Total US industrial gas demand, including some captive consumption, will grow 4.9 percent annually through 2013. The petroleum and natural gas industry will remain the dominant and fastest growing market, driven by the massive amounts of hydrogen needed to produce cleaner-burning from increasingly impure crude oil, as required by law.

This study analyzes the $14.3 billion US industrial gas industry. It presents historical demand data for the years 1998, 2003 and 2008, and forecasts for 2013 and 2018 by market (e.g., petroleum and natural gas, metal processing, chemical processing, food and beverage processing) and product (e.g., hydrogen, nitrogen, oxygen, carbon dioxide, argon, helium, acetylene).

The study also considers market environment trends and indicators, details industry structure, evaluates company market share and profiles six industry players, including Praxair, Air Products and Chemicals and Air Liquide.

TABLE OF CONTENTS

                                     
SECTION                                                                      PAGE

               INTRODUCTION                                                     x
               
          I.   EXECUTIVE SUMMARY                                                1
               
         II.   MARKET ENVIRONMENT                                               4
               General                                                          4
               Demographic Trends                                               5
               Macroeconomic Outlook                                            7
               Manufacturing Outlook                                           11
               Environmental & Regulatory Issues                               14
                   Government Agencies & Regulations                           15
                     The Occupational Safety and Health Administration         16
                     Department of Transportation                              16
                     Environmental Protection Agency                           16
                     Other                                                     18
                   Trade Organizations                                         19
                     Compressed Gas Association                                19
                     National Fire Protection Association                      19
                     The Gases and Welding Distributors Association            19
               Historical Market Trends                                        20
               Pricing Trends                                                  23
               Foreign Trade                                                   26
               World Demand                                                    28
               
        III.   SUPPLY & DEMAND                                                 30
               General                                                         30
               Shipments & Production                                          32
               Merchant & Captive Consumption                                  38
               Markets                                                         41
                   Petroleum & Natural Gas                                     43
                     Petroleum & Natural Gas Outlook                           43
                     Industrial Gas Demand                                     47
                   Metal Processing                                            52
                     Metal Industry Outlook                                    53
                     Industrial Gas Demand                                     54
		   Chemical Processing                                         60
                     Chemical Industry Outlook                                 60
                     Industrial Gas Demand                                     63
                   Food & Beverage Processing                                  65
                     Food & Beverage Industry Outlook                          66
                     Industrial Gas Demand                                     68
                   Electronics                                                 71
                     Electronics Industry Outlook                              72
                     Industrial Gas Demand                                     73
                   Medical/Healthcare                                          76
                     Healthcare Trends                                         76
                     Industrial Gas Demand                                     77
                   Other Markets                                               79
                   
         IV.   HYDROGEN                                                        83
               Supply & Demand                                                 83
               Shipments & Production                                          85
               Pricing Trends                                                  89
               Markets                                                         90
                   Petroleum Refining                                          92
                   Chemical Processing                                         94
                   Other Markets                                               96
               Market Share                                                   100
               
          V.   NITROGEN                                                       101
               Supply & Demand                                                101
               Shipments & Production                                         103
               Pricing Trends                                                 105
               Markets                                                        108
                   Petroleum & Natural Gas                                    110
                   Chemical Processing                                        112
                   Metal Processing                                           114
                   Electronics                                                116
                   Food Processing                                            118
                     Refrigeration                                            120
                     Packaging                                                121
                     Freezing                                                 122
                   Other Markets                                              123
                   Market Share                                               126

         VI.   OXYGEN                                                         127
               Supply & Demand                                                127
               Shipments & Production                                         129
               Pricing Trends                                                 130
               Markets                                                        132
                   Metal Processing                                           134
                   Chemical Processing                                        137
                   Medical/Healthcare                                         139
                   Water Treatment                                            141
                   Other Markets                                              143
                     Petroleum Refining                                       144
                     Glass & Ceramics                                         145
                     Pulp & Paper Processing                                  146
                     Electronics                                              147
                     All Other                                                148
               Market Share                                                   149
               
        VII.   CARBON DIOXIDE                                                 151
               Supply & Demand                                                151
               Shipments & Production                                         153
               Pricing Trends                                                 155
               Markets                                                        156
                   Food Processing                                            158
                     Refrigeration                                            160
                     Packaging                                                160
                     Freezing                                                 160
                     Supercritical Fluid Extraction                           161
                   Beverage Processing                                        162
                   Oil & Gas Production                                       163
                   Water Treatment                                            167
                   Other Markets                                              168
               Market Share                                                   172
               
       VIII.   ARGON                                                          174
               Supply & Demand                                                174
               Shipments & Production                                         176
               Pricing Trends                                                 178
		Markets                                                       180
                   Metal Processing                                           181
                   Electronics                                                184
                   Other Markets                                              185
               Market Share                                                   187
               
