The global air separation unit market was valued at $5.8 billion in 2023, and is projected to reach $8.8 billion by 2033, growing at a CAGR of 4.3% from 2024 to 2033.
Market Introduction and Definition
An air separation unit (ASU) is a facility that separates atmospheric air into its primary components, typically nitrogen, oxygen, and sometimes argon, through a process called cryogenic distillation. Atmospheric air is compressed and purified to remove impurities like carbon dioxide and water vapor. The compressed air is then cooled and liquefied in a series of heat exchangers and distillation columns, where it undergoes fractional distillation at extremely low temperatures (-196°C for nitrogen and -183°C for oxygen) . This process exploits the differences in boiling points of the gases to separate them into pure streams. ASUs play a critical role in industrial gas production, supplying gases essential for various applications, including medical oxygen, industrial gases, and cryogenic fuels for aerospace and healthcare industries.
Key Takeaways
The report provides competitive dynamics by evaluating business segments, product portfolios, target market revenue, geographical presence and key strategic developments by prominent manufacturers.
The air separation unit market is fragmented in nature among prominent companies such as Linde PLC, Air Products and Chemicals, Inc., Nikkiso, ING. L. & A. BOSCHI ITALY, Bhuruka Gases Limited and so on.
The study contains qualitative information such as the market dynamics (drivers, restraints, challenges, and opportunities), public policy analysis, pricing analysis, and Porter’s Five Force Analysis across North America, Europe, Asia-Pacific, LAMEA regions.
Latest trends in global air separation unit market such as undergoing R&D activities, regulatory guidelines, and government initiatives are analyzed across 16 countries in 4 different regions.
More than 3, 300 air separation unit-related product literatures, industry releases, annual reports, and other such documents of key industry participants along with authentic industry journals and government websites have been reviewed for generating high-value industry insights for global air separation unit market.
Key Market Dynamics
The primary driver of the air separation unit market is the global industrial growth across various sectors that rely heavily on industrial gases. Industries such as manufacturing, chemicals, healthcare, electronics, and metallurgy require large quantities of oxygen, nitrogen, and argon for various processes. For example, oxygen is used in steelmaking for blast furnace operations and in healthcare for respiratory therapies, while nitrogen finds applications in food packaging, chemicals manufacturing, and electronics. The growing industrialization and infrastructure development in emerging economies, particularly in Asia-Pacific and Latin America, are driving the demand for industrial gases; thus, fueling the growth of the air separation unit market during the forecast period.
Furthermore, the energy sector plays a significant role in driving the air separation unit market, particularly in the production of liquid oxygen (LOX) for energy applications. LOX is used as an oxidizer in various energy production processes, including coal gasification, gas-to-liquids (GTL) processes, and biofuel production. With increasing global energy demand and the shift towards cleaner energy sources, the demand for oxygen from ASUs is expected to grow. The integration of ASUs with energy production facilities ensures a reliable supply of oxygen for efficient and sustainable energy generation.
However, one of the primary restraints for the air separation unit market is the high initial capital investment required for establishing new ASU facilities or expanding existing ones. ASUs involve complex and specialized equipment for cryogenic distillation processes, heat exchangers, compressors, and purification systems. The significant upfront costs associated with procurement, installation, and commissioning of ASU facilities can be a deterrent for potential investors and operators, particularly in emerging markets or industries with constrained capital budgets.
On the contrary, environmental regulations and sustainability initiatives are influencing the ASU market by promoting the use of cleaner technologies and reducing greenhouse gas emissions. ASUs play a role in environmental sustainability through energy-efficient operations and the reduction of air pollutants and industrial emissions. For example, advancements in ASU technology enable the capture and utilization of carbon dioxide (CO2) from industrial processes, contributing to carbon capture and storage (CCS) initiatives. Additionally, the shift towards sustainable industrial practices and circular economy models drives the demand for ASUs that support resource efficiency and minimize environmental impact. This factor may create remunerative opportunities for the air separation unit market during the forecast period.
