Metal Cutting Gas Market Expected to Reach $4.0 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Metal Cutting Gas Market," The metal cutting gas market was valued at $2.7 billion in 2021, and is estimated to reach $4 billion by 2031, growing at a CAGR of 4.2% from 2022 to 2031.

Metal cutting gas is quite a unique technique that uses several different types of gases which includes MAPP, ethyne, propylene, acetylene, and among others. In addition, it uses nozzle arrays, and various types of metal cutting gases machinery which offer different variations of cutting. Metal cutting gas finds application in various end-use industries including, electronics, automotive, metal fabrication, metal scrappers, metalworking, construction industry, and others.   

Increase in investments in building infrastructure in countries such as the U.S., China, Japan, Mexico, and India, has led the building & construction sector to witness significant growth where metal cutting gas is used for cutting, shaping, and designing interior and exterior walls, ceiling, and window panels, and others. In addition, sustainable economic growth coupled with increasing demand for consumer goods has led the automotive & electronics sector to witness a significant increase in demand for metal cutting gas, where metal cutting gas is widely used to weld and manufacture various types of auto components. These factors are predicted to contribute to the global metal cutting gas market.    

However, developed technology and production costs is projected to hamper the growth of the market. The high price range of metal cutting gases and the depletion of the natural gas reservoir is expected to restrain the market during the forecast period. Furthermore, the manufacturing process of metal cutting gas is complicated, and requirement of huge expenditure, and well-established plants are likely to act as challenging factors for the metal cutting gas market. In addition, fumes of acetylene, [propylene, and other metal-cutting gases have adverse effects on human health and on the environment due to which several legal implications have been applied in several countries.  These factors are expected to restrain the market growth during the forecast period.    

On the contrary, government investment toward increase in natural gas reservoirs, environment friendliness, and less toxicity of natural gases has put more emphasis on several manufacturers for increasing their production capacities for metal cutting gases. For instance, in April 2021, Total Oil India Private Limited (TOIPL), a subsidiary of Total company has launched Total LPG Cutting Gas which has been developed especially for the metal cutting industry including scrappers, fabricators, metal cutting working industry, and temperature-intensive applications. This factor is anticipated to boost market growth during the forecast period.    

The metal cutting gas market is segmented on the basis of gas type, end-use, and region. By gas type, the market is segregated into acetylene, propylene, natural gas, propane, and others. The acetylene segment dominated the global market in terms of revenue in 2021, with 38% of the total share. This is attributed to the fact that, the demand for the welding and cutting industry is continuing to grow due to the growing demand for advanced designed equipment from manufacturing and industrial sectors. In addition, welding manufacturing profits and production rises, in the U.S., the demand for welders is expected to grow simultaneously with it where acetylene gas is majorly used in welding applications. Another major advantage of using acetylene is that it produces the highest flame temperature of all the fuel gases. This factor is expected to foster the market during the forecast period. 

On the basis of end-use, market is categorized into automotive, aerospace, building and construction, metal and metal fabrication, and others. According to an article revealed by Indian Brand Equity Foundation in September 2022, the demand from domestic OEMs (original equipment manufacturers) has significantly contributed to the auto component industry at 81.1% in 2022. Acetylene, MAPP, propane, and other natural gases are widely used during metal fabrication process. This factor is anticipated to foster the market during the forecast period. In addition, companies operating in the metal fabrication market are expanding their prefabricated construction products portfolios to enhance their revenue streams. This may project to drive the metal cutting gas market; thus, creating most lucrative opportunities for the market.   

Region-wise, the metal cutting gas market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific metal cutting gas market size is projected to grow at the highest CAGR during the forecast period and accounted for a major metal cutting gas market share in 2021, owing to rise in residential and commercial building & infrastructure projects in countries such as India, Thailand, and Japan, where metal cutting gas are widely used for decorative, thermal and acoustic insulation applications. For instance, according to a report published by National Investment Promotion and Facilitation Agency of India, the construction output in India is expected to grow on an average of 7.1% each year. This is anticipated to enhance the sales of metal cutting gas in the building and construction sector; thus, creating remunerative opportunities for the market.  

Key players operating in the global metal cutting gas market include Ador Welding Limited, Bharat Petroleum Corporation Limited, Brothers Gas, ESAB, HACO, Hornet Cutting Systems, Indian Oil Corporation Ltd, LEVSTAL, NISSAN TANAKA CORPORATION, and TotalEnergies.  

Key findings:

• By gas type, the acetylene segment is estimated to display the highest growth rate, in terms of registering a CAGR of 4.5% during the forecast period.  
• By end-use, the metal and metal fabrication end-use segment is estimated to display the highest growth rate, in terms of registering a CAGR of 4.1% from 2022 to 2031.  
• By region, Asia-Pacific garnered the highest share of 48% in 2020, in terms of growing at a CAGR of 4.6%.