Global Industrial Gas Market Size By Type (Nitrogen, Oxygen, Argon), By Application (Metal Production, Automotive, Chemical & Petrochemical), By Geographic Scope And Forecast

Industrial Gas Market Size And Forecast

Industrial Gas market size was valued at USD 104.75 Billion in 2024 and is projected to reach USD 170.77 Billion by 2031, growing at a CAGR of 6.3% from 2024 to 2031.

• Industrial gases are gases produced, processed, and used in various industrial applications, including manufacturing, refining, chemical synthesis, and energy production. Examples include oxygen, nitrogen, hydrogen, carbon dioxide, helium, argon, and acetylene.
• Industrial gases are used in various manufacturing processes, such as metal fabrication, welding, and heat treatment. For example, oxygen and acetylene are commonly used in oxy-fuel welding and cutting processes, while nitrogen is used for purging and blanketing in metalworking applications.
• Medical-grade oxygen and nitrogen are essential for respiratory therapy and medical gas systems in hospitals and healthcare facilities. Oxygen is used for patients with respiratory conditions or during surgeries, while nitrogen is used in cryogenic applications for preserving biological samples and in medical gas mixtures.
• Industrial gases are essential in the electronics industry for semiconductor manufacturing, wafer fabrication, and gas-phase deposition processes. High-purity gases such as nitrogen, argon, and helium are used for purging, cooling, and inerting in semiconductor manufacturing facilities to ensure high-quality production and prevent contamination.
• Industrial gases, particularly hydrogen, are expected to play a significant role in the transition towards renewable energy sources. Hydrogen is seen as a clean and versatile energy carrier for fuel cells, energy storage, and transportation, with potential applications in sectors such as transportation, industry, and power generation.

Global Industrial Gas Market Dynamics

The key market dynamics that are shaping the global industrial gas market include

Key Market Drivers

• Industrialization and UrbanizationIndustrialization, especially in emerging economies, is increasing the demand for industrial gases like oxygen, nitrogen, and hydrogen for various applications like metal fabrication, welding, and chemical processing.
• Healthcare Sector GrowthThe healthcare sector significantly influences the industrial gases market, particularly for medical-grade gases like oxygen and nitrogen, crucial for respiratory therapy, medical gas systems, and anesthesia, with increasing demand due to an aging population.
• Technological AdvancementsTechnological advancements, such as cryogenic technologies, have revolutionized the production and utilization of gases like liquid nitrogen and oxygen in various industries like food processing, pharmaceuticals, and electronics manufacturing.
• Energy Industry DemandThe energy industry heavily relies on industrial gases, particularly hydrogen and nitrogen, for refining, petrochemical production, and power generation. As energy demand continues to rise, so does the demand for these gases.
• Environmental Regulations and Sustainability InitiativesEnvironmental regulations and sustainability initiatives are driving the use of industrial gases like hydrogen as cleaner alternatives in various industries, while carbon capture technologies are increasing demand for carbon dioxide for oil recovery, beverage carbonation, and greenhouse gas removal.

Key Challenges

• Competition and Price SensitivityThe competitive industrial gases market faces intense pricing pressure due to price sensitivity, narrow profit margins, and commoditization of certain gases. Low-cost competitors exacerbate these challenges, reducing profitability for gas suppliers.
• Supply Chain ComplexityIndustrial gases production and distribution involve complex supply chains, requiring significant infrastructure investments. Challenges like transportation bottlenecks, logistics constraints, and regulatory compliance can disrupt operations, necessitating efficient inventory management and competitiveness.
• Regulatory Compliance and Safety StandardsThe industrial gases industry is regulated by strict standards for production, storage, handling, and transportation, requiring compliance for environmental protection, occupational health, and hazardous material transportation, which can lead to fines, legal liabilities, and reputational damage.
• Technological DisruptionsTraditional industrial gas suppliers face challenges due to technological advancements like renewable energy, carbon capture, and additive manufacturing, which could disrupt markets and create new demand patterns, necessitating adaptation and investment in innovative solutions.
• Shifts in Customer Preferences and Industry DynamicsThe demand for industrial gases can be influenced by changes in customer preferences, industry dynamics, and market trends, such as shifts towards greener practices and automation and digitalization, which can affect the type and volume of gases required.

Key Trends

• Digitalization and Industry 4.0The industrial gas sector is being transformed by the use of digital technologies and Industry 4.0 principles, including IoT-enabled sensors, data analytics, and automation, which improve efficiency, reliability, and safety by enabling real-time monitoring, predictive maintenance, and remote management.
• Healthcare Sector GrowthThe healthcare industry significantly influences the industrial gas market, especially for medical-grade gases like oxygen and nitrogen. With an aging population and rising healthcare spending, demand for respiratory therapy, anesthesia, and medical gas systems is expected to grow. Industrial gas suppliers are expanding their healthcare offerings.
• Emerging Applications and IndustriesIndustrial gases are gaining traction in emerging industries like additive manufacturing, semiconductor manufacturing, and biotechnology. Nitrogen, argon, and helium are crucial for semiconductor fabrication, while specialty gases are utilized in cell culture and fermentation. Suppliers are continuously innovating and expanding their product portfolios to meet these evolving needs.

