The global krypton gas market is expected to reach US$ 180.9 million in 2023. With demand expanding at a 5.4% CAGR, the market valuation is poised to surpass US$ 306.1 million by 2033.
The growing construction of sustainable buildings is fueling the demand for high-performance windows. Due to its outstanding acoustic and thermal insulation, krypton is primarily utilized in the construction of high-end triple and double glass windows.
The rising need for energy-efficient and high-performance windows in the commercial and residential sectors is going to create prospects for growth in the market.
Growing demand from the commercial sector is pushing sales of glazing glass. The increasing establishment of residential and commercial projects in India, China, and Brazil is fueling the adoption of insulated glazed units. This in turn might boost sales of krypton gas for commercial lighting.
What Are the Opportunities in the Global Krypton Gas Market?
For a long time, the construction industry has been the primary end-user of krypton gas due to its high utilization as an insulator in glazing windows. Rapid urbanization and the growing establishment of smart cities across developing nations are spurring demand for effective lighting, which in turn is driving sales of krypton gas.
Krypton is used in commercial, residential, and infrastructural lighting. It can be found in both incandescent and fluorescent light bulbs which are used for decorative purposes in commercial and residential buildings.
When krypton is ionized, it emits a bright white light, making it ideal for flashbulbs, airport runway lights, fluorescent lamps, lasers for laser shows, krypton plasma, & neon signage. The glow emitted is greenish-yellow or bluish when combined with other gases in signs or lights. Owing to these applications, sales of krypton gas are likely to continue gaining momentum.
Which Factors Are Limiting Sales of Krypton Gas?
Krypton gas is produced in less quantity as compared to other inert gases like argon and other industrial gases. Also, the demand and supply side of krypton gas across the globe is quite constricted, which is resulting in price fluctuations of the product.
Nearly 40% of the global demand for krypton gas is catered by Ukraine. The ongoing Russian invasion of Ukraine has disrupted the production and supply chain of Ukraine, including the supply of noble gases including krypton gas. This disruption raises concerns about the structure and robustness of global supply networks, particularly for the end-use industries.
Krypton gas causes severe effects on health upon inhalation. This inert gas is classified as a simple asphyxiant. Dizziness, nausea, vomiting, loss of consciousness, and death can all be symptoms of excessive inhalation. A delay in judgment, confusion, or loss of consciousness that hinders self-rescue might also result in death due to the consumption of krypton gas.
What is the Impact of the Russia-Ukraine Conflict on the Global Krypton Gas Market?
The Russian-Ukraine war has prompted at least two of the three key Ukrainian air separation companies to shut down their operations, blocking a large share of the world’s noble gas exports. Due to this, supply chains of the krypton gas market are disrupted.
Ukraine is the leading exporter of noble gases such as neon, krypton, and xenon in the world. Ukraine provides about 70% of the world’s neon gas & 40% of the world’s krypton supply. Other big rare gas suppliers include China, Japan, and South Africa. Owing to these reasons, an upsurge in the price of rare gases including krypton gas is being witnessed.
Most of the end-use industries which use these gases are also affected. In response to this, manufacturers are aiming to expand their production facilities to improve the supply of krypton gas across the globe.
Country-wise Analysis
What is the USA Krypton Gas Market Outlook?
Expansion of the Construction Sector in the USA Could Drive Sales of Krypton Gas
Total sales of krypton gas in the USA market were slated to a valuation of US$ 36.1 million in 2022. This growth can be attributed to the development of advanced infrastructure projects such as smart cities, commercial and residential complexes, malls, hospitals, and universities. These infrastructure facilities utilize optimal lighting which uses krypton gas.
Increasing government-backed investments in the construction sector might continue augmenting the growth in the USA market.
Which is the Leading Application of Krypton Gas?
Demand for Krypton Gas for Decorative and Commercial Lighting to Remain High
In terms of applications, the Windows segment commanded 51.2% of the total market share in the year 2022. Moreover, with sales expanding at a 5.3% CAGR over the forecast period, this segment is expected to retain its dominance through this period.
Lamps, advertising signs, and bulbs utilize krypton gas. Its usage in fluorescent lights results in a significant reduction in power consumption which is another factor fueling sales in the market. Increasing demand for energy-efficient bulbs and lighting, along with the rising adoption of decorative lighting in residential projects might drive sales in this segment.
Competitive Landscape
Leading players operating in the global krypton gas market are investing in partnerships, acquisitions, and collaborations to expand their global footprint. Also, countries including Ukraine, Russia, and China are huge manufacturers of krypton gas, accounting for 60-70% share. Key manufacturers are putting a strong emphasis on research and development to find new application areas to improve and boost sales.
Recent Developments by the Krypton Gas Industries
According to recent developments in experimental particle physics investigations, liquid Kr can be used to build the coveted quasi-homogeneous electromagnetic calorimeters. As an illustration, the calorimeter utilized in the NA48 experiment of CERN held around 7.2 million liters of liquid Krypton. Additionally, Krypton has proved to be a powerful propellant for the electric propulsion systems utilized in modern satellite launch vehicles.
Given the enormous demand for Krypton excimer lasers in the semiconductor and medical industries, the laser market is advancing as a notable end-user vertical. Such lasers are bright and have a lengthy lifespan. Micromachining, integrated circuit production, and other related processes are all supported by the semiconductor industry which has opened up new avenues for krypton gas suppliers.
Air Liquide began selling xenon and krypton to the semiconductor and satellite sectors in three regions namely Europe, North America, and Asia, in July 2018, after signing numerous new multi-year contracts for more than €50 million.l
