High Purity Methane Gas Market

High Purity Methane Gas Market: Overview

The market size for high-purity methane gaswas USD 6.9 billion in 2021, and it is projected to grow at a CAGR of 5.1 percent during the forecast period. The growing rural-to-urban migration coupled with an increase in disposable income will fuel the demand for electronic goods. This, in turn, will enhance the growth landscape of the high-purity methane gas market as it is utilized in the electronics segment to a great extent. In addition, the enhancing popularity of high purity methane gas in end-user industries such as automotive & transportation, oil and gas, chemical, medical, and others will prove to be profitable growth generators.

The growing demand for high-purity methane gas as a raw material in the production of synthetic ammonia, hydrogen methanol, carbon black, acetylene, carbon disulfide, and others will assure promising growth for the high-purity methane gas market. Furthermore, the utilization of high-purity methane gas in the production of solar cells will also add value to the growth trajectory. The growing popularity of renewable energy, such as solar and wind energy, will bring substantial demand for the high-purity methane gas market.

The market is witnessing moderate growth due to increasing application, technological advancements, and rising demand for these high-purity methane gas in the Asia Pacific and Europe. High purity methane gas is largely utilized in the electrical & electronics industry. In this industry, high-purity methane gas is utilized in fluorescent tubes for lighting purposes owing to its low cost, high efficiency, and low striking voltage. The growing utilization of high-purity methane gas in electronics and chemical industries drives the high-purity methane gas market. Strict environmental and government regulations are the restraints for the High purity methane gas market.

Furthermore, the growing development of consumer electronics, mobile devices, automation, and smart technologies has strengthened the growth of the semiconductor and electronics sector, especially in emerging economies. Growing high purity methane application in monocrystal and nanoparticle diamonds is anticipated to provide further growth opportunities. The utilization of high-purity methane for hydrogen production to be utilized as a clean fuel in the transportation sector has fueled the industry's growth. Natural gas comprising the chemical goes through thermal processes, including steam-methane reformation and partial oxidation to produce hydrogen. The increasing need to reduce carbon emissions, depleting fossil fuels, and introduce stringent government regulations regarding vehicular emissions drives the growth of high-purity methane in the automotive and transportation sector. Low maintenance costs, along with the launch of advanced vehicles in the market, further supplement the growth of this industry during the forecast period.

High Purity Methane Gas Market: COVID-19 Impact

The global high-purity methane gas market includes major Tier I and II suppliers such as Osaka Gas (Japan), Sumitomo Seika (Japan), Air Liquide (France), Linde Plc (Ireland), and Matheson Tri-Gas Inc. (US). These suppliers have their manufacturing facilities spread across several countries across the Asia Pacific, Europe, North America, and the Rest of the World. COVID-19 has affected their businesses as well. These players have announced the suspension of production owing to the lowered demand and supply chain bottlenecks and to ensure the safety of their employees in the US, France, Germany, Italy, and Spain during the COVID-19 pandemic. As a result, the demand for high-purity methane gas is anticipated to decline in 2020. Manufacturers are likely to adjust production to block bottlenecks and plan production according to demand from tier 1 manufacturers.

High Purity Methane Gas Market: Drivers

Increasing Demand from Electronics Industry to Drive Market Growth

High-purity gases are utilized in several electronic components, including silicon wafers, integrated circuits (IC), semiconductors, and solar cell products. High-purity methane gas is a major feedstock for graphene manufacturing, which has extraordinary properties, including high electrical conductivity, high charge mobility, flexibility, low optical absorption, and bendability. Graphene comprises carbon atoms arranged in a honeycomb structure, which is just one atom thick. These properties make graphene suitable for applications such as solar cells and transistors. One of the most promising applications of graphene is its application as a transparent conductive electrode. The transparent conductive electrode should have immense optical transparency and immense electrical conductivity. Indium-tin-oxide (ITO) is mainly used as transparent conductive electrodes for its high optical transparency and high conductivity. Therefore, the growing usage of graphene for electronic components and semiconductors, along with the increasing capacity of installed semiconductors, integrated circuits employed in several electronic types of equipment, and the development of new technologies, is driving the market for high-purity methane gas during the forecast period.

Demand for High Purity Methane Gas in Various Components Required in Electronics and Electrical To Boost Market Growth

Using high-purity gases in various electronic components such as integrated circuits, silicon wafers, solar cell products, and semiconductors will substantially grow the high-purity methane gas market. This gas is the major feedstock in graphene production. The properties of graphene, such as less optical absorption, flexibility, high electrical conductivity, high charge mobility, and bendability, make it an ideal fit for various sectors and industries. Thus, these factors assure exponential growth for the high-purity methane gas market during the forecast period.

