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Industrial Gas Manufacturing in the UK - Industry Market Research Report

United Kingdom industrial gas manufacturing market: £1.4 billion industry by 2019

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2014-02-24 09:30:02 - Industrial Gas Manufacturing in the UK - Industry Market Research Report - a new market research report on

Technological innovations and changing demand patterns from key consumer industries have influenced the gradual evolution of the United Kingdom industrial gas manufacturing market since its inception in the late 19th century. The industry has evolved in line with changing demand patterns, the ongoing development of new products and technologies, and growing environmental concerns. At the same time, the industry remains dominated by the same players that were in existence over 100 years ago. These tier-one players dominate the industry both on a global scale and along the entire supply chain, operating at all key levels.

Industrial gases are primarily used in the petroleum refining, chemical processing and metals manufacturing industries and, to a lesser extent, in the food and beverage, health-care



and electronics industries. Thus, the weak performance of the industry over the five years through 2013-14 reflected, in part, developments in these industries. Industry participants have been hampered by adverse economic conditions, which have translated into weak demand from certain end user industries. These have included the UK´s ailing steel manufacturing industry, which in turn has been adversely affected by lower activity levels in the construction, transportation and other heavy manufacturing sectors, all of which have been affected by the fallout effects associated with the global economic downturn.

Having contracted for five consecutive years, industry revenue is estimated to post a slight gain of 1.9% in 2013-14. This means that estimated sales for the year of £1.26 billion will essentially be 16.5% lower relative to 2008-09 levels, equating to a fall at a compound rate of 3.5%.

During the year, the industry is expected comprise just 10 enterprises employing an estimated 4,750 workers at a cost of £230 million in wages. As such, the industry is only a very small segment of the overall chemical sector.

In the near term, the ongoing development of new technologies will drive new applications for industrial gases, as will environmental concerns. As requirements to substantially cut greenhouse gas emissions become more pressing, industrial gases will increasingly be used to make a significant contribution to climate protection. In the next five years, industry revenue is expected to grow at a compound annual rate of 2.2% to reach £1.4 billion in 2018-19.

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