Industrial Gases Market: Global Industry Analysis and Forecast (2024-2030)

The Industrial Gases Market size was valued at USD 99.98 Billion in 2023 and the total Industrial Gases revenue is expected to grow at a CAGR of 6.72% from 2024 to 2030, reaching nearly USD 157.63 Billion by 2030.

Industrial gases are an indispensable element in numerous markets, various from hospital therapy to food and additionally beverages, in addition to being vital for operational approaches. Typically produced in huge quantities, those gases are brought to clients both in excessive-strain packing containers or through pipelines. They are utilized in myriad applications, consisting of refrigeration, welding, chemical synthesis, as well as scientific usage. The normal boom of industries around the world has propelled the want for commercial gases.

The function of business gases in daily lifestyles is increasingly huge, with emerging developments and practices usually locating new applications for these gases in present industries. The global industrial gases marketplace is expected to grow at a CAGR of 6.72% in the course of the forecast duration, driven by heightened demand across various sectors. Particularly, manufacturing and healthcare are envisioned to experience considerable growth in their use of business gases. Additionally, sectors which include retail, mining, food and beverage, chemical compounds and electricity, metallurgy, and glass are anticipated to see considerable increases in their consumption of these gases at some stage in the forecast period.

The rising want for alternative power resources has further stimulated the demand for industrial gases. This growth is attributed to the vast portions of oxygen being applied in gasification plant life and oxygen-primarily based processes like gas-to-liquid (GTL), coal-to-liquid (CTL), and coal-to-chemical compounds. In the metals and metallic fabrication industries, gases such as oxygen, hydrogen, nitrogen, carbon dioxide, and acetylene are notably applied. Rapid industrialization in developing areas, drastically in Asia-Pacific international locations such as China, India, and South Korea, is anticipated to provide massive increase opportunities for the industry players.

In the U.S., the industrial gases market is widespread, supported by the presence of main suppliers inclusive of Linde, Air Liquide, Messer, and Air Products & Chemicals. The growing healthcare industry and extended R&D activities, especially in the wake of the COVID-19 pandemic, are riding demand for business gases. The electronics enterprise within the U.S., with its reliance on gases for applications starting from semiconductors to LED lighting fixtures, also gives good-sized opportunities.

While the industrial gases market is expected to grow drastically during the forecast period, a few obstacles may hold it back. For example, environmental laws and safety concerns are expected to hamper the industry's growth. Future gas conversion prices are also expected to increase, thus restricting market growth during the forecast period. However, they are minor concerns when compared to the global industrial gases market size.

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Industrial Gases Market Competitive Analysis:

The global industrial gas market is highly consolidated with stronger control of price points and a quasi-oligopolistic industry structure. Several major players including Air Liquide, Linde, Messer, and Air Products dominated the industry Digitization and automation in gas production and distribution are reshaping the market, enhancing efficiency and customization. Companies strive to differentiate themselves through cutting-edge technology, strategic partnerships, and extensive distribution networks, creating a dynamic environment where both established leaders and new entrants vie for market share and technological leadership. Major players engage in competitive pricing strategies and invest significantly in R&D to develop advanced gas separation and production technologies, such as green hydrogen and improved cryogenic processes. Additionally, strategic initiatives such as the expansion of manufacturing facilities, mergers, acquisitions, and partnerships are prevalent, with companies seeking to enhance their geographical reach and operational efficiency. For instance,

On July 22, 2024, Air Products Membrane Solutions declared a USD 70 million investment to enlarge its production and logistics middle in Maryland Heights, Missouri. This enlargement, the business enterprise’s largest to this point, pursues to boost production capability and assist growing demand for biogas, hydrogen recovery, aerospace, and marine industries. The new facility, set to be operational by the end of 2025, will upload 30 new jobs to the contemporary a hundred and seventy employees. This investment displays Air Products' commitment to advancing electricity transition technologies and assisting neighborhood economic increase.

On July 17, 2024, Saudi Aramco said that it might collect a 50% stake in Blue Hydrogen Industrial Gases (BHIG) from Air Products Qudra (APQ), a joint task between Saudi Qudra Energy and Air Products. The acquisition consists of options for Aramco to offtake hydrogen and nitrogen. BHIG, focused on generating lower-carbon hydrogen through steam methane reforming, will help Aramco's intention to broaden a lower-carbon hydrogen network in Saudi Arabia’s Eastern Province. This funding aligns with Aramco’s approach to amplifying its lower-carbon hydrogen and carbon seize tasks.

