Pressure Swing Adsorption (PSA) N2 & O2 Generator Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2034

Pressure Swing Adsorption (PSA) N2 & O2 Generators are designed to produce high-purity nitrogen (N2) and oxygen (O2) gases through the process of adsorption. In PSA technology, gas molecules are separated based on their affinity to adsorbent materials under pressure. These generators consist of multiple adsorption beds filled with specialized adsorbents like carbon molecular sieves (CMS) or zeolites. The process starts with compressed air entering the adsorption beds. Oxygen molecules are preferentially adsorbed onto the surface of the adsorbent, allowing nitrogen molecules to pass through. As the pressure in the bed decreases, the adsorbed oxygen molecules are desorbed, releasing high-purity nitrogen gas.

This purified nitrogen gas is then collected and used for various industrial applications, such as food packaging, electronics manufacturing, and pharmaceutical production. The remaining oxygen-enriched gas stream can be further processed or utilized directly for applications requiring oxygen enrichment. Some examples of such applications include medical oxygen therapy, wastewater treatment, or combustion processes.

MARKET OVERVIEW

The global market valuation of Pressure Swing Adsorption (PSA) N2 & O2 Generator Market was valued at approximately USD 2.6 Billion in 2023 and is projected to reach USD 9.1 Billion in 2034 exhibiting a CAGR of 11.1% during the forecast period of 2024-2034. Pressure Swing Adsorption (PSA) N2 & O2 Generator plays a crucial role by providing a continuous supply of gases and is aligned with diverse industries which makes it a sustainable and growing market.

GROWTH DRIVERS

The increasing demand for high-purity nitrogen and oxygen in various industrial applications, such as food packaging, electronics manufacturing, pharmaceutical production, and metal processing, is a significant growth driver for PSA N2 & O2 generators. The trend towards on-site gas generation solutions, which offer greater flexibility, reliability, and cost-effectiveness compared to traditional bulk gas delivery methods, is fueling the demand for PSA N2 & O2 generators. Companies seek to minimize logistical challenges, transportation costs, and dependency on external suppliers by producing gases on-site. 

Stringent regulations and quality standards governing gas purity, such as those set by organizations like the International Organization for Standardization (ISO) (ISO 19229:2019) and the Food and Drug Administration (FDA) (7356-002E: medical oxygen (O2) be at least 99.0% pure), drive the adoption of PSA N2 & O2 generators. Companies in industries like healthcare, pharmaceuticals, and food processing must comply with these standards to ensure product safety and quality, leading to increased demand for reliable gas generation systems. The expanding healthcare sector in emerging economies, drives the demand for medical-grade oxygen used in hospitals, clinics, and healthcare facilities.

These generators offers reliable solution for on-site medical gas production, addressing the increasing demand for oxygen therapy, anesthesia, and respiratory support. The PSA N2 & O2 generators find applications in environmental remediation processes such as wastewater treatment, soil remediation, and pollution control. Governments and environmental agencies worldwide like United Nations Environment Programme (UNEP)prioritize initiatives to mitigate environmental pollution and safeguard natural resources, driving the demand for gas generation technologies that support these efforts.

The growth of the electronics manufacturing industry, driven by increasing demand for consumer electronics, automotive electronics, and electronic components, fuels the demand for high-purity nitrogen and oxygen gases used in soldering, reflow soldering, and inserting processes. The food and beverage industry relies on nitrogen generators for modified atmosphere packaging (MAP), food preservation, and inserting to extend shelf life and maintain product quality. The increase in demand for packaged and processed foods globally drives this market towards growth.

MARKET SEGMENTATION:

·         By Type– Small PSA N2 and O2 generator and Big PSA N2 and O2 generator

·         By Gas Type- Nitrogen PSA systems and Oxygen PSA systems

·         By Adsorption Media – Carbon Molecular Sieve and Zeolite Molecular Sieve

·         By Application – industrial N2 and O2 medical N2 and O2 and others

·         By End User Industry – chemical, healthcare, electronics and semiconductor, oil and gas and others

·         By Region - North America, Europe, Asia Pacific, the Middle East and Africa, and South America

Pressure Swing Adsorption (PSA) N2 & O2 Generator Market by Type Segment Review:

The PSA N2 & O2 Generator market is divided into two segments, small PSA O2 & N2 generators, and big PSA O2 & N2 generators each caters to specific applications and capacity requirements. Small PSA generators are suitable for applications that require lower volumes of nitrogen and oxygen. They provide cost-effective and compact solutions for on-site gas generation, catering to the needs of smaller businesses and facilities that have limited space or budget constraints. These generators use adsorption technology to separate nitrogen and oxygen from air and deliver high-purity gases suitable for various applications, such as gas chromatography, chemical synthesis, and inert gas blanketing.

