Neon Gas Market Research Report By Application (Lighting, Electronics, Lasers, Healthcare, Refrigeration), By Purity (99.999%, 99.9999%, 99.99999%), By Source (Air Separation, Cryogenic Distillation, Membrane Separation), By End-Use Industry (Automotive, Aerospace, Medical, Semiconductor, Consumer Electronics), By Packaging Type (Cylinders, Tubes, Tanks) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2032

Global Neon Gas Market Overview

The Neon Gas Market Size was estimated at 21.85 (USD Billion) in 2022. The Neon Gas Industry is expected to grow from 23.23(USD Billion) in 2023 to 40.2 (USD Billion) by 2032. The Neon Gas Market CAGR (growth rate) is expected to be around 6.29% during the forecast period (2024 - 2032).

Key Neon Gas Market Trends Highlighted

The market for neon gas is driven by the growing demand for semiconductors, lighting, and automotive applications. Neon gas is used in the production of semiconductors, which are essential components of electronic devices such as computers, smartphones, and tablets. The increasing demand for these devices is driving the demand for neon gas. Additionally, neon gas is used in the production of fluorescent lighting, which is commonly used in homes, offices, and commercial buildings. The growing construction industry is expected to drive the demand for neon gas in the coming years.Opportunities in the neon gas market include the development of new applications for neon gas, such as in the medical field and in the production of renewable energy. The medical industry is exploring the use of neon gas in the treatment of cancer and other diseases. Additionally, neon gas is being used in the production of solar panels and other renewable energy technologies.Recent trends in the neon gas market include the increasing use of neon gas in the production of high-brightness LEDs. LEDs are becoming increasingly popular in a variety of applications, such as in lighting, displays, and signage. The growing demand for LEDs is expected to drive the demand for neon gas in the coming years.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Neon Gas Market Drivers

Increasing Demand from the Electronics Industry

Neon gas is in high demand when it comes to the production of different electronic devices, such as semiconductors, transistors, and lasers. The worldwide growth of the electronics industry, facilitated by the spread of smartphones, laptops, and other gadgets, has led to an increased demand for neon gas. The experts and analysts note that this industry will continue to grow in the upcoming years. The manufacturing of semiconductors, which are the bread and butter of our modern electronics, is another big reason for the high demand for neon gas.It is the photolithography fabrication step that uses neon to create circuits with the use of silicon wafers. Neon has very unique translucency properties as it is a noble gas and almost completely nonreactive. There is no other gas that would make such a great pair with semiconductor materials, which is why neon is deemed necessary and essential. The high demand for displays, notably in the industry of consumer electronics and the automotive industry, prepares fertile ground for the further growth of the neon gas market.Namely, neon is used to produce a type of display called plasma display panels and also liquid crystal displays. Plasmas are widely adopted as they are technologically advanced, while it is only natural for the demand for neon gas to grow as there are more and more automobiles and electronic devices. It can be concluded that the growth of the electronics industry is a vital driver.

Expanding Applications in Medical and Healthcare

The market for neon gas is gaining momentum in the medical and healthcare sectors due to its unique properties. First and foremost, it is used in a number of medical imaging methods like MRI and CT scans. Neon gas is also crucial for a variety of laser applications, including surgery on eyes and skin. Poor quality of air and water adopted policies within this field boost the demand for this gas even more. Chronic diseases also become more prevalent today, and humanity tries to counteract this phenomenon by using sophisticated medical tests.Thus, the demand for MRI and CT scans and, as a result, for neon gas inevitably increases. It is used for manufacturing MRI scanners which provide the ability to take images of the patient’s internal organs and tissues. Since no incisions are made during MRI imaging and the gas helps create a powerful magnetic field, the results of these tests are extremely precise. Additionally, neon gas is instrumental in the production of various types of medical lasers.They are widely used in ophthalmic and dermatological surgeries, as well as to destroy tumors. The world is becoming more prone to various minimally invasive treatments, and the demand for these technologies grows, opening prospects for the neon gas market in the health and medical sectors.

Government Initiatives and Environmental Regulations

Government initiatives and environmental regulations are the major drivers of the neon gas market. Climate change and warming have become key drivers of sweeping policy changes. There are several other reasons why the government may become interested in the policies that promote the use of neon gas or its eco-friendly traits. Many countries have adopted or are in the process of adopting bans on ozone-depleting and fluorinated gases, namely chlorofluorocarbons and hydrochlorofluorocarbons, which have been the major driving the strength of the refrigeration and air conditioner markets.The neon gas has positioned itself as the direct replacement or the chemical substitute in various use cases. Other governments are supporting the research and development aimed to enhance the applications and technologies related to neon gas in the long run. Governments are investing money and other resources into finding new ways of harnessing the efficiency of the gas across a wide range of industries, including but not limited to appliances, energy, and healthcare.These interests of the governments and the subsequent policies will have a positive influence on the overall neon market.

