India Bulk Oxygen Market By Delivery Mode (Tanks/Pipeline, Cylinder, Others), By Form (Liquid Oxygen, Compressed Oxygen, Oxygen Gas Mixture), By Type (Industrial, Medical), By End User (Chemical, Aerospace, Submarine, Oil & Gas, Medical and Others), 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 Bulk Oxygen Market By Delivery Mode (Tanks/Pipeline, Cylinder, Others), By Form (Liquid Oxygen, Compressed Oxygen, Oxygen Gas Mixture), By Type (Industrial, Medical), By End User (Chemical, Aerospace, Submarine, Oil & Gas, Medical and Others), By Region, Competition, Forecast and Opportunities, 2020-2030F
| Forecast Period | 2026-2030 |
| Market Size, By Volume (2024) | 16420 Metric Tonnes |
| CAGR (2025-2030) | 3.84% |
| Fastest Growing Segment | Medical |
| Largest Market | West India |
| Market Size, By Volume (2030) | 20349.74 Metric Tonnes |
Market Overview
India Bulk Oxygen Market
The demand for bulk oxygen in healthcare facilities has surged, especially in the aftermath of the COVID-19 pandemic, and this segment is expected to continue as a key growth driver due to increasing investments in healthcare infrastructure. Additionally, industries like steel, glass manufacturing, and chemical processing utilize bulk oxygen for various applications, including combustion, oxidation, and as a crucial reactant in chemical processes. The post-pandemic revival of manufacturing activities is further contributing to this sector's expansion.
Bulk oxygen is also utilized in wastewater treatment, improving aerobic processes and facilitating effective waste management solutions. It is primarily produced through methods such as cryogenic distillation and pressure swing adsorption (PSA). The market comprises several large companies, including Linde India, INOX Air Products, and Air Products, along with numerous regional players. These companies are focusing on expanding production capacities, enhancing distribution networks, and investing in research and development to maintain a competitive edge.
Innovations in oxygen production, particularly in air separation technologies and cryogenic processes, are enhancing supply capabilities and reducing costs. The Indian government’s emphasis on bolstering healthcare infrastructure and industrial growth has resulted in favorable policies that support the production and distribution of medical oxygen. However, supply chain disruptions, especially during crises, can affect the availability of bulk oxygen.
Key Market Drivers
Growth of Healthcare Sector
Dr. Mansukh Mandaviya inaugurated 27 Greenfield Bulk Drug Park projects and 13 Greenfield Manufacturing Plants for Medical Devices under the Production-Linked Incentive (PLI) Scheme. This initiative aims to support the production of 41 bulk drugs, with a total investment of USD 825.46 Million from 2020-21 to 2029-30. Additionally, 26 manufacturers of medical devices have been approved for 138 products under this scheme, with funding of USD 385.37 Million allocated for 2020-21 to 2027-28. Notably, this includes oxygen concentrators produced by Microtek New Technologies Private Limited in Baddi, Himachal Pradesh.
India has an estimated 37.8 million COPD cases, contributing to 17.8% of the global burden and a disproportionate 27.3% of global COPD deaths
The COVID-19 pandemic has underscored the significance of emergency medical services, prompting hospitals to enhance their capacity to manage critical cases requiring oxygen therapy. This shift has resulted in a sustained demand for bulk oxygen in emergency rooms and intensive care units. Moreover, the demographic trend towards an aging population is increasing health issues that often necessitate oxygen therapy. Elderly patients frequently require medical oxygen, necessitating a steady supply of facilities focused on geriatric care.
Government initiatives like Ayushman Bharat aim to enhance healthcare access and quality, which indirectly boosts the demand for essential medical supplies, including bulk oxygen, by increasing the number of insured patients and encouraging better care. Growing awareness of respiratory health and the significance of oxygen therapy has led to more patients seeking treatment, further driving demand for bulk oxygen supplies. The pandemic has catalyzed investments from both public and private sectors in healthcare infrastructure, with new hospitals, expanded emergency departments, and improved critical care units all requiring reliable bulk oxygen supplies.
