Industrial Gases Market Size (2025 – 2030)

The Industrial Gases Market was valued at USD 119.25 Billion in 2024 and is projected to reach a market size of USD 177.96 Billion by the end of 2030. Over the forecast period of 2025-2030, the market is projected to grow at a CAGR of 6.9%.

Key Market Insights:

Producers are strengthening localized supply frameworks to minimize risks associated with logistics, while major energy consumers are entering into long-term power agreements that provide cost stability over multiple decades. The geographical shift in semiconductor manufacturing is redirecting demand for high-purity nitrogen and argon toward North America and Europe, despite Asia maintaining its dominant share in total volume. Concurrently, new investments are flowing into helium extraction initiatives, carbon capture technologies, and compact air-separation systems, attracting interest from established industry players as well as infrastructure-focused investors.

Air Liquide stands out as a key player in the international industrial gases sector, known for its broad operational footprint, commitment to innovation, and diverse customer network. As one of the top industrial gas manufacturers worldwide, it competes with other major entities such as Linde. The company delivers a comprehensive portfolio of gases and associated services across various industries, including manufacturing and healthcare.

Market Drivers:

Increasing Adoption of Hydrogen as an Energy Source Fuels Market Expansion.

Hydrogen is emerging as a flexible and environmentally friendly energy carrier, generating no direct carbon emissions when utilized as a fuel source. With global efforts to curb greenhouse gas emissions gaining momentum, hydrogen presents a credible alternative to conventional fossil fuels, particularly in high-emission sectors such as transportation, industrial manufacturing, and power generation. Its ability to support decarbonization without necessitating significant modifications to existing infrastructure enhances its attractiveness.

In March 2025, the Government of India initiated pilot programs to introduce hydrogen as a fuel in commercial buses and freight trucks, aligning with national strategies to reduce carbon emissions. These modes of transport demand energy-dense fuels, and hydrogen meets this requirement by delivering high energy efficiency without the environmental drawbacks of traditional fuels like diesel or gasoline.

Although traditional hydrogen production methods—such as steam methane reforming—are associated with high carbon emissions, the advent of “green hydrogen” is reshaping the industry. Green hydrogen is produced via water electrolysis powered by renewable energy sources, including solar and wind, resulting in a completely emission-free process. Both public and private sectors are ramping up investments in green hydrogen initiatives, which are poised to significantly accelerate growth in the industrial gases market.

Growing Application of Industrial Gases in Healthcare Sector Supports Market Expansion.

The use of industrial gases in the healthcare industry continues to expand, with gases such as oxygen, nitrogen, nitrous oxide, carbon dioxide, and various specialty gases playing pivotal roles across a wide array of medical applications. These gases are integral to patient care, pharmaceutical production, clinical research, and diagnostic procedures, supporting numerous therapies and healthcare operations.

In January 2025, Air Liquide entered into an agreement with 20 hospitals across Europe to supply low-carbon oxygen and nitrogen, contributing to sustainability goals by reducing the carbon footprint of healthcare operations. Oxygen remains a fundamental medical gas, particularly for respiratory therapies amid increasing cases of respiratory illnesses. It is routinely used in emergency departments, operating theatres, and intensive care units to manage hypoxia and stabilize patients during surgical interventions.

Nitrogen serves a critical function in the pharmaceutical industry, where it is used to preserve the integrity of products by preventing oxidation and microbial contamination—especially in the production of vaccines and biologic drugs. In its liquid form, nitrogen is employed in cryosurgical procedures for the removal of abnormal tissue and in the preservation of biological samples.

Other essential gases include helium, used in the cooling systems of MRI machines; nitrous oxide, commonly applied for anesthesia and pain relief; and carbon dioxide, which is utilized in minimally invasive laparoscopic surgeries. Additionally, specialty gases such as argon, carbon dioxide, and nitrogen are vital to life sciences and biotechnology research.

The rising demand for medical gases is further supported by demographic trends such as an aging global population and expanded access to healthcare services, both of which continue to drive growth within the industrial gases market.

Market Restraints and Challenges:

Strict Regulatory Framework Governing Gas Manufacturing, Storage, and Distribution Poses Challenges to Market Growth.