Neon Gas Market Segment Insights

Neon Gas Market Application Insights 

The application segment is a significant factor determining the Neon Gas Market. Each of the application verticals is responsible for some particular market trends and growth. In the given posts, let’s consider the principal application segments and their insights. Lighting Neon gas is widely used in lighting, especially in fluorescent, incandescent bulbs, because of its brightness and ability to produce more efficient light. According to the 2017 Neon Gas Market report, lighting was the largest segment in the market, and it was responsible for a substantial share of the Neon Gas Market revenue.It is anticipated that the situation will remain the same because of the demand for safe, attractive, and more efficient lighting solutions. At the same time, the lighting market can be regarded as one of the most stable application fields due to the significance of lamps in everyday activities. Electronics This application field presupposes the use of neon gas for various electronic components such as high-voltage switches as well as transistors and capacitors. At the moment, the demand for neon gas as a significant element in electronic devices can increase due to the general growth of electronic manufacturing caused by the increasing popularity of laptops, smartphones, tablets, and TVs.The electronics market is expected to grow significantly, and this process will optimistically affect the market of neon gas, which will be applied in the manufacturing of electronic devices. Lasers Neon gas is one of the main gas lights used for laser production and neon lasers are effectively used in various spheres, including healthcare for surgery, or for manufacturing processes, or in different devices for research purposes. Laser usage is widely spread, and, as a result, the segment of neon gas in the lasers market is expected to grow due to the increasing demand for laser-based equipment and devices. 

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Neon Gas Market Purity Insights 

The purity segment is a significant factor for the Neon Gas Market that defines its development as well as industry trends. High-purity neon gas, which ranges from 99.999% to 99.99999%, is in demand to a great extent due to its exceptional properties and is a perfect solution for numerous applications. At present, the 99.999% purity grade is used in a wide range of electronic displays and is in the highest demand. Further, the 99.9999% and 99.99999% purity grades find great uses in manufacturing semiconductors producing lasers, devices, and equipment for scientific research.According to the Neon Gas Market Share, the revenue from acquiring this type of neon gas will be impressive in the course of the next years as the tendency toward a high-volume application of advanced technologies continues and the electronics industry expands. A certain tendency toward demand constancy is reported by the Market Data Forecast and other industry statistics sources, thus illustrating a positive tendency within the industry.

Neon Gas Market Source Insights 

The source segment plays a crucial role in the Neon Gas Market. In 2023, the Air Separation segment held the largest revenue share of 45.1%, owing to the widespread adoption of air separation units in various industries. Cryogenic Distillation is projected to exhibit a significant CAGR of 6.8% during the forecast period, driven by increasing demand for high-purity neon gas in the electronics industry. Membrane Separation is expected to witness a steady growth rate, gaining traction in small-scale Neon Gas Market applications. The Neon Gas Market segmentation provides valuable insights into the industry dynamics, enabling stakeholders to make informed decisions and capitalize on growth opportunities. 

Neon Gas Market End-Use Industry Insights 

The end-use industry segment plays a crucial role in shaping the dynamics of the Neon Gas Market. Among the key end-use industries, Automotive, Aerospace, Medical, Semiconductor, and Consumer Electronics stand out as major consumers of Neon Gas. The Automotive industry utilizes Neon Gas in lighting systems, particularly in high-performance headlamps and taillights, due to its ability to emit a bright and distinct red-orange light. This application is expected to drive significant demand for Neon Gas in the coming years. In the Aerospace sector, Neon Gas is employed in lasers for cutting and welding applications, as well as in lighting systems for aircraft cabins and navigation lights.The growing demand for lightweight and fuel-efficient aircraft is anticipated to boost the consumption of Neon Gas in this industry. The medical industry relies on Neon Gas for a variety of applications, including lasers used in surgical procedures, analytical instruments, and cryogenic treatments. The increasing prevalence of minimally invasive surgeries and advancements in medical technologies are expected to contribute to the growth of the Neon Gas market in this segment. The Semiconductor industry utilizes Neon Gas in the production of semiconductor chips, particularly in the etching and lithography processes.The surging demand for electronic devices and the miniaturization of chip designs are anticipated to drive the consumption of Neon Gas in this sector. Finally, the Consumer Electronics industry employs Neon Gas in display technologies, such as plasma and OLED displays, due to its ability to produce vibrant and energy-efficient lighting. The rising popularity of smart TVs, smartphones, and other electronic devices is expected to fuel the demand for Neon Gas in this segment. Overall, the end-use industry segment is a key driver of the Neon Gas Market, with each industry contributing to the overall growth and demand.The specific applications and consumption patterns vary across these industries, creating diverse opportunities for Neon Gas suppliers and manufacturers.

