Country Dashboard: Finland



The commercial industrial gas market generated revenues of approximately $321 million in 2015. This is up from $260 million in 2005, indicating an average annual growth rate of 2.1% p.a.

The Economy

Between 2005 and 2015 GDP grew by an average of 0.1% p.a. or 0.4% when adjusted for inflation. Finland enjoys a highly-successful free market economy and has in recent times benefited from a competitive manufacturing industry, including its electronics, metals and engineering sectors. The country’s exports are important to its economy, accounting for around a third of its GDP.

Industrial production (as measured by IPI) has largely followed similar trends to that of GDP growth rates. However, the rate of IPI was hit particularly hard during the worst year of the financial crisis, declining by -18%. Since this point there has been a return to positive growth, with encouraging rates of 3.6% and 3.7% in 2014 and 2015 respectively.

Inflation rates have generally remained low and steady over the past decade. On the other hand in 2015 the country experienced a deflation rate of -0.2%.

The Gas Business

The industrial gas market in Finland is dominated by Tier One companies, Air Liquide and Linde AGA. These two companies combined account for over 80% of the entire industrial gas market within the country. Looking at the companies individually, Linde contribute roughly $159 million in revenue whilst Air Liquide contribute a further $101 million in revenue. The final company in the country with a significant market share is Woikoski, who command a 17% market share.

Around 39% of industrial gas revenues are generated through onsite and pipeline delivery methods, when splitting the market by supply mode. The second highest revenue generating supply mode in the country is packaged gas, with a 34% market share. Finally, bulk liquid delivery methods contribute approximately $76 million in revenue.

Nitrogen is the largest revenue generating industrial gas in Finland, responsible for a quarter of all gas sales in the country. Three other industrial gases in Finland command a share of the market in excess of 10%, including oxygen (24%), carbon dioxide (19%) and argon (11%). The final two recordable industrial gases in Finland are helium and hydrogen, accounting for 9% and 6% of revenues respectively. The rest of the market is made up of a range of speciality gases and acetylene.

Sales to the manufacturing industry dominate the industrial gas market in Finland, generating revenues of approximately $86 million. The second largest revenue generating business sector in Finland for industrial gas is the metallurgical industry with a 23% market share, followed by chemicals, with a market share of 12%. The rest of the market is fragmented with values including, healthcare (11%), food (8%), refining (8%), pulp and paper (5%) and glass (1%).

The Future

Within the 2016-2020 timeframe, accordingly, our forecast models predict growth from 4.1% p.a. in a low scenario to 4.5% p.a. in a high scenario. This should see the industry in Finland achieve revenues of between $362 million to $394 million by 2020.




GDP, IPI and Inflation

GDP, IPI and Inflation
  • GDP (%)
  • IPI (%)
  • Inflaton (%)
Year:,GDP (%),IPI (%),Inflaton (%) 2000,5.6,9.5,2.9 2001,2.5,0.7,2.6 2002,1.6,2.3,2.0 2003,1.9,0.4,1.2 2004,3.9,5.2,0.1 2005,2.7,0.5,0.7 2006,4.0,9.7,1.2 2007,5.1,4.6,1.5 2008,0.7,0.6,3.9 2009,-8.2,-18.0,1.6 2010,2.9,4.9,1.6 2011,2.5,1.3,3.3 2012,-1.4,0.0,3.1 2013,-0.7,2.7,2.2 2014,-0.6,3.5,1.2 2015,0.4,3.7,-0.1
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Between 2005 and 2015 GDP grew by an average of 0.1% p.a. or 0.4% when adjusted for inflation. Finland enjoys a highly-successful free market economy and has in recent times benefited from a competitive manufacturing industry, including its electronics, metals and engineering sectors. The country’s exports are important to its economy, accounting for around a third of its GDP.

Industrial production (as measured by IPI) has largely followed similar trends to that of GDP growth rates. However, the rate of IPI was hit particularly hard during the worst year of the financial crisis, declining by -18%. Since this point there has been a return to positive growth, with encouraging rates of 3.6% and 3.7% in 2014 and 2015 respectively.

Inflation rates have generally remained low and steady over the past decade. On the other hand in 2015 the country experienced a deflation rate of -0.2%.


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Commercial Gas Market

Commercial Gas Market
  • GDP (%)
  • IPI (%)
  • Gas Market (%)
Year:,GDP (%),IPI (%),Gas Market (%) 2000,5.6,9.5,3.8 2001,2.5,0.7,2.2 2002,1.6,2.3,11.2 2003,1.9,0.4,2.8 2004,3.9,5.2,2.8 2005,2.7,0.5,-0.7 2006,4.0,9.7,-3.9 2007,5.1,4.6,-2.4 2008,0.7,0.6,3.8 2009,-8.2,-18.0,-4.4 2010,2.9,4.9,5.2 2011,2.5,1.3,4.3 2012,-1.4,0.0,5.4 2013,-0.7,2.7,5.6 2014,-0.6,3.5,5.6 2015,0.4,3.7,2.6
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The majority of Finland’s capacity was constructed during the 1980s and 1990s, so will generally require upgrading and refurbishment in the next decade or so.

