Driven by explosive growth in hydrogen demand - global industrial gases market outlook is promising

Despite continued supply chain challenges affecting manufacturing activity, industrial gas makers have performed solidly and will accelerate earnings for the remainder of 2022. After a strong year in 2020, industrial gas manufacturers are doing even better in 2021, with a stronger full-year outlook for 2022 than the previous two year.

Hydrogen demand will explode

Hydrogen has become the centerpiece of the industrial gas as more companies set net-zero targets and countries begin to develop energy transition plan.

In contrast, growth rates for commercial oxygen and nitrogen are expected to be slower but still stead.

S&P Global expects the global commercial nitrogen market to grow at an average annual rate of 5% over the next five year.

Steady growth of giant performance

Issues arising from the COVID-19 pandemic over the past few years, including supply chain challenges and labor shortages, have negatively impacted the manufacturing sector, as well as the industrial gas marke.

"Looking ahead, there are clear concerns about energy security, especially in Europe, which could lead to persistent currency Expansio.

On Air Products' second-quarter earnings conference call in May this year, Chief Executive Saifu Gasmi said: "We are very positive about our results for the fiscal year ended September 3From the season In nature, the second half of the year will be stronger and we are very confident that we will address inflation and energy costs by raising product price.

Linde expects full-year 2022 adjusted diluted earnings per share of $165 to $190, a year-on-year increase of 11% to 13.

After achieving record sales of $24 billion in 2021, all of Air Liquide's business segments and regions saw growth in the first quarter of 2022. Air Liquide said that in the first quarter of this year, global operating income increased by 1% year-on-year to $8 billion, of which operating income in the Americas was $6 billion, an increase of 9% year-on-yea.

Air Products expects full-year 2022 earnings per share of $12 to $14, up 13% to 15% year over yea.

Air separation business is still the foundation

Globally, especially in the United States, the air separation gas market is almost an oligopolistic industry, with Linde, Air Liquide and Air Products occupying 60% to 70% of the industrial gas marke.

In the past two years, Linde, Air Liquide and Air Products have opened several air separation plants in the United State.