|
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 achieved the total volume of 16420 Metric Tonnes in
2024 and
is expected to reach 20349.74 Metric Tonnes by 2030 with a CAGR of 3.84% during the forecast period. The bulk oxygen market in India has
experienced notable growth in recent years, primarily driven by rising
industrial demand, advancements in medical applications, and an increase in
respiratory diseases. As one of the largest producers and consumers of oxygen,
India's market dynamics are influenced by a blend of economic, regulatory, and
technological factors. This growth is particularly evident in sectors such as
healthcare, metal manufacturing, chemical production, and wastewater treatment.
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.
With
ongoing industrialization, a strong healthcare sector, and supportive
government policies, the market is well-positioned for future growth.
Stakeholders will need to navigate existing challenges while leveraging
technological advancements to seize emerging opportunities.
Key Market Drivers
Growth of Healthcare Sector
The
growth of hospitals, clinics, and healthcare centers is essential for enhancing
access to medical services. The establishment of new facilities, especially in
rural and underserved regions, has led to increased demand for bulk oxygen. For
example, in March 2024, 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. As these healthcare facilities are developed, they will
require a consistent and reliable supply of oxygen amplifying the demand within
the bulk oxygen market.
The
rise in respiratory diseases, such as asthma, chronic obstructive pulmonary
disease (COPD), and pneumonia, driven by factors like pollution and lifestyle
changes, further escalates the need for medical oxygen. 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, highlighting challenges
in managing the condition effectively.
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. Continuous investments in healthcare
not only address current needs but also prepare for future health emergencies. The
interplay of demographic shifts, technological advancements, and government
initiatives ensures that the bulk oxygen market will continue to expand
alongside the healthcare sector, making it a vital area for investment and
development.
Rising demand from the Steel
and Metal Industries
Oxygen
plays a vital role in steelmaking, particularly in the Basic Oxygen Process
(BOP), where it is utilized to convert molten iron into steel. 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. As India’s steel production continues to expand, driven by
infrastructure projects and urbanization, the demand for bulk oxygen rises in
tandem.
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.
Government
initiatives aimed at enhancing infrastructure, including roads, bridges, and
railways, contribute to the rising demand for steel and other metals, directly
impacting the bulk oxygen market. For example, 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.
Technological
advancements in oxygen production and steel manufacturing processes improve
efficiency, leading more steel plants to adopt bulk oxygen. A notable
development is in June2024, 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.
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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.
The
adoption of advanced technologies also requires a skilled workforce capable of
operating and maintaining new equipment. A shortage of trained personnel can
impede the successful implementation of these technologies and impact overall
productivity. Additionally, integrating new technologies with existing systems
can present considerable challenges, as compatibility issues may arise,
complicating the transition and potentially disrupting operations. In some
instances, companies depend on imported technology, which can be costly and
create vulnerabilities in the supply chain. This reliance may also stifle local
innovation and hinder the development of domestic solutions. Furthermore, as
environmental regulations become stricter, the adoption of greener technologies
is increasingly important. Companies face challenges in shifting to more
sustainable production methods, which may require substantial restructuring and
investment. To address these challenges, ongoing investment in technology,
workforce training, and research and development will be essential for
improving efficiency, reducing costs, and meeting the growing demand for bulk
oxygen in both healthcare and industrial sectors.
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.
The
emergence of green hydrogen projects is closely tied to bulk oxygen production.
As industries strive to transition to cleaner energy sources, the oxygen
generated alongside green hydrogen is being utilized in various applications,
including steelmaking and chemical manufacturing. For example, 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.
Collaboration
among industry players, research institutions, and government bodies is
becoming more common to advance the development and adoption of green
technologies in bulk oxygen production. For instance, in October 2023, 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
Based
on Type, the Industrial emerged as the dominating segment
in the Indian market for Bulk Oxygen during the forecast period. The industrial sector, especially in
steel, metal fabrication, chemicals, and manufacturing, is a major driver of
bulk oxygen demand. Industries such as steelmaking rely on oxygen for essential
processes like combustion and refining, resulting in high consumption levels.
