Detailed overview of laboratory gas generators market

Laboratory gas generator is employed in various sectors, including the chemical and pharmaceutical industries, for chromatography and mass spectrometry applications, drug analysis, and the identification of various compounds in samples. In the pharmaceutical sector, nitrogen gas generators create an environment of high quality N2 gas that protects and maintains pharmaceutical products during transport.

The market worth of laboratory gas generators in 2021 was USD 0.39 billion and will be worth USD 1.32 billion by 2030, growing at a 14.2% CAGR.

The market growth is driven by the rising demand for laboratory equipment automation, the rising need for hydrogen gas as a substitute for helium, the adoption of newer technologies, rising R&D investments, and the growing importance of analytical procedures in drug and food regulatory processes.

Market Dynamics

Drivers

The rise in the use of analytical tools, systems, and techniques for diverse research activities is driving the global market for laboratory gas generators. Key elements fostering market growth include ease of use, technological advancements, an increase in the number of healthcare facilities and life science industries globally, advantages that laboratory gas generators offer over conventional high-pressure cylinders, and an increase in the number of contractual agreements and manufacturer acquisitions.

Restraints

The expansion of the laboratory gas generator market is being constrained by the lower utilization of these generators in developing nations compared to developed nations and by the high cost of these generators’ premium service capabilities. According to Compressed Gas Technologies’ estimates, a high flow nitrogen generator is between US$ 5,000 and US$ 10,000, while a wild flow nitrogen generator is between US$ 10,000 and US$ 30,000.

Opportunities

Recently, there has been a rise in the need for cannabis to be subjected to analytical testing to assure its safety before being consumed by people. These tests have also been effective in a number of medicinal settings. The government of many nations has allowed the use of medical cannabis globally due to the existence of numerous health advantages. Brazil (2017), Canada (2015), Germany (2017), the UK (2006), Portugal (2001), Australia (2016), South Korea (2018), Italy (2013), and the Netherlands are a few of the nations that have legalized marijuana use (2003). As a result, the industry will grow quickly with the execution of these government policies and initiatives.

Market Segmentation

By Type, The hydrogen market segment ruled the overall market in 2020. This is because hydrogen is increasingly preferred as a less expensive alternative to helium because it provides quicker analysis, better results, and simple installation. According to the IEA, there is a need for around 88.48 metric tons of hydrogen gas, whereas industries use 51.30 metric tons and refine 37.18 metric tons.

By application, the gas chromatography market segment led the entire market with the largest revenue share in 2020, owing to the preference for hydrogen over helium. The removal of harmful traditional cylinders and the dependability, safety, and extended intermissions that gas chromatography gives are further benefits boosting this market’s overall growth. According to research by the American Chemical Society, the cost of helium has soared by 250% in recent years due to excessive utilization and a growing shortage in many places.

By end-user, in 2020, the life science industry sector held the largest industry share. Regulations about the drug discovery process and increased demand for laboratory analytical instruments are some of the reasons driving the segment’s overall growth. According to the official assessment issued by the UK Parliament, the U.K. possesses the world’s most robust and successful life sciences sector. The biosciences sector employs 90,000 people in the UK and has annual revenues of about £20.7 billion.

Regional Insights

In 2020, the market was ruled by North America. The largest share of the North American area is mostly attributable to rising R&D expenditures in the United States and Canada, which increased demand for sophisticated and effective laboratory equipment. According to a publication by the American Chemical Society, the U.S. Helium Reserve in Amarillo, Texas, has long provided 30% of the world’s supply. Additionally, the department of chemistry and biochemistry’s report states that the United States currently uses around 40 million cubic meters of helium annually.

Key players

• Linde plc
• Nel ASA
• Parker Hannifin Corporation
• PeakGas
• PerkinElmer Inc.
• Apex Gasgen
• PCI Analytics Private Limited
• Angstrom Advanced Inc.
• Nitrogenium Innovations & Filteration India Pvt. Ltd.
• LNI Swissgas Srl
• F-DGSi, Airgas, Inc
• Claimed Srl, Ecotech,
• On-Site Gas Systems, Inc.
• VMS ENGINEERING PVT. LTD.
• WIRAC Automation Ltd
• Texol Technical Solutions Plc
• Leman Instruments
• Asynt Ltd.
• CINEL GAS GENERATORS S.R.L.
• Valco Instruments Co. Inc.

The market worth of laboratory gas generators in 2021 was USD 0.39 billion and will be worth USD 1.32 billion by 2030, growing at a 14.2% CAGR. Demand for automated lab equipment is predicted to drive growth in the global market for laboratory gas generators in the coming years. Additionally, an increase in R&D spending and the applicability of analytical techniques in novel food and medicine approval procedures will fuel the global market.