Looxent conducted a project to assess the competitive landscape, supply chains, and growth potential of a target company within the industrial gas market. Our goal was to derive strategic insights by considering the industry’s characteristics and demand structure, identifying opportunities for market expansion, and evaluating the firm’s competitiveness.
The industrial gas market is broadly divided into air gases and specialty gases, both essential inputs for critical processes in sectors such as semiconductors, petrochemicals, and steel. Specialty gases, in particular, align closely with the growth of advanced industries. Certain products, like CO₂, have experienced demand surges and supply shortages, increasing price volatility, while investment in hydrogen-related infrastructure is on the rise. Against this backdrop, the optimization of production facilities and distribution networks has emerged as a key competitive differentiator.
During the due diligence, we examined the ASU (Air Separation Unit)-based production and supply networks employed by major market players, assessing the efficiency of their supply chains. We compared the economics of Tonnage supply (serving large-scale customers), Bulk supply (targeting medium-scale clients), and On-site supply (customized solutions for specific customers) to determine which strategy the target company could optimize. Each supply mode differs significantly in terms of initial investment costs, contract durations, revenue stability, and operational efficiency, and is closely tied to market entry barriers.
In the specialty gas segment, domestic production is complemented by imports, and global supply constraints—such as those affecting helium—persist. Based on these insights, we recommended strategies for the target company to secure stable supply by building internal facilities for high-purity specialty gas production or strengthening collaborations with existing suppliers.
In conclusion, this project identified the core capabilities the target company must enhance and provided actionable recommendations to realize its growth potential over the next five years. Factoring in synergies with emerging sectors—such as semiconductors, EV batteries, and the hydrogen economy—will be critical to expanding market share and improving profitability.
Looxent conducted a project to assess the competitive landscape, supply chains, and growth potential of a target company within the industrial gas market. Our goal was to derive strategic insights by considering the industry’s characteristics and demand structure, identifying opportunities for market expansion, and evaluating the firm’s competitiveness.
The industrial gas market is broadly divided into air gases and specialty gases, both essential inputs for critical processes in sectors such as semiconductors, petrochemicals, and steel. Specialty gases, in particular, align closely with the growth of advanced industries. Certain products, like CO₂, have experienced demand surges and supply shortages, increasing price volatility, while investment in hydrogen-related infrastructure is on the rise. Against this backdrop, the optimization of production facilities and distribution networks has emerged as a key competitive differentiator.
During the due diligence, we examined the ASU (Air Separation Unit)-based production and supply networks employed by major market players, assessing the efficiency of their supply chains. We compared the economics of Tonnage supply (serving large-scale customers), Bulk supply (targeting medium-scale clients), and On-site supply (customized solutions for specific customers) to determine which strategy the target company could optimize. Each supply mode differs significantly in terms of initial investment costs, contract durations, revenue stability, and operational efficiency, and is closely tied to market entry barriers.
In the specialty gas segment, domestic production is complemented by imports, and global supply constraints—such as those affecting helium—persist. Based on these insights, we recommended strategies for the target company to secure stable supply by building internal facilities for high-purity specialty gas production or strengthening collaborations with existing suppliers.
In conclusion, this project identified the core capabilities the target company must enhance and provided actionable recommendations to realize its growth potential over the next five years. Factoring in synergies with emerging sectors—such as semiconductors, EV batteries, and the hydrogen economy—will be critical to expanding market share and improving profitability.