High Purity Oxygen Market

Market Overview

The global high purity oxygen market size was valued at USD 43.83 billion in 2022 and is expected to reach USD 45.6 billion by 2031 to register a CAGR of 7.1% during the forecast period (2023-2031). The iron atom at the core of hemoglobin in the blood picks up oxygen in the lungs and transports it to where it is needed, which is a primary key driver of the high purity oxygen market growth.

High-purity oxygen is oxygen refined to the point that it contains few contaminants. It is crucial in various industries and applications where impurities can have serious repercussions. The phrase "high-purity" usually refers to oxygen with a purity level of 99.5% or greater, obtained using sophisticated separation and purification methods.

The steel sector has pushed consumption of high-purity oxygen in the past and is expected to lead demand in the future, accounting for about half of the global market share. Apart from the steel sector, high-purity oxygen is widely used in producing other metals, particularly copper and lead. These reasons are expected to increase the global high purity oxygen market share.

Market Dynamics

Global High-Purity Oxygen Market Drivers:

Growing Healthcare Industry

The healthcare business, notably hospitals and medical institutions, is a major user of high-purity oxygen. The rising frequency of respiratory disorders, surgeries, and other medical procedures drives the need for medical oxygen. In respiratory therapy, high-purity oxygen is used to supply supplementary oxygen to patients suffering from respiratory illnesses such as chronic obstructive pulmonary disease (COPD), asthma, and pneumonia. Oxygen treatment improves blood oxygen levels, allowing patients to breathe more easily.

The COVID-19 outbreak has boosted the need for medicinal oxygen dramatically. According to the World Health Organization (WHO), during the pandemic's peak, there was a rise in demand for medical oxygen, notably for treating severe COVID-19 cases with respiratory distress. The rising need for high-purity oxygen in healthcare has prompted gas providers to enhance production capacity to satisfy the growing demands of hospitals, clinics, and other medical institutions. The healthcare industry's importance as a driver for high-purity oxygen emphasizes the important function of oxygen in medical treatments and operations. The industry's continuing expansion, technical improvements, and emphasis on patient care all contribute to a sustained and rising need for high purity oxygen market trends.

Global High-Purity Oxygen Market Restraints:

Cost and Energy-Intensive Production

Cryogenic distillation and pressure swing adsorption (PSA) are two complicated and energy-intensive methods used to produce high-purity oxygen. These methods need sophisticated equipment and large quantities of energy to separate and purify oxygen from the air, ensuring it achieves the appropriate purity standards. The fact that cryogenic air separation devices may consume substantial power demonstrates the energy intensity of the cryogenic air separation process. Energy expenditures for sustaining the low temperatures necessary for air separation add to total manufacturing costs. 

Due to the inherent expenses connected with energy-intensive manufacturing processes, companies competing in the high-purity oxygen market may have difficulty delivering competitive pricing. Continuous research and development in manufacturing technologies to improve efficiency and minimize energy usage can aid in cost reduction. While the high cost and energy-intensive nature of high-purity oxygen production is a significant barrier, continual technological improvements and strategic actions can assist in solving these concerns and enhance the market's overall competitiveness.

Global High-Purity Oxygen Market Opportunity:

Technological Innovation

Continuous technological progress provides a substantial potential for the high-purity oxygen industry. Separation and purification technology advancements can result in more energy-efficient operations, lower manufacturing costs, and increased efficiency. This can boost the market competitiveness of high-purity oxygen. Innovative membrane separation technologies, such as membrane oxygen generators, are emerging as an alternative to existing approaches. These systems separate oxygen from air using selectively permeable membranes, which provide possible energy savings and compact designs.

Embracing Industry 4.0 principles like smart manufacturing and data-driven decision-making can improve operational efficiency. Collaboration with technology suppliers, research institutes, and other industry participants can help to speed up the adoption of new technologies. Similarly, introducing technical breakthroughs into established manufacturing processes regularly can lead to modest increases in efficiency. Technological advancements address the cost and energy intensity of producing high-purity oxygen and position organizations as leaders in sustainability and efficiency. Market participants who accept and engage in these technologies proactively may increase their market position while contributing to the general progress of the high-purity oxygen sector.

Regional Analysis

The global high-purity oxygen market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant global high-purity oxygen market shareholder and is estimated to grow at a CAGR of 7.3% over the forecast period. This is mostly attributable to rising disposable income and urbanization in these nations. China is currently the world's greatest steel manufacturer, and the blast oxygen furnace process accounts for more than three-fourths of regional steel production. As a result, China has been identified as a prominent user of high-purity oxygen, accounting for more than one-third of global consumption. The scenario is expected to persist as steel output and investments by steel firms in the region increase. China now dominates many markets, including but not limited to automobiles, consumer electronics, chemicals, plastic, and steel. Continuous improvements in the aerospace and transportation industries, semiconductor business, electric vehicle industry, and steel sector are expected to boost China's high-purity oxygen market throughout the assessment period.

