Cryogenic Fuels Market

The global market for cryogenic fuels, valued at $105.6 billion in 2020, is projected to reach $188.7 billion by 2030, growing at a CAGR of 6.1% from 2023 to 2030. Cryogenic fuels are characterized by their need for storage at extremely low temperatures to maintain a liquid state. These fuels find wide application in space machinery, where traditional fuels cannot be used due to the absence of a combustion-supporting environment. Cryogenic fuels include liquid nitrogen, liquid air, liquid helium, liquid neon, liquid hydrogen, and liquefied natural gas (LNG).

The COVID-19 pandemic has disrupted industrial manufacturing and space exploration activities worldwide due to government-imposed lockdown measures. Consequently, the demand for cryogenic fuels has declined globally. However, the growth of the cryogenic fuels market is primarily driven by increased demand from the energy/power generation, manufacturing, aerospace, biomedical and healthcare, and chemical industries. The healthcare sector, in particular, has a significant demand for industrial gases like oxygen, liquid oxygen, nitrogen, liquid nitrogen, nitrous oxide, laser mixes, specialty gases, compressed air, and helium. Liquid nitrogen is used in blood bank storage units during transplant procedures and for cryogenic storage of body organs. Additionally, the economic growth of emerging countries is expected to lead to the establishment of new research facilities and institutes, driving the demand for cryogenic gases in the pharmaceutical and biotechnology sectors for freezing biotech products and supporting market growth.

A notable trend in the global cryogenic fuels market is the development of carbon capture technologies. These technologies aim to capture greenhouse gases and other toxic emissions from power plants and industrial sources, reducing their environmental impact. Governments and energy companies are actively seeking cryogenic carbon capture processes that can be applied to both new and existing emission sources. This technology also has applications in natural gas processing and transportation. The demand for cryogenic fuels is expected to increase as a result of these factors during the forecast period.

Furthermore, major economies around the world are allocating significant portions of their GDP to space exploration activities and satellite launches. Competition among space agencies is intense, leading to substantial investments in space exploration and research. Nations continue to allocate significant budgets for space programs, aiming to achieve milestones and pioneer new space technologies. Ambitious projects, such as NASA's Mars rover mission and ISRO's manned spacecraft program, are expected to attract substantial investments in the space launch industry, consequently driving the demand for cryogenic fuels.

However, the high initial investment required for setting up large-scale cryogenic fuel production plants is expected to hinder the growth of the cryogenic fuels market during the forecast period. On the other hand, the increasing number of space and satellite missions worldwide presents growth opportunities for the cryogenic fuels market.

The global cryogenic fuels market is categorized based on type, end-use industry, and region. The types of cryogenic fuels analyzed include liquid nitrogen, liquid air, liquid helium, liquid neon, liquid hydrogen, and liquefied natural gas. The end-use industries encompass energy, manufacturing, aerospace, biomedical and healthcare, chemical, and others. Geographically, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

Key players operating in the global cryogenic fuels industry include Air Liquide, Air Products & Chemicals, Air Water, Inc., Gulf Cryo, Maine Oxy, Messer Group GmbH, Mitsubishi Chemical Holdings (Taiyo Nippon Sanso), Narco Inc., Linde Plc (Praxair Technology, Inc.), and SOL Group.

In terms of regional analysis, Asia-Pacific held a significant market share in 2020, with China being a major consumer of industrial gases in the region. However, India is expected to witness rapid growth in the cryogenic fuels market, supported by the increasing production of iron and steel. Cryogenic fuels, such as liquid air containing nitrogen, oxygen, and argon, are also utilized in the transportation sector, including tire manufacturing, airbags, and welding. China's vehicle production reached 18.17 million in Q3 2019 and declined to 16.96 million in Q3 2020, indicating a decline rate of approximately 6.66%. The growing demand for iron and steel from various industries, coupled with government initiatives to boost the manufacturing sector, is expected to drive the usage of cryogenic fuels in the region.

Furthermore, countries in the Asia-Pacific region, such as China and India, are making significant investments in space exploration activities, which is anticipated to continue during the forecast period. The Indian Space Research Organization (ISRO) is focused on developing the indigenous space launch industry, with projects like Chandrayaan-3 and Gaganyaan planned for 2023. Japan's JAXA is also planning to send a rover to the lunar surface in 2023. These initiatives, along with government support for private companies in the aerospace sector, are expected to impact the growth of the cryogenic fuels market in the coming years. For example, Interstellar Technologies, a Japanese aerospace start-up, successfully launched the country's first privately developed rocket in 2019. The government's support for such companies may contribute to stable launches and increased rocket production in the near future.

Global cryogenic fuels market, by type
The liquid air segment held a significant share in the cryogenic fuels market in 2020. Technological advancements in the utilization of different liquid air types have contributed to the market's growth. Liquid air is increasingly being employed as propellant for launching rockets carrying broadcast, communications, and meteorological satellites into space. Leading companies are also investing in research and development to enhance the production and distribution methods of liquid air on a global scale. These factors are expected to drive the global demand for liquid air in the forecast period. However, the COVID-19 pandemic has negatively impacted the demand and production of liquid air due to the slowdown in commercial, transportation, and industrial activities. This trend is anticipated to persist as long as government-imposed lockdown measures continue and industrial activities gradually resume.