Industrial gases are required to adhere to stringent purity standards, particularly in sectors such as healthcare, food processing, and electronics manufacturing. Regulatory authorities—including the U.S. Food and Drug Administration (FDA) and the European Medicines Agency (EMA)—enforce comprehensive regulations to ensure the safety and quality of these gases. Meeting these regulatory requirements demands advanced production technologies and robust quality assurance protocols, which significantly increase operational costs. As a result, these strict compliance obligations present barriers to entry for emerging market participants and can restrain overall market growth.

Market Opportunities:

Adoption of Sustainable and Green Technologies Set to Drive Market Expansion.

Carbon Capture and Storage (CCS) is a critical technology designed to mitigate carbon dioxide (CO₂) emissions generated by industrial activities, including power generation, cement production, and steel manufacturing. These industries are significant contributors to global CO₂ emissions, which play a central role in climate change. CCS addresses this challenge by capturing CO₂ directly at the source, thereby preventing its release into the atmosphere.

The standard CCS process involves three key steps: capturing CO₂ at the emission point, transporting it through pipelines, and securely storing it in underground geological reservoirs, such as depleted oil and gas fields or deep saline formations. This method provides an effective solution for reducing emissions from high-output industrial facilities.

Industrial gas companies play a pivotal role in supporting CCS initiatives. They are responsible for supplying high-purity CO₂ and developing advanced technologies that enable efficient capture, purification, and preparation of CO₂ for long-term storage. In addition to CO₂, gases such as nitrogen and argon are used in various auxiliary functions within the CCS process, contributing to operational safety and process optimization during capture and transportation.

INDUSTRIAL GASES MARKET REPORT COVERAGE:

Industrial Gases Market Segmentation:

Industrial Gases Market Segmentation By Product:

• Oxygen
• Hydrogen
• Nitrogen
• Acetylene
• Carbon dioxide
• Argon

The oxygen product segment led the market, accounting for the largest share—29.43%—of total industry revenue. Oxygen finds extensive use across various applications, including metal fabrication, medical treatments, steel production, and copper smelting. One of its key advantages is its ability to enhance the thermal efficiency of fuels, making it a valuable component in processes aimed at maximizing energy output.

In addition, oxygen is employed in the remediation of hazardous waste, treatment of contaminated water, and coal gasification technologies. Within the pulp and paper industry, it serves as an environmentally friendly alternative to chlorine, contributing to reduced pollution levels.

Meanwhile, nitrogen is experiencing the fastest growth rate in the market due to its widespread use in the medical and pharmaceutical sectors. The global COVID-19 pandemic significantly increased demand for critical medical supplies and life-saving equipment, further driving nitrogen consumption in healthcare settings to support patient care and infection control efforts.

Industrial Gases Market By Application:

• Healthcare
• Metallurgy & GlassManufacturing
• Retail
• Food & Beverages
• Chemicals & Energy
• Others

The cylinder segment led the market, securing the highest share of industry revenue.  It remains the most favored distribution method among consumers. This distribution model is commonly employed by independent gas distributors who procure gases from producers and compress them within their packaging facilities. Additionally, numerous gases are supplied in their liquid state at ambient temperatures.

The bulk distribution segment, also known as Liquid Gas Transport, held the second-largest market share. This method involves transporting gases in liquefied or natural form via dedicated road trailers or long-distance pipelines. Bulk distribution is generally preferred when gas demand surpasses the capacity of packaged cylinders but does not justify full onsite production. It offers greater efficiency than other delivery methods, ensuring a reliable and continuous supply of gases.

Onsite distribution is considered the most advantageous method for manufacturing companies such as Air Products & Chemicals and Air Liquide, as it significantly reduces transportation expenses. These companies often integrate onsite production facilities at customer refueling stations to optimize operational efficiency. The supply systems are designed using standardized components, enabling maximum cost-effectiveness and streamlined maintenance.

Industrial Gases Market By Distribution:

• On-site
• Cylinder (Merchant)
• Bulk (Liquid Gas Transport)

The manufacturing industry application segment held the largest market share and is anticipated to register the second-highest growth rate during the forecast period. For example, carbon dioxide is extensively utilized in the rubber industry as dry ice for non-abrasive cleaning of rubber molds. Manufacturers of molded rubber products rely on this method to minimize production downtime as well as reduce maintenance and labor expenses. Compared to traditional cleaning techniques, the use of carbon dioxide in mold and tool cleaning offers several operational advantages.

