Liquid Nitrogen Market

Market Overview

The global liquid nitrogen market size was valued at USD 15.1 billion in 2022 and is projected to reach USD 25.0 billion by 2031, registering a CAGR of 5.8% during the forecast period (2023-2031). Using liquid nitrogen in the chemical sector is a prominent market factor propelling the liquid nitrogen market growth.

Liquid nitrogen is a cryogenic liquid generated by cooling nitrogen gas to extremely low temperatures. Nitrogen, which accounts for approximately 78% of the Earth's atmosphere, is colorless, odorless, and tasteless when gaseous. Nitrogen becomes a cryogenic liquid known as liquid nitrogen (LN2) when chilled below its boiling point of -196 degrees Celsius (-321 degrees Fahrenheit). The extensive usage of liquid nitrogen as a chilling agent in various end-use sectors such as food and beverage and pharmaceutical is the main driving reason for the worldwide liquid nitrogen market share. Packaged food has grown in popularity with fast urbanization, and there is increasing worry about food preservation. It is essential in cooling and freezing food products because liquid nitrogen is chemically inert, extending their shelf life.

Furthermore, liquid nitrogen is widely employed in the medical and healthcare sectors to treat various skin issues. Liquid nitrogen is generally offered as an inorganic chemical, and its demand is predicted to rise during the projection period due to its wide range of applications. However, prolonged liquid nitrogen usage may result in various health complications, such as vomiting, nausea, loss of consciousness, and other issues that limit market expansion.

Highlights

• Cryogenic Cylinders and packaged Gas account for the largest market share by Storage.
• Cryogenic Distillation is a significant contributor to the market based on technology.
• Chemicals are the major end-users of the market.
• Asia-Pacific dominates the global market.

Market Dynamics

Market Drivers

Expanding Food and Beverage Industry

The food and beverage sector uses liquid nitrogen extensively, using its cryogenic qualities for various purposes. In this industry, liquid nitrogen is used for operations such as flash freezing, cryogenic grinding, and generating novel gourmet presentations using molecular gastronomy techniques. Its capacity to freeze food items preserves its texture, flavor, and nutritional content, contributing to the industry's growth. Liquid nitrogen has acquired prominence in the culinary world because it participated in molecular gastronomy, a concept in which chefs use unique techniques to produce novel dining experiences. Chefs, for example, may utilize liquid nitrogen to freeze products like ice cream or sauces at extremely low temperatures. Ice crystals become smaller because of the quick-freezing process, contributing to more excellent textures in frozen sweets.

Furthermore, the growing popularity of convenience foods and the necessity for efficient freezing methods to keep such products fresh are driving up demand for liquid nitrogen in the food and beverage industry. Liquid nitrogen's speedy freezing capabilities coincide with the industry's emphasis on preserving the organoleptic features of food goods. For example, Nestle introduced Wildspace, a line of nutritious frozen meals in reusable and recyclable containers, in November 2018. There are six different types of Wildscape meals: gochujang cauliflower with Brussels sprouts, quinoa, chickpeas, pickled onions, riced cauliflower, and cashews. The liquid nitrogen market trend is expected to rise throughout the projected period as the global food and beverage sector expands.

Market Restraints

Stringent Safety and Handling Regulation

The handling and Storage of cryogenic liquids, particularly liquid nitrogen, is subject to stringent safety regulations due to the extremely low temperatures. Compliance with these requirements complicates and increases the cost of liquid nitrogen storage and transportation. In the United States, the Occupational Safety and Health Administration (OSHA) and the National Fire Protection Association (NFPA) establish rules and regulations for safely handling cryogenic liquids. These standards address storage tank design, personnel training, emergency response methods, and protective equipment specifications.

