Recently India had gone through a reported major Medical oxygen gas cylinder problem which is regularly needed by medical care staff for patients, therapy, and diagnostic purposes. There was a sudden surge in these Medical oxygen gas systems which include oxygen concentrators and compressed oxygen gas cylinders which are also significantly utilized in-home care settings. Generally, these are more preferred by critical and old patients who experience issues in mobility and rely upon a reliable oxygen supply. Some basic chronic medical conditions like chronic obstructive pulmonary diseases (COPD), emphysema, chronic bronchitis, a typical long-term impact of smoking require oxygen treatment or supplemental oxygen to get enough oxygen. Different kinds of oxygen systems are utilized to convey the controlled measure of oxygen to the patients. Medical oxygen gas is high purity oxygen that is utilized for clinical treatments and is produced for use in the human body. Medical oxygen gas cylinders contain a high purity of oxygen gas; no different sorts of gases are permitted in the cylinder to prevent infections.
Increasing Product Offerings for Medical Oxygen System for Homecare Settings and Hospitals, Rising Number of the FDA Approvals for Medical Gas Equipment’s, Growing Prevalence of Chronic Diseases and Increasing Covid-19 Cases are Some of the Major Factors Driving the Market Growth.
Market Size of Global Medical Oxygen
Global demand for Medical Oxygen Gas Cylinder Market Size, in terms of revenue, was worth US$15.41 Billion in 2020 and is expected to reach US$23.64 Billion in 2027, growing at a CAGR of 6.3% from 2020 to 2027. The global Medical Oxygen Gas Cylinder is expected to grow at a significant rate due to the number of driving factors.
Amid a crippling shortage of oxygen across several states, The Sunday Express maps the supply chain that brings the life-saver gas, a vital component in the battle against COVID – 19, from the manufacturers to hospital beds, and identifies key bottlenecks along the way. The second wave of Covid-19 has exposed glaring gaps in the country’s health infrastructure and the government’s preparedness in dealing with a crisis that came with enough warning signs. Nowhere is that vacuum more evident than in hospitals across Delhi, Mumbai, and other urban centers where people have been struggling for something as basic as medical oxygen.
The market size of Medical Oxygen Cylinder in India
Officially, India’s daily oxygen production capacity is 7,127 MT and its medical oxygen requirement has increased by 76% in 10 days — from 3,842 MT on April 12 to 6,785 MT on April 22. On paper, that leaves the country with a few hundred metric tons still to spare, but state after state has been complaining of acute shortage.
The latest research report on Medical Oxygen Gas Cylinders Market delivers a comprehensive study on current market trends. The outcome also includes revenue forecasts, statistics, market valuations which illustrate its growth trends and competitive landscape as well as the key players in the business.
Medical Oxygen Gas Cylinders Market is valued at US$ 8.30 Billion in 2018 and expected to reach US$ 14.41 Billion by 2025 with a CAGR of 8.20% over the forecast period.
Taking cognizance of an “unusual surge” in consumption and demand for Oxygen in some states due to the rise in COVID – 19 cases, the center has taken steps to ramp up production, utilize surplus stocks, and map requirements of high burden states with Oxygen sources. In a high-level meeting of the empowered group of secretaries on medical supplies for COVID = 19, the availability of essential medical equipment and Oxygen during the pandemic was reviewed. The current Oxygen stocks of the country including the industrial Oxygen stocks with the manufacturing plants are more than 50,000 metric tons. Besides, in view of the increasing demand for Oxygen, the empowered group has also decided to float a tender for the import of 50,000 MT of medical Oxygen.
The government maintains there is a sufficient production capacity of around 7,127 MTs of Oxygen per day. Against this, the total production has been 100% since the past two days. Last month, the medical Oxygen consumption in the country was 3,842 MTs, which is 54% of the daily production capacity. The Centre initiated mapping of 12 high burden states with the highest caseload of active covid = 19 cases to Oxygen sources. These states are Maharashtra, Madhya Pradesh, Gujarat, Uttar Pradesh, Delhi, Chhattisgarh, Karnataka, Kerala, Tamil Nadu, Punjab, Haryana & Rajasthan.
Sources of medical Oxygen and their production capacity were mapped to match the requirement of states and an indicative framework has been developed to guide the states on the sources of medical oxygen. The center is also working to expedite the completion of 162 Oxygen manufacturing plants at hospitals that have been sanctioned under PM–Cares. Besides, the Empowered Group directed the health ministry to identify another 100 hospitals in far-flung locations for consideration of sanction for installation of such plants.
