India Industrial Gases Market By Product Type (Oxygen, Nitrogen, Hydrogen, Carbon Dioxide, Argon and Helium), By Mode of Distribution (Bulk & Cylinder, Tonnage/Gaseous, Packaged), By Region, Competition, Forecast and Opportunities, 2020-2030F
Published Date: December - 2024 | Publisher: MIR | No of Pages: 320 | Industry: Chemicals | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationIndia Industrial Gases Market By Product Type (Oxygen, Nitrogen, Hydrogen, Carbon Dioxide, Argon and Helium), By Mode of Distribution (Bulk & Cylinder, Tonnage/Gaseous, Packaged), By Region, Competition, Forecast and Opportunities, 2020-2030F
| Forecast Period | 2026-2030 |
| Market Size (2024) | USD 3.06 Billion |
| CAGR (2025-2030) | 4.92% |
| Fastest Growing Segment | Hydrogen |
| Largest Market | West India |
| Market Size (2030) | USD 4.04 Billion |
Market Overview
India Industrial Gases Market was valued at USD 3.06 Billion in 2024 and is expected to reach USD 4.04 Billion by 2030 with a CAGR of 4.92% during the forecast period. Industrial gases, including oxygen, carbon dioxide, argon, nitrogen, and hydrogen, play a critical role in various industrial processes and applications. These gases are vital across multiple sectors such as manufacturing (including automotive, steel, and cement), healthcare, chemical processing, and energy production. They are typically delivered in large volumes and come in various forms, such as compressed gases, liquids, and solids.
Companies are increasingly investing in research and development to create new gas mixtures, enhance efficiency, and develop sustainable solutions. The rising influx of foreign direct investment (FDI) and domestic investments in manufacturing and infrastructure is driving the demand for industrial gases. Government initiatives like the Make in India program are supporting industrial growth across sectors that depend on these gases.
There is a growing emphasis on green and sustainable technologies, including carbon capture and storage (CCS) and green hydrogen fuel. This focus is fueling innovation in gas production and application. Companies are also seeking ways to recycle gases and manage waste effectively to reduce environmental impact. Advances such as pressure swing adsorption (PSA), and cryogenic distillation are enhancing the efficiency and cost-effectiveness of gas production.
Customization of gas mixtures for specific industrial processes, such as specialized welding gases or high-purity gases for electronics, is increasingly in demand. Additionally, heightened awareness and regulatory requirements concerning safety and environmental impact are influencing market practices. Robust infrastructure for transportation and distribution is essential for market growth. Fluctuations in raw material prices can affect profitability. The integration of digital technologies in gas monitoring, control systems, and remote management is improving operational efficiency and safety, with smart sensors and IoT playing a key role.
The Indian industrial gases market is set for expansion, driven by industrial growth, technological advancements, and changing consumer needs. Strategic investments in infrastructure and technology will be crucial for companies to leverage emerging opportunities in this growing market.
Key Market Drivers
Growth of Healthcare sector
According to the Economic Survey 2022-23, India’s public healthcare spending reached 2.1% of GDP in FY23 and 2.2% in FY22, up from 1.6% in FY21.
Government initiatives such as Ayushman Bharat and other programs aimed at enhancing healthcare access and quality often require substantial investments in medical gases and related infrastructure. The COVID-19 pandemic underscored the essential role of medical gases in patient care, prompting increased investments in healthcare infrastructure and gas supply systems. Additionally, the Indian government plans to introduce a USD 6.8 billion credit incentive program to further strengthen the country’s healthcare infrastructure.
The growth in new hospitals, clinics, and diagnostic centers across both urban and rural areas is driving the need for medical gases. Oxygen, crucial for respiratory care, is used extensively in hospitals for emergency situations, surgeries, and treating chronic respiratory conditions. Medical air and nitrogen are employed in various healthcare applications, including powering medical equipment and preserving medical supplies, while carbon dioxide is used in procedures like laparoscopic surgeries to facilitate better visualization. The emphasis on improving patient outcomes and care quality is increasing the demand for advanced medical gases and systems.
As healthcare facilities continue to expand and modernize, the need for high-quality, reliable medical gases and delivery systems will grow, positioning the healthcare sector as a key driver of growth in the industrial gases market.
