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Saudi Arabia has emerged as the frontrunner of GCC industrial gases market, thanks to increasing infrastructural activities and rising demand from the regional chemical industry.
On the basis of geographical outlook, the kingdom is seen as a significant market for industrial gases and is expected to grow at a compounded annual growth rate (CAGR) of 6 percent, according to a research report by Persistence Market Research (PMR) on GCC industrial gases market outlook and analysis for 2019-2029.
The GCC industrial gases market is likely to account for $1 billion by end of 2019 and is expected to grow at a CAGR of 6 percent for the forecast period.
UAE and Qatar are expected to hold prominent market shares in terms of both volume and value after Saudi Arabia owing to various infrastructural developments and growing chemical industry in the two countries, the research report said.
Total value of contracts for large-scale projects awarded in the GCC has been estimated at $172 billion in 2015. Ongoing investments in large-scale infrastructure projects and rampant investment in the core industrial sector is expected to drive the demand for industrial gases through 2029.
Several mega infrastructural projects in the GCC in line with key events such as Dubai Expo 2020 and Qatar's FIFA World Cup in 2022 are expected to emerge as major drivers for rise in demand for industrial gases in the region, the report said.
However, the recent turmoil in the oil and gas industry has prompted many GCC governments to rethink its dependency on the industry and increase investments in other sectors such as manufacturing, tourism, healthcare, in addition to reducing economic dependency on oil and gas/petroleum sectors.
According to PMC report, this economic shift requires significant infrastructural development, which consequentially is expected to drive the demand for industrial gases in the GCC region throughout the forecast period.
Among different types of gases, oxygen, nitrogen, carbon dioxide and hydrogen are expected to witness significant adoption throughout 2019-2029.
Rapidly growing sales of Argon is likely to result in increased market share in the years ahead. Moreover, refining chemicals welding and metal fabrication and energy and oil and gas are estimated to remain key application sectors of the industrial gases, PMC said in its report.
The prominent market players in the region are global giants Air Liquide, Linde, Air Products and Chemicals and Praxair besides regional players such as Gulf Cryo, Buzwair Industrial Gases Factory, Bristol Gases, Dubai Industrial Gases, Abdullah Hashim Industrial & Equipment, Mohsin Haider Darwish, National Industrial Gas Plants and Yateem Oxygen.
(Reporting by Seban Scaria, Editing by Daniel Luiz)
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