The current development and future of China’s industrial gas industry.

In industry, products that exist in the gaseous state under ambient temperature and pressure are collectively referred to as industrial gas products, and they are primarily used in various industrial manufacturing sectors. Industrial gases are often called the "blood" of industry. With the rapid development of China's economy, industrial gases—as one of the fundamental industrial inputs for the national economy—are playing an increasingly important role in the national economy. Industrial gases refer to gases used in industrial production. Depending on their application fields, they can be categorized into bulk gases and specialty gases. Bulk gases are industrial gases with a purity lower than 5N and high production and sales volumes. Specialty gases, on the other hand, are industrial gases applied in specific fields and characterized by special requirements in terms of purity, composition, and performance.

　　China’s industrial gas industry developed relatively late, only beginning after the founding of the People’s Republic of China. To date, it can roughly be divided into three stages: 1. The Initial Stage: China’s industrial gas industry got off the ground after the founding of the country, with a limited variety of gases available. Domestic enterprises primarily focused on air separation equipment and lacked market competitiveness; 2. The Early Development Stage: With the rise of China’s manufacturing sector, international gas companies纷纷 entered the Chinese market, spurring rapid growth in China’s gas industry; 3. The Rapid Growth Stage: Driven by economic dividends, downstream application scenarios for industrial gases have become increasingly broad. Technological advancements have broken the reliance on imported air separation equipment.

　　In terms of the industrial chain, the upstream segment primarily comprises raw material and equipment suppliers, with a focus on air separation equipment manufacturers and chemical raw material suppliers. The midstream segment consists of industrial gas suppliers, which serve as the downstream application sector for industrial gases, encompassing areas such as iron and steel smelting, petrochemicals, welding, and metal processing.

　　The Chinese industrial gas market is dominated by leading companies from developed countries. In 2020, Air Products South China, Praxair USA, Air Liquide France, Taiyo Nippon Sanso Japan, and Linde Germany together accounted for 85% of the Chinese market share. Although domestic Chinese companies are gradually strengthening their capabilities, their specialty gas products remain relatively limited in variety and suffer from lower purity levels, making them less competitive in the international market.

　　The market shares of domestic enterprises are 1.91%, 1.56%, 1.5%, and 1.3%, respectively. The first-tier enterprises have already achieved substantial revenue from their specialized gas businesses, and their products demonstrate clear advantages in niche segments; however, they still lag behind their leading international counterparts.

　　The technological level of China's domestic air separation industry has reached world-class standards, enabling China's air separation equipment manufacturing sector to join the ranks of global powerhouses. The position and development trends of Chinese companies in the industrial gas industry: The industrial gas business represents an extension of the air separation equipment manufacturing enterprises along the industry chain. By engaging in downstream industrial gas operations, air separation equipment manufacturers enjoy numerous advantages, including advanced technology R&D capabilities, sophisticated equipment manufacturing expertise, and access to a broad network of resources and customers. Fully leveraging these advantages, Chinese companies have vigorously developed the gas industry and have now become one of China’s most influential industrial gas suppliers.