On July 12, 2024, Air Liquide India announced the hole of a new production unit in Mathura, Uttar Pradesh, with an investment of Rs 350 crore. This air separation unit will produce over 300 tonnes of liquid oxygen and clinical oxygen every day, along with 45 tonnes of liquid nitrogen and 12 tonnes of liquid argon. The gases may be dispensed throughout Delhi Capital Territory, Western Uttar Pradesh, Rajasthan, and Madhya Pradesh. The plant's objective is to run on renewable electricity through 2030.

On May 14, 2024, Linde said it had doubled the service provider liquid manufacturing ability at its La Porte, Texas air separation facility to satisfy the rising call for for business gases within the U.S. Gulf Coast. This expansion complements Linde's good-sized local infrastructure, which includes over 30 facilities and 1,000 kilometers of pipelines. The increased potential supports Linde’s nitrogen and oxygen pipeline device and reflects the agency’s dedication to enhancing efficiency and reliability throughout its U.S. Gulf Coast operations.

Industrial gases companies serve a variety of industries, addressing unique client needs. With a growing emphasis on sustainability and efficiency, the industry is advancing towards innovative solutions. Companies are focusing on minimizing their environmental impact, optimizing processes, and supporting the shift to cleaner energy sources. Technological advancements, such as on-site generation of gases, are improving convenience and reliability for global customers. These developments reflect the industry's commitment to reducing its carbon footprint while enhancing service delivery and supporting sustainable practices.

Top 10 Industrial Gases Manufacturers



Company
 Headquarter
Founded
Headcount
Description


Air Products
Trexlertown, Pennsylvania, USA
1940
10,001+
Global dealer of commercial gases and chemicals with a focus on sustainability, innovation, and easy energy.


Air Liquide
Paris, France
1902
10,001+
Leading company of gases, technology, and services for various industries with a dedication to sustainability.


Linde
Woking, England, UK
1879
10,001+
Global leader in commercial gases and engineering, specializing in productivity, sustainability, and decarbonization.


Messer Americas
Bridgewater, New Jersey, USA
1895
5,001-10,000
Largest privately held industrial fuel enterprise with over 120 years of knowledge in business, clinical, and specialty gases.


Praxair, Inc
Danbury, Connecticut, USA
1907
10,001+
Provider of gases and technology to enhance productiveness with a focus on sustainability and innovation.


Nippon Gases
Madrid, Spain
2001
1,001-5,000
Specializes in business and clinical gases with a focal point on reliability, safety, and sustainability.


Messer Gases Brasil
Barueri, São Paulo, Brazil
1898
10,001+
Offers business and medical gases with over a hundred and twenty years of satisfaction, serving numerous industries and specializing in sustainability.


SOL Group
Monza, Italy
1927
1,001-5,000
Operates in the carbon dioxide enterprise, presenting services and products throughout more than one sector with a focal point on innovation and sustainability.


Yingde
Shanghai, Hong Kong
2001
5,001-10,000
Provides customized gas solutions for industries with a focus on innovation, protection, and partnership.


Air Products Middle East
Dubai, UAE
1940
10,001+
Specializes in industrial gases and related offerings, together with carbon seize and hydrogen fueling, with a focal point on innovation and sustainability.



Industrial Gases Market Dynamics:
Technological Advancements And Innovations To Drive Industrial Gases Market

Technological improvements And Innovations driving the industrial gases market. The pressure swing adsorption (PSA) era is a prime instance of innovation using the enterprise. PSA structures offer a price-powerful and efficient approach for producing business gases via isolating ambient air into its additives underneath high pressure. This technology is specifically transformative inside the healthcare area, where cellular PSA structures are increasingly changing high-stress cylinders for onsite oxygen production. These transportable structures, which have been followed in navy hospitals and ambulances when you consider that 2015, reduce prices and mitigate dangers related to the transportation and storage of high-pressure cylinders, as a result enhancing safety and operational performance.

