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Acetylene Gas Market Overview
Acetylene Gas Market size is estimated to reach USD 10.72 Billion by 2027, after growing at a CAGR of 4.87% during 2022-2027. The market is primarily driven by significant growth in the chemical industry, as well as rising global industrialization. Acetylene gas is widely utilized in metalworking applications such as oxyacetylene cutting, heat treatment, soldering, brazing, and welding due to its high flame temperature qualities. The combination of oxyacetylene and oxygen allows faster piercing and preheating than typical oxygen-based fuels. This results in improved cutting quality, speed, and cut initiation time, resulting in increased efficiency and wider gas use throughout industries. Additionally, acetylene gas is used to make a variety of compounds, including acetic anhydride, acetic acid, and acetaldehyde. Carbon coating also finds use in the glass and materials processing sectors, since it aids in the creation of lubrication between the material surfaces. Other factors, such as intensive research and development (R&D) operations aimed at producing gas from biogas and other bio-based fuels, are also boosting market expansion.
Report Coverage
“Acetylene Gas Market– Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Acetylene Gas market.
By End User: Automotive, Metal Fabrication, Aerospace, Pharmaceutical, Glass, Others.
By Geography: North America, South America, Europe, APAC and RoW.
Key Takeaways
• Since the last few centuries, global industrial output has expanded dramatically. The industrial sector contributes significantly to national GDP. Iron and steel are essential components of any industrial endeavor. Welding techniques enable these materials to be used to their full potential, and as a result, demand for acetylene gas is expected to rise in the future.
• However, superior alternatives have recently supplanted acetylene gas welding. The relative ease of use of this gas, on the other hand, will ensure continuous growth for the market in the future years.
• The growing usage of metal fabrication in the construction industry coupled with the growing investment in the construction sector is set to fuel its market growth. For instance, according to IBEF, In Union Budget 2021, to support initiatives such as ‘Housing for All’ and ‘Smart Cities Mission’, the Indian government allocated Rs. 13,750 crore (US$ 1.89 billion) to AMRUT and Smart Cities Mission.
End User - Segment Analysis
Geography - Segment Analysis
Drivers – Acetylene Gas Market
• Increasing investments across various regions is analyzed to aid the market growth
Acetylene gas owing to its various benefits such as low moisture content of the gas makes it perfect for various industrial processes that demand critical heating and many more has increased its demand among various end-user industry. In recent years, the markets have witnessed an increasing number of investments in this vertical which is projected to propel the growth of the Acetylene Gas Market. For instance, in May 2022, Orion Engineered Carbons, a specialty chemical company, announced plans to build the only plant in the U.S. producing acetylene-based conductive additives a critical link in the value chain for lithium-ion batteries, high-voltage cables and other products powering the global transition to electrification and renewable energy. Orion’s planned facility in La Porte, Texas, south of Houston, will be backed by a long-term agreement for acetylene supplied from a neighbouring site owned by Equistar Chemicals LP, a subsidiary of LyondellBasell. Orion will invest between $120 million and $140 million in the facility, expected to start up in the second half of 2024. This investment shall increase the company’s conductive additives capacity by approximately 12 kilotons per year.
• Growing automotive industry coupled with the wide usage of acetylene gas is one of the major factors driving the market.
The booming automotive industry coupled with the wide usage of acetylene gas for the manufacture of various automotive parts and various other parts requiring high precision is set to boost its market growth in the upcoming years. For instance, according to IBEF, automobile exports reached 4.13 million vehicles in FY21, growing at a CAGR of 3.47% during FY16-FY21. Two wheelers (79.38%), passenger vehicles (9.79%) and three wheelers (9.52%) made up the majority of exports from India. Moreover, the growing government efforts to increase the manufacturing of automotive is set to fuel its market growth. As a part of this, in March 2022, the production-linked incentive scheme for automobile and automotive component sectors has attracted a proposed investment of ₹74,850 crore, the heavy industries ministry revealed. The target estimate of investment was ₹42,500 crore over a period of five years. The production-linked incentive (PLI) scheme for automobile and automobile components industry was notified on September 23, 2022 to boost manufacturing and attract investments in the sector. Prime objectives of the scheme include overcoming cost disabilities, creating economies of scale, building a robust supply chain in areas of advanced automotive technology (AAT) products, and generating jobs. The PLI scheme will extend incentive up to 18% to the selected manufacturers. As per government estimates, the scheme can create 7.5 lakh additional jobs.
Challenges – Acetylene Gas Market
• Stringent government regulations associated with acetylene gas
With growing awareness, governments across various regions are introducing laws and amendments for the safety in workplace where acetylene gas is present. Due to this, acetylene gas is increasingly facing difficulties to comply with new rules and regulations. For instance, the Dangerous Substances and Explosive Atmospheres Regulations 2002 (DSEAR) states that a risk assessment must be undertaken by employers under DSEAR when acetylene is or is liable to be present in the workplace and suitable controls put in place where an explosive atmosphere may occur in the workplace. The stringent regulations are posing as a major challenge that is hampering the growth of the acetylene gas market. In December 2019, Taronis Technologies, Inc., a sustainability technologies company, announced that the Company has received formal notice from the Turkish Ministry of Trade that a conditional ban has been made public, limiting the use of acetylene, propane and other industrial gases widely used as metal cutting fuels within the Republic of Turkey. In March 2019, The Food Safety and Standards Authority of India (FSSAI) initiated the effective surveillance and enforcement activities to rule out any possibility of artificial ripening of fruits with harmful and banned substances like calcium carbide or acetylene gas. The regulator stated that that artificial ripening of fruits using prohibited substances poses a serious threat to the health of consumers. Keeping in mind the rampant use of banned calcium carbide and non-availability of an alternative ripening agent, the FSSAI has instead permitted the use of ethylene for ripening of fruits since 2016. Hence, such factors are limiting the growth of the acetylene gas market.
Market Landscape
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Acetylene Gas market. Major players in the Acetylene Gas Market are BASF SE, China Petrochemical Corp, Airgas, Toho Acetylene, Linde, Sichuan Vinylon, Jinhong Gas, Gulf Cryo, Praxair, Koatsu Gas, others.
Recent Developments
- In 2022, Linde announced it has signed another long-term agreement with a major space launch company in Florida for the supply of bulk industrial gases.
- In 2022, Sinopec suspends natural gas marketing venture in Russia. China’s Sinopec has also halted a major investment in a gas chemical plant in Russia.
- In 2020, The new Acetylene Plant, two hydrogen and two carbon atoms: This is acetylene. The colorless gas is made from natural gas and oxygen. Around 20 plants in BASF's Production Verbund process acetylene and its derivatives.