Big PSA generators, on the other hand, are designed to meet the higher volume demands of industrial-scale operations, large manufacturing facilities, and infrastructure projects requiring nitrogen and oxygen gas supply. These generators offer higher capacities and throughput compared to their smaller counterparts, making them suitable for applications such as metal processing, food packaging, electronics manufacturing, and wastewater treatment. Big PSA generators incorporate advanced adsorption processes and larger adsorbent beds to efficiently produce nitrogen and oxygen gases with the required purity levels and flow rates, ensuring uninterrupted supply to critical production processes and applications.

Pressure Swing Adsorption (PSA) N2 & O2 Generator Market by Gas Type Segment Review:

The Pressure Swing Adsorption (PSA) N2 & O2 Generator market is segmented by gas type into Nitrogen PSA Systems and Oxygen PSA Systems. Nitrogen PSA systems are used in various industries where an inert gas environment is required to prevent oxidation, maintain product quality, and enhance safety. These systems consist of multiple adsorption beds filled with adsorbent materials that selectively capture oxygen molecules, allowing nitrogen to pass through and accumulate as product gas.

This provides a cost-effective and on-site nitrogen generation solution, eliminating the need for bulk gas storage and transportation while ensuring a continuous and reliable nitrogen gas supply for different industrial applications. On the other hand, Oxygen PSA systems are commonly used in medical, healthcare, and industrial applications where oxygen is essential for respiratory therapy, combustion processes, welding, and cutting operations. These systems selectively adsorb nitrogen molecules from compressed air, allowing oxygen-enriched gas to be collected as product gas. This provides a convenient and efficient method for on-site oxygen generation, eliminating the logistical challenges associated with cylinder delivery and storage. Oxygen PSA systems offer a reliable and cost-effective alternative to traditional oxygen supply methods, ensuring a consistent and uninterrupted oxygen gas supply for critical applications.

Pressure Swing Adsorption (PSA) N2 & O2 Generator Market by Adsorption Media Segment Review:

The Pressure Swing Adsorption (PSA) N2 & O2 Generator market is segmented by adsorption media into Carbon Molecular Sieve and Zeolite Molecular Sieve, each using the different materials used in the adsorption process for nitrogen and oxygen gas generation. Carbon Molecular Sieve (CMS) and Zeolite Molecular Sieve are two types of porous materials used in Pressure Swing Adsorption (PSA) systems for gas generation. CMS has a large internal surface area and selectively adsorbs nitrogen and oxygen molecules. Its high nitrogen selectivity makes it useful for separating nitrogen from compressed air, allowing for the production of high-purity nitrogen gas.

CMS-based PSA systems are widely used in electronics manufacturing, food and beverage packaging, and pharmaceutical production. On the other hand, Zeolite Molecular Sieve is a crystalline alum inosilicate material that has a uniform pore structure and a high surface area, making it suitable for selective adsorption of nitrogen and oxygen molecules. Zeolite-based PSA systems can be used for both nitrogen and oxygen gas generation, depending on the specific application requirements. In nitrogen PSA systems, zeolite selectively adsorbs oxygen molecules, allowing nitrogen-enriched gas to be collected as the product gas.

In contrast, in oxygen PSA systems, zeolite selectively adsorbs nitrogen molecules, allowing oxygen-enriched gas to be collected. Zeolite-based PSA systems offer advantages such as high gas purity, reliability, and energy efficiency, making them suitable for a wide range of applications, including medical oxygen supply, industrial gas production, and wastewater treatment.

Pressure Swing Adsorption (PSA) N2 & O2 Generator Market by Application Segment Review:

Industrial nitrogen and oxygen are essential for various manufacturing and processing applications. These gases are generated through PSA systems. Nitrogen is used for processes like inserting, blanketing, and purging to prevent oxidation and improve product quality in industries such as metal fabrication, chemical synthesis, and electronics manufacturing. Oxygen, on the other hand, is vital for combustion processes, wastewater treatment, and oxidation reactions in chemical and petrochemical industries.

In the food and beverage industry, nitrogen and oxygen generated by PSA systems are used for modified atmosphere packaging (MAP), beverage carbonation, and food preservation. Nitrogen helps create a protective atmosphere that extends the shelf life of packaged foods, while oxygen is used for aeration and product oxidation control, ensuring freshness and quality. The systems are also essential for generating medical-grade oxygen used in respiratory therapy, anesthesia delivery, and critical care interventions in healthcare facilities.

Medical-grade oxygen produced by PSA systems ensures a reliable and continuous supply for patient treatment in hospitals, clinics, and emergency medical services. In surgical environments, medical-grade oxygen generated by PSA systems is crucial for maintaining proper oxygenation levels during procedures, anesthesia delivery, and ventilation support. The precise control and purity of oxygen produced by PSA systems contribute to improved patient safety and outcomes in surgical settings.