Similarly, improvements in fuel chromatography, inclusive of the Valmet MAXUM II, play an essential role in improving gas purity and meeting stringent requirements. This technology permits the detection of impurities at very low concentrations, which is vital for industries requiring excessive-purity gases, such as pharmaceuticals and electronics. Ongoing funding in research and improvement (R&D) is important for fostering innovation, exploring new marketplace possibilities, and reducing operational fees. Keeping hardware and automation systems updated guarantees that manufacturing procedures stay efficient and compliant with evolving industry requirements. As a result of those technological improvements and their programs throughout diverse sectors, increased the global demand for industrial gases substantially.

Rising Use Of Argon Gas In Optical Devices

The increasing use of argon fuel in optical devices is helping the industrial gases market. Argon, a noble fuel acknowledged for its superior inert homes, is essential in preserving the optical clarity of devices together with binoculars, telescopes, and digital camera lenses. Argon prevents condensation and fogging, by creating an inert environment that removes moisture and oxygen, making sure of a clean and crisp view. Its cost-effectiveness similarly provides to its enchantment, making it an appealing option for manufacturers and consumers alike. Unlike nitrogen, argon’s smaller molecular length and better inertness assure better overall performance in crucial optical applications, improving the general optical experience by minimizing distortion and aberration. The continuous scientific inquiry and technological advancements have solidified argon’s position in optics, highlighting its significance in ensuring the most beneficial overall performance.

This growing preference for argon in optical devices not simplest complements the person's experience but also
stimulates demand within the industrial gases market. As extra producers and customers recognize the blessings of argon, its adoption is expected to rise, bolstering the marketplace and using further innovations in the area.



Expanding Frozen Food Sector

The expanding frozen food market is significantly driving the industrial gases market. As consumers increasingly opt for convenient frozen food options, industrial gases like nitrogen and carbon dioxide become crucial. Nitrogen's cryogenic properties facilitate rapid freezing, which preserves the texture and nutritional value of food products. This rapid freezing helps maintain high-quality standards for frozen items. Meanwhile, carbon dioxide is essential for cold storage and transportation, ensuring that frozen foods remain at optimal temperatures throughout the supply chain. The growing demand for frozen food underscores the importance of these industrial gases in maintaining food quality, safety, and convenience. Their role is pivotal in meeting the evolving needs of the food industry, highlighting their critical contribution to the efficiency and effectiveness of the frozen food supply chain.

Industrial Gases Used in Food and Beverage Processing



Gas
Applications


Carbon Dioxide (CO2)
1. Fizzy drinks
2. Drying fruits and vegetables
3. Refrigeration (dry ice)
4. Stunning animals
5. Various other uses


Oxygen (O2)
1.Wastewater treatment
2.Oxygenation in aquacultures
3.Packaging gas mixtures for perishables


Nitrogen (N2)
1.Chocolate aeration
2.Protective atmosphere for packaging
3.Flushing transfer lines and storage tanks
4.Nitrogen sparging in wine



The Impact Of Environmental Concerns On The Industrial Gases Market

The environmental impact of industrial gases significantly influences the industrial gases market. The heightened awareness of their contribution to climate change, air pollutants, and health problems has brought about stricter regulations and multiplied demand for sustainable alternatives. This shift is using the market closer to cleanser technology, along with renewable power sources, energy-efficient techniques, and carbon capture and garage (CCS). Companies are increasingly investing in inexperienced chemistry and sustainable practices to reduce emissions of carbon dioxide (CO2), methane (CH4), and other harmful gases like sulfur dioxide (SO2) and nitrogen oxides (NOx). The need for compliance with stringent emission standards has also brought about innovations in business processes and the development of eco-friendly merchandise. As a result, the industrial gases market is experiencing a change, with a growing emphasis on reducing the environmental footprint of business activities. This fashion is predicted to hold as each government and purchaser prioritizes environmental sustainability, influencing the strategies and operations of agencies in the business gases area. The push toward mitigating the toxic impact of business gases is hence reshaping the marketplace, fostering the adoption of cleaner technology and sustainable practices at some stage in the forecast period.
Industrial Gases Market Segment Analysis:
Based on Type, the oxygen segment held the highest market share of industrial gases at over 28% in 2023 and is expected to grow at the highest CAGR during the forecast period. This is primarily attributable to its rapid use in increasing fuel thermal efficiency for coal gasification, purifying hazardous waste in water, and a number of healthcare sector functions. Nitrogen and carbon dioxide are both anticipated to increase significantly, with nitrogen leading the way. Nitrogen gas is utilized for a variety of applications in healthcare facilities, therefore it is expected considerable demand during the forecast period. Carbon dioxide, on the other hand, is a key ingredient utilized during oil extraction, implying that its use is expected to rise in oil-producing nations in order to get the lucrative resource. Along with increased demand for oxygen, nitrogen, and carbon dioxide, new industrial gas applications are expected to increase the use of argon, helium, hydrogen, propane, acetylene, and propylene, primarily through compressed cylinders, which account for more than 37% of distribution methods. However, many industrial gases are available in both on-site and bulk versions, further benefiting the end-users.