Global Industrial Gas Market Regional Analysis

Here is a more detailed regional analysis of the global industrial gas market

North America

• North America is a mature market for industrial gases, with a significant presence of established suppliers and end-user industries.
• The United States is the largest market in the region, driven by its diverse industrial base, including manufacturing, healthcare, energy, and electronics.
• Growth opportunities in North America are driven by technological advancements, particularly in the healthcare and energy sectors, and increasing demand for specialty gases in industries such as electronics and biotechnology.

Europe

• Europe is another mature market for industrial gases, characterized by stringent regulatory standards and a focus on sustainability.
• Countries like Germany, France, and the United Kingdom are major contributors to the European industrial gas market, with strong manufacturing and healthcare sectors.
• Growth in Europe is driven by investments in renewable energy, environmental sustainability initiatives, and emerging applications in industries such as aerospace, automotive, and chemicals.

Asia Pacific

• Asia Pacific is the fastest-growing region in the global industrial gas market, fueled by rapid industrialization, urbanization, and economic growth.
• China and India are the largest markets in the region, driven by their expanding manufacturing sectors, infrastructure development, and growing healthcare needs.
• Growth opportunities in Asia Pacific are driven by investments in renewable energy, increasing demand for specialty gases in electronics manufacturing, and expanding healthcare infrastructure.

Global Industrial Gas MarketSegmentation Analysis

The Global Industrial Gas Market is segmented based on Type, Application, and Geography.

Industrial Gas Market, By Type

• Nitrogen
• Oxygen
• Argon

Based on Type, the market is segmented into Nitrogen, Oxygen, and Argon. In the industrial gas market, nitrogen is dominating as the largest segment due to its widespread applications across various industries, including manufacturing, electronics, and healthcare. Nitrogen is used for inerting, blanketing, purging, and as a carrier gas in numerous processes, driving its high demand. Oxygen follows closely as the second-largest segment and is rapidly growing due to increasing demand from sectors such as healthcare, metal fabrication, and aerospace. The critical role of oxygen in medical applications, including respiratory therapy and anesthesia, coupled with its importance in metal cutting, welding, and combustion processes, contributes to its significant market share and steady growth trajectory.

Industrial Gas Market, By Application

• Metal Production
• Automotive
• Chemical & Petrochemical

Based on Application, the Industrial Gas Market is divided into Metal Production, Automotive, and Chemical & Petrochemical. In the industrial gas market, the chemical & petrochemical segment is dominating as the largest application area due to the extensive use of industrial gases in various processes such as refining, synthesis, and purification. The chemical & petrochemical industry relies heavily on industrial gases like hydrogen, nitrogen, and oxygen for catalytic reactions, inerting, and refining operations. On the other hand, the automotive sector is rapidly growing as the second-largest application segment, driven by increasing demand for industrial gases in welding, heat treatment, and surface coating processes. With the automotive industry’s focus on lightweight materials, fuel efficiency, and emission reduction, the demand for industrial gases in automotive manufacturing is expected to continue growing steadily.

Industrial Gas Market, By Geography

• North America
• Europe
• Asia Pacific
• Rest of the World

On the basis of Geography, the market is segmented into North America, Europe, Asia Pacific, and Rest of the World. In the industrial gas market, North America is the dominant segment due to its advanced industrial infrastructure, significant manufacturing base, and strong demand from healthcare and energy sectors. The Asia Pacific region is the second fastest-growing segment, driven by rapid industrialization, increasing healthcare needs, and substantial investments in manufacturing and electronics industries, particularly in countries like China and India.

Key Players

The “Global Industrial Gas Market” study report will provide valuable insight with an emphasis on the global market. The major players in the market are Air Liquide SA, Air Products and Chemicals, Inc., Praxair Inc., Linde Group, Messer Group GmbH, Gulf Cryo, Taiyo Nippon Sanso Corporation, Iwatani Corporation, Southern Industrial Gas, and SOL Group.

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with its product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Industrial Gas Market Recent Developments

• In November 2023, Air Liquide partnered with Groupe ADP to aid in the development of hydrogen infrastructure in airports.
• In March 2023, Air Liquide announced the construction of an industrial-scale ammonia (NH3) cracking pilot plant in Belgium.

Report Scope

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Reasons to Purchase this Report

• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors• Provision of market value (USD Billion) data for each segment and sub-segment• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled• Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players• The current as well as the future market outlook of the industry with respect to recent developments which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions• Includes in-depth analysis of the market from various perspectives through Porter’s five forces analysis• Provides insight into the market through Value Chain• Market dynamics scenario, along with growth opportunities of the market in the years to come• 6-month post-sales analyst support

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