Market Overview
The Industrial Nitrogen Generator Market is estimated to record significant growth by reaching at a CAGR of 4.4% during the forecast period (2023-2030).
The production of gases including oxygen, nitrogen, argon, carbon dioxide, helium, acetylene, and hydrogen is mostly for industrial use. These gases are employed in many industries, including oil and gas, mining, and steel production. Nitrogen is an industrial gas that is widely employed in various sectors. It's often made by extracting nitrogen from the air. Nitrogen makes up about 78% of air, oxygen makes up about 21% and other gases make up about 1%. Nitrogen is created with a nitrogen generator, which converts air into nitrogen. Machines that extract nitrogen molecules from compressed air are nitrogen generators or nitrogen generating systems. These nitrogen gas generators can produce purities of up to 99.999% at flow, ideal for scientific applications.
Market Scope
| Metrics | Details |
| Market CAGR | 4.4% |
| Segments Covered | By Technology, By Size, By Design, By End-User, and By Region |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights. |
| Fastest Growing Region | Asia Pacific |
| Largest Market Share | North America |
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Furthermore, An on-site nitrogen generator is a viable alternative to nitrogen cylinders. A nitrogen generator eliminates the inconvenience of changing cylinders and ensures a steady gas supply with consistent purity. Pressure Swing Adsorption (PSA) and membrane nitrogen producers are two methods to achieve this consistency.
Thus growing demand for nitrogen gas in the manufacturing process in various sectors such as chemical blanketing, food packaging, electronics, laboratories, and other applications has escalated the demand for industrial nitrogen generators at an unprecedented rate.
Market Dynamics
The increasing use of nitrogen gas in the food and beverage industry has escalated the market share for industrial nitrogen generators
Nitrogen has applications in the food and beverage industry. Food-grade nitrogen (nitrogen with a purity of 99%) has no adverse effects on the food or beverages it comes into contact with because it is an inert, colorless, and odorless gas. In reality, nitrogen is particularly useful in the food and beverage business since it can be used to displace oxygen and avoid oxidation, leading to the deterioration of food and beverages.
Furthermore, Food aeration is a frequent application of nitrogen gas in the food industry. Aeration is a popular chocolate-making technique that involves mixing chocolate with gas under pressure to create 'bubbly' chocolate. The Rowantree Company, which introduced the Aero bar in 1935, was the first to mass-produce aerated chocolate and other confectionary firms immediately followed suit. When nitrogen is used to aerate chocolate, micro-aerated chocolate (smaller bubbles); on the other hand, carbon dioxide can make larger bubbles.
In addition, In the food industry, nitrogen packaging is ubiquitous. Regarding Modified Atmosphere Packaging, nitrogen is frequently used (MAP). Because foods begin to deteriorate as soon as they are chosen or prepared for packaging, the food business must preserve them for as long as possible to ensure they do not expire before reaching consumers. It is for this reason that MAP is used. By adding nitrogen to the food packaging environment, oxygen is driven out, considerably reducing the risks of the food oxidizing and going stale or rotten and greatly extending the shelf life of the food.
Thus the businesses that hire nitrogen packaging will expand their export potential because their products can travel longer distances without rotting. The nutritional value, texture, flavor, aroma, and taste of the food are all preserved by nitrogen packaging.
Furthermore, The objective of nitrogen in the winemaking processing industry is to remove and prevent oxygen from getting into the wine, similar to how nitrogen is used in food packaging. The addition of nitrogen avoids oxidation, which can degrade a wine, which is why food-grade nitrogen should be used. After a bottle of wine is opened, oxidation occurs; that is why it is only drinkable for a few days — the longer a wine is exposed to air, the less drinkable it becomes (sourer or vinegar-like).
Thus, the mentioned factors have shown nitrogen use in the food and beverage industry. To maintain the nitrogen concentration in the industry, companies use industrial nitrogen generators to overcome the growing demand for nitrogen, leading to a boost in demand for the product.
High investment and Stringent regulatory restrictions are hurdling the growth of industrial nitrogen generators
The variation in the cost of raw materials and the rise in the cost of production cause enormous swings in vendors' profit margins, providing a considerable challenge for them. The extraction of noble gases from the atmosphere requires a lot of energy and nitrogen makes up a substantial part of the yield.
The industrial nitrogen generator market's primary costs include energy, storage, and distribution costs. Tonnage, merchant-based, and bundled supply modes are the three main types of nitrogen gas distribution. The tonnage supply option is the most profitable for vendors since it provides predictable demand and low variable costs.
Furthermore, the industrial gas market is governed by strict restrictions. Because these gases are combustible, caustic, and explosive, they are subject to strict controls. To avoid any leaks or accidents, nitrogen gas is stored at a specific temperature and pressure. Regulations on producing, storing, and transporting these gases directly impact the market.
High nitrogen gas concentrations are hazardous to human health because they can induce physical and mental damage. Wherever personnel contacts nitrogen gas, end users must install early warning devices, continuous monitoring systems, adequately ventilated rooms, and rescue processes. Nitrogen gas must be stored and handled properly in all end-use industries.
