Global demand for neon gas is expected to increase at a 7% CAGR, reaching US$ 222.9 Mn in 2022. Increasing applications in semiconductors and lighting sectors will continue boosting the market, pushing the market size to US$ 439.1 Mn by 2032.
Growing adoption of neon gas in lasers for various applications including healthcare, sensors, and defence is expected to propel the sales of neon gas over the forecast period.
Neon gas is primarily used in the production of lasers along with other gasses. The lasers segment is expected to account for more than three-fourths of the neon gas produced globally. Growing usage of lasers in the production of various devices including sensors, lighting technologies, and defence equipment is expected to contribute to the growth in the market in the forthcoming years.
Ukraine is one of the largest suppliers of neon gas across the globe. The country is anticipated to cater to more than 70% of the global demand for neon gas with its abundant reserves. However, the ongoing invasion of the Russia over Ukraine has affected to production and supply chain.
This has resulted in a shortage in the supply of neon gas which has increased its prices to an extent. In response to this, manufacturers are increasing their production capacities to recover the supple of neon gas.
However, the availability of neon gas is one of the primary concerns for the manufacturers. Low availability of the product causes a frequent shortage in supply causing spike in prices. This is compelling consumers to adopt cheaper solutions.
Argon Gas is an example of such an alternative. Argon gas is present abundantly and can be extracted with low-cost methods as compared to neon gas. The availability of cheaper alternatives is expected to hamper the overall growth in the market.
“Growing demand for neon gas in electric and electronics sector across the globe, along for technological advancements in the production of neon gas will augment the growth in the market over the forecast period,” says an FMI analyst.
- Based on applications, sales in the lighting segment are slated to increase at a 6.1% CAGR over the forecast period.
- In terms of supply mode, demand for neon gas cylinder is projected to increase at a 7% CAGR through 2032.
- China will account for 83.1% of the East Asia neon gas market share, with sales growing at a 7.7% CAGR through 2032.
- Germany will dominate the Europe neon gas market, holding 31.1% of the Europe market share over the forecast period.
Air Products & Chemicals Inc., Air Liquide, The Linde Group, Axcel Gases, Mil-Spec Industries, Electronic Flurocarbons, LLC, Specialty Chemical Products Inc., Dakota Gasification Co., and Boc Gases Ireland Inc. are some of the leading players operating in the global neon gas market.
Key manufacturers are planning to expand their production capacities to fill the gap in the supply of neon gas owing to the Russian invasion.