Global Industrial Gases Market Grows at a Staggering CAGR of 8.7%

Introduction

Industrial gases, comprising nitrogen, oxygen, carbon dioxide, argon, hydrogen, helium, and acetylene, are essential to numerous industries. These gases play critical roles in sectors such as oil and gas, petrochemicals, power generation, steelmaking, metals processing, environmental protection, medicine, pharmaceuticals, biotechnology, food production, and aerospace, each with unique applications that enhance productivity and innovation.

The production of these gases involves specialized methods to ensure purity and safety. Air separation, a primary technique, extracts nitrogen and oxygen directly from the atmosphere through cooling and distillation processes. Moreover, reforming processes are used to create syngas, a valuable mixture of hydrogen and carbon monoxide. In contrast, byproduct recovery, such as producing hydrogen chloride by burning hydrogen in chlorine, further supplies industry needs.

Rapidly growing healthcare industry across the globe drives the global market

The dynamic growth in the global healthcare industry is poised to significantly increase the demand for industrial gases, particularly medical oxygen. The COVID-19 pandemic underscored the essential role of medical oxygen in treating respiratory illnesses, including asthma, COPD, pneumonia, and acute respiratory distress. This vital resource supports oxygenation in patients whose lungs are unable to absorb sufficient oxygen from the environment.

In surgical settings, oxygen is indispensable, particularly during anesthesia, where it helps maintain proper ventilation and stable oxygen levels throughout the procedure, as well as in post-operative recovery.

• As highlighted by the World Health Organization, pneumonia is responsible for about 800,000 deaths annually, with estimates suggesting that 20–40% of these deaths could be preventable through timely access to oxygen therapy.

Rising adoption of new innovations & techniques opens market growth opportunities

Innovative advancements in gas production, storage, and transportation technologies are transforming the industrial gases market. Companies are prioritizing enhancements in gas separation and purification methods to boost efficiency and cut costs, addressing a growing need for sustainable, cost-effective solutions across industries.

• A notable example is the advancement of liquefaction technology, particularly for handling gases like hydrogen and nitrogen, which are essential in various industrial applications. These improvements streamline storage and transport, making it easier and more efficient for businesses to access and use these critical gases.

Moreover, carbon capture and storage (CCS) technologies are rapidly gaining importance. As companies strive to reduce carbon emissions, CCS is emerging as a vital component of environmental sustainability efforts, reflecting the industry's shift toward greener practices.

Regional Analysis

The Asia-Pacific industrial gas market is undergoing robust growth, largely fueled by rising demand within healthcare and a rapidly expanding manufacturing sector in countries like China, Japan, South Korea, and other parts of the region. This growth is supported by significant advancements in the specialty chemicals industry as companies expand capacities to meet increasing demand both domestically and internationally.

India, in particular, exemplifies this trend. With its chemical sector currently valued at around USD 220 billion, India aims to reach USD 300 billion by 2030 and potentially USD 1 trillion by 2040, as the India Brand Equity Foundation (IBEF) reported. Moreover, the annual growth rate for chemical demand is projected to hit 9% by 2025, reflecting a robust manufacturing base that will further drive demand for industrial gases critical to supporting production across diverse sectors.

Key Highlights

• The global industrial gases market size was valued at USD 117.93 billion in 2024 and is anticipated to reach an estimated value of USD 248.83 billion by 2033, exhibiting a CAGR of 8.7% during the forecast period (2025-2033).
• Based on product, the global industrial gases market is segmented into nitrogen, hydrogen, carbon dioxide, oxygen, argon, and acetylene. The oxygen segment owns the highest market share.
• Based on application, the global industrial gases market is segmented into healthcare, manufacturing, metallurgy & glass, food & beverages, retail, and chemicals & energy. The manufacturing application captured the highest market share.
• Asia-Pacific is the most significant shareholder in the global industrial gas market.

Competitive Players

1. Air Liquide
2. Linde plc
3. Air Products Inc.
4. TAIYO NIPPON SANSO CORPORATION
5. Messer
6. SOL Group
7. Iwatani Corporation
8. Matheson Tri-Gas, Inc.
9. INOX-Air Products Inc.
10. Strandmøllen A / S
11. BASF SE
12. Universal Industrial Gases
13. QB Johnson Manufacturing, Inc.
14. Alchemie Gases & Chemicals Pvt. Ltd.
15. Gulf Cryo
16. Ramdon
17. Steelman Gases Pvt. Ltd. 
18. Axcel Gases

Recent Developments

• May 2024-Linde announced that it signed a long-term agreement with H2 Green Steel for the supply of industrial gases to the world’s first large-scale green steel production plant. The company will invest approximately USD 150 million to build, own, and operate an on-site air separation unit (ASU) in Boden, northern Sweden.
• July 2024-Honeywell and Air Products jointly announced a significant development in the industrial sector, revealing that Honeywell agreed to acquire Air Products' liquefied natural gas (LNG) process technology and equipment business for $1.81 billion in an all-cash transaction. This strategic acquisition aims to enhance Honeywell's portfolio and capabilities in the LNG market, allowing the company to leverage Air Products' expertise and technologies.

Segmentation

1. By Product
   1. Nitrogen
   2. Hydrogen
   3. Carbon Dioxide
   4. Oxygen
   5. Argon
   6. Acetylene
2. By Applications
   1. Manufacturing
   2. Metallurgy & Glass
   3. Food & Beverages
   4. Retail
   5. Chemicals & Energy
   6. Others