Furthermore, East Asia is home to two developed countries after China: Japan and South Korea. Over two-thirds of the steel produced in these areas uses the blast oxygen furnace process. As a result, the East Asia high-purity oxygen market is expected to grow at a healthy CAGR of 7% during the projected period.

North America is anticipated to exhibit a CAGR of 7.7% over the forecast period. Due to increased instances of COVID-19, the region is expected to face further limitations in the next years. The global economy will likely steadily revive in the following months as government restrictions are gradually eliminated. According to market research agencies, the North American industrial gases industry, which includes high-purity oxygen, has been steadily growing. The United States and Canada are major players in this sector. In North America, vital industries such as manufacturing, healthcare, and electronics frequently generate demand for high-purity oxygen. Furthermore, regulatory compliance is critical in the North American high-purity oxygen market, particularly in the healthcare sector. Stringent restrictions safeguard the safety and quality of medical-grade oxygen, requiring enterprises to maintain high manufacturing and distribution standards.

Europe holds a significant market share. The industrial gases industry in Europe, particularly high-purity oxygen, has been large and mature. Various industries, including manufacturing, healthcare, and research, drive the demand for high-purity gases. European nations such as Germany, the United Kingdom, and France are key contributors to the industrial gas market, and their industrial operations impact the demand for high-purity oxygen. The rising emphasis in Europe on environmentally friendly manufacturing processes has increased demand for high-purity oxygen in industries such as electronics and automobile manufacturing. In these industries, high-purity gases are critical for ensuring the quality of finished products. European companies may experience issues similar to global patterns due to supply chain interruptions, regulatory complications, and economic uncertainty affecting demand for high-purity oxygen.

LAMEA has seen an expansion in the industrial gases market, including high-purity oxygen, driven by industrialization, healthcare needs, and economic development, according to high-purity oxygen market insights. Local economic conditions, government policies, and industry operations influence market dynamics. Middle Eastern countries with substantial industrial sectors, such as Saudi Arabia and the UAE, contribute to the need for high-purity oxygen.

Segmental Analysis

The global high-purity oxygen market is segmented based on product, application, and region.

The market is further segmented by Product into 99.9~99.95%>9.95%.

>9.95% accounts for the largest share. This section contains high-purity oxygen with a concentration of more than 99.95%. This reflects an even greater degree of purity, frequently required in sensitive applications where contaminants must be kept to a minimum. The >99.95% market share is significant. Titanium grades have an ultimate tensile strength of roughly 434 MPa (63,000 psi), comparable to typical, low-grade steel alloys but less dense. Titanium is 60% denser than aluminum yet twice as strong as the most regularly used aluminum alloy, 6061-T6. Critical industries such as semiconductor production, aircraft, and some medical operations may necessitate oxygen purity levels greater than 99.95%.

The 99.9~99.95% category covers high-purity oxygen in the 99.9% to 99.95% range. The defined purity level shows the presence of contaminants to a minimum, making it appropriate for applications requiring exact oxygen concentrations.

The market can be bifurcated by application into the Metallurgical, Chemical, and Medical industries.

Metallurgical Industry led the market growth. In the metallurgical sector, high-purity oxygen is widely employed in various operations, including metal refinement and manufacture. Oxygen is essential in operations such as oxygen steelmaking (basic oxygen furnaces) and the manufacture of nonferrous metals. The Metallurgical Industry dominates the market. High-purity oxygen is widely utilized in the steel industry for metal production, welding, and other applications. 

In metallurgy, oxygen is frequently employed to improve combustion processes, eliminate impurities, and increase metal production efficiency.

High-purity oxygen is used in various chemical processes, including oxidation reactions and combustion. It is used in chemical synthesis, chemical oxidation, and the creation of numerous chemical compounds. High-purity oxygen aids in the regulated combustion and oxidation processes required by the chemical industry, guaranteeing accurate reaction control.

Recent Developments

• May 2023- Drive DeVilbiss Healthcare announced the release of a new, energy-efficient 10-liter oxygen concentrator. For the first time, an oxygen device is being created with the demands of these distinct and demanding locations in mind. In rural and semi-urban regions, the oxygen concentrator is ideally suited to meet the requirement for oxygen treatment at the primary and secondary health levels.
• October 2023- Air Liquide opened a new low-carbon gas production platform in Quebec's new energy transition valley.