Industrial Gases Market Regional Insights:
As the industry continues to grow, the Asia Pacific region including South Korea, China, Japan, and India is expected to lead the global industrial gases market during the forecast period. This is mainly due to the economic boom of the expanding manufacturing and aerospace industry in these regions, as well as leading global shares of industrial gases accounting at nearly 38.46% as of 2023. India alone hosts over 300 small and medium-sized plants and approximately 25 large tonnage plants, supplying gases through pipelines, cryogenic transport tanks, and cylinders. The Indian gas industry's current annual turnover, excluding captive production, is about Rs. 3,000 crores (USD 650 million). Rapid industrialization is shifting demand patterns, with significant growth in food processing, agro-industries, healthcare, and technology sectors.

In addition, expansions in the steel industry, investments in the oil and gas sector, increasing demand for packaged foods, etc. further drive the India Industrial Gases Market size. This necessitates stringent quality control and efficient distribution networks. Major Indian players include BOC India, INOX Air Products Ltd., Jindal Praxair Oxygen Co. Ltd., Air Liquide India Holding P. Ltd., and Aims Industries Ltd hold a significant market share in the industrial gases market. The India Industrial Gases Market is expected to grow at a CAGR of 12.32% during the forecast period, with industrial oxygen alone growing at nearly 15-17% CAGR in the country. The industry's growth correlates with the steel and metallurgical sectors, with steel demand projected to rise by nearly 10% by March 2011, driven by infrastructure investments. Natural gas, comprising 9% of India's primary energy consumption, is expected to increase to 14% by 2010, with demand growing at 7.3% annually. Metals production and fabrication is expected to remain the largest industry for the industrial gases market, accounting for 31% of total demand by value.

However, North America with almost 30% of total revenue share held the second-dominant position in the global industrial gases market, though the United States accounted for a majority of the shares because of the many industrial gas suppliers that reside there. The U.S. is also expected to hold majority control over the North American Industrial Gases Market throughout the forecast period. The industrial gas industry, significantly contributes to the United States economy, accounting for 25% of the GDP and employing over 60,000 workers. The COVID-19 pandemic initially disrupted the market, but it rebounded significantly in 2021 and 2022. Factors such as resilient demand from the healthcare industry, the increasing importance of specialty gases, and the strong presence of manufacturers drive the United States Industrial Gases Market revenue growth.

Top 10 United States Industrial Gas Manufacturers



Company
City
State
Number of Employees


Linde Gas & Equipment, Inc.
Tonawanda
NY
1,100+


Enterprise Products Operating, LLC
Mont Belvieu
TX
500+


Airgas USA, LLC
Houston
TX
300+




Airgas USA, LLC - Great Lakes Region
Independence
OH
275+


Messer North America, Inc.
Stewartsville
NJ
250+


Air Products & Chemicals, Inc.
New Orleans
LA
200+


Norco, Inc.
Boise
ID
200+


Western International Gas & Cylinders, Inc.
Bellville
TX
200+


Joyson Safety Systems Acquisition, LLC
Moses Lake
WA
160+


Holston Gases, Inc.
Knoxville
TN
150+



The ramp-up of chemical and petrochemical industries in the Gulf Coast and Texas presents lucrative growth opportunities for industrial gases manufacturers and suppliers. In healthcare, industrial gases are crucial for various medical applications, including surgeries and respiratory treatments, and the U.S. leads globally in medical device production. The automotive industry also drives demand, with gases like oxygen and argon used in manufacturing and emissions control. The U.S. automotive market, the world's second-largest, is seeing growth in electric vehicle production, further boosting industrial gas demand.

