Introduction
The competitive landscape offers an analysis of the key developments by companies between 2015 and 2018. The global market for gas and liquid argon is projected to witness significant growth during the forecast period from 2018 to 2023. The market is estimated to register a healthy CAGR 5.52%. In recent years, the market has witnessed some important developments by key players and the rising demand for gas and liquid argon in major end-use industries such as welding, and metal fabrication, automotive & transportation, and health care is likely to drive the growth of the market during the forecast period. Key players are therefore increasing their production capacities to meet the anticipated market demand for gas and liquid argon.
The global gas and liquid argon market comprise a significant number of tier-1and tier-2 players. The prominent manufacturers in this market are Air Liquide, Air Products and Chemicals, Inc, Praxair, Inc., The Linde Group, SOL Spa, Messer Group, Eurochem, BASF SE, SABIC, and Nippon Shokubai Co Ltd.
Air Liquide, Air Products and Chemicals Inc, Praxair Inc, The Linde Group, SOL Spa, and Messer Group account for the majority share of the market.
These major players are producing considerable volumes of gas and liquid argon and own several manufacturing facilities across the globe. They are adopting various business strategies to gain larger market shares and earn sizeable revenue during the review period. According to Wantstats analysis, the global gas and liquid argon market has a huge revenue base in Asia-Pacific, Europe, and North America. This is mainly due to the presence of major gas and liquid argon consumers and growing metal fabrication and automotive industries in these regions
The global gas and liquid argon market is home to a significant number of tier-1 and tier-2 manufacturers. There are a limited number of small- and medium-scale manufacturers in this market. Therefore, major market players are focusing on the capacity expansion of their domestic and overseas facilities to meet the rising demand for gas and liquid argon.
Threat of New Entrants
Considering the historical and current scenario in the global gas and liquid argon market, the target market is projected to have a low threat of new entrants on account of the significant presence of the tier-1 players. Additionally, highly complex manufacturing process, high operation cost, and higher requirement of technical know-how can limit the entry of new players in this market. Moreover, the four major manufactures of industrial gases namely, Air Liquide, Air Products and Chemicals, Inc., Praxair, Inc., and The Linde Group hold over 60% share of this market in terms of revenue. Threat of Rivalry
The gas and liquid argon market is estimated to experience a moderate to high threat of rivalry as the market is characterized by the significant presence of tier-1 players along with the growing competition among the small- and medium-scale manufacturers. Each of the leading players operating in this market has advanced product portfolios with varying grades and purity of argon. Regionally, there is an intensifying competition among the players located in the North American market. The top four market players are engaging in business expansion and acquisition tactics to meet the anticipated high demand for the product during the forecast period. Threat of Substitutes
At present, the threat of substitutes for gas and liquid argon is moderate to high. Argon is primarily used as a shielding gas in the metal fabrication industry due to its inertness. However, the emergence of structural adhesives as a substitute technology is likely to replace argon’s use in this major end-use-industry in coming years. Bargaining Power of Suppliers
The number of major market players as compared to the suppliers is high. However, due to insignificant presence of unorganized players and significantly high demand for the product from the welding and metal fabrication industry, the bargaining power of the suppliers is expected to be moderate to high. Bargaining Power of Buyers
The bargaining power of buyers is estimated to be moderate to low owing to frequent price fluctuations for feedstock and complexity of the process which impacts the overall price of the gas and liquid argon.