Furthermore, in 2018, India's Food Safety Commissioner restricted the use of liquid nitrogen in manufacturing cold goods such as ice cream and cold drinks. The Haryana government prohibited mixing liquid nitrogen with food and beverages in 2017. The prohibition was enacted in response to an April 2017 incident at a Gurgaon pub in which a man's stomach was burned by a cocktail containing liquid nitrogen. While liquid nitrogen is innocuous, it can inflict severe damage to the skin and internal organs if mishandled or accidentally consumed, according to the FDA. There is also the potential for breathing issues, which can be troublesome for asthmatics. The "Dragon's Breath" food craze, which involves eating cereal or cheese puffs super-cooled with liquid nitrogen, was outlawed in Suffolk County, New York, in 2018. The craze has spread to social media platforms such as TikTok, where the hashtag "dragon's breath" has over 200 million views. 

Market Opportunity

Rising Demand in Healthcare and Biotechnology

The healthcare and biotechnology sectors represent a substantial opportunity for the liquid nitrogen market due to the growing demand for cryopreservation and storage solutions. At its ultra-low temperatures, liquid nitrogen is essential for maintaining biological components such as cells, tissues, and reproductive cells, contributing to medical research and application improvements. One significant example is the advent of biobanking, which stores biological samples for research and medicinal uses. Biobanks are critical to medical research, personalized medicine, and the development of new therapeutics. For example, the Crown Prince of Abu Dhabi announced the establishment of a biobank in September 2023 to fulfill the demand for individualized care through sophisticated treatments that use human tissues and stem cells in medical research. This research will aid in treating more than 80 ailments and immune system disorders. Liquid nitrogen is extensively employed in biobanks to cryopreserve cells and tissues, preserving their long-term viability. 

Furthermore, cell therapy, which includes regenerative medicine, is growing. Liquid nitrogen is required to preserve stem cells and other cell-based therapies, which aids in discovering novel treatments. The global cell treatment industry is likely to expand, and demand for cryopreservation methods based on liquid nitrogen is expected to follow suit.

Regional Analysis

The global liquid nitrogen 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 liquid nitrogen market shareholder and is estimated to grow at a CAGR of 5.7% over the forecast period. The Asia-Pacific region is expected to lead the liquid nitrogen market during the projected period. Growing chemical and pharmaceutical industries in countries such as China, India, and Japan drive demand for the region's liquid nitrogen market. According to China's Healthcare Report, China's combined pharmaceutical and biopharmaceutical R&D expenditure is expected to grow at a compound annual rate of 23% through 2023. When it hits USD 49 billion, it will account for 23% of global drug development and testing costs.

Additionally, the country has a vast and diverse domestic drug sector, with over 5,000 manufacturers and many minor or medium-sized businesses. It is projected to increase the use of liquid nitrogen in the pharmaceutical business. The National Medical Products Administration and the National Administration of Traditional Chinese Medicine worked together to publish the "14th Five-Year Plan for Pharmaceutical Industry Growth." The 14th Five-Year Plan outlines the goals and strategies for developing China's pharmaceutical industry during the next five years. The 14th Five-Year Plan was created using the ideas and criteria specified in the 14th Five-Year Plan Framework for National Economic and Social Development and Long-Term Goals for 2035. 

North America is anticipated to exhibit a CAGR of 6.0% over the forecast period. According to liquid nitrogen market insights, North America is expected to hold a substantial share of the global liquid nitrogen market during the forecast period. The pharmaceutical industry's significant demand for liquid nitrogen for preserving biological samples benefits market growth. Furthermore, rising reconstruction activities increase demand in metal manufacturing and construction, resulting in a greater demand for liquid nitrogen for welding and cutting procedures. Again, liquid nitrogen is used for welding and cutting in the metal manufacturing and construction industries, propelling regional market expansion due to increased reconstruction efforts. These reasons are driving the region's liquid nitrogen market expansion.

Europe accounts for a respectable share due to increased reconstruction operations in the metal production and construction sectors, which feed the growing demand for liquid nitrogen in welding and cutting processes. The European Chemical Industry Council (CEFIC) states that the European chemical industry remains a world leader and a highly innovative sector. In addition, European chemical sales increased by 2.8 percent between 2017 and 2018.

