Country Dashboard: Turkey



The commercial industrial gases market in Turkey was estimated to have generated revenues of $297m in 2018. This was an increase from $182m in 2008, indicating an average annual growth rate of 5.1% p.a.

The Economy

During the period of 2008-2018 GDP in Turkey experienced a growth rate of 14.1% p.a for the decade. The economy did dip during the financial crisis, with a low of -0.3% in 2009. However this was followed by an immediate recovery, and in 2018 the GDP growth rate sits at 19.5%.

Industrial production (as measured by IPI) has followed a similar trend to the wider economy. In 2018 the rate of industrial production growth stood at 6.1%.

At the turn of the century inflation rates were extremely high, with a 50% rate of inflation in 2000. The rate of inflation has seen fallen but still posts relatively high rates of between 5-16% since 2004.

The Gas Business

In 2018, Linde were the market leaders in Turkey, and commanded a market share of 32.9%. Linde’s presence in Turkey is based on the acquisition of two previously home-grown businesses: Karbogaz and BOS. Karbogaz was the third largest industrial gas business in Turkey and was acquired by Linde in 2006. The second largest company was Habas, followed by Air liquide, with these two prominent companies accounting for sales of $97.1m and $42.6m, respectively. The rest of the gases market was comprised of independent producers and distributors.

The sale of packaged gas was the largest revenue generator for the industrial gas market in Turkey, accounting for 17.8% of commercial revenue. The rest of the merchant market was serviced by the distribution of bulk liquid, accounting for 14.3% of revenues. The onsite and pipeline infrastructure in Turkey was marginal and was only responsible 7.2% of total sales.

The most important industrial gas in Turkey, in revenue terms, was oxygen, which accounted for 45.7% of revenue. Carbon dioxide was responsible for 18.4% of sales in the country, with atmospheric gases nitrogen and helium accounting for 14.5% and 5.2% of sales respectively. The sale of hydrogen and helium accounted for marginal revenues, with the rest of the market being comprised of acetylene and speciality gases.

The Metallurgy sector was the largest end-user of industrial gas in Turkey, generating approximately $71.7m in revenue. Sales to the manufacturing sector resulted in revenue of $63.6m. The food sector was worth $47.4m, Chemicals $34.1m, Healthcare $26.8m and refining $11.9m. The rest of the market was fragmented with no other end-user accounting for more than $10m.

The Future

Within the 2018-2023 timeframe, our forecast models predict growth from 3.2% p.a. in a low scenario to 13.9% p.a. in a high scenario. Accordingly, the industry in Turkey is expected to achieve revenues of between $413m to $681m by 2023.



GDP, IPI and Inflation

  • GDP (%)
  • IPI (%)
  • Inflation (%)
Year:,GDP (%),IPI (%),Inflation (%) 2000,59.7%,6.1%,49.9% 2001,43.4%,-8.7%,52.0% 2002,46.7%,9.4%,38.2% 2003,30.6%,8.7%,23.7% 2004,23.3%,9.8%,12.4% 2005,16.9%,14.0%,7.3% 2006,17.1%,7.3%,9.3% 2007,11.8%,7.0%,6.4% 2008,13.1%,-0.6%,11.9% 2009,0.3%,-9.9%,5.6% 2010,16.0%,13.1%,6.9% 2011,20.3%,15.4%,8.2% 2012,12.6%,4.3%,7.4% 2013,15.3%,6.6%,6.3% 2014,13.0%,5.9%,7.4% 2015,14.2%,5.9%,7.8% 2016,11.6%,3.5%,8.1% 2017,18.9%,8.9%,10.8% 2018,19.5%,6.1%,16.6%
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During the period of 2008-2018 GDP in Turkey experienced a growth rate of 14.1% p.a for the decade. The economy did dip during the financial crisis, with a low of -0.3% in 2009. However this was followed by an immediate recovery, and in 2018 the GDP growth rate sits at 19.5%.

Industrial production (as measured by IPI) has followed a similar trend to the wider economy. In 2018 the rate of industrial production growth stood at 6.1%

At the turn of the century inflation rates were extremely high, with a 50% rate of inflation in 2000. The rate of inflation has seen fallen but still posts relatively high rates of between 5-16% since 2004.


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Commercial Gas Market

  • GDP (%)
  • IPI (%)
  • Gas Market (%)
Year:,GDP (%),IPI (%),Gas Market (%) 2000,59.7%,6.1%,10.0% 2001,43.4%,-8.7%,6.1% 2002,46.7%,9.4%,11.0% 2003,30.6%,8.7%,10.3% 2004,23.3%,9.8%,7.7% 2005,16.9%,14.0%,9.8% 2006,17.1%,7.3%,8.5% 2007,11.8%,7.0%,4.8% 2008,13.1%,-0.6%,5.2% 2009,0.3%,-9.9%,-0.3% 2010,16.0%,13.1%,-2.0% 2011,20.3%,15.4%,11.4% 2012,12.6%,4.3%,1.6% 2013,15.3%,6.6%,5.0% 2014,13.0%,5.9%,6.5% 2015,14.2%,5.9%,7.1% 2016,11.6%,3.5%,1.5% 2017,18.9%,8.9%,8.9% 2018,19.5%,6.1%,11.5%
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The commercial industrial gases market in Turkey was estimated to have generated revenues of $297m in 2018. This was an increase from $182m in 2008, indicating an average annual growth rate of 5.1% p.a.