Pressure Swing Adsorption (PSA) N2 & O2 Generator Market by End User Segment Review:

The chemical industry uses them for inserting and blanketing purposes to prevent oxidation and ensure product quality during chemical synthesis, storage, and transportation. Nitrogen creates inert atmospheres in reaction vessels and storage tanks, while oxygen is used for oxidation processes and catalyst regeneration. In healthcare, PSA N2 & O2 generators provide medical-grade oxygen for respiratory therapy, anesthesia delivery, and critical care interventions. This ensures a continuous and reliable supply for patient treatment in hospitals, clinics, and emergency medical services.

It's also essential in surgical environments to maintain proper oxygenation levels during procedures, anesthesia delivery, and ventilation support. The precise control and purity of oxygen produced by PSA systems contribute to improved patient safety and outcomes in surgical settings. The electronics and semiconductor industry uses PSA N2 & O2 generators for various applications such as inserting, purging, and blanketing during semiconductor fabrication processes. Nitrogen creates inert environments in cleanrooms and purges sensitive equipment.

Oxygen is employed for oxidation processes and plasma etching in semiconductor manufacturing. In the oil and gas industry, PSA N2 & O2 generators are used for pipeline purging, gas blanketing, and enhanced oil recovery (EOR) applications. Nitrogen displaces oxygen and moisture from pipelines and storage tanks, preventing corrosion and maintaining product integrity during transportation and storage. Additionally, nitrogen is injected into oil reservoirs to enhance recovery rates and extend the life of mature oil fields.

Pressure Swing Adsorption (PSA) N2 & O2 Generator Market Regional Analysis:

North America is a significant market driven by the factors like it is hub for technological innovation and adoption, driving the growth of PSA N2 & O2 generator market. The region has a strong presence of key players in the nitrogen and oxygen generator industry. The well-established healthcare infrastructure in North America fuels the demand for medical-grade oxygen generated by PSA systems. Europe is another significant market for PSA N2 & O2 generator driven by the factors like stringent environmental regulations like M/400 (Standardization in the field of gas qualities).

The increase in healthcare expenditure and investments in healthcare infrastructure support the demand for medical oxygen generated by PSA systems in Europe. According to NIH, Public health expenditure (PHE) in the European Union (EU) has been increasing rapidly, rising from 6.1% to 7% of GDP between 2000 and 2018. In 2018, PHE was the second-largest share of government expenditure in EU member states. In 2020, health expenditure as a share of GDP increased to 10.9% across the EU. Asia Pacific is a rapidly growing market driven by the factors like industrialization and urbanization, leading to increased demand for nitrogen and oxygen generators in various industries.

Asia Pacific is a major hub for electronics manufacturing, driving the demand for nitrogen and oxygen generators for semiconductor fabrication, soldering, and reflow processes. The Middle East and Africa is a key region for the oil and gas industry, driving the demand for nitrogen generators for pipeline purging, gas blanketing, and enhanced oil recovery applications. The investments in healthcare infrastructure and rise in healthcare expenditure support the demand for medical oxygen generated by PSA systems. South America market is a growing market due to the presence of key global food processing companies like JBS, Nestle, Norac Food and more in this region.

Key Challenges:

The high cost associated with acquiring nitrogen and oxygen generator systems is significant for larger capacity units or systems with advanced technologies. The other investments involved like operational costs associated with maintenance, energy consumption, and replacement of consumables such as adsorbent materials or membranes. This huge and initial investment may prevent smaller businesses or organizations with limited budgets from adopting these generators, hence impacting the market growth of the market.

The applications in industries such as healthcare, semiconductor manufacturing, and aerospace, requires extremely high purity levels of nitrogen and oxygen. The meeting of these stringent purity requirements may be challenging, especially in environments with fluctuating ambient conditions or stringent regulatory standards. Some industries are highly on nitrogen and oxygen generator systems where uninterrupted supply is essential for continuous operations or critical processes. The downtime due to equipment failure, maintenance, or repairs may disrupt production schedules and lead to productivity losses.

Competitive Landscape:

In the highly competitive Pressure Swing Adsorption (PSA) N2 & O2 Generator market, companies are investing heavily in research and development to innovate and improve nitrogen and oxygen generation technologies. They are also collaborating, forming strategic partnerships, or acquiring other companies to gain access to new market segments, enhance distribution networks, and increase market share. Recent developments include Atlas Copco acquired Purification Solutions LLC.

Global Key Players:

·         Honeywell International Inc.

·         SAMSON AG

·         Linde plc

·         Atlas Copco

·         On Site Gas Systems

·         Peak Scientific Instruments

·         Universal Industrial Gases

·         Novair SAS

·         Hangzhou Tianli Air Separation Equipment Manufacturing

·         GENERON

·         OXYMAT

·         OXAIR

·         ORECO A/S