The Union Budget for 2024-25 emphasizes transforming the healthcare sector through enhanced digital infrastructure and a revised health expenditure of USD 10.70 billion to improve accessibility and innovation in healthcare services.
Rising demand from the Steel and Metal Industries
India possesses the fifth-largest iron ore reserves globally. In the Union Budget for 2023-24, the government allocated approximately USD 8.6 million to the Ministry of Steel.
Bulk oxygen is extensively used in welding and cutting applications across various metalworking sectors. Increased manufacturing and construction activities further elevate the need for oxygen to support these operations. The growth of industries that require metal fabrication such as automotive, aerospace, and construction also drives the demand for oxygen. As these sectors expand, so does the requirement for oxygen in their fabrication processes.
Linde India Ltd. received a Letter of Acceptance from Steel Authority of India (SAIL) for the installation of a 1,000-ton-per-day cryogenic oxygen plant on a 20-year Construct, Operate, and Maintain (COM) basis at SAIL’s Rourkela facility.
JSW Energy Ltd.'s establishment of India’s largest 25 MW green hydrogen project in Vijayanagar, Karnataka, intended for its subsidiary JSW Steel Ltd. This project includes a seven-year agreement to supply 3,800 tons per annum of green hydrogen and oxygen. Furthermore, JSW Energy has received a capacity allocation of 6,800 TPA from the Solar Energy Corporation of India and signed an MoU with JSW Steel to provide an additional 85,000 to 90,000 TPA of green hydrogen and 720,000 TPA of green oxygen by 2030.
As environmental regulations become more stringent, steel manufacturers are increasingly required to adopt cleaner technologies. The use of oxygen in combustion processes helps reduce emissions, further driving the demand for bulk oxygen. With the ongoing growth and evolution of these sectors, the reliance on bulk oxygen for various applications will remain strong, making it a critical area for investment and development within the Indian economy.
Key Market Challenges
Infrastructure Limitations
Many areas, especially rural and underserved regions, suffer from a lack of a strong distribution network for bulk oxygen. This can lead to delays in delivery and insufficient supply, particularly during emergencies when timely access is essential. Additionally, inadequate storage facilities restrict the ability of healthcare and industrial sectors to maintain sufficient inventories, potentially causing supply interruptions during peak demand periods. Inefficient transportation infrastructure, such as poor road conditions and limited logistical capabilities, complicates the distribution of bulk oxygen. These issues can result in longer delivery times and increased costs, negatively affecting the overall efficiency of the supply chain. Infrastructure challenges may also hinder companies' compliance with safety and quality regulatory standards in oxygen production and distribution, often requiring substantial investment to upgrade facilities.
Rapid urbanization can exceed the development of necessary infrastructure to meet the rising demand for bulk oxygen. As cities grow, the strain on existing facilities and transportation systems intensifies. Inadequate infrastructure may also limit healthcare facilities' ability to respond effectively to emergencies, such as natural disasters or health crises, where bulk oxygen is vital. Addressing these infrastructure limitations is crucial for the growth of the bulk oxygen market in India. Investments in transportation, storage, and production facilities, along with improved regulatory support, will be essential to ensure a reliable and efficient supply of bulk oxygen, ultimately benefiting both healthcare and industrial sectors.
Technological Challenges
Many current oxygen production facilities utilize outdated technologies, resulting in inefficiencies and increased operational costs. To enhance efficiency and meet rising demand, it is crucial to upgrade to more advanced production methods. However, implementing new technologies often requires significant capital investment, which can pose a barrier, especially for smaller companies. This limitation affects their ability to compete effectively and innovate within the market.
