Generating $593m in 2013, up from $270m in 2003, the Polish industrial gas sector has expanded at an average growth rate of over 8% p.a. over the past decade (or over 5% p.a. if adjusted for inflation).
Joining the EU in 2004, Poland has benefited from access to significant European structural funds and the economy has successfully leveraged improved access to markets in neighbouring countries. Poland was, in fact, the only country in the EU to avoid recession in 2008-2009. Going forward, gasworld’s models indicate that the Polish industrial gas sector will continue to grow at between 5% to 7% p.a. within the 2014-2020 timeframe – largely in line with recorded inflation-adjusted growth.
So what’s in Poland?
The market is dominated by four companies that between them control over 85% of the market:
Linde – 25%
Air Products – 29%
Messer – 10%
Air Liquide – 21%
The remaining portion of the market is made up by a number of smaller companies.
There is a significant onsite supply infrastructure in place, for which most production plants are less than 20 years old. The most important end user markets in Poland are the metallurgical and chemical sectors. These accounted for as much as 50% of revenues in 2013.
We expect that the Polish industrial gas market will generate revenues of between $829m to $946m by 2020. The metallurgical and chemical industries, which have benefited from a number of large tonnage contracts in recent years, are likely to continue to account for the majority of industrial gas revenues for some time to come.