Medical Gases Market - By Gas Type (Pure Gases {Oxygen, Carbon Dioxide, Helium}, Gas Mixtures {Medical Air, Nitrous Oxide}), By End-use (Hospitals, Ambulatory Surgical Units, Specialized Clinics) & Forecast, 2021-2027

Medical Gases Market - By Gas Type (Pure Gases {Oxygen, Carbon Dioxide, Helium}, Gas Mixtures {Medical Air, Nitrous Oxide}), By End-use (Hospitals, Ambulatory Surgical Units, Specialized Clinics) & Forecast, 2021-2027

Medical Gases Market Size

Medical Gases Market size was valued at over USD 14.1 billion in 2020 and is estimated to grow with a 6.5% CAGR between 2021 and 2027. Several countries are noted to establish a stronger healthcare infrastructure. These are also observed to upgrade the existing healthcare facilities in order to provide a better quality of healthcare services to patients. Such activities compel the end-users to abide by the regulatory requirements to set up an efficient medical gas system and employing suitable medical gases for appropriate procedures. This is one of the prime factors driving the demand in the industry.
 

Medical gases refer to the gases that are processed, packaged for medical applications. Medical gases are employed for anesthesia, diagnostic and therapeutic purposes in a healthcare facility.
 

Further, medical gases play a crucial role in the healthcare sector. During the advent of COVID-19, medical gases, particularly oxygen, were noted to witness increased demand. Medical oxygen is identified as one of the essential medicines during the treatment of coronavirus. However, with an unexpectedly increasing demand from all regions, production and supply related limitations were noted to cause a shortage in the market in 2020. Further, as the demand stabilized and suppliers upscaled their production capabilities, and efficient demand-supply scenario in the industry is expected to develop in the coming years.
 

Although, coronavirus restrictions have limited several other applications of medical gases, a nearly 10% increase in the supply is stated by the healthcare facilities, acting as a boon to the industry. This trend is predicted to continue in the industry over the short-term forecast period until the pandemic related restrictions are exercised globally.
 

Medical Gases Market Trends

As surgeries form an essential part of the healthcare sector, increasing or decreasing surgical volumes is noted to impact the demand for medical gases. Rising prevalence of cardiovascular arrest, chronic obstructive pulmonary disease and other disorders compel the healthcare practitioners to prescribe medical oxygen to patients for life support, thereby complementing the industry growth. Further, cryosurgeries are performed to remove cancer as well as skin lesions. According to the American Cancer Society, it is poised that over 1.7 million new cancer patients were diagnosed in 2019 in U.S. alone. With surgery being one of the most common treatment methods for different types of cancers, the increasing prevalence of cancer is projected to contribute considerably to the market expansion.
 

Medical Gases Market Analysis

Different markets have showcased an impending global shortage of helium. Hence, healthcare facilities are compelled to switch to other alternatives such as nitrogen, hampering the market potential of helium gas. While the majority of helium is extracted during natural gas extraction, market players have stated the cost-related implications for isolating and storing helium. The helium shortage emerged in the market during late 2000s and has persisted ever since. As majority of current helium supply in the market is dependent on a handful of sources, depending on helium proves to be risky for end-users in the market.
 

The pure gases segment dominated more than 56.4% of the medical gases market share in 2020 led by the growing demand for oxygen. As hospitals increase the number of ventilator beds, the demand for oxygen is estimated to expand in tandem with it. Further, significant growth noted by the development of ambulatory surgical units is another factor causing an upsurge in the demand for pure gases market.
 

The hospitals segment accounted for USD 8.5 billion in 2020. Hospitals have been the primary source of treatment globally and represent a sizeable proportion of healthcare facilities in virtually every country. Hospitals are also reported to perform majority of surgeries, thus, impelling the demand for medical gases. Medical gases are one of the basic requirements of a hospital, irrespective of its size. Hence as newer hospitals are established in remote areas, the demand for medical gases in the industry is expected to remain driven throughout the forecast period. As the existing healthcare facilities undergo upgradation, the existing demand for medical gases will also remain fuelled during the forecast timeline.
 

North America medical gases market size was USD 4.9 billion in 2020 due to the relatively better quality of healthcare facilities in U.S. and Canada as well as the high surgery rates. The high hospital beds occupancy rate is also one of the contributing factors to the regional growth. According to the American Hospital Association, there were nearly 920,000 staffed beds in U.S. hospitals registering over 36 million admissions in 2019 alone. The high disease prevalence rate and an increasing geriatric population significantly impact the consumption of medical gases in the region. These factors contribute to the optimistic forecast outlook for the North America region.
 

Medical Gases Market Share

Prominent companies operating in the market include

• Linde Group plc
• Air Liquide S.A.
• Air Products and Chemicals, Inc
• Gulf Cryo.

A balanced pool of organic and inorganic growth strategies is observed across market participants. Several organizations are resorting to brownfield investments by acquiring competitors to strengthen their market presence.
 

Some of the recent industry developments

• In October 2020, nexAir, industrial and medical gas distributor in southern U.S., acquired the business operations of Atlanta Medical Gases, LLC. The acquisition complements nexAir’s strategic presence in Atlanta, U.S. while expanding its customer base.
   
• In July 2020, Air Liquide S.A. announced the agreement to acquire the biggest oxygen production facility in the world located in South Africa. Air Liquide entered a negotiation agreement with Sasol to acquire and operate the facility. The move was targeted at increasing its overall production capacity, thus strengthening its industry positioning.
   

The medical gases market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2016 to 2027, for the following segments

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Market, By Gas Type

• Pure Gases
  • Oxygen
  • Carbon Dioxide
  • Helium
  • Others
• Gas Mixtures
  • Medical Air
  • Nitrous Oxide
  • Others

Market, By End-use

• Hospitals
• Ambulatory surgical units
• Specialized clinics
• Others

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East & Africa
  • South Africa
  • Saudi Arabia