Industrial gases—powerful industrial nations should have their own industrial “blood.”

I. Industry Overview: “The Lifeblood of Industry”—Independent Innovation Is Imperative

Industrial gases are often referred to as the "blood of industry." Depending on their application areas, industrial gases can be broadly categorized into two major types: bulk gases and specialty gases.

Bulk gases refer to industrial gases with purity requirements below 5N (99.999%) and large production and sales volumes. Depending on their preparation methods, they can be categorized into air separation gases and synthetic gases. Air separation gases are primarily produced by separating air and include gases such as oxygen, nitrogen, and argon. They have wide-ranging downstream applications and are consumed in large quantities. Synthetic gases mainly refer to ammonia, methane, and acetylene; their preparation methods differ significantly from those of air separation gases. Specialty gases are industrial gases used in specific fields and characterized by particular requirements for purity, variety, and properties. Based on their application areas, they can be further classified into standard gases, medical gases, laser gases, food gases, electric-lighting gases, and electronic specialty gases.

From the perspective of market demand, according to publicly available data, in 2020, bulk gases accounted for the largest share—approximately 80%—of China’s domestic industrial gas demand. Specialty gases accounted for 20% of the demand, with electronic specialty gases making up 60% of that segment. In recent years, driven by the rapid development of China’s electronics industry and supportive government policies, the market share of specialty gases—particularly electronic specialty gases—is steadily increasing year by year.

From the perspective of industrial structure, the upstream of the industrial gas value chain mainly involves air separation equipment manufacturers and chemical raw material suppliers. The downstream sectors primarily include metallurgy, petrochemicals, welding, and metal processing. By gas type, bulk gases are mainly used in traditional industries such as metallurgy and chemicals, where demand is substantial but purity requirements are relatively low. In contrast, specialty gases are used in emerging industries such as semiconductors, biopharmaceuticals, food and beverage, and new energy. These industries have diverse gas requirements, with small individual gas demands but high purity standards.

According to data from Tianyancha, as of now, there are over 3,050 enterprises related to industrial gases. Among them, more than 60 new enterprises were registered from January to October 2023.

In terms of geographical distribution, Jiangsu ranks first among regions with over 480 companies; Guangdong and Hebei follow in second and third places, with over 370 and over 180 companies respectively.

In terms of establishment time, 25.3% of the relevant enterprises were founded within the past 5 to 10 years, while 54.5% were established more than 10 years ago.