gasworld Business Intelligence’s country profile for the month of July focuses on the industrial gas market in the Mid-Atlantic region of the United States.
This region of the United States currently generates around $2.1 bn in revenue, accounting for roughly 11% of the total US market. However, the market in the Mid-Atlantic is reasonably fragmented, with no company currently holding an individual market share of over 25%.
The current market leader is Praxair, with the company commanding a 20% market share in the region. Praxair currently generate a large portion of revenue through merchant sales, with over 55% of company revenue being amassed through sales packaged gas. The company has recently furthered its focus on this supply mode due to the acquisition of the remaining shares of Praxair Distribution Mid-Atlantic LLC in February 2014.
Airgas is the second largest industrial gas company in the region, with a market share of roughly 18%. The company is one of the younger industrial gas companies in the United States but do not actually operate any production facilities in the Mid-Atlantic region. However, Airgas do have a substantial cylinder filling business in the region, with an excess of 25 filing locations across the Mid-Atlantic.
Due to Air Liquide’s recent acquisition of Airgas, we forecast that next year Air Liquide will be the new market leaders in the Mid-Atlantic region. The company’s market share should increase to roughly 30%, due to their acquisition of Airgas and further divestments.
The third largest industrial gas company in the region is currently Linde, with a 17% market share for 2015. The company has a long history in the United States, being in operation in some form or another since 1907. Linde have a large on-site business in the Mid-Atlantic and is the largest bulk liquid distributor in the region.
Over half of all industrial gas revenues in the Mid-Atlantic region are generated through the sales of packaged gas. A large portion of these packaged gas revenues are generated by the operations of Praxair, Airgas and local distributors.
Over the past decade, the commercial industrial gas market in the Mid-Atlantic has experienced growth of just under 3.5% p.a. gasworld Business Intelligence forecasts reasonable growth of between 1.6% to 2.3% p.a., up to 2020.
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