6309 Monarch Park Place, Suite 203
Niwot, CO 80503, USA
Phone (303) 443-5060
Toll free (888) 742-5060
One of the first distribution sectors to consolidate in the 1990s as Airgas grew aggressively, the past two years have focused on the industry impact of the big getting acquired by the biggest. Announced in 2017, the $70-billion merger of German industrial gases group Linde AG and Praxair was a logical vertical integration to combine the Linde’s pipeline/bulk operations with Praxair’s more diversified offerings. That merger came after the 2016 Air Liquide acquisition of Airgas (note that Airgas revenues here represent the core Airgas business of cylinders and hardgoods, and not the other parts of Air Liquide’s prior operations).
This sector has a strong mid-size market of distributors in the $100-million+ range, which has been expanding coverage through acquisitions of the strong small-distributor segment. According to one industry analyst, 75% of the sector’s revenues come from distributors under $5 million in annual revenues. According to MDM Analytics estimates, the market size for welding equipment and cylinder gases is approximately $10 billion, while the total market size including non-welding gases, safety products and other add-on categories is closer to $20 billion.
Because of the variability of gas/equipment product mix between distributors in this sector, it’s more difficult to accurately measure market share than in some other sectors. However, the overall numbers outlined above indicate that, while the top three hold a significant share of the market, it remains highly fragmented with growing regional competitors and a viable small-market segment.View 2018 Rankings
*Indicates 2018 annual revenue estimate not provided by the company, but by MDM research with best publicly available information. Some estimates remove other product category sales to more accurately reflect industrial/construction/MRO product sales, and may not be total annual corporate revenues.
Methodology Note: Unless otherwise noted, revenues reflect the 2018 fiscal year. Revenues for all companies in this report are in U.S. dollars. For companies who report their data in other currencies, we converted their revenues to U.S. dollars using the exchange rate in place on the last day of that company’s reported fiscal year to determine ranking.