In terms of end-use industry, the manufacturing segment held a significant share in the cryogenic fuels market in 2020. This can be attributed to increased foreign direct investment and rapid industrialization in developing economies such as China, India, and Brazil. These countries have witnessed the establishment of various manufacturing units across industries like automotive, steel, and electrical & electronics, driven by the availability of raw materials and lower labor costs. With the growing manufacturing industry in these developing economies, the demand for cryogenic fuels is expected to experience substantial growth throughout the forecast period.

COVID-19 analysis:
According to the International Monetary Fund (IMF), the global economy contracted by 3.0% in 2020 due to the outbreak of the novel coronavirus (COVID-19). Strict lockdown measures imposed in many countries resulted in the shutdown of several sectors, leading to halted manufacturing activities and reduced demand and production of cryogenic fuels.

The COVID-19 outbreak and subsequent lockdowns had a severe impact on the Micro, Small & Medium Enterprises (MSME) sector, especially in developing economies like India, according to the United Nations Industrial Development Organization (UNIDO). This has resulted in a decline in the demand for cryogenic fuels across various end-use industries such as building & construction, automotive, chemicals, and aerospace. Although some countries started to lift restrictions and gradually resume business operations in the second half of 2020, the manufacturing sector is expected to face challenges in returning to normal working conditions, thereby affecting the growth of the cryogenic fuels market in the coming years.

UNIDO reports that 30.0%–70.0% of the pre-COVID-19 workforce in manufacturing industries such as automotive, steel, and electrical & electronics have migrated back to their hometowns due to uncertainties and loss of income during the lockdown. This reduced availability of workforce directly impacts production activities, resulting in a decline in demand for cryogenic fuels and further hampering market growth during the forecast period.

The automotive and chemical industries have been significantly impacted by the COVID-19 pandemic. Import and export restrictions imposed by governments in various regions have led to delays in the movement of chemical items. Automotive manufacturing has been disrupted, causing substantial losses in the automobile sector. For instance, the European Association of Car Manufacturers reported a decline in demand for new commercial vehicles across the EU in June 2020. The decrease in automotive production has also led to a significant decline in the demand for liquid nitrogen.

The demand for liquid air, such as argon and hydrogen used for welding purposes in construction, was negatively affected by the COVID-19 pandemic. Temporary halts in construction work during the lockdown resulted in decreased consumption of liquid air, adversely impacting market growth. However, the medical industry experienced an increased demand for oxygen for resuscitation and inhalation therapy during the pandemic, which stimulated market growth.

The aerospace industry took a severe blow due to the COVID-19 outbreak, resulting in a contraction in recent times. This has negatively affected the growth prospects of liquid helium in aerospace applications. Aircraft manufacturing companies have witnessed a decline in the number of orders, with many aviation companies reducing their previous orders. The slowing down of R&D activities and economic slowdown caused by the pandemic also impacted the electronics and semiconductor industry, leading to a decline in the demand for liquid helium.

The global crisis affected production, demand, and supply chains across almost every industry, including the liquid neon gas market. The semiconductor industry, which requires liquid neon for processing, also experienced setbacks due to the pandemic. However, the work-from-home trend is expected to drive the surge in demand for smart home products, positively impacting the market. The decrease in production of original equipment manufacturing and the drop in demand for mobile phones and consumer electronics due to income loss and stay-at-home orders will significantly affect the production and consumption of liquid neon for processing purposes.

Key benefits for stakeholders
• The analysis of the global cryogenic fuels market includes comprehensive information on major industry participants.
• Porter's five forces analysis is utilized to assess the potential of buyers and suppliers, as well as the competitive scenario in the industry, aiding in strategy development.
• The revenue contribution of major countries to the regional market is mapped individually.
• The report offers a detailed analysis of the global cryogenic fuels market forecast for the period 2023-2030.
• Current trends in the global cryogenic fuels market and the future scenario from 2020 to 2030 are outlined to understand existing opportunities and potential investment prospects.
• The global cryogenic fuels market study provides an in-depth explanation of key drivers, restraints, opportunities, and their impact.

Key market segments
By Type
• Liquid Nitrogen
• Liquid Air
• Liquid Helium
• Liquid Neon
• Liquid Hydrogen
• Liquefied Natural Gas (LNG)

By End-Use Industry
• Energy
• Manufacturing
• Aerospace
• Biomedical & Healthcare
• Chemical
• Others

By Region
• North America
o U.S.
o Canada
• Mexico
o Europe
o Germany
o France
o Italy
o Spain
o UK
o Rest of Europe
• Asia-Pacific
o China
o Japan
o South Korea
o India
o Australia
o Rest of Asia-Pacific
• LAMEA
o Brazil
o Saudi Arabia
o South Africa
o Rest of LAMEA