Neon is a chemical element that falls under the collection called 'noble gases'. These are a group of inert gases which in nature are very stable. It is also defined as an inert monoatomic gas which belongs to the group 18 of the periodic table. Basically, the gas is colourless, odourless, tasteless, and lighter than air. Neon gas is found in the earth’s atmosphere at a concentration of 18 ppm and is procured by the fractional distillation of liquid air, followed by the removal of helium from the mixture. It is a non-toxic and non-reactive gas which finds application in the neon signs for advertising, high-voltage indicators, switching gear, lighting arresters, and diving equipment lasers.

Furthermore, neon gas is used in the lithography step, which is crucial for the development of semiconductor chips. The thriving electronics and automotive industry are spearheading the demand for semiconductor devices and chips, which is a major driving factor of the global neon gas market. The increasing adoption of consumer electronics, such as LCD displays, and refrigerators, among others is anticipated to boost the demand for neon gas in the forecast period. Moreover, the growing expansion of the advertising and marketing industry is likely to accelerate the demand for neon gas for imaging and lighting applications. This is one of the major uses of neon gas which is propelling the market growth.

Also, increased knowledge across different industries offers an enormous market opportunity for key players in the Neon Gas market. However, price rises and general instability in the semiconductor industry have resulted in supply reductions with the crisis across regions manufacturing neon. The fluctuation in neon production and prices affects the semiconductor market. In the aerospace and aircraft industries, neon gas also has many applications. Due to its far-reaching lighting properties, it is used as an aircraft beacon and finds applications as a coolant for different equipment in the aircraft industry. This is anticipated in the coming years to further contribute to the development of the industry.

The Russian invasion of Ukraine has led to a decline in the production volume, but increase in the prices of semiconductor chips, which bolstered the revenue for the neon gas market. However, in the coming years, the market is anticipated to stabilise due to the growing dependence on semiconductor devices. In terms of region, North America accounts for a significant share in the market owing to the increasing demand for helium-neon lasers for biomedical applications in the healthcare industry. Moreover, the strong foothold of the major semiconductor manufacturers in the region is anticipated to be a propelling factor in the market.

Geographically, due to its use in the making of semiconductors and consumer electronics, the neon gas industry is experiencing rapid growth, especially in the Asia Pacific. In North America and Europe, its applications in the automotive, transport, aerospace, and aircraft industries are driving its consumption. It is experiencing a sharp rise in demand in the Japanese market to manufacture semiconductors. However, with the growth of the space agencies' exploration activities in this field, neon gas is expected to increase in demand. In the Asia-Pacific region, a number of large-scale oxygen production projects are now in operation and are therefore expected to see continuous development, especially in China.

Moreover, over half the global supply of neon crude is concentrated in Russia and Ukraine. Due to enhanced cooling power, semiconductor, coolant for ultra-sensitive infrared imaging and detection equipment, healthcare industry, and others, neon gas has been widely used in various applications such as cryogenic coolant. Neon is used as a cryogenic refrigerant since neon condenses into liquid at very cold temperatures. Neon is usually acceptable because it is non-reactive and does not blend with other materials. In the neon gas industry, technology releases, acquisitions and R&D activities are main strategies adopted by players. 

The Global Neon Gas Market by volume is estimated to reach US$891.92 million litres by 2027, growing at a CAGR of 7.1% during 2022-2027. The exclusive market research report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the key players in the industry. Some of the major players in the market explored in the Expert Market Research report are Linde plc, L’Air Liquide S.A. (Air Liquide), Ingas LLC, Cryoin Engineering Ltd. and Messer Group GmbH among others.

Market Players in the Neon Gas Market business are aligning their operating model to the new normal by pivoting towards digitalization of operations and adapting to emerging technologies in robotic automation and artificial intelligence. Mergers and acquisitions to acquire new technologies, strengthen portfolios, and leverage capabilities to remain key strategies of top companies in the Neon Gas Market industry during the outlook period. Investing in R&D and technology to improve product lines will be the major growth driver in the short to medium term for the Neon Gas Market amid prevailing tough conditions.

Customizing products to cater to a specific application than improvising the product characteristics on a whole has been the emerging trend in the Neon Gas Market. Enterprises should incorporate digitally connected processes and focus on operational efficiency, diversifying supply sources, and cost management to create opportunities in the Neon Gas Market during the forecast period. Uneven recovery in different end markets and geographies is a key challenge in understanding and analysing the Neon Gas Market landscape.