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Liquid Nitrogen Procurement Market Size
Based on the latest research by ELINT Market Research in the Liquid Nitrogen Procurement Market research report, the global liquid nitrogen market is likely to increase at a higher CAGR between 2024 and 2030. The medium-term outlook for world economic recovery from the pandemic remains gloomy due to the Russia-Ukraine war; however, the liquid nitrogen market has proved quite resilient. The market was valued at USD 16.3 billion in 2022 and is projected to accomplish USD 17.55 billion in 2023, recording a CAGR of 7.6% during this period. It is expected to further grow at a CAGR of 5.9% from 2024 to 2027 till it reaches USD 22.06 billion. Growth in the liquid nitrogen market is constant due to ever-increasing demand from respective industries.
Recent developments also hint that the outlook is promising for the liquid nitrogen market. This further instills momentum into the market, as a leading manufacturing player for industrial and medical gases, INOX Air Products, comes forth to make greenfield investments of ₹2,000 crore in India. At the same time, enhancing the capability to meet the growing demand would be another strategy of firms under their production capacity expansion plans. Sohar Freezone has also signed an accord to establish an industrial gas production facility, elaborating more comprehensive trends in investment and development. The same provides a view into the industry’s strong growth prospects and also refers to strengthening the connected supply chain and infrastructure necessary for further market growth.
Market Definition
The liquid nitrogen market encompasses the production, distribution, and application of nitrogen in its liquid state, a vital component for various industrial processes. Liquid nitrogen is primarily used for its cooling and cryogenic properties, making it essential in healthcare, food and beverage, electronics, and aerospace sectors.
Liquid Nitrogen Procurement Market Drivers
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- Demand from the Healthcare Industry
There is increasing demand from the healthcare sector for cryotherapy and medical research, along with growing requirements for good preservation of food quality within industries related to food and beverage.
- Technological Breakthroughs
The technological development in the manufacturing of electronic goods that requires nitrogen for cooling and creating inert atmospheres also supports market growth.
Liquid Nitrogen Procurement Market Challenges
- Higher Costing
High production and storage costs can constrain market growth due to specialized equipment and especially infrastructure requirements.
- Safety Concerns
Another big challenge is the safety concerns—some of which could be engendered by the handling and transportation of liquid nitrogen, which can induce severe injuries.
Liquid Nitrogen Procurement Market Opportunities
- Increasing Application in the Healthcare Sector
It has several rapidly growing healthcare applications, particularly in cryogenics for cancer treatment and regenerative medicine.
- Sustainability Practices Trend
The growing concern for sustainability and developing green production methods will open up vast opportunities for the market players.
Liquid Nitrogen Procurement Market Segmentation
The liquid nitrogen market is segmented based on production technology, application, and end-user industry.
- The liquid nitrogen market research report divides the market into cryogenic distillation and pressure swing adsorption in terms of production technology.
- Based on applications, the liquid nitrogen market research report classifies the market into food preservation, cryotherapy, electronics manufacturing, and metal fabrication.
- The liquid nitrogen market research report segments the market into healthcare, food and beverage, electronics, chemicals, and aerospace, among other end-user industries.
Regional Outlook of the Liquid Nitrogen Procurement Market
North America and Europe hold prominent liquid nitrogen market shares owing to the well-established infrastructure of healthcare, a robust base of industries, and massive investments in research and development activities. The Asia-Pacific region is anticipated to grow at the highest rate while being driven by rapid industrialization, rapidly growing electronics and food processing industries, and increasing spending on healthcare. Given their developing industrial sectors and improving economic conditions, growth opportunities still exist in the Latin American Middle East and Africa regions.
Cost Component in the Liquid Nitrogen Procurement Market
Various factors drive the cost structure for the production of nitrogen gas. Some of these include energy costs, of which 54.5% have roots here, underlining the energy intensity in the process. Direct labor accounts for 7.57%, utilities 5.11%, administrative expenses with quality assurance 3.08%, and indirect labor costs 11.64%. Most of these components underline the need for efficient energy management and labor optimization to keep the price of their liquid nitrogen product competitive.
Engagement Strategies in the Liquid Nitrogen Procurement Market
The best stakeholder engagement strategies in the liquid nitrogen market relate to developing good relations with all the principal stakeholders, suppliers, customers, regulatory bodies, and many others. Companies must strive to achieve consistent product quality and adequate supply chains to ensure their products reach their customers reliably.
Contract Period in the Liquid Nitrogen Procurement Market
The contract period for a liquid nitrogen market usually remains open and differs between suppliers and customers in several contracts. A long-term contract is standard; it can last one to five years, providing both parties security and transparency. In contrast, short-term contracts or spot purchasing are equally standard, especially with those customers whose demand may fluctuate or who look to tap new sources of supply.
Negotiation Factors in the Liquid Nitrogen Procurement Market
Because of the high energy cost structure, both buyers and suppliers should consider negotiating the price. Volume commitment may affect the discount on prices because significant volumes of an order place better prices. Delivery schedules must be compared with production and storage capacity for on-time supply.
Leading Players in the Liquid Nitrogen Procurement Market
The leading liquid nitrogen market players are Linde Plc, Air Liquide, Air Products, Nippon Sanso, and Messer. The players have dominated the market using substantial production capacities, advanced technologies, and distribution networks. The companies also rank among the leaders by innovations; new applications are constantly developed, improved, and introduced into production in line with changing demands from various consuming industries.
