Acetylene Gas Market - Forecast(2024 - 2030)

Acetylene Gas Market size is estimated to reach USD 8.96 billion by 2030, after growing at a CAGR of 4.9% during 2024-2030. The global market for acetylene gas is experiencing substantial growth, primarily propelled by the burgeoning chemical industry and the escalating pace of global industrialization. Acetylene gas is a pivotal component in various metalworking applications, including oxyacetylene cutting, heat treatment, soldering, brazing, and welding, owing to its exceptional high flame temperature characteristics. The utilization of oxyacetylene in conjunction with oxygen enhances piercing and preheating speed compared to conventional oxygen-based fuels. This translates into notable improvements in cutting quality, speed, and initiation time, thereby fostering increased efficiency and widespread adoption across industries. Furthermore, acetylene gas plays a crucial role in the synthesis of diverse compounds such as acetic anhydride, acetic acid, and acetaldehyde, contributing to its significance in chemical manufacturing processes. Additionally, the application of acetylene extends to the glass and materials processing sectors, where its carbon coating properties facilitate the creation of lubrication between material surfaces, enhancing overall processing efficiency. The market expansion is further propelled by intensive research and development (R&D) initiatives focused on producing gas from biogas and other bio-based fuels. This underscores the industry's commitment to sustainable practices and aligns with the growing global emphasis on environmentally friendly solutions. As the demand for acetylene gas continues to surge, driven by its versatile applications and ongoing advancements in production methods, the market is poised for sustained growth, reflecting its pivotal role in diverse industrial processes and applications.

 

Market Snapshot 

 

“Acetylene Gas Market– Forecast (2024-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the Acetylene Gas market.

By Production Type: Calcium Carbide, Thermal Cracking, Hydrocarbon Pyrolysis

By Applications:  Chemical Synthesis, Welding and Cutting, Polyethylene Plastics, Carbon Coatings, and Others

By End User: Automotive, Metal Fabrication, Aerospace, Pharmaceutical, Glass, Others

By Geography:  North America, South America, Europe, APAC and Ro

Acetylene Gas Market: Market Share (%) by region, 2024

• North America's Acetylene Gas Market reached $3.2B in 2023, with a projected $5.17B by 2030, growing at 5.4% CAGR. The North American acetylene gas market experienced rapid growth due to increasing demand across various industries. Factors such as industrial applications, metal fabrication, and chemical manufacturing contributed to the accelerated expansion of the market.

• Since the last few centuries, global industrial output has expanded dramatically. The industrial sector contributes significantly to the national GDP. Iron and steel are essential components of any industrial endeavor. Welding techniques enable these materials to be used to their full potential, and as a result, demand for acetylene gas is expected to rise in the future.

• However, superior alternatives have recently supplanted acetylene gas welding. The relative ease of use of this gas, on the other hand, will ensure continuous growth for the market in the future years.

• The growing usage of metal fabrication in the construction industry coupled with the growing investment in the construction sector is set to fuel its market growth. For instance, according to Invest India, India's construction industry is set to reach $1.4 trillion by 2025.

 

By Application the chemical synthesis segment is expected to have the largest share of over 35% in 2023 and is expected to dominate the acetylene market in the coming years, and is anticipated to maintain its ascendancy in the years to come. Chemical synthesis involves the production of various organic compounds through a series of chemical reactions. Acetylene gas, with its versatile applications, plays a crucial role in this process. It serves as a key raw material for the synthesis of a wide range of chemicals, including plastics, solvents, pharmaceuticals, and agrochemicals. One of the primary drivers for the growth of the chemical synthesis segment is the increasing demand for specialty chemicals across various industries. The growing need for innovative and high-performance chemicals has led to a surge in research and development activities, thereby boosting the demand for acetylene gas. Additionally, the expansion of industries such as automotive, electronics, and healthcare further fuels the demand for acetylene gas in chemical synthesis. These industries rely on acetylene gas for the production of materials like polycarbonate, PVC, and acrylics, which find extensive usage in their manufacturing processes. Owing to its wide range of applications and increasing demand for specialty chemicals, the segment is anticipated to witness substantial growth, contributing to the overall expansion of the market.

