Oil & Gas Air Separation Unit Market Size – By Process, By Gas, Analysis, Share, Growth Forecast, 2024 – 2032

Oil & Gas Air Separation Unit Market Size

Oil & Gas Air Separation Unit Market was valued at USD 864.5 million in 2023 and is estimated to grow at a CAGR of 4% from 2024 to 2032. Increasing inclination towards the hydrogen production along with rising oil refinery operations owing to the increasing energy needs across the globe is augmenting the business landscape.  Rising emphasis on hydrogen as a clean energy source is making AIR SEPARATION UNITS (ASUs) more crucial in the oil & gas application market. They produce the large amounts of oxygen needed for hydrogen generation through processes like steam methane reforming and gasification. This trend is driving up demand for ASUs in the oil and gas sector.
 

The increasing demand for refined petroleum products necessitates efficient refinery processes and the product play a crucial role in these processes by producing high-purity gases, particularly oxygen and nitrogen. These gases are essential for operations such as catalytic cracking and desulfurization, thereby driving the demand for advanced ASUs in refineries.
 

Oil & Gas Air Separation Unit Market Trends

Stricter environmental regulation & sustainable gaols along with increasing advancements in air separation unit technologies is boosting the product adoption. Stringent environmental regulations are pressuring oil and gas companies to reduce emissions and adopt cleaner technologies. ASUs provide efficient solutions for CO2 capture and sequestration, aligning with regulatory and sustainability goals, thus driving market growth. In addition, technological advancements like energy-efficient cryogenic distillation and improved gas separation processes are enhancing ASU performance, reducing operational costs for oil and gas companies. This results in increased adoption of ASUs for gas purification and extraction, thereby contributing to the overall market growth.
 

Oil & Gas Air Separation Unit Market Analysis

Based on process, the cryogenic air separation unit industry is expected to surpass USD 880 million by 2032. Advancements in air separation processes, including cryogenic and non-cryogenic technologies, are improving the efficiency and capacity of air separation units (ASUs). These developments enable higher gas purity levels, reduced energy consumption, and more flexible operations, which are essential for meeting the chemical industry's specific requirements.
 

Based on gas, the nitrogen gas will grow at a CAGR of over 4% through 2032. Nitrogen is utilized for inerting, which prevents explosive reactions and reduces the risk of environmental contamination. The increasing focus on sustainability and regulatory compliance is driving the adoption of advanced air separation units (ASUs) in the chemical industry.
 

The U.S. oil & gas air separation unit market will surpass USD 135 million by 2032, driven by robust exploration activities and increasing energy needs. The oil and gas industry significantly influences the ASU market, with substantial demand for nitrogen and other industrial gases produced by ASUs, particularly for enhanced oil recovery and refining processes. These factors combined with the need for high-purity gases in various chemical applications are driving the adoption of advanced ASUs across the U.S.
 

Rapid industrialization, urbanization, and manufacturing growth in countries like China and India are driving the demand for air separation units (ASUs) in the oil & gas sector due to rising energy needs. As these nations develop, the industry's reliance on advanced ASU technologies for various industrial and environmental applications is expected to increase, thereby fuelling market growth for ASUs in the oil & gas industry.
 

Oil & Gas Air Separation Unit Market Share

Major players in the oil & gas air separation unit industry include Air Liquide, Linde, AMCS, Cryotec Anlagenbau, and Taiyo Nippon Sanso Corporation. These companies are increasingly integrating ASUs into their production processes to ensure a steady gas supply and boost their competitive edge. This trend is set to fuel significant growth in the ASU market down the line.
 

Oil & Gas Air Separation Unit Market Companies

Major key players operating across the oil & gas air separation unit industry are:

• Air Liquide
• Air Products and Chemicals
• Air Water
• AMCS
• Cryotec Anlagenbau
• Enerflex
• Kaifeng Air Separation Group
• Linde
• Messer
• Praxair Technology
• Ranch Cryogenics
• Sichuan Air Separation Plant Group
• Taiyo Nippon Sanso
• Technex
• Universal Industrial Gases
• Yingde Gases
   

Oil & Gas Air Separation Unit Industry News

• In June 2024, Air Liquide decided to invest over USD 850 million to build, own, and operate four large modular air separation units and related infrastructure under a long-term agreement with ExxonMobil for its low-carbon hydrogen project in Baytown, TX. This will boost Air Liquide's oxygen production capacity in Texas by 50%, thereby contributing to the overall market growth.
   
• In May 2024, Linde planned to invest around USD 150 million to build, own, and operate an on-site air separation unit (ASU) in Boden, northern Sweden. The ASU will supply oxygen, nitrogen, and argon to H2 Green Steel’s plant, aiming to cut carbon emissions by up to 95% compared to traditional steelmaking. Set to start by 2026, the ASU will also serve Linde's existing and new customers in the local merchant market.
   

This oil & gas air separation unit market research report includes an in–depth coverage of the industry with estimates & forecast in terms of revenue in ‘USD Million’ from 2021 to 2032, for the following segments:

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Market, By Process

• Cryogenic
• Non-cryogenic

Market, By Gas

• Nitrogen
• Oxygen
• Argon
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico 
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
• Aisa Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
• Latin America
  • Brazil
  • Argentina