High Costs of Gas Processing to Hamper Market Growth

Blending technology, cylinder preparation, laboratory analysis, and statistical quality control are needed to produce high-purity gases. As a result, high-purity gases are much more costly than industrial gases. EPA Protocol mixture having an analytical correctness of 1% may cost as much as USD 1,500. As with any other exclusive product, the end cost of a particular specialty pure or gas mixture is mostly determined by the degree of difficulty and complexity included in its preparation. The construction of a plant needs a huge investment. The post-phases, such as maintenance and installation of technology, need considerable capital. There are also some uncounted costs associated with repairing. Also, there are a few political and environmental challenges, such as the exploitation of natural gas reserves in various regions and the environmental risks related to methanol when utilized as fuel, hampering the growth of the global high-purity methane gas market during the forecast period.

High Purity Methane Gas Market: Segment Overview

Electronic Development Dominate Market due to Growing Adoption of Mobile Devices and Consumer Electronics

During the forecast period, the electronic development segment dominated the global high-purity methane gas market. The electronics industry utilizes high-purity methane vapor to manufacture various components and integrated circuits. It is also utilized to produce electronic devices and amorphous silicon solar cells. The increasing adoption of mobile devices and consumer electronics is anticipated to boost the growth of this segment.

Increasing Use of High Purity Methane in Chemical Manufacturing Dominates Market

The chemical manufacturing segment is anticipated to grow the global high-purity methane gas market during the forecast period. The growing use of high-purity methane in the manufacturing of chemicals such as methanol, hydrogen, and acetylene drives the growth of this segment. Increasing industrialization, technological advancements, and research and development have resulted in greater demand for high-purity methane from chemical manufacturing.

High Purity Methane Gas Market: Regional Landscape

North America to Dominate Market due to Growing Preference for Online Grocery Shopping

North America dominated the global high-purity methane gas market during the forecast period. The high rate of industrialization, raised consumer spending, the existence of leading players, and technological advancements are some factors attributed to the growth of this region. Growing automotive penetration, increasing modernization of vehicles, and initiatives to promote the utilization of electric vehicles support the market growth for high-purity methane gas in the region. Growing application in the electrical & electronics sector further drives the growth in this region. Furthermore, the increasing consumption of high-purity methane gas in countries such as the U.S, Mexico, and Canada will satisfy considerable growth during the forecast period. The US is a major manufacturer of high-purity methane gas and has the highest utilization of high-purity methane gas.

Furthermore, the energy and climate policies drafted in Europe and the introduction of several schemes to promote the utilization of a sustainable form of energy drive the market of high-purity methane in this region during the forecast period. UK, Germany, Italy, and France are major European countries producing high-purity methane.

Global High Purity Methane Gas Market: Competitive Landscape

In October 2020, Linde Plc entered into a long-term agreement with Samsung Electronics (South Korea) to deliver ultra-high purity industrial gases for its latest semiconductor facilities in Pyeongtaek, South Korea. Linde is presently the main supplier of industrial gases to Samsung's existing facilities in Pyeongtaek. Furthermore, in  February 2020, in the Antwerp basin, Belgium Air Liquide S.A. and BASF SE (Germany) signed three long-term contracts. Air Liquide entered into a 15-year agreement to extend its air gas supply to existing installations and supply additional oxygen to a new ethylene oxide plant built by BASF. In addition, Air Liquide will purchase part of the methane fraction generated during the BASF production process and restrain it as a feedstock in its hydrogen production plants, providing a circular economy and decreasing CO2 emissions of up to 15,000 tons per year on the Antwerp site.

Few of the players in the High Purity Methane Gas Market include Advanced Specialty Gases, AGT International, Air Liquide S.A., American Welding & Gas, Middlesex Gases & Technologies, Axcel Gases, Bhuruka Gases Limited., Chemix Gases, Chengdu Taiyu Industrial Gases Co., Ltd., Cryocarb, Electronic Fluorocarbons, LLC, Matheson Tri-Gas, Inc., Gas Innovation, Linde plc, Messer Group GmbH, Osaka Gas Co., Ltd., Scientific Gas Australia, Sumitomo Seika Chemicals Company, Ltd., Taiyo Nippon Sanso India, Qingdao Guida Special Gas Co., Ltd., and Wuhan Newradar Special Gas Co. Ltd.

Regional Classification of the Global High Purity Methane Gas Market is Described Below:

North America

• U.S.
• Canada

Europe

• Germany
• France
• Spain
• U.K.
• Italy
• Russia
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East and Africa

• GCC
• South Africa
• Rest of Middle East and Africa

*Regions and countries are subject to change based on data availability

Key Elements Included In The Study: Global High Purity Methane Gas Market

• High Purity Methane Gas Market by Product/Technology/Grade, Application/End-user, and Region
• Executive Summary (Opportunity Analysis and Key Trends)
• Historical Market Size and Estimates, Value and Volume, 2018 - 2022
• Volume Consumption at Regional and Country Level, 2023 - 2030
• Market Dynamics and Economic Overview
• Market Size in Value and Volume, Growth Rates, and Forecast Figures, 2023 - 2030
• Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
• Regional and Product/Grade/Application/End-user Price Trends Analysis
• Production Output Analysis (Major Producing Regions)
• Value Chain and Five Force’s Analysis
• Regional/Sub-region/Country Market Size and Trend Analysis
• Company Market Share Analysis and Key Player Profiles

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