Rising Focus on clean energy
The emphasis on clean energy is profoundly affecting the industrial gases market in India, driving increased demand for gases used in hydrogen production, carbon capture, renewable energy technologies, and sustainable industrial practices. Government policies and incentives designed to promote clean energy and reduce carbon emissions are fostering growth in the industrial gases sector. Carbon capture and storage technologies, aimed at lowering greenhouse gas emissions from industrial activities, are increasing the need for gases involved in capturing, transporting, and storing carbon dioxide.
In January 2024, the Union Ministry of New and Renewable Energy (MNRE) issued guidelines and incentives under the National Green Hydrogen Mission to promote the acquisition of green hydrogen. The USD 2.09 billion allocated for the Strategic Interventions for Green Hydrogen Transition (SIGHT) program aims to enhance domestic electrolyser manufacturing and green hydrogen production, with incentives designed to reduce costs and accelerate growth.
In 2023, INOX Air Products secured a 20-year contract with First Solar, a prominent American solar technology firm and global leader in photovoltaic (PV) solar energy solutions. This partnership involves overseeing the design, engineering, installation, and operation of a Cryogenic Nitrogen Generator, which will provide high-purity nitrogen for First Solar’s new manufacturing facility in Pillaipakkam, Tamil Nadu.
Key Market Challenges
Price Volatility
Price volatility poses a significant challenge in the Indian industrial gases market, affecting cost management, pricing strategies, and overall profitability. The prices of raw materials used in gas production, such as natural gas, air, and other chemicals, can fluctuate unpredictably. For instance, in July 2024, the government raised the price of natural gas to USD 8.51 per metric million British thermal unit (mmBtu) for August, up from USD 8.24 in July. This volatility can make it difficult for companies to pass increased production costs onto customers due to competitive pressures, potentially eroding profit margins.
Intense market competition compels companies to carefully manage pricing. Frequent adjustments in response to changing raw material costs can complicate pricing strategies and strain customer relationships. Additionally, price volatility introduces uncertainty into capital investment decisions. Companies may delay or reconsider investments in new technologies or infrastructure due to concerns about future price stability, which can affect projected returns on investment (ROI).
Price fluctuations can impact on contract negotiations with customers and suppliers, making long-term contracts or fixed-price agreements more complex. To address these challenges, companies must implement effective cost control measures to mitigate the effects of price swings and maintain financial stability.
Infrastructure Constraints
Infrastructure constraints pose a major challenge in the Indian industrial gases market, affecting production, distribution, and overall efficiency. Insufficient transportation networks and logistics infrastructure can impede the smooth movement of industrial gases from production sites to end-users. Issues such as poor road conditions, limited rail connectivity, and disruptions in the supply chain including traffic congestion and inadequate warehousing can delay gas delivery, impacting both customer satisfaction and operational efficiency. There is also a lack of advanced storage facilities for industrial gases, particularly in remote or underserved areas. This shortfall can affect the availability and reliability of gas supplies. Proper storage solutions are essential for safe gas handling, and inadequate infrastructure can introduce safety risks and lead to regulatory compliance issues and higher operational costs.
Outdated or inefficient production technologies can decrease overall efficiency and increase production costs. Upgrading to modern technologies necessitates significant capital investment. Additionally, uneven infrastructure development across different regions can lead to inconsistent service levels and potential market imbalances. Navigating the regulatory approvals and securing necessary permits for infrastructure projects can be both time-consuming and complex, further complicating the development of new facilities. Overcoming these challenges requires strategic investments, improved planning, and cooperation between industry stakeholders and government bodies. Enhancing infrastructure is vital for supporting market growth, increasing efficiency, and meeting the rising demand for industrial gases.
Key Market Trends
Shift Towards Circular Economy
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The implementation of closed-loop systems for gas handling is another strategy to reduce emissions and waste by recapturing and reusing gases within the production cycle. Emphasizing sustainable practices to minimize by-products and waste associated with gas production and processing is becoming increasingly important for reducing environmental impact and improving efficiency.
in 2023, the clean-tech company GR2L in Surrey, England, secured a USD4.9 million order to provide its argon recycling technology, ArgonØ, to Mundra Solar for a 2 GW solar facility in India. This technology can recycle up to 95% of argon used in silicon wafer fabrication for solar panels.