Patent filings related to air separation units have shown a steady increase over the past decade, indicating growing interest and investment in air separation unit research and development. Key patent holders in the air separation units market include pharmaceutical companies, research institutions, universities, and chemical manufacturers. Companies such as LG ELECTRONICS INC, AIR LIQUIDE, PRAXAIR TECH INC, AIR PRODUCTS AND CHEMICALS INC, GREE ELECTRIC APPLIANCESINCOF ZHUHAI, SAMSUNG ELECTRONICS CO LTD, MITSUBISHI ELECTRIC CO, MIDEA GROUP CO LTD, and AIR PROD AND CHEM hold significant patent portfolios covering various aspects of air separation unit applications. Research institutions and universities contribute to patent filings related to novel of air separation units.
Market Segmentation
The air separation unit market is segmented on the basis by process, gas type, end-use industry, and region. By process type, the market is classified into cryogenic distillation and non-cryogenic distillation. By gas type, the market is categorized into oxygen, nitrogen, argon, and others. By end-use industry, the market is divided into iron and steel, petrochemical, medical, chemical manufacturing, and others. Region-wise the market is studied across areas such as North America, Europe, Asia-Pacific, and LAMEA.
Competitive Landscape
The major players operating in the air separation unit market include Linde PLC, Air Products and Chemicals, Inc., Nikkiso, ING. L. & A. BOSCHI ITALY, Bhuruka Gases Limited, Hangzhou Nuzhuo Technology Group Co., Ltd., TAIYO NIPPON SANSO CORPORATION, Brise Chemicals, Comi Polaris Systems, INOX-Air Products Inc., and Maddox Industrial Group. Other players in the air separation unit market include Oxyplants India Private Limited, BDMGASPLANTS, Cryostar, and others.
Regional/Country Industry Outlook
Countries in Asia-Pacific, including China, India, Japan, South Korea, and Southeast Asian nations, are experiencing rapid industrial growth and manufacturing expansion. Industries such as steel, chemicals, electronics, and automotive manufacturing require large quantities of industrial gases produced by air separation unit, including oxygen, nitrogen, and argon. This factor may act as one of the key drivers responsible for the growth of the air separation unit market in Asia-Pacific region.
Additionally, urbanization and infrastructure development in Asia-Pacific countries require robust and reliable infrastructure systems, including electricity generation, distribution networks, and industrial facilities. According to a report published by National Investment Promotion and Facilitation Agency in 2023, the construction sector in India is expected to reach $1.4 trillion by 2025. ASUs provide essential gases for cooling, inerting, and purging applications in infrastructure projects such as construction, transportation, and urban development. The expansion of urban centers and infrastructure projects necessitates the deployment of ASUs to support construction materials production, metal fabrication, and electronics manufacturing, contributing to the overall demand for industrial gases across diverse sectors.
Industry Trends
In January 2022, Air Liquide, a world leader in gases, technologies have set-up a new Air Separation Unit (ASU) dedicated to Industrial Merchant activities in Kosi, in the state of Uttar Pradesh, Northern India. The new unit will have a production capacity of 350 tons per day, with a maximum of 300 tons of oxygen.
The integration of renewable energy sources is the major trend in the global air separation unit market. Plants are increasingly adopting technologies such as on-site renewable power generation and energy-efficient practices to reduce their carbon footprint. This trend may surge the potential application of air separation unit across the growing renewable energy sector.
Key Sources Referred
National Promotion and Facilitation Agency
U.S. Development Authority
East West Bank
Science Direct
International Trade Administration
Invest In India
Press Information Bureau
Key benefits for stakeholders
- This report provides a quantitative analysis of the air separation unit market segments, current trends, estimations, and dynamics of the energy storage system market analysis from 2023 to 2033 to identify the prevailing energy storage system market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the air separation unit market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global air separation unit market statistics.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global air separation unit market trends, key players, market segments, application areas, and market growth strategies.
Air Separation Unit Market Report Highlights
| Aspects | Details |
 Market Size By 2033 | USD 8.8 Billion |
 Growth Rate | CAGR of 4.3% |
 Forecast period | 2024 - 2033 |
 Report Pages | 350 |
 By Process |
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 By Gas Type |
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 By End-Use Industry |
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 By Region |
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 Key Market Players | ING. L. & A. BOSCHI ITALY, Brise Chemicals, Linde PLC, Hangzhou Nuzhuo Technology Group Co.,Ltd., Comi Polaris Systems, Bhuruka Gases Limited, Air Products and Chemicals, Inc., Maddox Industrial Group, TAIYO NIPPON SANSO CORPORATION, INOX-Air Products Inc., Nikkiso |
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