Recently, Guotai Junan Securities released a "industrial gases industry research: market space is broad, electronic special gas domestic substitution accelerated" report, the current situation and future trends of the industrial gases industry to analyze and outlook. The report pointed out that industrial gases as the basic raw materials of modern industry, its market size and the degree of industrial development is closely related, with the rapid development of the country's emerging industries, the demand for special gases will also continue to expand, especially electronic special gases, as integrated circuits, LCD panels, LEDs, photovoltaic and other emerging industries, key materials, and the process of domestic substitution is expected to accelerate for domestic industrial gases enterprises to bring new Opportunities and challenges for domestic industrial gas enterprises.
The report shows that in 2021, the global industrial gases market size reached 145.1 billion U.S. dollars, of which specialty gases accounted for 19%, and electronic special gases accounted for 63%. China's industrial gases market size reached 179.8 billion dollars, of which specialty gases accounted for 23%, electronic special gases accounted for 55%. The report estimates that the global industrial gases market will grow at a CAGR of 6.5% from 2022 to 2025, with specialty gases growing at a CAGR of 9.5% and electronic specialty gases growing at a CAGR of 12.5%. China's industrial gases market will grow at a compound annual growth rate of 10.5%, of which specialty gases will grow at a compound annual growth rate of 14.5%, electronic special gas will grow at a compound annual growth rate of 18.5%.
According to the report, there are three main driving factors for the domestic substitution of electronic special gases: first, the support of national policies, including strengthening the ability of independent innovation, promoting the development of the integrated circuit industry, and promoting the realization of the goal of carbon neutrality, etc.; second, the demand for domestic and foreign markets, including the rapid development of emerging fields such as 5G, Internet of Things, artificial intelligence, new energy vehicles, and the mismatch between supply and demand in the domestic and foreign semiconductor industry, leading to domestic semiconductor enterprises to increase investment and capacity expansion; Third, the efforts of domestic industrial gases enterprises, including increasing R&D investment, improving product quality, expanding customer resources, optimizing the service model.
The report points out that at present, the domestic industrial gas market is still dominated by foreign-funded enterprises, Linde Group and Air Liquide two major enterprises market share of 21.9% and 20.7% respectively, while domestic manufacturers Jinhong gas, Huat gas market share of 0.78%, 0.62% respectively. However, with the acceleration of domestic substitution, domestic manufacturers market share is expected to gradually increase, especially in the field of electronic special gases, domestic manufacturers have already achieved convergence with international standards in some products, such as boron nitride, hydrogen fluoride, fluoromethane, etc., and the future is expected to achieve breakthroughs in the future there are more products, such as silane, nitrogen fluoride, fluorocarbon, etc..
The report suggests that industrial gas enterprises should seize the opportunity of domestic substitution of electronic special gases, strengthen technological innovation and product R&D, improve product quality and stability, expand customer resources and market share, optimize gas supply mode and service level, improve profitability and competitiveness, and contribute to the development of the country's emerging industries.