Companies are investing in technologies and practices aimed at controlling and reducing emissions from industrial processes. This includes advanced filtration and scrubbing systems for effective emission management. Researchers at the Jawaharlal Nehru Centre for Advanced Scientific Research (JNCASR) are investigating the use of CO
The shift towards a circular economy fosters practices that reduce the carbon footprint of industrial gas operations, aligning with both global and national sustainability goals. Adopting this trend is essential for enhancing resource efficiency, minimizing environmental impact, and maintaining a competitive edge in the evolving industrial gases market.
Segmental Insights
Product Type Insights
The government's initiatives, particularly the National Green Hydrogen Mission launched on January 4, 2023, with a funding allocation of USD 2.36 billion through FY 2029-30, are designed to make hydrogen a central element of the country's clean energy strategy.
In April 2024, Ohmium International announced a strategic partnership with Tata Projects, a prominent sustainable technology EPC company in India. This collaboration seeks to advance green hydrogen projects in India by combining innovative technology with engineering expertise. Ohmium will supply PEM electrolyzers, while Tata Projects will oversee the entire EPC process, including engineering, design, integration, and optimization.
Mode of Distribution Insights
These cylinders are 30% lighter than traditional steel ones, enabling them to store more fuel such as green hydrogen and cover greater distances on a single fill. They are also more robust, designed to endure higher pressures and temperatures.
Regional Insights
In 2023, INOX Air Products announced plans to construct its sixth Air Separation Unit (ASU) at the Hazira plant of AM/NS India in Gujarat. This new ASU will have a daily production capacity of 1,000 tons of oxygen and nitrogen. Once completed, it will elevate the total capacity of the industrial gas complex to 11,100 tons per day.
In June 2024, Essar Group announced plans to invest USD 3.58 billion over the next four years to set up a green hydrogen plant in Jamnagar, Gujarat.
Recent Development
- In
July 2024, Air Liquide India announced the establishment of a USD 41.80 Million
manufacturing unit in Mathura, Uttar Pradesh. This air separation unit, focused
on healthcare and industrial merchant activities, has a daily production
capacity of over 300 tonnes of liquid and medical oxygen, 45 tonnes of liquid
nitrogen, and 12 tonnes of liquid argon. It will serve the Delhi Capital
Territory, Western Uttar Pradesh, Rajasthan, and Madhya Pradesh. The facility
is also set to operate entirely on renewable energy by 2030.
- In
June 2024, Air Products, in partnership with INOX Group, will launch India’s
inaugural green hydrogen plant for glassmaking in July. INOX Air Products has
secured a 20-year offtake agreement with Asahi's Indian subsidiary to provide
hydrogen for a new float glass production facility in Rajasthan.
- In
April 2024, INOX India Ltd received a patent from the Patents Office,
Government of India, for its innovative method of suspending inner vessels
within Dewar-type containers used for storing cryogenic fluids, such as liquid
nitrogen, oxygen, and argon. Dewar containers, which are insulated and often
double-walled with vacuum insulation, are designed for cryogen storage, like
thermos flasks.
- In
January 2024, Linde expanded its long-term supply agreement with Steel
Authority of India Limited (SAIL). Linde will invest approximately USD 60
million to build and operate an additional 1,000 tons per day air separation
unit (ASU) at SAIL’s Rourkela plant. This new ASU, expected to be operational
by 2026, will nearly double Linde’s on-site production and support SAIL’s
expansion. The facility will also serve both existing and new local merchant
customers. Linde currently supplies oxygen, nitrogen and argon to SAIL’s
Rourkela steel plant in Odisha, eastern India, from two on-site air separation
units (ASUs).
Key Market Players
- Linde
plc
- Praxair
Technology, Inc.
- Taiyo
Nippon Sanso India Pvt Ltd.
- INOX
Air Products Private Limited
- Bhuruka
Gases Limited
- Bombay
Oxygen Investments Ltd.
- Ellenbarrie
industrial Gases Ltd.
- Air
Liquide India
- Goyal
MG gases pvt.ltd
- SICGIL
India Limited
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