Mexico Industrial Gases Market Report and Forecast 2024-2032

Mexico Industrial Gases Market Outlook

The Mexico industrial gases market size was around USD 716.31 million in 2023. The market is estimated to grow at a CAGR of 4% during 2024-2032 to reach a value of USD 986.65 million by 2032.

Key Takeaways

• Grupo Infra and Praxair México are the two major companies that control about 70% of the Mexican oxygen market.

• Mexico has 14 free trade agreements (FTAs) with nations including the USA, Canada, Japan, and Australia as well as the EU. This has promoted trade and aided the growth of the country’s manufacturing sector.

• Industrial gases play a pivotal role in the food processing sector. In 2021, bakery and tortilla production accounted for 25% of total food processing in Mexico, followed by meat and dairy processing.

Industrial gases, primarily nitrogen, oxygen, carbon dioxide, hydrogen, and argon are widely deployed in end-use sectors such as automotive, healthcare, food processing, steel manufacturing, and metal fabrication. Mexico’s manufacturing sector is expanding due to the availability of low-cost skilled labour, which further supports the Mexico industrial gases market growth.

Mexico is the world’s seventh-largest manufacturer of automobiles and produced about 4.0 million cars in 2023. Industrial gases are crucial for automotive manufacturing processes, such as brazing.

Figure: Automotive Production in Mexico (in Million Units), 2018-2023

Industrial gases, like hydrogen, oxygen, nitrogen, and argon are widely used in the development of PV cells. Renewable energy as a whole is expanding in Mexico, but solar panel manufacturing is one of the largest and fastest-growing segments. Juarez is Mexico's and Latin America’s largest solar panel manufacturing location majorly driven by SunEdison Inc.’s investment in Juarez. The company manufactures over one million solar panels each year in the location.

As of July 2020, Mexico was home to over 60 solar parks with an installed capacity of 4.8 GW.

Figure: Share of Primary Energy Consumption from Solar, Mexico, 2018-2022

Key Trends and Developments

Significant use of gases in the manufacturing sector; growing adoption of renewable energy; expansion of the food processing sector; and growing use in healthcare applications are the key trends impacting the Mexico industrial gases market

Feb 9, 2024

Mexican Government ordered the expropriation of a hydrogen plant of Air Liquide plant at Pemex oil refinery to ensure Mexico's energy sovereignty.

May 2, 2022

Grupo Infra's industrial gas division, Cryoinfra, opened a new USD 63.4 million cryogenic plant in San Luis Potosi. This facility will produce 700 tons of gases daily, including oxygen, hydrogen, nitrogen, and argon. The plant's location capitalizes on San Luis Potosi's logistical strengths, solidifying Cryoinfra's presence in the Bajio region, especially the health sector with its oxygen production.

Wide use of gases in the manufacturing sector

In 2022, the manufacturing sector of Mexico contributed 21.47% to Mexico’s GDP. The availability of low-cost and skilled labour has made Mexico an advantageous location for companies looking to outsource their manufacturing. Industrial gases are widely used in producing electronics, glass, steel, automobiles, as well as chemicals.

The rising demand for industrial gases in the food processing sector

The food processing sector in Mexico is the 3rd largest in the Americas. Industrial gases such as oxygen, nitrogen, and carbon dioxide are employed for food processing applications such as freezing and chilling, packing in a modified atmosphere, and product temperature control.

Increasing applications in the renewable energy sector aid the Mexico industrial gases market

In November 2022, Mexico announced its plans to double its renewable energy capacity by 2030. Mexico’s solar energy sector is the second largest in Latin America. Industrial gases, like hydrogen, oxygen, nitrogen, and argon are widely employed in the synthesis of PV cells.

Increased demand for industrial gases from the healthcare sector

The healthcare sector is heavily reliant on the supply of industrial gases such as CO2 for a range of critical applications, including surgeries. For instance, CO2 is commonly used for insufflation during laparoscopic surgeries as it is inexpensive, nonflammable, colorless, and has higher blood solubility than air, reducing the risk of complications in case venous embolism occurs.

