Australian industrial gas market concentrated, volatile: new report

An update on the Australian industrial gases market has calculated its value at an estimated $4.2 billion, growing 1.1 per cent per annum on average over the years 2019 – 2024.

Market research firm IBISWorld has published selected details from its new Industrial Gas Manufacturing in Australia report, estimating the two largest companies – BOC and Air Liquide – representing 70 per cent of all industry revenues. 

With over 70 per cent of the market controlled by four companies, this represented a market concentration described as “high”, but also echoed global trends.

The three biggest companies based on projected 2024 revenues, according to the report, are BOC ($2.4 billion), Air Liquide ($430 million) and Coregas ($142.2 million.) The latter is the only Australian-owned company listed in the figures shared.

Also noted is the volatility of raw material and utility costs, influencing the industry’s volatile performance.

“Since electricity is a key input cost, yearly fluctuations can cause production costs to vary,” the excerpt reads. 

“Fluctuations in production costs also flow through to industry prices as price indexation clauses are built into most contracts.”

Picture: credit Coregas NZ