UK industrial gases market to stay flat to 2015
12 Aug 2010
Manchester, UK – The UK market for industrial gases declined by 4% in 2009, which is projected to be followed by a further 1% decline in 2010, taking the value of the market to £758.7 million, according to market analuysts at Manchester-based MBD.
The declines reflect adverse economic conditions, which has affected a number of key end-use industries, said MBD’s UK Industrial Gases Market Development study. The market, which managed modest growth of 1% recorded between 2006 and 2008, has also been impacted by rising energy and manufacturing costs and environmental constraints.
UK demand is projected to expand between 2011 and 2015, but at modest annual growth rates. Indeed, apparent consumption will increase by just a marginal level in 2011, partially reflecting the adverse effects of the current economic climate. This, forecast MBD, will be followed by slightly stronger annual growth of between 1% and 2% in real terms in the following three years.
In 2015, the value of the industrial gases market is expected to reach £791 million, equivalent to overall real term growth of 4% compared with the current year. Growth is again likely to be hindered by a sluggish economic recovery, high energy and manufacturing costs and environmental restrictions.
MBD expects sales of hydrogen to gradually increase during five years of the forecast period. In 2015, the value of the hydrogen market is expected to reach £78.7 million – an overall real term growth of 9% compared with the current year. The sector is projected to represent between 9% and 10% of the total market during the forecast period.
Demand for nitrogen is set to increase during much of the forecast period, except for an estimated marginal decline in 2011. In the following four years, annual growth rates are
anticipated to remain moderate, oscillating between 1% and 2%.
Overall, sales of nitrogen are forecast to increase by 3% between 2010 and 2015, with the sector accounting for an estimated 24% of the market in the latter year, said MBD.
In 2015, sales of sulphur trioxide are projected to reach £240.9 million (at 2010 prices), representing an overall increase of 5%in the value of the sector over the forecast period. Growth
is expected to be recorded in each year between 2011 and 2015. MBD forecast that sales of sulphur trioxide are to continue to represent the largest share of the industrial gases market,
accounting for around 30% between 2011 and 2015.
Total UK output of industrial gases is anticipated to be increased throughout the five year forecast period, although annual growth levels are not expected to exceed 2% in real terms.
MBD estimate production of industrial gases to be increased by 4% in real terms between 2010 and 2015, taking the value of output to £754.3 million in the latter year.