         IX.   HELIUM                                                         189
               Supply & Demand                                                189
               Shipments & Production                                         191
               Pricing Trends                                                 194
               Markets                                                        196
                   Medical/Healthcare                                         199
                   Electronics                                                200
                   Chemical Processing                                        202
                   Welding                                                    204
                   Other Markets                                              206
                   Market Share                                               209
                   
          X.   ACETYLENE                                                      211
               Supply & Demand                                                211
               Shipments & Production                                         213
               Pricing Trends                                                 216
               Markets                                                        217
                   Chemical Processing                                        217
                   Metal Fabrication                                          220
               Market Share                                                   222
               
         XI.   INDUSTRY STRUCTURE                                             224
               General                                                        224
               Market Share                                                   225
                   Praxair                                                    227
                   Air Products and Chemicals                                 228
                   Air Liquide                                                230
                   Airgas                                                     230
                   Linde Group                                                231
                   Other Suppliers                                            231
               Competitive Strategies                                         233
               Acquisitions & Divestitures                                    234
               Cooperative Agreements                                         238
               Marketing                                                      241
               Distribution                                                   243
                   Tonnage Distribution                                       244
                   Merchant Liquid Distribution                               246
                   Cylinder & Packaged Gas Distribution                       246
               Manufacturing                                                  247
                   Air Separation Technologies                                248
                     Cryogenic Air Separation                                 250
                     Noncryogenic Air Separation                              252
                   Other Production Technologies                              255
               Company Profiles                                               258
                   Air Products and Chemicals                                 259
                   Airgas                                                     266
                   Kirk Welding Supply, see Praxair                              
                   L'Air Liquide                                              272
                   Lehner and Martin, see Airgas                                 
                   LifeGas, see Linde Group                                      
                   Linde Group                                                276
                   Matheson Tri-Gas, see Taiyo Nippon Sanso                      
                   Merriam-Graves, see Airgas                                    
                   Mittler Supply, see Praxair                                   
                   National Welders Supply, see Airgas                           
                   Northeast Gas Technologies, see Airgas                        
                   Praxair                                                    281
                   Rite Weld Supply, see Praxair                                 
                   Scott Specialty Gases, see L'Air Liquide                      
                   Smith Welding Supply and Equipment, see Airgas                
                   Taiyo Nippon Sanso                                         286
                   Wilson Welding & Medical Gases, see Praxair                   
                   Wright Welding Supply, see Airgas                             
               Additional Companies in the Industrial Gas Industry            290
               
               

                                  LIST OF TABLES
                                        
TABLE NUMBER                                                                 PAGE


               SECTION I -- EXECUTIVE SUMMARY
               Summary Table                                                    3

               SECTION II -- MARKET ENVIRONMENT
           1   Population & Households                                          7
           2   Macroeconomic Indicators                                        11
           3   Manufacturers' Shipments                                        14
           4   Industrial Gas Market, 1998-2008                                22
           5   Average Industrial Gas Shipment Prices                          26
           6   US Foreign Trade in Industrial Gases                            28

               SECTION III -- SUPPLY & DEMAND
           1   Industrial Gas Demand by Type                                   32
           2   Industrial Gas Shipments & Production                           36
           3   Merchant & Captive Industrial Gas Demand                        40
           4   Industrial Gas Demand by Market                                 42
           5   Petroleum & Natural Gas Supply & Demand                         47
           6   Petroleum & Natural Gas Market for Industrial Gases             48
           7   Petroleum Refining Market for Industrial Gases                  50
           8   Oil & Gas Production Market for Industrial Gases                52
           9   Metal Product Shipments                                         54
          10   Metal Processing Market for Industrial Gases                    55
          11   Primary Metal Manufacturing Market for Industrial Gases         57
          12   Welding & Fabrication Market for Industrial Gases               59
          13   Chemical Product Shipments                                      62
          14   Chemical Processing Market for Industrial Gases                 65
          15   Food & Beverage Shipments                                       68
          16   Food & Beverage Processing Market for Industrial Gases          71
          17   Electronic Component Shipments                                  73
          18   Electronics Market for Industrial Gases                         75
          19   Healthcare Expenditures & Medical Facilities                    77
          20   Medical/Healthcare Market for Industrial Gases                  79
          21   Other Markets for Industrial Gases                              82

               SECTION IV -- HYDROGEN
           1   Hydrogen Supply & Demand                                        84
           2   Hydrogen Shipments & Production                                 88
           3   Average Hydrogen Shipment Prices                                90
           4   Hydrogen Demand by Market                                       91
           5   Petroleum Refining Market for Hydrogen                          94
           6   Chemical Processing Market for Hydrogen                         96
           7   Other Markets for Hydrogen                                      99

