Increasing investment in sustainable energy development is driving the demand of industrial gases in India. Proactive strategies like partnership will boost the market, as per a report by Ken Research

1. Demand of Oxygen Gas by End-User- Steel Manufacturing utilizes more than 55% of the Onsite Oxygen in India.

Other Challenges in Indian Industrial Gases Market

Industrial Oxygen is highly required in industries such as steel manufacturing & automotive. Hence most plants are strategically located near the end users for easy transportation through pipelines leading to huge  cost savings. High production of liquid oxygen is done by standalone plants due to its effective application in medical and healthcare along with other sectors such as small steel manufacturing units, Metal fabrication units and more.

2. Consumer Pain-Points and their solutions – Consumers in the industry suffer from composition differences, shipment delays and quality issues.

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Blended Gases are not easily available. Vendors encounter difficulty in placing order for a mixture of gas. Manufacturer should focus on rare compositions such as Helium-Oxygen, Nitrous Oxide-Oxygen and blends, Carbon dioxide Mixtures.

Since, the market is highly affected by the logistic issues most end users of the merchant sale model suffer shipment delays. Technology investment is a Fixed asset to the company; hence the supplier should invest in more reliable technology (ASU Technology) to avoid operational inefficiencies.

Quality of the Industrial gases are compromised in terms of purity in a small manufacturing plant. Small manufacturer sometimes invests in cheap ASU and gas storage tanks. Provide customer dashboard to trace the journey of shipment and status.

3. India follow various models to supply industrial gases out of which BOO Model and Standalone model is maximally seen.

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Boo Model

In Standalone Model/ Merchant Model, producers have one or two major client that consume 50% of the total gas and remaining is supplied to another End User. Such plants supply Gas in Liquid form via Gas Truck and Gas cylinder. 

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