Since 2000, the commercial gas market in Finland has benefited from a number of new production facilities coming on-stream. Furthermore, the years since the financial crisis have produced growth consistently above 4% YoY. However, this growth rate slowed slightly in 2015 with the commercial gas market growing at approximately 2.7%.


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Market Share by Gas Company

Market Share by Gas Company
Legend:
  • Air Liquide
  • Woikoski
  • Linde
  • Others
Air Liquide,101.0,31.4% Woikoski,55.0,17.1% Linde,159.0,49.5% Others,6.3,2.0%
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The industrial gas market in Finland is dominated by Tier One companies, Air Liquide and Linde AGA. These two companies combined account for over 80% of the entire industrial gas market within the country. Looking at the companies individually, Linde contribute roughly $159 million in revenue whilst Air Liquide contribute a further $101 million in revenue. The final company in the country with a significant market share is Woikoski, who command a 17% market share.


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Market Share by Supply Mode

Market Share by Supply Mode
Legend:
  • OSP
  • Bulk
  • Packaged
  • Other
  • Captive
OSP,124.0,26.5% Bulk,76.2,16.3% Packaged,108.0,23.1% Other,13.1,2.8% Captive,146.8,31.4%
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Around 39% of industrial gas revenues are generated through onsite and pipeline delivery methods, when splitting the market by supply mode. The second highest revenue generating supply mode in the country is packaged gas, with a 34% market share. Finally, bulk liquid delivery methods contribute approximately $76 million in revenue.


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Commercial Gases Value

Commercial Gases Value
Legend:
  • Oxygen
  • Nitrogen
  • Argon
  • Carbon Dioxide
  • Hydrogen
  • Helium
  • Other
Oxygen,74.6,75.7,23.6% Nitrogen,78.6,79.8,24.8% Argon,34.6,35.1,10.9% Carbon Dioxide,59.9,60.8,18.9% Hydrogen,20.0,20.3,6.3% Helium,29.2,29.7,9.2% Other,19.6,19.8,6.2%
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Nitrogen is the largest revenue generating industrial gas in Finland, responsible for a quarter of all gas sales in the country. Three other industrial gases in Finland command a share of the market in excess of 10%, including oxygen (24%), carbon dioxide (19%) and argon (11%). The final two recordable industrial gases in Finland are helium and hydrogen, accounting for 9% and 6% of revenues respectively. The rest of the market is made up of a range of speciality gases and acetylene.


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Market Share by End-User

Market Share by End-User
Legend:
  • Chemicals
  • Refining & Energy
  • Metallurgy
  • Gen Manufacturing
  • Food
  • Electronics
  • Pulp & Paper
  • Healthcare
  • Glass
  • Others
Chemicals,37.3,11.6% Refining & Energy,24.4,7.6% Metallurgy,75.5,23.5% Gen Manufacturing,86.7,27.0% Food,27.3,8.5% Electronics,0.0,0.0% Pulp & Paper,16.7,5.2% Healthcare,34.1,10.6% Glass,2.2,0.7% Others,17.0,5.3%
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Sales to the manufacturing industry dominate the industrial gas market in Finland, generating revenues of approximately $86 million. The second largest revenue generating business sector in Finland for industrial gas is the metallurgical industry with a 23% market share, followed by chemicals, with a market share of 12%. The rest of the market is fragmented with values including, healthcare (11%), food (8%), refining (8%), pulp and paper (5%) and glass (1%).


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Gas Market Growth and Forecast

Gas Market Growth and Forecast
  • Macro Economic Forecast
  • gasworld Forecast
Year:,Macro Economic Forecast,gasworld Forecast 2000,218,218 2001,223,223 2002,248.1,248.1 2003,255,255.1 2004,262,262.3 2005,260,260.4 2006,250,250.2 2007,244,244.2 2008,254,253.6 2009,242,242.4 2010,255,255.0 2011,266,266.0 2012,280,280.4 2013,296,296.1 2014,313,312.8 2015,321,321.2 2016,331,308.5 2017,362,335.6 2018,373,343.6 2019,384,352.4 2020,394,361.8
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Within the 2016-2020 timeframe, accordingly, our forecast models predict growth from 4.1% p.a. in a low scenario to 4.5% p.a. in a high scenario. This should see the industry in Finland achieve revenues of between $362 million to $394 million by 2020.


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Gas Production Facilities

Cylinder Filling Facilities


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