Key Market Trends
Focus on Green Technologies
The emphasis on green technologies is a prominent trend in the Indian bulk oxygen market, driven by the need for sustainable practices and adherence to environmental regulations. Companies are increasingly investigating ways to produce oxygen using renewable energy sources. This includes processes like electrolysis, which generates hydrogen and oxygen from water using renewable electricity, facilitating more sustainable production methods.
in September 2024, Jindal Steel & Power (JSPL) and Jindal Renewable Power Private (JRPL) signed a memorandum of understanding (MoU) to invest in green hydrogen production for steelmaking in Angul, Odisha. Under this agreement, JSPL intends to incorporate green hydrogen into its direct reduced iron (DRI) units, with the initial phase aiming for a green hydrogen generation capacity of up to 4,500 tons per annum by December 2025, along with the supply of 36,000 tons of oxygen annually for the Angul steelworks.
Stricter environmental regulations are prompting companies to adopt cleaner production methods. Compliance with these regulations is crucial for avoiding penalties and aligns with global sustainability objectives. Many businesses are incorporating green technologies into their operations as part of their corporate social responsibility (CSR) strategies, enhancing their brand image and addressing the increasing consumer demand for environmentally friendly practices.
Hygenco Green Energies signed a long-term offtake agreement for green hydrogen and oxygen with Sterlite Technologies Limited (STL). Under this agreement, Hygenco will build, own, and operate a green hydrogen facility for STL for 20 years, utilizing renewable energy and expected to be commissioned within the next 15-18 months. Hydrogen and oxygen are critical for producing optical fiber and serve as fuel in blast furnaces for glass manufacturing. Both companies aim for significant carbon abatement, targeting around 30% reductions annually through this partnership.
Investments in research and development are also on the rise as companies seek to innovate sustainable production techniques, enhancing efficiency in oxygen production and minimizing carbon footprints associated with traditional methods. Adopting green technologies can provide a competitive advantage, allowing businesses to differentiate themselves in the market and attract environmentally conscious customers and investors.
There is growing recognition of the importance of sustainable practices among various stakeholders, including manufacturers, consumers, and regulators. This heightened awareness is driving demand for green technologies in the bulk oxygen sector. By prioritizing sustainability, companies can improve operational efficiencies, comply with regulations, and meet the evolving expectations of consumers and stakeholders. This trend not only supports environmental objectives but also positions businesses for long-term growth in a competitive landscape.
Segmental Insights
Type Insights
in September 2024, Linde India Ltd signed a plant sale agreement with Tata Steel Ltd to acquire industrial gas supply assets, specifically two 1800 tpd air separation units (ASUs) from Tata Steel's Kalinganagar phase two expansion project.
Ongoing infrastructure developments, including roads, bridges, and urban projects, further enhance the industrial demand for bulk oxygen. The growth of these sectors is closely tied to the increasing use of oxygen across various industrial applications. Additionally, advancements in production technologies are contributing to the industrial segment's expansion, as companies adopt more efficient and cost-effective methods.
The government's emphasis on boosting manufacturing capabilities through initiatives like "Make in India" has led to increased investments in industrial facilities that require bulk oxygen, reinforcing the segment's leading position. Beyond steel, bulk oxygen is utilized in various sectors, including chemicals, pharmaceuticals, food processing, and energy, further broadening its applications and strengthening the industrial segment's dominance. As India experiences economic growth and urbanization, industrial activity is on the rise, driving up oxygen demand and solidifying the industrial segment's status in the market.
End User Insights
Based on End User, Medical emerged as the dominating segment in the Indian market for Bulk Oxygen in 2024. The COVID-19 pandemic significantly increased the demand for medical oxygen in hospitals and healthcare facilities, as it became essential for providing respiratory support to patients with severe conditions. India is experiencing considerable investments in healthcare infrastructure, which includes the construction of new hospitals and the expansion of existing ones. This development is driving a greater need for medical oxygen to accommodate a growing patient population.
in December 2023, the Karnataka government's Department of Electronics, IT, BT, and S&T showcased innovative products developed by startups during the Bengaluru Tech Summit (BTS) 2023, including an oxygen generator by Mystic Clean Energy Tech LLP. This generator extracts pure oxygen from water, with the only required inputs being water and electricity.