Segmental Analysis

The Global Liquid Nitrogen Market is segmented based on Storage, technology, end-user, and region.

The Storage is further segmented into Cryogenic Cylinders, Packaged Gas, and Tonage.

Cryogenic Cylinders and packaged Gas account for the largest market share. Cryogenic cylinders and packaged gas storage dominated the market. Cryogenic cylinders and packaged gas storage require the use of specialized containers intended to maintain extremely low temperatures. Cryogenic cylinders are portable vessels that store and transport tiny amounts of liquid nitrogen, assuring its availability for various purposes. Packaged gas solutions are a practical and compact way of distributing liquid nitrogen in multiple industries where demand is moderate and periodic, such as healthcare, laboratories, and manufacturing.

Tonnage storage refers to larger-scale liquid nitrogen storage systems meant to hold enormous amounts. These systems often incorporate bulk storage tanks with much bigger capacities, continually supporting industries with high demand. Tonnage storage is appropriate for applications that demand a consistent and stable liquid nitrogen supply, such as large-scale industrial operations, electronics fabrication, and businesses with high-volume cryogenic requirements. These storage solutions allow for the efficient and cost-effective management of vast amounts of liquid nitrogen in industrial applications.

The market is sub-segmented based on Cryogenic Distillation and pressure Swing absorption technology.

Cryogenic Distillation is a significant contributor to the market. Cryogenic distillation dominated the market; cryogenic distillation is a technology used for separating and manufacturing liquid nitrogen using a method that takes advantage of the varying boiling points of air components. In this procedure, air is cooled and compressed before being distilled step by step in a cryogenic column. Nitrogen is isolated and collected as a cryogenic liquid because it has a more excellent boiling point than other air components. This energy-intensive method ensures high liquid nitrogen purity levels, making it appropriate for essential applications such as medical and laboratory use.

Pressure Swing Adsorption (PSA) is a nitrogen-generating process that uses molecular sieves' adsorption and desorption capabilities. This method involves passing air over a bed of adsorbent material, commonly zeolite molecular sieves, which preferentially adsorb oxygen and other pollutants while allowing nitrogen to flow through. The bed is then depressurized, and the adsorbed gases are discharged, yielding a high-purity nitrogen stream. PSA technique is frequently more energy-efficient than cryogenic distillation and is appropriate for on-site nitrogen generation in various sectors, providing a continuous and reliable supply.

The market can be further bifurcated by end-use into chemical, healthcare, food, and beverage foundries.

Chemicals are the major end-users of the market. The chemical segment dominated the market because of its widespread use as a coolant and cryogenic agent in various chemical industrial processes. Liquid nitrogen is used in a variety of processes in the chemical industry, including cryogenic chilling, inerting, and as a reactant. In addition to providing extremely low temperatures, liquid nitrogen is helpful in chemical reactions, polymer manufacture, and specialized chemical manufacturing. It's also utilized for inerting to keep undesired reactions at bay and product quality high. The adaptability of liquid nitrogen in various applications benefits the chemical industry, adding to process efficiency and product quality.

Liquid nitrogen is used extensively in the food and beverage sector, particularly in cryogenic freezing, chilling, and preservation. It is used to quickly freeze food items while retaining texture, flavor, and nutritional content. Liquid nitrogen is also used in molecular gastronomy applications to create novel gastronomic experiences. The efficiency and precision of liquid nitrogen in many processing stages help the food and beverage industry to manufacture high-quality and creative food items.

Recent Developments

• December 2023- Air Liquide will construct a world-scale CO2 collection plant to aid in the decarbonization of Rotterdam's industrial basin.
• November 2023- Air Products (NYSE: APD), the global leader in gas separation and purification membranes, announced that 2,000 seagoing vessels worldwide now use membrane-based nitrogen-generating systems from Air Products Membrane Solutions.