Industrial Gases Market Size (2024 – 2030)

The Global Industrial Gases Market was valued at USD 89.5 billion in 2023 and is projected to grow at a CAGR of 5.7% from 2024 to 2030. By 2030, the market is expected to reach USD 132 billion. The rising demand across various industries such as healthcare, manufacturing, and electronics is driving market growth.

The industrial gases market encompasses the production, distribution, and sale of gases used in various industries, including manufacturing, healthcare, food and beverage, chemicals, and electronics. These gases, such as oxygen, nitrogen, hydrogen, carbon dioxide, and noble gases, are essential for a wide range of applications, from welding and cutting in manufacturing to providing life support in medical settings. The market is driven by increasing industrialization, technological advancements, and growing demand for energy-efficient solutions. Additionally, the shift towards cleaner energy sources and the development of new applications in emerging industries like renewable energy and electronics are further fueling the growth of the industrial gases market.

Key Market Insights:

The healthcare industry is a significant contributor to market growth due to the increasing demand for oxygen and other gases.

Asia-Pacific dominates the market, followed by North America and Europe.

Technological advancements in gas production and storage are key factors driving the market. Furthermore, the development of advanced gas storage and transportation solutions, such as liquid hydrogen carriers and high-pressure gas cylinders, enhances the efficiency and safety of industrial gas supply chains

Global Industrial Gases Market Drivers:

Increasing Demand in the Healthcare Industry is driving the market growth

The healthcare industry is one of the primary drivers of the Global Industrial Gases Market. The growing demand for medical gases such as oxygen, nitrous oxide, and nitrogen is significantly contributing to market growth. Oxygen is extensively used in medical treatments, including respiratory therapies and anesthesia. The COVID-19 pandemic highlighted the critical role of oxygen in healthcare, leading to increased investments in oxygen production and storage facilities. Moreover, the aging population and rising incidence of chronic diseases are driving the demand for medical gases, thereby fueling market growth. Additionally, the growing use of industrial gases in pharmaceuticals for drug manufacturing and preservation further boosts the market. The healthcare sector's increasing reliance on industrial gases is expected to continue driving the market during the forecast period.

Expanding Applications in Manufacturing and Electronics Industries is driving the market growth.

The expanding applications of industrial gases in the manufacturing and electronics industries are key drivers of the market. Industrial gases such as nitrogen, oxygen, argon, and hydrogen are widely used in manufacturing processes for welding, cutting, and metal fabrication. The growing automotive and construction industries are increasing the demand for these gases. In the electronics industry, industrial gases are crucial in the production of semiconductors, flat-panel displays, and solar panels. The increasing adoption of electronics and the growth of the renewable energy sector are driving the demand for industrial gases. The continuous expansion of these industries and the growing use of industrial gases in various applications are expected to drive market growth.

Technological Advancements in Gas Production and Storage is driving the market growth.

Technological advancements in gas production and storage are significantly driving the Global Industrial Gases Market. Innovations in gas separation technologies, such as cryogenic distillation and pressure swing adsorption, have improved the efficiency and purity of industrial gases. These advancements have enabled the large-scale production of high-purity gases, meeting the growing demand across various industries. Moreover, developments in gas storage technologies, including advanced cylinder designs and bulk storage solutions, have enhanced the safety and convenience of industrial gas storage and transportation. The increasing adoption of advanced gas production and storage technologies is expected to drive the growth of the industrial gases market.

Global Industrial Gases Market Challenges and Restraints:

Stringent Regulatory and Environmental Policies is restricting the  market growth.

The stringent regulatory and environmental policies governing the production, storage, and transportation of industrial gases pose significant challenges to the market. Industrial gases are subject to various regulations related to safety, environmental protection, and quality standards. Compliance with these regulations requires substantial investments in infrastructure, technology, and training. Additionally, the production of certain industrial gases, such as carbon dioxide and nitrogen oxides, contributes to greenhouse gas emissions, leading to increased scrutiny and regulation by environmental authorities. The need to comply with these regulations can increase operational costs and limit the expansion of industrial gas production facilities. The growing emphasis on reducing carbon emissions and promoting sustainability is expected to present challenges to the industrial gases market.

