Gas and Liquid Argon Market

The global gas and liquid argon market is expected to witness a healthy growth at a CAGR of 5.52% during the forecast period from 2018 to 2023. The key factors driving the growth of this market are the widespread use of argon in metal fabrication and production and increasing demand in electronics and energy industries. Furthermore, the widening scope of application of argon in the healthcare sector is projected to propel the market growth in the years to follow.

However, the emergence of structural adhesive as a substitutable welding technology is likely to hinder the market growth during the review period. Furthermore, the complexity of the manufacturing process and high operation cost pose a major challenge to players in the market.

Argon is an essential non-reactive gas in fabrication processes. It is widely used in the metal fabrication industry for metal inert gas (MIG), gas tungsten arc, and tungsten inert gas (TIG) welding processes of carbon steel, aluminum, and copper, among others. Argon is suitable for welding thin sections as it prevents the formation of fluid weld pool during the welding operation. It improves the arc stability and prevents contamination of welding pools due to its inert nature. Also, the use of argon during welding prevents oxidation of metal thus increasing the durability and strength of the weld. Fabricated metals are largely consumed in automotive and construction industries. With rapid industrialization and growing construction business in developing economies, there is a growing use of these fabricated metals. The increasing demand for argon as a shielding gas in metal fabrication processes is projected to drive the market growth during the forecast period.

The argon-oxygen decarburization (AOD) stainless steel refining process is one of the major applications of argon in metal production processes. AOD provides an economical way to produce stainless steel with a minimal loss of precious elements. In addition, argon finds application as a blowing gas during steel manufacturing. When the molten steel is in the steel ladle, blowing argon gas through it reduces chromium losses and prevents the formation of non-metallic inclusions. This helps in avoiding deterioration of the solidified steel and increases its durability. Also, during the manufacture of high-quality steels, the formation of nitrides is avoided by blowing argon gas. Furthermore, argon is used during aluminum manufacturing to remove dissolved hydrogen and particulates from molten aluminum. Steel and aluminum are consumed on a large scale in the construction industry. Robust growth of the construction industry coupled with the increasing demand for argon in aluminum and steel production is expected to propel the market growth during the review period.

With technological advancements in the healthcare sector, there is a growing demand for argon in various advanced medical applications. In cryosurgery, extreme cold conditions are used to selectively destroy small areas of diseased or infected tissues or cells, particularly on the skin. Argon finds application in this treatment to create freezing temperatures that can reach under -500C at the infected area. In recent times, the use of argon over liquid nitrogen has increased as it provides better control of the process. Growing use of argon in cryosurgeries coupled with the increasing number of cryosurgeries for cancer treatments is expected to favor the growth of the argon market in the coming years.

Another emerging application of argon in the healthcare sector is its use in argon lasers for the treatment of retinal detachment and retinal phototherapy of diabetic patients. Argon lasers are used in this application owing to its ability of targeting areas with extreme precision. In recent years, the number of diabetic patients has increased largely due to unhealthy lifestyles and the increasing prevalence of obesity among the population. Argon is also used to treat problems related to heart arrhythmias and alterations in the rhythm of the heartbeat. Furthermore, argon plasma coagulation (APC) is a monopolar electrosurgical technique which uses argon discharges at atmospheric pressure to coagulate tissues. This technique finds application in hemostasis, tissue devitalization, and tissue reduction. Owing to the biological inertness, low breakdown voltage, and relatively low cost, the demand for argon is expected to increase in the above applications. This is likely to provide lucrative opportunities in the argon market during the forecast period.

In the manufacturing processes of various materials, welding is done at high temperatures using filler metals and inert gases such as argon gas. This tends to cause metal distortion or weakening due to heat application. As a result, in recent years, structural adhesives have emerged as a substitute for welding technology. Structural adhesives aid in minimizing manufacturing costs by reducing the number of mechanical fasteners, spot welds, and filler metals required to create a joint or attach two metal substrates. Argon is largely consumed in welding processes and the emergence of a substitute for the welding process is likely to hamper the market growth during the review period.

Adhesives provide aesthetic improvements over welding and mechanical fasteners. Also, adhesively bonded joints exhibit a smooth, clean surface requiring minimal surface preparation prior to final finishing. Due to this, labor-intensive finishing costs such as sanding off slag from spot welding can be eliminated resulting in cost efficiency. Furthermore, the use of structural adhesives over welding helps reduce the weight of the finished product or structure. The increasing demand for lightweight parts or metal components in automotive industries to increase fuel efficiency is boosting the demand for structural adhesives. Structural adhesives have the ability to maintain the integrity of bonded materials by increasing the stiffness of structures and providing necessary fatigue and force resistance. This is anticipated to restrain the use of the welding technology in fabrication processes and is also expected to negatively impact the gas and liquid argon market during the assessment period.

Argon is primarily produced through the cryogenic distillation of air along with the production of high purity oxygen. The boiling point of argon is very close to that of oxygen, leading to difficulties in the separation of pure argon from oxygen. This leads to the requirement of a large number of equilibrium stages, which is over 175 stages of distillation causing an increase in the operational cost. Though argon is naturally available in air, the operation cost is quite high which poses a major challenge to manufacturers operating in this market.

The energy cost of the process is quite high due to the high-power requirement for compression, which is needed to facilitate low-temperature refrigeration in the column condenser. The operating costs associated with the air separation unit account for more than half of the total production cost of argon.

Thus, the high-power consumption in the process leading to increased operational cost is a challenge that is needed to be overcome by argon manufacturers.