Regional Insights
Based on Region, West India emerged as the dominant region in the Indian market for Bulk Oxygen in 2024. Western India, especially in states like Maharashtra and Gujarat, has a dense concentration of industries, including chemical, petrochemical, and manufacturing sectors. These industries are significant consumers of bulk oxygen for various applications. The region also features substantial steel and metal production facilities, where oxygen plays a crucial role in processes such as steelmaking and metal fabrication, leading to high demand.
Additionally, Western India is equipped with advanced infrastructure, including comprehensive road, rail, and port networks, which facilitate the efficient transportation and distribution of bulk oxygen. Major ports like Mumbai and Kandla further enhance the region's capacity to import technology and materials, bolstering industrial growth and oxygen production capabilities.
Ongoing investments in new industrial projects and the expansion of existing facilities in this region continue to drive demand for bulk oxygen. Furthermore, government policies and initiatives designed to promote manufacturing in these states contribute to the growth of industries that require bulk oxygen. Together, these factors establish the western region as the leading area in India’s bulk oxygen market, backed by strong industrial activity, infrastructure, and continuous investments.
Recent Development
- InJuly 2024, Air Liquide launched a new air separation unit (ASU) in India. Thisfacility, which caters primarily to the healthcare sector, especially hospitalsand industrial clients, boasts a daily production capacity exceeding 300 tonnesof liquid oxygen and medical oxygen, 45 tonnes of liquid nitrogen, and 12tonnes of liquid argon. Situated in Kosi, these liquid gases plant is nowrecognized as the largest of its kind in Uttar Pradesh.
- InJune 2024, Indian conglomerate Essar Group announced a USD 4 billion investmentin a green steel plant in Saudi Arabia. The company also plans to invest aroundUSD 3.6 billion over the next four years in a green hydrogen facility inJamnagar, Gujarat, India. Essar intends to begin construction on a steel plantin Ras Al Khaire in 2024, targeting a production capacity of 4 million tons peryear to fulfill domestic steel demand in Saudi Arabia. Additionally, EssarFuture Energy aims to develop 1 GW of hydrogen capacity in Jamnagar within thenext four years, along with the capability to produce 1 million tons oftransportable green molecules annually. The company will utilize 4.5 GW ofrenewable energy from its affiliate, Essar Renewables, to split water moleculesfor hydrogen and oxygen production.
- InMarch 2024, Cryolor, a manufacturer of cryogenic equipment, launched Phase IIof its facility in Tamil Nadu. This expansion is strategically designed toincrease production of cryogenic liquefied gas tanks, including oxygen, inresponse to rising demand. Situated in Madurantakam, the plant has an annualcapacity of 400 tanks and serves both domestic and international markets.
- InJanuary 2024, the Indian Space Research Organisation (ISRO) successfullygenerated power using hydrogen and oxygen gases during a critical test on itsrecently launched orbital platform from the PSLV-C58 mission. The PSLV-C58rocket took off from ISRO's launch center in Sriharikota, Andhra Pradesh,successfully placing the X-ray Polarimeter Satellite into its target orbit of650 km with a 6-degree inclination. During this brief test onboard the PayloadOperations and Experiment Module (POEM), 180 watts of power were produced fromhydrogen and oxygen gases stored in high-pressure vessels.
Key Market Players
- INOX Air Products Private Limited
- India Glycols Pvt Ltd.
- Steelman Gases Pvt. Ltd.
- Sol India Private Limited
- Praxair India Private Limited
- Linde India Limited
- Air Liquide India
- Bhuruka Gases limited
- Southern Gas Limited
- Ellenbarrie Industrial Gases Ltd.
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