For example, 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.
The
Indian government has made enhancing healthcare services a priority, ensuring a
reliable supply of medical oxygen through supportive policies that promote its
production and distribution. Additionally, advancements in oxygen production
and delivery systems are improving the efficiency and accessibility of medical
oxygen, allowing healthcare providers to better meet patient needs. For
example, 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.
Regulatory frameworks are also in place to guarantee that medical facilities
have sufficient access to oxygen, underscoring its critical role in the
healthcare sector.
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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
- In
July 2024, Air Liquide launched a new air separation unit (ASU) in India. This
facility, which caters primarily to the healthcare sector, especially hospitals
and industrial clients, boasts a daily production capacity exceeding 300 tonnes
of liquid oxygen and medical oxygen, 45 tonnes of liquid nitrogen, and 12
tonnes of liquid argon. Situated in Kosi, these liquid gases plant is now
recognized as the largest of its kind in Uttar Pradesh.
- In
June 2024, Indian conglomerate Essar Group announced a USD 4 billion investment
in a green steel plant in Saudi Arabia. The company also plans to invest around
USD 3.6 billion over the next four years in a green hydrogen facility in
Jamnagar, Gujarat, India. Essar intends to begin construction on a steel plant
in Ras Al Khaire in 2024, targeting a production capacity of 4 million tons per
year to fulfill domestic steel demand in Saudi Arabia. Additionally, Essar
Future Energy aims to develop 1 GW of hydrogen capacity in Jamnagar within the
next four years, along with the capability to produce 1 million tons of
transportable green molecules annually. The company will utilize 4.5 GW of
renewable energy from its affiliate, Essar Renewables, to split water molecules
for hydrogen and oxygen production.
- In
March 2024, Cryolor, a manufacturer of cryogenic equipment, launched Phase II
of its facility in Tamil Nadu. This expansion is strategically designed to
increase production of cryogenic liquefied gas tanks, including oxygen, in
response to rising demand. Situated in Madurantakam, the plant has an annual
capacity of 400 tanks and serves both domestic and international markets.
- In
January 2024, the Indian Space Research Organisation (ISRO) successfully
generated power using hydrogen and oxygen gases during a critical test on its
recently launched orbital platform from the PSLV-C58 mission. The PSLV-C58
rocket took off from ISRO's launch center in Sriharikota, Andhra Pradesh,
successfully placing the X-ray Polarimeter Satellite into its target orbit of
650 km with a 6-degree inclination. During this brief test onboard the Payload
Operations and Experiment Module (POEM), 180 watts of power were produced from
hydrogen 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.
|
By
Delivery Mode
|
By
Form
|
By
Type
|
By
End User
|
By Region
|
- Tanks/Pipeline
- Cylinder
- Others
|
- Liquid Oxygen
- Compressed Oxygen
- Oxygen Gas Mixture
|
|
- Chemical
- Aerospace
- Submarine
- Oil & Gas
- Medical
- Others
|
- West India
- North India
- South India
- East India
|
Report Scope:
In this report, the India Bulk Oxygen Market has
been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- India Bulk Oxygen Market, By Delivery Mode:
o Tanks/Pipeline
o Cylinder
o Others
- India Bulk Oxygen Market, By Form:
o Liquid Oxygen
o Compressed Oxygen
o Oxygen Gas Mixture
·
India Bulk
Oxygen Market, By Type:
o Industrial
o Medical
·
India Bulk
Oxygen Market, By End
User:
o Chemical
o Aerospace
o Submarine
o Oil & Gas
o Medical
o Others
- India Bulk Oxygen Market, By Region:
o West India
o North India
o South India
o East India
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents in the India Bulk
Oxygen Market.
Available Customizations:
India Bulk Oxygen Market report with the given
market data, Tech Sci Research offers customizations according to a company's
specific needs. The following customization options are available for the
report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
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specific needs.
In case you can’t find what, you are looking for
then please get in touch with our custom research team at [email protected]