With the surge in COVID – 19 cases in the second wave exceeding the previous peak, the share of serious cases under hospitalization has also increased significantly as compared to the situation earlier in mid–August when cases were rising rapidly. The Centre has asked the states to make rational use of medical Oxygen and ensure there is no wastage of Oxygen. Besides, the Centre has instructed the states to set up control rooms to ensure a smooth supply of oxygen to the districts as per need, review requirements of cylinders and tankers.
Amid an acute shortage of medical-grade oxygen for Covid-19 patients, the Department for Promotion of Industry and Internal Trade (DPIIT) has limited the industrial use of oxygen to only nine key sectors, including steel plants, petroleum refineries, pharmaceuticals, food, and water purification, among others. The development comes in the backdrop of a shortage of medical oxygen from some states and union territories. There has been a rapid rise in the demand for medical oxygen in states such as Maharashtra, Rajasthan, Delhi. Gujarat, among others.
“In view of the recent surge in the country of Covid-19 cases, the requirement of oxygen for effective clinical treatment of Covid patients has also witnessed a manifold hike. Department for Promotion of Industry and Internal Trade (DPIIT) has conveyed that this has already reached about 60% of the total daily oxygen production, and is expected to rise further,” the statement said.
The industrial units, other than the nine key sectors will have to consider alternate measures such as import of oxygen or setting up their own air separator units (ASU) for the generation of oxygen for their captive requirements.
Global Industrial Oxygen Market Size
Industrial oxygen is produced by air separation processes. The application of oxygen stem is mainly on its oxidizing and life-sustaining properties. Industrial gases are used in a variety of purity grades and for a wide range of purposes, including food gases and medical gases. Industrial gases can make production processes safer and more cost-effective and improve product quality. They often contribute to environmental protection. Some processes and applications would even be inconceivable without the chemical properties of gases. Oxygen is one of the most widely used gases. Among various applications, the steel industry accounts for the largest consumption share of industrial oxygen, which was 47.56%.
The global Industrial Oxygen market is valued at US$49,420 million in 2020 is expected to reach US$78730 million by the end of 2026, growing at a CAGR of 6.8% during 2021-2026.
The oxygen problem is getting solved and arrangements are also made meant for industries to be diverted for medical use at short notice due to the spike in coronavirus cases in the country. According to the steel ministry, 28 oxygen plants located in the steel facility of both public and private sectors are supplying about 1,500 tons of medical oxygen every day. Also, an additional stock of 30,000 MT, including the safety stock, is being made available for medical use. With several states flagging oxygen shortage as Covid cases surge the government decided to restrict Oxygen supply to nine industries in an attempt to divert supplies for medical use while prohibiting flow to other sectors. Ordinarily, India produces 9,000 tons of liquid oxygen each day. Only 10% to 15% of that goes toward medical supplies. The rest is used in industry, such as steelmaking.
At the height of India’s second wave, which is still ongoing, COVID patients needed between 9,000 and 11,000 tons of oxygen which more because of hoarding which is now taken care of. India had the capacity to meet that demand, but it would require diverting the country’s oxygen supply from industrial sites in such situations. The maximum consumption of Medical Oxygen in the country is by the states of Maharashtra, Gujarat, Madhya Pradesh, Uttar Pradesh, Karnataka, Tamil Nadu, Delhi, followed by Chhattisgarh, Punjab, and Rajasthan.
To speed up a tanker truck’s usual roundtrip—driving with a full oxygen supply to local distribution facilities, then returning to production sites with no load—the government has started transporting oxygen tanker trucks by air force planes and rail. (Planes cannot carry full tanker trucks because of fire risk.) Speeding up the return journey reduces the full travel time by at least half on rail and by as much as 90% by plane. The government has also invoked a National Disaster Management Act so oxygen tankers receive the same priority on roads as ambulances on national highways. A government unit is digitally tracking the movement of tanker trucks to ensure that drivers do not make unscheduled stops or divert from the shortest routes.
“The government brought in significant steps by mobilizing Indian air force and railways for speeding up the transport of oxygen from production plants to deficient areas. The government also loosened some parts by allowing importing liquid oxygen from Asian and Middle Eastern countries by air and sea routes. In the pre – COVID 19 period, 20% of the total oxygen production was sold to the healthcare sector. Post – COVID 19, this increased to 70% when the infection wave peaked last September. Now the more production caters to the medical industry and as per reports, there is excess available for medical emergencies. Metal producers, refineries, and other manufacturers diverting oxygen supplies to hospitals, and possible impact on their productions. The Indian government currently operates 74 oxygen plants on its own, and a government program will expand that number to 1,594, meaning India will need to rely less on industrial players if demand surges again in the future. After being taken aback by the sharp rise in demand, India is now producing enough oxygen for medical purposes—9,524 metric tons of oxygen per day as of May this year—to meet the needs of any future COVID type crisis.
Dr. P. Sekhar,
Global Smart City Panel,