COVID-19 Impact on Market
Food & beverage, medical & pharmaceutical, transportation, chemical & petrochemical, electrical & electronics, and other industries are prime applications of industrial nitrogen generators. Food and beverage, transportation, and chemical industries, among others, have all been affected by the impact of the pandemic. During the lockdown phase in 2020, the COVID-19 pandemic hindered the expansion of the water sector.
Furthermore, supply chain disruptions, a shift in demand patterns, and other emergency measures must be dealt with in the industrial sector. During the crisis, there was a drop in revenue and a reduction in capital expenditures. Long-term CAPEX planning to develop resilience, keep adequate sanitation at workplaces, government fiscal support, better supply chain planning, proper communication, and resuming industrial activities are projected to boost revenue and stabilize growth in the short term.
Segmentation Analysis
The global industrial nitrogen generator market can be segmented on the technology, size, design, end-user, and region.
PSA technology holds the largest market share in the industrial nitrogen generators industry as the technology is easy to use, efficient, and low cost as compared to other types of technologies
The global industrial nitrogen generator market is segmented based on technology into PSA, membrane-based, and cryogenic-based technology. PSA (pressure swing adsorption) technology holds the highest market share out of the mentioned technologies. PSA-based commercial nitrogen generators use the principle of pressure swing adsorption to produce a continuous stream of nitrogen gas from the compressed and filtered air.
Knowing and understanding the purity level to reach while making nitrogen is critical. Some uses, such as tire inflation and fire prevention, require low purity levels (between 90 and 99 %). In contrast, others, such as applications in the food and beverage sector or plastic molding, require high levels (from 97 to 99.999 percent ). In these situations, PSA technology is the best and most convenient option.
PSA nitrogen generators remove oxygen from compressed air using Carbon Molecular Sieve (CMS) material. CMS is a porous carbon material with a highly regulated pore size. Oxygen molecules are absorbed into the pores as compressed air travels over the material, whereas bigger nitrogen molecules can pass through the exhaust stream. The CMS will eventually get saturated with oxygen molecules and gas separation will stop.
PSA nitrogen generators are also utilized in automobile electronics, consumer electrical products, and metal processing, among other applications. These are the most often used industrial nitrogen generators because of their ease of use and low cost. The PSA technique can create nitrogen with the highest purity level for use in food processing, electronics manufacturing, perishable food transportation, and other applications.
Market Geographical Shares
The nitrogen generator market in Asia-Pacific is expected to grow rapidly throughout the projected period, owing to the expansion of end-user industries, including food & beverages, aviation, and pharmaceuticals in the area
The fastest-growing market for industrial nitrogen generators is Asia-Pacific. The increase is primarily due to the economic success of emerging nations, such as India, China, Indonesia, Malaysia, Singapore, Vietnam, and Thailand, where consumption of packaged and easily accessible food goods is increasing yearly. Furthermore, rising population and urbanization rates are pushing demand for high-quality processed foods and increasing the consumption of industrial nitrogen generators.
In addition, the market for industrial nitrogen generators in the region is being driven by increased industrialization, rising demand due to changing demographics, such as improving living standards, increasing disposable incomes, and government initiatives to attract business investments in industries such as automotive, marine, packaging, manufacturing, oil & gas and chemical.
Companies and Competitive Landscape
The global industrial nitrogen generator market is highly competitive with local and global companies. Some prime companies contributing to the market's growth are Hitachi Industrial Equipment System Company, Inmatec, Parker Hannifin Corporation, Ingersoll Rand, Air Products and Chemicals, Inc., Atlas Copco, Air Liquide, Linde Plc, Novair SAS, Oxymat A/S and others.
The major companies are adopting several growth strategies such as acquisitions, product launches, and collaborations, contributing to the global growth of the Industrial Nitrogen Generator market.
- In March 2020, Gardner Denver Holdings Inc. finalized the acquisition of Ingersoll Rand's Industrial division. The combination intends to create a more robust and comprehensive portfolio of mission-critical industrial, energy, medical, and specialty vehicle products and services.
Atlas Copco
Overview: Atlas Copco (Compagnie Pneumatique Commerciale or Copco) is a Swedish multinational industrial corporation founded in 1873. It is a company that produces industrial tools and equipment. The Atlas Copco Group is a multinational industrial company based in Nacka, Sweden. Global revenues in 2019 totaled SEK 104 billion and the corporation employed 38,774 individuals at the end of the year.
Atlas Copco develops, manufactures, services, and rents industrial tools, air compressors (the largest manufacturer), and construction and assembly equipment. The company is divided into four divisions: Industrial Technology, Compressor Technology, Vacuum Technology, Power Technology, and Compressor Technology.
Product Portfolio: NGP PSA nitrogen generator: The company offers Easy to install, ready-to-use PSA that delivers a high-capacity nitrogen flow at the purity you need. Suitable for various applications such as food and beverages and metal processing. The PSA technology guarantees an excellent return on investment. The NGP nitrogen generator offers a cost-effective, dependable, and secure nitrogen supply. The operating principle of the generator is based on Pressure Swing Adsorption technology (PSA). Carbon molecular sieves ensure a high level of purity.
Key Development
- In January 2021, Atlas Copco acquired the operating business of Purification Solutions LLC, a leading air treatment and nitrogen generator manufacturer. The purchase aims to enhance market share and expedite commercial development in North America, Europe, and other critical markets.
