Industrial Gases Market Size, Share & Trends Analysis Report By Product (Nitrogen, Hydrogen, Carbon Dioxide, Oxygen, Argon, Acetylene), By Applications (Manufacturing, Metallurgy & Glass, Food & Beverages, Retail, Chemicals & Energy, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2033

Industrial Gases Market Size

The global Industrial Gases Market Size was valued at USD 118956.3 billion in 2023 and is projected to reach from USD 125701.1 billion in 2024 to USD 222706.0 billion by 2033, growing at a CAGR of 6.7% during the forecast period (2025-2033).

The manufacturing sector, especially in metal production, is a significant consumer of industrial gases such as oxygen, nitrogen, and hydrogen. These gases are crucial for processes like cutting, welding, and steelmaking, which are fundamental to the production chain in these industries.

Likewise, the healthcare sector is experiencing a growing demand for medical gases, particularly oxygen, which is essential for anesthesia and respiratory therapies. The COVID-19 pandemic has underscored the critical importance of a reliable oxygen supply in emergency situations, further driving this demand.

Furthermore, high-purity gases are vital in the electronics sector for various manufacturing processes, with rapid growth in this industry bolstering the need for industrial gases, especially in semiconductor fabrication. Moreover, manufacturing is emerging as a key pillar of economic growth in many countries, driven by the performance of essential sectors such as automotive, engineering, chemicals, pharmaceuticals, and consumer durables.

• For instance, according to the India Brand Equity Foundation, the Indian manufacturing industry contributed approximately 16-17% to the country’s GDP before the pandemic and is projected to be one of the fastest-growing sectors in the economy. Similarly, in the U.S., manufacturers accounted for 10.70% of total output, with a total manufacturing output valued at USD 2.5 trillion in 2021.

Industrial Gases Market Growth Factors

Rapidly growing healthcare industry 

The rapidly evolving global healthcare industry is set to significantly boost the demand for industrial gases. The COVID-19 pandemic highlighted the urgent need for medical oxygen, driving home its importance in treating respiratory conditions such as asthma, chronic obstructive pulmonary disease (COPD), pneumonia, and acute respiratory distress. Medical oxygen ensures adequate oxygenation for patients whose lungs struggle to absorb oxygen effectively from the atmosphere.

Additionally, it plays a crucial role during surgeries, especially in anesthesia, where it supports patient ventilation and maintains oxygen levels throughout the procedure, as well as in post-operative care to aid recovery. For example, according to the World Health Organization, pneumonia alone accounts for approximately 800,000 deaths annually, and it is estimated that 20–40% of these deaths could be prevented with the availability of oxygen therapy.

Growth of the manufacturing industry on a global level

The manufacturing industry serves as a pivotal driver of the industrial gases market, with various sectors depending on these gases for essential processes. Industrial gases such as nitrogen, oxygen, hydrogen, argon, and carbon dioxide are integral to numerous applications that enhance efficiency and product quality.

In the automotive sector, for instance, industrial gases play a vital role in manufacturing processes. Nitrogen is utilized for brazing automotive components, ensuring strong, leak-free joints. Argon, on the other hand, is employed in welding applications to protect molten metal from atmospheric contamination. Specialty gases like xenon also contribute to product innovation, enhancing safety features in modern vehicles, such as improved lighting in car headlights.

Likewise, the steel industry heavily relies on industrial gases, particularly oxygen and argon. Oxygen is a critical raw material in steel production methods, such as the basic oxygen process and electric arc furnaces, enhancing combustion efficiency and helping achieve desired steel properties. Argon is often used during the refining process of stainless steel to prevent oxidation, which is essential for maintaining quality standards.

Industrial Gases Market Restraining Factors

Regulatory complexity and stringent approval processes

Strict regulatory compliance poses a significant restraint on the industrial gas market. The industry operates under a complex framework of safety, environmental, and quality regulations that companies must navigate. These regulations are essential for ensuring the safe handling and transportation of industrial gases, which can be hazardous if not managed properly.

• For instance, The production and use of gases such as hydrogen and nitrogen necessitate adherence to stringent safety protocols to prevent accidents and ensure employee safety. Compliance often requires substantial investments in monitoring systems, safety measures, and emissions control technologies. Companies like Air Liquide and Linde Group allocate significant resources to meet these regulatory demands. For example, Air Liquide has invested heavily in modernizing its facilities to comply with environmental standards while also aiming to reduce CO2 emissions. Such investments can divert funds from other critical areas, such as research and development or market expansion, potentially hindering innovation and growth. 

Global Industrial Gases Market Opportunities

Rising adoption of new innovations & techniques

Innovations in gas production, storage, and transportation technologies are reshaping the market landscape. Companies are increasingly focusing on advancements in gas separation and purification processes to enhance efficiency and reduce costs. This trend is driven by the need for more sustainable and economically viable solutions across industries. For example, improvements in liquefaction technologies are enabling better handling of gases like hydrogen and nitrogen, which are crucial for various industrial applications. These advancements facilitate more efficient transportation and storage, making it easier for businesses to access and utilize these essential gases.

Moreover, innovations in carbon capture and storage (CCS) technologies are gaining traction, reflecting a growing commitment to reducing carbon emissions and promoting environmental sustainability.