Metal Fabrication dominated the Acetylene Gas Market with a value share of approximately 40% in 2023. Metal Fabrication is the process of building machines and structures from raw metal materials. The process includes cutting, burning, welding, machining, forming, and assembly to create final products. Moreover, the growing usage of metal fabrication in the construction industry coupled with the growing investment in the construction sector is set to fuel its market growth. For instance, according Invest India, The Indian construction industry is poised to reach $1.4 trillion by 2025, fueled by urbanization. By 2030, cities are projected to contribute 70% to India's GDP. The market spans 250 sub-sectors, with significant demand for 25 million mid-end and affordable residential units by 2030 due to an anticipated urban population of 600 million. Apart from this, the wide employment of labors in the metal fabrication industry is set to boost its market growth. As a part of this, according to the Bureau of Labor Statistics, Employment for Structural Metal Fabricators and Fitters is 58,870, reflecting demand in construction and manufacturing.

The North America Acetylene Gas Market generated a revenue of $3.2 billion in 2023 and is projected to reach a revenue of $5.17 billion by 2030 growing at a CAGR of 5.4% during 2024-2030. The U.S. held the greatest share of the market in 2023, and Canada is estimated to witness the fastest growth during the forecast period.  The Americas region is one of the biggest markets for acetylene gas based on a variety of industrial clusters and high levels of manufacturing activities. In recent years, there has been a fundamental shift in the energy outlook of the continent mainly driven by technology, innovation, investment, and new policies. In this region, more and more industrial gas manufacturers are adopting IoT technologies to connect equipment and smart devices to garner real-time insights and locate gaps in the manufacturing process. For instance, smart systems give information on the working conditions and performance of chemical reactors with embedded software and analytics tools to notify plant operators and managers of possible machine breakdowns. Major acetylene gas manufacturers adopting IoT technology include Praxair-Linde and Air Products.Increasing investments across various regions are analyzed to aid the market growth 

The booming automotive industry coupled with the wide usage of acetylene gas for the manufacture of various automotive parts and various other parts requiring high precision is set to boost its market growth in the upcoming years. For instance, according to Invest India, In the Indian automobile market, two-wheelers and passenger cars hold major market shares at 76% and 17.4%, respectively. Small and midsized cars dominate passenger car sales. Notably, two-wheelers contribute significantly to exports, comprising 77% of the total in 2022-23 at 47,61,487 units. Moreover, the growing government efforts to increase the manufacturing of automobiles are set to fuel its market growth. As a part of this, in March 2022, the production-linked incentive scheme for automobile and automotive component sectors attracted a proposed investment of ₹74,850 crore ($1,047.9 million), the heavy industries ministry revealed. The target estimate of investment was ₹42,500 crore ($582.1 million) over five years. The production-linked incentive (PLI) scheme for the automobile and automobile components industry was notified in September 2022, to boost manufacturing and attract investments in the sector. Prime objectives of the scheme include overcoming cost disabilities, creating economies of scale, building a robust supply chain in areas of advanced automotive technology (AAT) products, and generating jobs. The PLI scheme will extend incentives up to 18% to the selected manufacturers. As per government estimates, the scheme can create 7.5 lakh additional jobs.

With growing awareness, governments across various regions are introducing laws and amendments for safety in workplaces where acetylene gas is present. Due to this, acetylene gas is increasingly facing difficulties in complying with new rules and regulations.  For instance, the Dangerous Substances and Explosive Atmospheres Regulations 2002 (DSEAR) states that a risk assessment must be undertaken by employers under DSEAR when acetylene is or is liable to be present in the workplace and suitable controls put in place where an explosive atmosphere may occur in the workplace. Regulatory measures related to the handling, storage, and transportation of acetylene gas, driven by safety and environmental concerns, are impeding market expansion. Compliance with these stringent standards demands substantial investments in infrastructure and technology, impacting overall industry dynamics. As businesses navigate through complex regulatory frameworks, the Acetylene Gas Market faces challenges in achieving its full growth potential. Proactive measures, innovation, and industry collaboration will be crucial for stakeholders to adapt to evolving regulations and foster sustainable market development.

 

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Acetylene Gas market. Major players in the Acetylene Gas Market are Airgas, Linde, Sinopec Catalyst CO., LTD., Jinhong Gas, Gulf Cryo, Praxair Technology, Inc. Komatsu Gas, Messer Canada Inc., Ellenbarrie Industrial Gases, Matheson Tri-Gas, Inc, and others.