Despite strong growth in the country, there have been some periods of decline over the course of the last decade. The market was hit during the financial crisis, where the gas market value decreased to a low of -2% in 2010. In 2018, the industrial gas market in Turkey saw a strong growth rate of 11.5%.


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Onsite Pricing Information

  • GOX
  • GAN
  • GAR
,GOX,GAN,GAR ,149.0,145.8,408.2
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These prices are a gasworld Business Intelligence estimate of the price, per tonne in local currency, of the main gases produced through onsite and pipeline sales.


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Bulk Liquid Pricing Information

  • LOX
  • LIN
  • LAR
  • LCO2
,LOX,LIN,LAR,LCO2 ,524.5,513.2,1311.3,1096.0
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These prices are a gasworld Business Intelligence estimate of the price, per tonne in local currency, of the main gases produced through bulk liquid sales.


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Market Share by Gas Company

based on market total of $296.5m

Legend:
  • Air Liquide
  • Linde
  • Habas
  • Barit Maden Turk
  • Gulf Cryo
  • Oknal
  • Others
Air Liquide,42.6 Linde,97.6 Habas,97.1 Barit Maden Turk,4.4 Gulf Cryo,16.4 Oknal,28.1 Others,10.4
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In 2018, Linde were the market leaders in Turkey, and commanded a market share of 32.9%. Linde’s presence in Turkey is based on the acquisition of two previously home-grown businesses: Karbogaz and BOS. Karbogaz was the third largest industrial gas business in Turkey and was acquired by Linde in 2006.

The second largest company was Habas, followed by Air liquide, with these two prominent companies accounting for sales of $97.1m and $42.6m, respectively. The rest of the gases market was comprised of independent producers and distributors.


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Market Share by Supply Mode

based on market total of $296.5m + $435.5m Captive

Legend:
  • OSP
  • Bulk
  • Packaged
  • Captive
  • Other
OSP,52.5 Bulk,104.5 Packaged,130.2 Captive,435.5 Other,9.3
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The sale of packaged gas was the largest revenue generator for the industrial gas market in Turkey, accounting for 17.8% of commercial revenue. The rest of the merchant market was serviced by the distribution of bulk liquid, accounting for 14.3% of revenues. The onsite and pipeline infrastructure in Turkey was marginal and was only responsible 7.2% of total sales.

A lot of heavy industry in Turkey remains reliant on captive industrial gas production capacity. We estimate that approximately $436m in revenue could be generated if the remainder of these captive facilities were converted to onsite projects.


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Commercial Gases Value

Legend:
  • Industrial Oxygen
  • Medical Oxygen
  • Nitrogen
  • Argon
  • Carbon Dioxide
  • Hydrogen
  • Helium
  • Other
Industrial Oxygen,116.3 Medical Oxygen,19.3 Nitrogen,42.9 Argon,13.5 Carbon Dioxide,54.7 Hydrogen,9.1 Helium,15.4 Other,25.3
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The most important industrial gas in Turkey, in revenue terms, was oxygen, which accounted for 45.7% of revenue. Carbon dioxide was responsible for 18.4% of sales in the country, with atmospheric gases nitrogen and helium accounting for 14.5% and 5.2% of sales respectively. The sale of hydrogen and helium accounted for marginal revenues, with the rest of the market being comprised of acetylene and speciality gases. 


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Market Share by End-User

Legend:
  • Chemicals
  • Refining & Energy
  • Metallurgy
  • Gen Manufacturing
  • Food
  • Electronics
  • Healthcare
  • Glass
  • Others
Chemicals,34.1 Refining & Energy,11.9 Metallurgy,71.7 Gen Manufacturing,63.6 Food,47.4 Electronics,8.6 Healthcare,26.8 Glass,4.5 Others,28.0
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The Metallurgy sector was the largest end-user of industrial gas in Turkey, generating approximately $71.7m in revenue.

Sales to the manufacturing sector resulted in revenue of $63.6m. The food sector was worth $47.4m, Chemicals $34.1m, Healthcare $26.8m and refining $11.9m. The rest of the market was fragmented with no other end-user accounting for more than $10m.


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Gas Market Growth and Forecast

  • Macro Economic Forecast
  • gasworld Forecast
Year:,Macro Economic Forecast,gasworld Forecast 2000,99.0,99.0 2001,105.1,105.1 2002,116.6,116.6 2003,128.6,128.6 2004,138.5,138.5 2005,152.1,152.1 2006,165.0,165.0 2007,172.9,172.9 2008,182.0,182.0 2009,181.4,181.4 2010,177.7,177.7 2011,197.9,197.9 2012,200.9,200.9 2013,210.9,210.9 2014,224.6,224.6 2015,240.6,240.6 2016,244.2,244.2 2017,266.0,266.0 2018,296.5,296.5 2019,312.0,382.4 2020,320.2,434.3 2021,329.9,481.0 2022,338.5,522.2 2023,347.8,568.4
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Our macro-economic forecast for the industrial gases business is based on the increase in gas demand by end user sector (using industrial productivity metrics supplied to us by Global Insight Inc.). The gasworld analysis is based on historical consumption and industrial gas intensity trends. The latter also takes account of any market intelligence relating to new capacity and/or specific industrial projects uncovered during the course of our market research on the country.

Within the 2018-2023 timeframe, our forecast models predict growth from 3.2% p.a. in a low scenario to 13.9% p.a. in a high scenario. Accordingly, the industry in Turkey is expected to achieve revenues of between $413m to $681m by 2023.


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Gas Production and Distribution Facilities

Maps

Turkey+Map+Large


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