Regional Insights

Asia pacific: dominant region

The Asia Pacific region is at the forefront of the global industrial gas market, propelled by several key factors, including rapid healthcare infrastructure development, an increasing prevalence of chronic diseases, and the growing adoption of advanced medical technologies.

Countries like China, India, and Australia are witnessing a surge in demand for industrial gases, driven not only by healthcare needs but also by the rising demand for food and beverages. This expansion reflects a broader trend of industrial growth across the region, contributing significantly to market dynamics.

North america: fastest growing region

In North America, the industrial gas market is experiencing rapid growth, particularly in the U.S., Canada, and Mexico. The ongoing industrialization and continuous expansion of various sectors—including manufacturing, metallurgy, and food and beverages—are primary drivers of demand for industrial gases. The presence of major companies such as Linde plc, Air Liquide, and Messer solidifies the market landscape, as these industry leaders operate extensive production facilities throughout North America.

Countries Insights

• United States: The U.S. accounts for a major share of the industrial gas market, primarily due to the presence of established manufacturers and substantial R&D investments in the sector. Key players operating in the U.S. industrial gases market include Messer, Air Liquide, Linde Plc, Air Products Inc., and Matheson Tri-Gas, Inc., among others.

Moreover, the market is consolidated, with a few companies controlling over 70% of the market share. All major players produce and supply industrial gases across North America. The rapidly growing healthcare industry in the U.S. is anticipated to significantly boost the demand for industrial gases in the country.

• United Kingdom: The UK stands out as a prominent market for food processing and beverages in Europe and globally. According to the Department of Business and Trade of Great Britain, the UK’s food and drink industry is the country's largest manufacturing sector by turnover, valued at approximately USD 114.21 billion. This sector is larger than the automotive and aerospace industries combined, presenting numerous opportunities for exporters, investors, and international buyers.

The UK’s capabilities across the food and drink supply chain and all stages of product development further emphasize the expected rise in demand for industrial gases in response to the thriving food and beverage industry.

• Germany: Germany is recognized as a hub for the manufacturing sector, largely due to its prominent automotive industry. The German Association of Automotive Industry reported that domestic passenger car production reached a volume of 264,500 units in December 2023, showing nearly a 1% increase compared to the previous year.

In total, 4.1 million cars were produced in 2023, representing an 18% increase from the prior year. The presence of numerous leading car manufacturers is expected to further stimulate the manufacturing industry, thereby driving demand for industrial gases in the foreseeable future.

• Italy: Italy boasts a robust food and beverage industry, with the wine sector accounting for 28% of total wine sales in Europe. The country also dominates the pasta industry, capturing 73% of Europe’s total pasta sales. Carbonated drinks manufacturing incorporates carbon dioxide gas, highlighting the connection between the food and beverage sector and industrial gases.

As such, the growth of the food and beverage industry in Italy is contributing to an increasing demand for industrial gases within the country.

• India: As the sixth-largest producer of chemicals globally and the third-largest in Asia, India will contribute approximately 7% to its GDP in 2024, as reported by the India Brand Equity Foundation (IBEF). The exports of organic and inorganic chemicals reached USD 4.78 billion during April-May 2024.

India’s specialty chemicals companies are expanding their capacities to meet rising domestic and overseas demand. Currently valued at USD 220 billion, the chemical sector is projected to grow to USD 300 billion by 2030 and USD 1 trillion by 2040.

The demand for chemicals is expected to expand by 9% annually by 2025, further increasing the need for industrial gases in the country.

• China: The industrial gas market in China is characterized by rapid growth across various sectors, including manufacturing, healthcare, electronics, energy, and food preservation. Significant investments in technology and infrastructure, combined with a strong focus on sustainability, are driving this growth.

The government's initiatives to promote clean energy and environmental protection are expected to further enhance China's demand for industrial gases, positioning the country as a key player in the global industrial gas market.

Segmentation Analysis

By product

In 2024, the oxygen segment is anticipated to dominate the market due to its critical roles across various industries, including healthcare, mining, and manufacturing. In the chemical industry, oxygen acts as a vital oxidizing agent, facilitating the oxidation of chemicals such as hydrogen peroxide, ethylene dichloride, and nitric acid. This process is essential for producing a wide array of chemicals used in everyday products, including detergents, plastics, and pharmaceuticals.

In August 2024, the government of Jamaica unveiled a multi-million-dollar oxygen plant at a local hospital. This facility aims to diversify the supply of medical oxygen, reducing the risk of reliance on a single supplier and ensuring a stable, safe, and cost-effective source for healthcare providers.

By application

In 2024, the manufacturing segment is expected to hold the largest share of the industrial gas market due to the rapid development of the manufacturing industry globally, particularly in emerging economies such as India. According to the World Bank, the manufacturing sector contributed $14.29 trillion to the global GDP in 2018, increasing to $16.18 trillion in 2023.

This growth trend is anticipated to continue, with projections indicating that the sector will accelerate in the foreseeable future. This upsurge in manufacturing activities is expected to significantly fuel the demand for industrial gases, as they are integral to various manufacturing processes, including welding, cutting, and chemical production.

• 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.