               SECTION V -- NITROGEN
           1   Nitrogen Supply & Demand                                       103
           2   Nitrogen Shipments & Production                                105
           3   Average Nitrogen Shipment Prices                               108
           4   Nitrogen Demand by Market                                      109
           5   Petroleum & Natural Gas Market for Nitrogen                    112
           6   Chemical Processing Market for Nitrogen                        114
           7   Metal Processing Market for Nitrogen                           116
           8   Electronics Market for Nitrogen                                118
           9   Food Processing Market for Nitrogen                            120
          10   Other Markets for Nitrogen                                     125

               SECTION VI -- OXYGEN
           1   Oxygen Supply & Demand                                         128
           2   Oxygen Shipments & Production                                  130
           3   Average Oxygen Shipment Prices                                 132
           4   Oxygen Demand by Market                                        133
           5   Metal Processing Market for Oxygen                             137
           6   Chemical Processing Market for Oxygen                          139
           7   Medical/Healthcare Market for Oxygen                           141
           8   Water Treatment Market for Oxygen                              143
           9   Other Markets for Oxygen                                       144

               SECTION VII -- CARBON DIOXIDE
           1   Carbon Dioxide Supply & Demand                                 153
           2   Carbon Dioxide Shipments & Production                          155
           3   Average Carbon Dioxide Shipment Prices                         156
           4   Carbon Dioxide Demand by Market                                157
           5   Food Processing Market for Carbon Dioxide                      159
           6   Beverage Processing Market for Carbon Dioxide                  163
           7   Oil & Gas Production Market for Carbon Dioxide                 166
           8   Water Treatment Market for Carbon Dioxide                      168
           9   Other Markets for Carbon Dioxide                               172

               SECTION VIII -- ARGON
           1   Argon Supply & Demand                                          176
           2   Argon Shipments & Production                                   178
           3   Average Argon Shipment Prices                                  179
           4   Argon Demand by Market                                         180
           5   Metal Processing Market for Argon                              183
           6   Electronics Market for Argon                                   185
           7   Other Markets for Argon                                        187

               SECTION IX -- HELIUM
           1   Helium Supply & Demand                                         191
           2   Helium Shipments & Production                                  194
           3   Average Helium Shipment Prices                                 196
           4   Helium Demand by Market                                        198
           5   Medical/Healthcare Market for Helium                           200
           6   Electronics Market for Helium                                  202
           7   Chemical Processing Market for Helium                          204
           8   Welding Market for Helium                                      206
           9   Other Markets for Helium                                       208

               SECTION X -- ACETYLENE
           1   Acetylene Supply & Demand                                      213
           2   Acetylene Shipments & Production                               215
           3   Average Acetylene Shipment Prices                              216
           4   Acetylene Demand by Market                                     217
           5   Chemical Processing Market for Acetylene                       220
           6   Metal Fabrication Market for Acetylene                         222

               SECTION XI -- INDUSTRY STRUCTURE
           1   Industrial Gas Sales by Company, 2008                          226
           2   Selected Acquisitions & Divestitures                           236
           3   Selected Cooperative Agreements                                240


                                  LIST OF CHARTS
                                        
CHART NUMBER                                                                 PAGE


               SECTION II -- MARKET ENVIRONMENT
           1   Industrial Gas Market, 1999-2008                                23

               SECTION III -- SUPPLY & DEMAND
           1   Industrial Gas Shipments by Type, 2008: Volume Versus Value     37
           2   Industrial Gas Demand by Market, 2008                           43

               SECTION IV -- HYDROGEN
           1   Hydrogen Demand by Market, 2008                                 91
           2   Hydrogen Sales by Company, 2008                                100

               SECTION V -- NITROGEN
           1   Nitrogen Demand by Market, 2008                                109
           2   Nitrogen Sales by Company, 2008                                126

               SECTION VI -- OXYGEN
           1   Oxygen Demand by Market, 2008                                  134
           2   Oxygen Sales by Company, 2008                                  150

               SECTION VII -- CARBON DIOXIDE
           1   Carbon Dioxide Demand by Market, 2008                          158
           2   Carbon Dioxide Sales by Company, 2008                          173

               SECTION VIII -- ARGON
           1   Argon Demand by Market, 2008                                   181
           2   Argon Sales by Company, 2008                                   188

               SECTION IX -- HELIUM
           1   Helium Demand by Market, 2008                                  198
           2   Helium Sales by Company, 2008                                  210

               SECTION X -- ACETYLENE
           1   Acetylene Sales by Company, 2008                               223

               SECTION XI -- INDUSTRY STRUCTURE
           1   US Industrial Gas Market Share by Company, 2008                227
           2   US Industrial Gas Shipments by Distribution Method, 2008       244