Jinyan Chemical Technology.
• Thus, this is expected to drive the demand for air separation unit in the chemical industry.

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