Mexico Industrial Gases Market Trends

Mexico ranks as the world's seventh-largest producer of passenger vehicles, with an annual output of around 3.5 million units. Notable automakers in Mexico include Audi, BMW, Ford, General Motors, and Honda. Industrial gases play a crucial role in automotive manufacturing. For instance, car indicator lamps contain argon and nitrogen, and automotive air conditioning heat exchangers are often assembled in a controlled hydrogen or nitrogen atmosphere.

The Mexican transportation sector accounts for 26% of the country’s total GHG emissions and is the largest source of emissions in Mexico. The electrification of the vehicle fleet is among the measures to comply with Mexico’s Nationally Determined Contribution (NDC) to lower GHG emissions. The country aims at reducing its emissions by 35% by 2030. Hydrogen is a crucial industrial gas that finds use in fuel cells to generate electricity without emitting GHG. Fuel cell and hydrogen heavy-duty trucks and buses could provide Mexico’s transportation sector a zero-carbon alternative.

Market Segmentation

“Mexico Industrial Gases Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Nitrogen

• Oxygen

• Carbon Dioxide

• Argon

• Hydrogen

• Acetylene

Market Breakup by Application

• Chemicals

• Manufacturing

• Metallurgy

• Food and Beverages

• Healthcare

• Electronics

• Others

Market Breakup by Supply Mode

• On-Site

• Packaged

• Bulk

Based on type, nitrogen dominates the Mexico industrial gases market share

Nitrogen gas is chemically inert, making it suitable for use in industrial applications where chemical cross-reactivity between substrates is undesirable. It is being adopted in multiple applications, such as food processing, beverage and brewery, steel, and oil and gas recovery, among others. Nitrogen is used in steelmaking processes such as melting, and ladle processing, improving its hardness and formability. In 2022, the steel sector contributed 1.0% to the GDP, equivalent to USD 14.1 billion.

Oxygen is an essential gas for surgeries and trauma care. Mexico is considered a top location for medical tourism, and the city of Tijuana is known to treat cancers. According to the Mexico industrial gases market analysis, oxygen therapy is gaining traction in Mexico, as an alternative method of cancer treatment and is also used to cure other infections caused by flesh wounds or diseases such as Alzheimer’s and HIV/AIDS.

Based on application, chemicals account for a significant share of the Mexico industrial gases market

The chemical sector in Mexico is undergoing significant improvement with the incorporation of digital technologies and diversification of supply chains, and investment in improved energy efficiency and resource management.

From January – October 2022, Mexico exported 20% more chemical products to the United States as compared to the same period in 2021.

According to the National Institute of Statistics and Geography, industrial production in Mexico grew 2.8% year-on-year in November 2023, driven by the construction industry.

The manufacturing sector is crucial to the Mexican economy, contributing significantly to both the GDP and international trade. In 2022, Mexico manufacturing output was USD 265.67 billion, a 15.48% increase from 2021.

Competitive Landscape

The market players are focusing on providing robust pipeline networks, reliable and economical industrial gas supply, and large-scale development of carbon-free hydrogen using renewable energy

Air Liquide S.A

Air Liquide is a world leader in gases, technologies and services for industry and health.  Headquartered in France, the group is dedicated to developing solutions that contribute to climate and energy transition, with a focus on hydrogen.

AOC MÉXICO, S.A. of C.V

AOC MÉXICO, S.A. of C.V also known as AOC is dedicated to the production, conditioning, analysis, and distribution of industrial, special, and medicinal gases. The company has a strong presence in Mexico, with office branches in Chihuahua, Coahuila, Durango, Jalisco, New Lion, Sonora, and Tamaulipas.

Quimobásicos, S.A. de C.V.

Quimobásicos is a joint venture of CYDSA and Honeywell, largely offering refrigerant gases. The company has a strong presence in Mexico.

Linde plc

Founded in 1879, Linde is a leading industrial gas company worldwide and a major technological provider in the gas industry. The company serves a diverse group of industries which include healthcare, chemicals and energy, manufacturing, metals and mining, food and beverage, and electronics, among others.

Other notable players operating in the Mexico industrial gases market are Infra, SA de CV, and Exel Air, among others. Manufacturers are upgrading their product portfolios and incorporating the latest capabilities to innovate their offerings and meet the evolving demands of consumers.

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Mexico Industrial Gases Market Report Snapshots

Mexico Industrial Gases Market Size

Mexico Industrial Gases Market Trends

Mexico Industrial Gases Companies