The European industrial gases market has faced persistent challenges despite a significant drop in gas spot prices in 2023 from the peaks seen in 2022. The initial energy crisis led to a sharp 13.5% decline in EU gas consumption in 2022, with industrial demand dropping around 45% of this reduction. Although gas prices fell dramatically in 2023, industrial gas consumption continued to decrease, registering a 7% drop from 2022 levels. This ongoing weakness highlights a complex interplay of factors beyond mere price changes.



Key sectors such as chemicals, non-metallic minerals, and food and beverage industries are significant gas consumers in the EU. Despite the decrease in gas prices, these sectors have not fully recovered, with overall industrial gas use still 21% lower in 2023 compared to pre-crisis levels. This is attributed to several factors: price risk mitigation strategies like hedging and fixed contracts, which only offered temporary relief; substantial but insufficient energy subsidies; and increased import substitution, particularly in energy-intensive industries like chemicals and steel. The broader economic downturn, including declining GDP growth and weak industrial output, has also contributed to the persistent demand weakness.

The EU's macroeconomic challenges and ongoing high energy costs compared to historical norms have further reduced industrial activity. The forward curve for natural gas prices suggests that they will remain elevated compared to historical averages, creating continued pressure on European industries. Additionally, the EU's long-term decarbonization goals, including the REPowerEU plan which aims to reduce gas demand by promoting electrification and hydrogen use, are likely to suppress industrial gas demand during the forecast period. Thus, while there is some partial recovery, the industrial gases market in Europe remains under significant strain, with a slow and uncertain path to full recovery.
Global Industrial Gases Market Scope: Inquire before buying



Global Industrial Gases Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
USD 99.98 Bn.


Forecast Period 2024 to 2030 CAGR:
6.72%
Market Size in 2030:
USD157.63 Bn.


 Segments Covered:
by Type
Oxygen
Carbon Dioxide
Nitrogen
Hydrogen
Noble Gas
Helium
  Argon
  Others (Neon, Krypton, Xenon, and Radon)
Others


by End Use Industry
Cement Industry
Mining Industry
Power Generation
Chemical Industry
Metallurgy
Others



Industrial Gases Market, by region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria, Turkey, Russia and Rest of Europe)
Asia Pacific (China, India, Japan, South Korea, Australia, ASEAN and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina, Columbia and Rest of South America)
Leading Industrial Gases Market Key Players:
1. AGA AB
2. Airgas
3. Air Liquide
4. Air Products and Chemicals
5. BASF SE
6. BOC
7. Gulf Cryo
8. The Linde Group
9. Messer Group
10. MOX-Linde Gases
11. Praxair
12. Nippon Gases
13. Matheson Tri-Gas
14. Rotarex
15. Universal Industrial Gases
16. Dubai Industrial Gases
17. Bristol Gases
18. INOX-Air Products Inc.
19. Iwatani Corp.
20. SOL Group

FAQs:
1. What are the growth drivers for the Industrial Gases market?
Ans. The rising demand from manufacturing industries, advancements in technology, and increased use in healthcare and energy sectors are expected to be the major drivers for the Industrial Gases market.

2. What are the factors restraining the global Industrial Gases market growth during the forecast period?
Ans. The high operational costs, regulatory challenges, and fluctuating raw material prices are expected to be the major factors restraining the global Industrial Gases market growth during the forecast period.

3. Which region is expected to lead the global Industrial Gases market during the forecast period?
Ans. North America is expected to lead the global Industrial Gases market during the forecast period.

4. What is the projected market size and growth rate of the Industrial Gases Market?
Ans. The Industrial Gases Market size was valued at USD 99.98 Billion in 2023 and the total Industrial Gases revenue is expected to grow at a CAGR of 6.72% from 2024 to 2030, reaching nearly USD 157.63 Billion by 2030.

5. What segments are covered in the Industrial Gases Market report?
Ans. The segments covered in the Industrial Gases market report are Type, End-use Industry, and Region.