Fluctuations in Raw Material Prices is  restricting the  market growth

Fluctuations in raw material prices, particularly for natural gas, are significant challenges for the Global Industrial Gases Market. Natural gas is a key raw material used in the production of industrial gases such as hydrogen and nitrogen. Price volatility in the natural gas market can impact the production costs of industrial gases, affecting profit margins for gas manufacturers. Additionally, the global energy market's uncertainty, driven by geopolitical tensions, supply chain disruptions, and changing demand patterns, further exacerbates price fluctuations. The increasing adoption of renewable energy sources and the transition to a low-carbon economy may also affect the availability and cost of natural gas. Addressing the challenges posed by raw material price fluctuations is crucial for the sustained growth of the industrial gases market.

Market Opportunities:

The Global Industrial Gases Market presents significant opportunities for growth and innovation. One of the key opportunities lies in the increasing demand for industrial gases in emerging economies. Rapid industrialization, urbanization, and infrastructure development in countries such as China, India, and Brazil are driving the demand for industrial gases in manufacturing, construction, and energy sectors. Moreover, the growing healthcare infrastructure in these regions presents opportunities for the increased adoption of medical gases. The expansion of renewable energy projects, such as hydrogen production for fuel cells, offers growth prospects for the industrial gases market. Additionally, the rising focus on sustainability and reducing carbon emissions presents opportunities for developing and adopting green hydrogen and carbon capture technologies. The continuous advancements in gas production and storage technologies, along with the very expanding applications of industrial gases across various industries, are expected to drive the market's growth.

INDUSTRIAL GASES MARKET REPORT COVERAGE:

Industrial Gases Market Segmentation: By Type

• Oxygen

• Nitrogen

• Hydrogen

• Carbon Dioxide

• Argon

• Others

Oxygen is the most dominant type of industrial gas due to its extensive use in healthcare, metal fabrication, and chemical processing. The growing demand for oxygen in medical treatments and the steel industry drives the segment's growth.

Industrial Gases Market Segmentation: By Application

• Healthcare

• Manufacturing

• Electronics

• Energy

• Food & Beverage

• Others

The healthcare industry is the most dominant application segment for industrial gases. The increasing demand for medical gases such as oxygen and nitrous oxide in hospitals, clinics, and emergency services drives the segment's growth.

Industrial Gases Market Segmentation: By Region

• Asia-Pacific

• North America

• Europe

• South America

• Middle East and Africa

Asia-Pacific is the most dominant region in the Global Industrial Gases Market. The region's rapid industrialization, growing healthcare infrastructure, and increasing demand for electronics and automotive products contribute to its market dominance. The presence of major manufacturing hubs in countries such as China, Japan, and South Korea further drives the market in Asia-Pacific.

COVID-19 Impact Analysis on the Industrial Gases Market:

The COVID-19 pandemic had a mixed impact on the Global Industrial Gases Market. The healthcare sector experienced a surge in demand for medical gases, particularly oxygen, due to the increased number of COVID-19 patients requiring respiratory support. This led to a temporary spike in the production and supply of medical gases. However, other industries such as manufacturing, automotive, and construction faced disruptions due to lockdowns, supply chain interruptions, and reduced workforce availability, leading to a decline in demand for industrial gases. The pandemic also highlighted the importance of resilient supply chains and the need for reliable gas supply infrastructure. As the global economy recovers and industries resume operations, the demand for industrial gases is expected to rebound. The increasing focus on healthcare infrastructure development and the expansion of renewable energy projects post-pandemic are expected to drive the recovery and growth of the industrial gases market.

Latest Trends/Developments:

The Global Industrial Gases Market is witnessing several latest trends and developments that are shaping its growth and dynamics. One notable trend is the increasing adoption of green hydrogen production technologies. Green hydrogen, produced using renewable energy sources such as wind and solar, is gaining traction as a sustainable alternative to conventional hydrogen production methods. The growing emphasis on reducing carbon emissions and promoting sustainability drives the adoption of green hydrogen in various industries, including transportation, energy, and chemicals. Another significant development is the increasing use of industrial gases in carbon capture and storage (CCS) technologies. CCS involves capturing carbon dioxide emissions from industrial processes and storing them underground or utilizing them in other applications. The adoption of CCS technologies is expected to play a crucial role in achieving global climate goals and reducing greenhouse gas emissions. The latest trends and developments in the industrial gases market contribute to the advancement of sustainable energy solutions and the growth of the market.

Key Players:

1. Air Liquide S.A.

2. Linde plc

3. Praxair, Inc.

4. Messer Group GmbH

5. Air Products and Chemicals, Inc.

6. Taiyo Nippon Sanso Corporation

7. Yingde Gases Group Company Limited

8. Gulf Cryo

9. Nippon Gases

10. SOL Group