Chan Ye Xin Xi Wang·2026-02-05 01:20Industry Overview - The nitrous oxide (N₂O) industry in China is undergoing a profound transformation characterized by stable overall growth, deep structural adjustments, and strong policy-driven changes. The market size is projected to reach approximately 4.762 billion yuan in 2024, representing a year-on-year growth of 12.87% [1][5]. - N₂O, also known as laughing gas, is a colorless gas with a sweet taste, used in various applications including medical, food, and industrial sectors. It is a potent greenhouse gas with a global warming potential approximately 300 times that of carbon dioxide [2][4]. Industry Chain - The upstream of the N₂O industry includes raw materials such as ammonium nitrate, sulfuric acid, sodium nitrite, and production equipment like reactors and condensers. The midstream involves the production of N₂O, while the downstream applications span semiconductors, medical, food, and industrial sectors [4]. - The price of ammonium nitrate is expected to decrease to 1,780 yuan per ton by the end of 2025, down 24.70% year-on-year, which will positively impact the N₂O industry by expanding profit margins [4]. Market Size - The N₂O industry is experiencing a shift towards high-purity applications, particularly in the semiconductor sector, which demands gases with purity levels reaching 6N. This sector is becoming a core driver for the industry's upward movement along the value chain [5][6]. Key Companies - The industry structure is characterized by a few strong players, with Chongqing Tonghui Gas and Jinhong Gas leading in electronic-grade N₂O production. Jinhong Gas reported a revenue of 2.031 billion yuan in the first three quarters of 2025, a 9.33% increase year-on-year, although its net profit decreased by 44.90% [6][8]. - Chongqing Tonghui Gas has a production capacity of 60,000 tons of electronic-grade N₂O and is involved in various specialty gases for the semiconductor and food industries [6][7]. Industry Development Trends 1. The industry is shifting towards a green circular economy, driven by policies that encourage the recycling of industrial waste gases into high-value resources. This aligns with national goals for carbon reduction and pollution control [8]. 2. High-end applications in the semiconductor and display panel sectors are becoming the main growth engines, with increasing demand for high-purity N₂O products. Companies like Jinhong Gas are successfully penetrating the semiconductor market, reflecting robust downstream demand [9]. 3. Competition in the industry is intensifying, with a focus on technological and scale advantages. Achieving high purity levels (6N and above) requires significant R&D investment, and obtaining certifications from leading semiconductor clients poses additional barriers [10].