NEW YORK, Jan. 10, 2023 (GLOBE NEWSWIRE) -- A new report on the global argon market has just been published by the market intelligence platform IndexBox. Here are some of the most interesting takeaways.

Market Outlook

The global argon market is estimated to be valued at USD 4.8 billion in 2022 and is projected to reach USD 5.3 billion by 2030, growing at a CAGR of 3.5%. Argon is an essential element for myriad industries, from automotive to semiconductor manufacturing.

Argon is a colorless and odorless gas that is present in the atmosphere at a concentration of 0.93%. It is the third most abundant gas after nitrogen and oxygen, accounting for approximately 0.6% of air by volume. Argon is used as an inert gas in a variety of applications such as welding, cutting, and heat treating of metals; semiconductor fabrication; medical diagnostic imaging; and food packaging.

The production of argon is increasing to meet the rising demands from different industries. However, the supply of argon is not sufficient to meet the global demands. This has resulted in a shortage of argon in the market.

The supply chain of argon starts with the mining of raw materials. The raw materials are then transported to the manufacturing plants where they are processed into gas. The gas is then transported to the end-users through a distribution network.

There are several challenges that need to be addressed in order to ensure a smooth supply of argon. These challenges include ensuring a steady supply of raw materials, optimizing the transportation system, and reducing wastage throughout the supply chain.

The Asia-Pacific region is the largest market for argon, with China being the largest consumer. The region is also expected to witness the highest growth rate during the forecast period, owing to the expansion of end-use industries, such as welding and metal fabrication, in the region.

The North American market is mature and is expected to grow at a moderate pace during the forecast period. The US is the largest consumer of argon in North America and has a well-established industrial gas industry. However, declining oil & gas production activities in Canada are expected to restrain market growth in the country.

Europe is another significant market for argon and is expected to grow at a steady pace during the forecast period. Argon consumption in welding & metal fabrication applications is high in European countries such as Germany, France, Italy, and Spain.

Key Consuming Industries

Some of the key consumers of argon gas are the semiconductor industry, steel industry, automotive industry, lighting industry, and food packaging industry.

Semiconductor Industry: Argon is used in semiconductor manufacturing as a carrier gas for CVD and plasma etching processes. It is also used as an inert shielding gas during welding operations.

Steel Industry: Argon is used in the steel industry for argon-oxygen decarburization (AOD) process and other steelmaking processes.

Glass Industry: The glass industry uses argon gas for manufacturing float glass, container glass, optical glass, and specialty glass. Argon is used as an inert atmosphere in furnaces during the production of float glass. It prevents oxidation of the molten glass and provides uniform cooling of the hot glass sheet.

Automotive Industry: Argon is used in the automotive industry for welding operations and tire inflation.

Lighting Industry: Argon is used in lighting applications such as fluorescent lamps and HID lamps.

Food Packaging Industry: Argon is used in food packaging applications to preserve shelf life of packaged foods.

Other major consuming industries of argon include metal production, food & beverage packaging, energy, and healthcare.

Market Drivers

Industrial growth and development:

The global argon market is majorly driven by the industrial growth and development. Argon is widely used in industries such as welding, semiconductor fabrication, and lighting. The growing demand for argon in these industries is fueling the market growth. Moreover, the rise in infrastructural development activities is also supplementing the market growth.

The increased use of argon gas in welding applications:

One of the key drivers for the growth of global argon market is the increased use of argon gas in welding applications. Argon gas is used as a shield during various welding processes such as TIG and MIG welding. The use of argon gas protects the weld pool from contamination and helps to achieve a high-quality weld.

The rising demand for semiconductor devices:

Another factor driving the global argon market is the rising demand for semiconductor devices. Argon is used in semiconductor fabrication processes such as plasma etching and ion implantation. The growing demand for semiconductor devices, owing to the advancement in technology, is fuelling the market growth.

Market Challenges

The global argon market is facing a number of challenges. Firstly, the market is highly fragmented with a large number of small and medium-sized players. This makes it difficult for new entrants to gain a foothold in the market. Secondly, argon gas is a commodity product and prices are largely driven by underlying energy prices. This makes the market susceptible to volatility. Thirdly, the demand for argon gas is largely dependent on the steel industry, which has been facing challenging conditions in recent years. Lastly, Argon is produced as a by-product of air separation and its supply is therefore dependent on the capacity of air separation plants.

Market Trends

is used as a shielding gas in various welding processes, such as gas tungsten arc welding and plasma arc welding. It protects the weld pool from atmospheric contamination and provides a stable arc. Metal production is another major end-use application of argon. It is used as an inert gas for purging, blanketing, and sparging in the aluminum, steel, and titanium production processes.

The market growth is further supported by the favorable government policies and regulations promoting the use of argon in various industrial applications. For instance, the U.S. Environmental Protection Agency has set emission standards for volatile organic compounds (VOCs), which include argon. These standards are implemented to control air pollution and protect public health.

However, the high cost of argon gas is a major challenge for market growth. Argon is sold in compressed gas cylinders at high pressure. This increases its transportation and storage costs, which are eventually passed on to consumers. Moreover, argon gas cylinders need to be regularly replaced due to their limited shelf life. This adds to the overall cost of using argon gas in various industrial applications.

About IndexBox

IndexBox is a market research firm developing an AI-driven market intelligence platform that helps business analysts find actionable insights and make data-driven decisions. The platform provides data on consumption, production, trade, and prices for more than 10K+ different products across 200 countries.

Companies Mentioned in the Report

Air Liquide, Linde Gas, Messer Group, Praxair, Scott Specialty Gases, Taiyo Nippon Sanso Corporation

Sources

World - Argon - Market Analysis, Forecast, Size, Trends and Insights

EU - Argon - Market Analysis, Forecast, Size, Trends and Insights

Asia - Argon - Market Analysis, Forecast, Size, Trends and Insights

U.S. - Argon - Market Analysis, Forecast, Size, Trends and Insights