Industrial Gas Business: The industrial gas, alongside numerous other industrial products, plays an integral role in the value chain of crucial industries such as steel, chemicals, healthcare, food processing, as well as, energy. Along with increased industrialization across the globe, the demand for industrial gases is also increasing especially with the increasing demand for medical gases post the pandemic.
This growth potential is also remarkable in the Indian market as the industrial gas market is forecasted to grow at a CAGR of 7%, creating enough demand for market entry by new players. To this end, the following list provides 25 industrial gas projects, from which new entrepreneurs might choose, based on their value, demand and un-encumbered growth potential.
1. Production of Oxygen Gas(Medical and Industrial)
Out of these gas projects, oxygen gas production stands as the most lucrative and fastest grower. Oxygen is a critical component in healthcare, as well as, in the processing of metals and the electronics industry. With this myriad of applications, the demand is certainly on the rise. Along with this, the unique export potential and government support makes this business very easy to scale.
2. Manufacturing of Nitrogen Gas-Industrial Gas Business
Nitrogen is in great demand in the packaging industry, as well as, in the chemicals and steel production industries which is why, the manufacturing of nitrogen gas is very lucrative. Moreover, gases like nitrogen that are essential to industries focusing on better preservation and safety processes are in demand on a global scale.
3. Argon Gas Production
It is apparent that argon is used in welding, lighting, and in electronics. The reason argon gas production is another brilliant idea is because as manufacturing and construction grow, argon gas production plants can be established to serve domestic and foreign consumers.
4. Hydrogen Gas Manufacturing-Industrial Gas Business
An increasingly popular business is hydrogen gas manufacturing. This is due to focus on clean energy and the rise in support for fuel. Additionally, the opportunity to support green hydrogen that governments are currently providing aids in making this business a great opportunity for the prospect.
5. Carbon Dioxide (COâ‚‚) Production
This business also has a great opportunity. This is because the product being sold is Carbon Dioxide (COâ‚‚) which has a continuous increasing demand since its used in food, beverages and even used in the medical field. Manufacturing plants which use sustainable production methods can be planted easily as demand continues to grow.
6. Acetylene Gas Production-Industrial Gas Business
Being one of the primary resources used in welding and metal cutting, Acetylene comes as one of the most important items. The opportunity of easily establishing plants for distribution to multiple industries has broadened, making the potential profits greatly enhanced.
7. Helium Gas Production
Works that incorporate electronics, research, and medical imaging use helium gas which is a great reason for its high demand. The ultimate advantage, however, is that limited global supply makes Helium gas production highly lucrative, giving immediate opportunities for exporting.
8. Units for Supply of Compressed Air-Industrial Gas Business
Most companies require compressed air supply units. These units can support low-tech gas-operated machinery and cleaning systems which means that these companies can be started with a low initial investment and can be very profitable services for industrial customers.
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9. Ammonia Gas Manufacturing
Due to its support to the fertilizer and chemical industries, ammonia gas manufacturing units have a strong demand internationally and domestically. Entrepreneurs can easily leverage new technology as well as inexpensive raw materials.
10. Manufacturing of Chlorine Gas-Industrial Gas Business
As the demand for water treatment increases, the profitable manufacturing of chlorine gas also increases internationally. Urbanization increases the need for safe, treated water even more, driving up demand for chlorine chemicals.
11. Bottling of Liquefied Petroleum Gas
Because of the rising need for water, the demand for heated gas also increases. Bottling plants can easily be set up with government approved safety protocols and other precautions which helps alleviate the demand created by the growing urban and industrial population.
12. Units for Compressed Natural Gas-Industrial Gas Business
The CNG units business is becoming more prominent as CNG is a cleaner fuel. With growing attention placed on clean energy, CNG has become useful for vehicle and industrial fuel. For these reasons, government policies on clean energy are becoming more favorable for the industry.
13. LNG (LIQUEFIED NATURAL GAS) Terminals
Profits from LNG terminals come from their ability to aid transport of energy around the world. There is an increasing concentration on LNG as a replacement for coal. There remains an opportunity for entrepreneurs to fund the growth of industry.
14. Specialty Gas Production-Industrial Gas Business
This is a gas that is used in laboratories, electronics and in research and needs to be in a high degree of purity. There is growing demand in export for this industry as high technology manufacturing expands, creating reasonable profit margins.
15. Rare Gas (Neon, Krypton, Xenon) extraction
This is an industry which is marked as unique, and rather profitable. Entrepreneurs who invest in small scale extraction units can make significant profit as these gases are used in lighting, lasers, and electronics systems.
16. Calibration Gas Mixtures-Industrial Gas Business
This is a gas that serves the purpose of testing and calibration of equipment for various industries. There are very few sectors which will not need a gas of this kind, meaning high consistency in sales and returning clientele.