The healthcare sector is anticipated to experience the highest growth rate during the forecast period. Global governments are significantly increasing investments in medical research, as pharmaceutical companies and medical institutions focus on developing vaccines and treatments to combat the novel coronavirus. This surge in healthcare initiatives is propelling the demand for industrial nitrogen, a critical gas in medical applications. Additionally, carbon dioxide is widely employed in cryopreservation processes, enabling the long-term storage of tissues, cellular samples, gametes, and embryos at extremely low temperatures.

Industrial Gases Market Segmentation: Regional Analysis:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Asia-Pacific maintains its market dominance, driven by strong petrochemical, ferrous metallurgy, and electronics industries. China’s integrated steel production capacity, combined with India’s substantial infrastructure investments, contributed to over 600 tons per day of new air separation unit (ASU) capacity additions in the past year. Regional governments are actively supporting carbon capture pilot programs and developing green hydrogen export corridors, aligning industrial gas flows with their respective net-zero emission targets. The competitive landscape is characterized by joint ventures between global industry leaders and domestic companies, facilitating localized production while maintaining world-class engineering standards.

In North America, a mature network of pipelines supplies Gulf Coast refineries, complemented by flexible merchant-liquid distribution systems serving the Midwest and Northeast, resulting in significant market volumes. Inflation reduction incentives aimed at clean-energy projects are accelerating the development of low-carbon ammonia and CO₂ sequestration initiatives, both of which require specialized industrial gas inputs. Additionally, Canada is establishing itself as a niche helium hub, providing market redundancy that supplements the long-standing dominance of the U.S. Bureau of Land Management’s helium storage system.

Europe remains a center of value-added activity, with a focus on green hydrogen corridors and food-grade carbon capture technologies. Industry leaders such as Air Liquide and Linde are aligning renewable power purchase agreements with proton-exchange membrane electrolyzer installations to support decarbonization efforts in maritime shipping and long-haul trucking sectors. Stricter regulations on F-gases and methane emissions are encouraging refrigeration original equipment manufacturers (OEMs) to transition toward natural refrigerants, further broadening the industrial gas portfolio within the region.

Industrial Gases Market COVID-19 Impact Analysis:

The COVID-19 pandemic had a profound impact on the global industrial gases market, disrupting supply chains, production processes, and demand across multiple industries. Demand for gases such as oxygen, nitrogen, and carbon dioxide fluctuated significantly depending on the sector. The healthcare industry experienced a dramatic increase in oxygen demand, driven by the urgent need for ventilators and respiratory support for COVID-19 patients, resulting in a short-term surge. In contrast, sectors such as manufacturing and oil & gas saw a decline in demand as operations were curtailed due to lockdown measures and reduced workforce availability.

The industrial gases sector is heavily dependent on global supply chains for raw materials, production, and distribution. Pandemic-related lockdowns, border closures, and logistical challenges caused disruptions in maintaining consistent supplies. These issues were particularly acute during the early stages of the pandemic, leading to regional shortages in gas availability. Additionally, health protocols and workforce restrictions at production and distribution facilities further constrained operational capacity. Companies were required to adopt stringent safety measures, which impacted productivity and contributed to increased operational expenses.

Latest Trends and Developments:

Agriculture is a significant source of greenhouse gas emissions, with fertilizer production—especially ammonia synthesis derived from natural gas—being a primary contributor. As a result, there is growing investment and attention directed toward the production of "green ammonia," which leverages renewable energy-driven electrolysis to generate hydrogen, a critical component in ammonia manufacturing.

Key Players in the Market:

1. Air Liquide
2. INOX-Air Products Inc.
3. Air Products Inc.
4. Linde plc
5. Iwatani Corp.
6. SOL Group
7. Messer
8. Strandmøllen A / S
9. Taiyo Nippon Sanso Corp.
10. Alchemie Gases & Chemicals Pvt. Ltd.

Market News:

May 2024 – Linde announced the signing of a long-term agreement with H2 Green Steel to supply industrial gases for the world’s first large-scale green steel production facility. As part of this collaboration, Linde plans to invest approximately USD 150 million to design, build, own, and operate an on-site air separation unit (ASU) located in Boden, northern Sweden.