Neon Gas Market Packaging Type Insights 

The Packaging Type segment of the Neon Gas Market can be classified into Cylinders, Tubes, and Tanks. Cylinders hold the dominant share in the market due to their ease of handling and transportation. They are commonly used in various industrial applications where neon gas is required for welding, cutting, and other processes. Tubes, on the other hand, are preferred for specialized applications where precise gas flow control is crucial, such as in semiconductor manufacturing and scientific research. Tanks, with their larger capacity, are suitable for bulk storage and distribution of neon gas.The Neon Gas Market revenue from Packaging Type is projected to reach USD 10.2 billion by 2024, exhibiting a steady growth rate over the forecast period. This growth is attributed to the increasing demand for neon gas across diverse industries, particularly in the electronics and healthcare sectors.

Neon Gas Market Regional Insights 

The regional segmentation of the Neon Gas Market offers valuable insights into the growth dynamics and opportunities across different geographies. North America holds a significant market share, driven by the presence of major electronics and semiconductor industries. Europe follows closely, with a robust demand from the automotive and healthcare sectors. The APAC region is projected to witness substantial growth due to the rapid urbanization and industrialization in countries like China and India. South America and the MEA region are emerging markets with untapped potential, offering growth opportunities for market players.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Neon Gas Market Key Players And Competitive Insights

The key players in the Neon Gas Market industry are striving to expand their product portfolios and footprint. The top-tier companies in the Neon Gas Market industry are making significant investments in research and development to innovate and develop new products to address the varying needs of customers across the globe. The associated players in the Neon Gas Market industry are forming collaborative and strategic partnerships such as mergers and acquisitions to consolidate their market share and expand the reach of new technologies. The advancements in production technologies and processes are further increasing the gap between the production initiatives taken by the Neon Gas Market companies with respect to the operational performance of their organizations, thereby pushing the competition between market players.Air Liquide is one of the top players in the Neon Gas Market industry. It operates in the Neon Gas Market industry segment by placing a significant focus on innovation and sustainability. Air Liquide also has a competitive advantage in the form of a well-established customer network and robust distribution facilities. The evolution of the Neon Gas Market with a preference for eco-friendly solutions is in accordance with the company’s offerings and commitment to reducing its own environmental footprint.Praxair, under Linde, is another key play in the Neon Gas Market. The company provides a wide range of products and services along with its capabilities for gas separation and purification, making it one of the important Neon Gas Market players with major business volumes across different industries. Additionally, the company has been actively implementing plans to expand its capacities to support the overall increase in demand for Neon Gas. On the other hand, its laid focus on safety and operational excellence is attributed to its strong position in the Neon Gas Market industry.

Key Companies in the Neon Gas Market Include

• Air Water


• Shinkong


• Henan Jianshe


• Messer


• Luxfer Group


• Beijing Haoren


• Linde


• Guangdong Alger


• Air Product


• Praxair


• Nippon Gases


• Sigas


• Gaselys


• Zhejiang Supcon


• Air Liquide

Neon Gas Market Industry Developments

The Neon Gas Market is projected to reach USD 40.2 billion by 2032, exhibiting a CAGR of 6.29% during the forecast period. Increasing demand from the electronics industry, particularly in the manufacturing of semiconductors and flat-panel displays, is driving market growth. The rising adoption of neon gas in laser technology, medical imaging, and cryogenic applications further contributes to its market expansion.Recent developments in the market include Air Liquide's investment in a new neon production facility in the United States, which is expected to increase its production capacity by 30%. Additionally, Messer has announced plans to build a new neon purification plant in Europe, aiming to meet the growing demand for high-purity neon gas.

Neon Gas Market Segmentation Insights 

Neon Gas Market Application Outlook

• Lighting


• Electronics


• Lasers


• Healthcare


• Refrigeration 

Neon Gas Market Purity Outlook

• 99.999%


• 99.9999%


• 99.99999% 

Neon Gas Market Source Outlook

• Air Separation


• Cryogenic Distillation


• Membrane Separation 

Neon Gas Market End-Use Industry Outlook

• Automotive


• Aerospace


• Medical


• Semiconductor


• Consumer Electronics

Neon Gas Market Packaging Type Outlook

• Cylinders


• Tubes


• Tanks 

Neon Gas Market Regional Outlook

• North America


• Europe


• South America


• Asia Pacific


• Middle East and Africa