17. Refrigerant Gases
Entrepreneurs can utilize the profit potential in this area as the demand for these gases used in air conditioners, refrigerators and cold storage is increasing with every passing day.
18. Sulfur hexafluoride (SF6)-Industrial Gas Business
This is another example of a specialized business. There are also entrepreneurs who are investing on the firms which are benefiting from the projects of modernization of common electrical equipment like switchgear and other devices using this gas.
19. Ozone Gas Generators
Ozone gas generators have observed an increase in demand due to their use in purification of water and in the sanitation of air. Given the current and potential state of environmental concerns, the demand for this product is predicted to grow exponentially.
20. Synthesis Gas (Syngas) Production–Industrial Gas Business
The production of syngas is an emerging field and is favorable due to the growing demand of syngas to be used in fuels and chemicals. Moreover, this field is expected to yield great profits due to the increase in the pursuit of cleaner energy.
21. Biogas Bottling Units
The biogas bottling units and their undertakings are an example of green entrepreneurship. The biogas bottling units are favorable owing to their ability to convert waste materials to useable fuels and have great potential to be implemented considering the increasing funds allocated to entrepreneurship in renewable energy.
22. Industrial Gas Cylinders Manufacturing-Industrial Gas Business
The production of Industrial gas cylinders is an integral and supporting aspect of the gas industry. Industrial gas cylinders serves the business with the demand of gasses in a secure and reliable, which overall guarantees steady revenue for the gas industry.
Read More: Oil and Gas Sector in India: The Fastest Growing Industry
23. Medical Gas Pipeline Installation Units
The medical gas pipeline installation units have been crucial components of the medical sector for the maintenance and installation of gas systems. With the expected growth of medical facilitates, there is immense potential for entrepreneurs to capitalize and establish units for the supply and maintenance of these systems.
24. Export-Oriented Gas Supply Ventures-Industrial Gas Business
Entrepreneurs have been granted the opportunity to arise with export oriented gas supply ventures which enables them to provide gas to various countries. These ventures are guaranteed to be beneficial due to the immense need of global gas supply and allow for a significant inflow of dollars to the country.
25. Production of Green Hydrogen
With the current global policy changes, the need for green energy is intricately linked with the long-term prosperity of the world. Thus, investing in green hydrogen plants is the next entrepreneurial opportunity one could harness.
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How Can NPCS Help You-Industrial Gas Business
The consultants at Niir Project Consultancy Service (NPCS), work with our clients in every stage of the business, from investment decision making to expansion in the industrial gas sector while maintaining comprehensive assistance at every step, to ensure their success.
For example, comprehensive Market Surveys combined with Detail Project Reports (DPRs), that he describes as including every detail of the manufacturing steps that are needed, supplemented with flow diagrams of the processes needed, wanted, as along with a sort of analysis for the market with respect to the products, needed machinery, raw materials, and investment, and with all along documents that provide detailed forecasts of the whole scenario.
They also assist in decentralizing the business and reporting along with plunging the project to provide assistance in determining the profit and loss area along with the determining metrics lest the control needed with respect to compliance of the regulation standards is lost. This empowers the entrepreneur to select the investment option readily along with reducing the risk to every possible extent.
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Conclusion-Industrial Gas Business
In summary, the industrial gas sector is quite broad and offers plenty of opportunities to entrepreneurs. There is also considerable demand and a market for export for each of them starting from oxygen, hydrogen, rare gases, and even biogas.
Due to the rapid industrialization of India, the drive for clean energy, and the favorable policies of the government, it is the ideal time to invest. What makes it even more attractive is that with the useful recommendation of NPCS, new businesses have a high chance of viability and success while also being a large contributor to growth in both the industrial and economic sectors.
Frequently Asked Questions (FAQs)-Industrial Gas Business
1. Which industrial gas business is best for beginners?
The industries involved in the production of oxygen, nitrogen and some useful products which include co2, might be an interesting option for investment as they are in demand.
2. Are industrial gas businesses safe and regulated?
The businesses producing industrial gas are among the more lately established levels of compliance. Thus, the policies might not include full compliance to the set standards of the safety along with guidelines established.
3. What is the capital requirement for starting an industrial gas unit?
Funds required vary with the type of gas. Small-scale CO2 or nitrogen units can be set up with moderate funds, while Mini-scale Hydrogen or LNG terminals will require higher investment.
4. Can industrial gases be exported from India?
Independently yes. India is an exporter of Oxygen, Argon and specialty gases and other countries are more than willing to pay a premium as the demand is high.
5. How can NPCS help new entrepreneurs in this sector?
NPCS helps entrepreneurs to start and develop their industrial gas businesses in the most effective manner as possible by conducting in-depth market analysis, feasibility as well as financial studies, and providing them with the appropriate industrial machinery.
