India Liquid Oxygen Market, By Type (Vertical Storage Tank v/s Horizontal Storage Tank), By End User (Aerospace, Submarine, Gas Industries, Medical, Others), By Region, Competition, Forecast & Opportunities, 2021-2031F

Market Overview

India Liquid Oxygen Market was valued at USD 208 Million in 2025 and is expected to reach USD 241 Million by 2031 with a CAGR of 3.99%.

The India Liquid Oxygen Market serves as a fundamental pillar in the country's industrial and healthcare ecosystems, catering to diverse applications ranging from metallurgical processes to medical therapies. Liquid oxygen, produced through cryogenic air separation, is essential for high-purity oxygen supply in sectors like steel manufacturing, aerospace, chemicals, and healthcare. The market's evolution aligns with India's Atmanirbhar Bharat initiative, which promotes self-reliance in critical infrastructure and manufacturing, encouraging local production of industrial gases. Government policies such as the Production Linked Incentive (PLI) scheme for pharmaceuticals and medical devices have bolstered demand for liquid oxygen in healthcare, particularly post the COVID-19 pandemic, where it played a crucial role in oxygen therapy for respiratory ailments.

The steel industry, a major consumer, benefits from liquid oxygen in blast furnaces and electric arc furnaces to enhance combustion efficiency, supporting the National Steel Policy that aims to expand domestic steel capacity. In aerospace, liquid oxygen is vital as a propellant in rocket engines, aligning with the Indian Space Research Organisation's (ISRO) ambitious missions like Gaganyaan. The chemical sector utilizes it for oxidation processes, while the mining and submarine industries rely on it for operational safety. Environmental regulations under the Central Pollution Control Board (CPCB) mandate cleaner production methods, driving adoption of liquid oxygen in wastewater treatment and emission control.

India's rapid urbanization and population growth have amplified healthcare needs, with liquid oxygen integral to hospitals for anesthesia and respiratory support. The Ayushman Bharat scheme, providing health coverage to millions, has increased hospital infrastructure, further fueling market demand. Supply chain enhancements, including cryogenic tankers and storage facilities, are supported by the Ministry of Road Transport and Highways' initiatives for efficient logistics. Challenges include dependency on imported technology and energy-intensive production, but opportunities emerge from renewable energy integration in air separation units.

Export potential is growing, with India positioning itself as a supplier to neighboring South Asian countries through strategic trade agreements. The market's trajectory through 2031F is influenced by technological integrations like Internet of Things (IoT) for real-time monitoring, ensuring supply reliability. The India Liquid Oxygen Market reflects a blend of industrial resilience and healthcare priorities, making it an attractive avenue for investors amid India's economic ascent.

Key Market Drivers

Expansion of Healthcare Infrastructure and Medical Applications

The expansion of healthcare infrastructure in India significantly drives the liquid oxygen market, propelled by government initiatives to enhance medical facilities nationwide. The Ayushman Bharat Pradhan Mantri Jan Arogya Yojana provides health insurance to vulnerable populations, necessitating reliable oxygen supply in hospitals for treatments like ventilation and surgery.

Supporting data from the Ministry of Health and Family Welfare indicates the establishment of numerous AIIMS-like institutions and upgrades to district hospitals, increasing demand for liquid oxygen in intensive care units. The National Health Mission emphasizes rural healthcare access, promoting installation of oxygen plants in remote areas. Policies such as the Emergency Credit Line Guarantee Scheme have facilitated funding for medical gas infrastructure post-COVID. This driver is reinforced by collaborations between public and private sectors, ensuring uninterrupted supply during health emergencies.

Environmental health concerns, addressed through the National Clean Air Programme, encourage liquid oxygen use in ozone therapy and pollution control measures.  The steady rise in India’s per capita health expenditure underscores the country’s growing investment in healthcare infrastructure and services, directly supporting the demand for medical gases such as liquid oxygen. In 2021–22, total health expenditure per capita reached approximately ₹6,602, a significant increase from ₹3,638 in 2013–14, reflecting an 82% growth over the decade.

Similarly, in 2018–19, individual healthcare spending stood at around ₹4,470, encompassing both public and private sources. By 2022, this figure translated to approximately $79.52 (~₹6,000) per person. This upward trend highlights expanding public and private healthcare capacity particularly in hospitals, emergency care, and intensive care units where liquid oxygen is a critical component. Rising expenditure indicates stronger demand for medical-grade oxygen across India.

Growth in Industrial Sectors like Steel and Chemicals

The growth of India's industrial sectors, particularly steel and chemicals, acts as a key driver for the liquid oxygen market, supported by national policies aimed at boosting manufacturing. The National Steel Policy targets increased domestic production capacity, relying on liquid oxygen for efficient smelting and refining processes. Supporting facts from the Ministry of Steel highlight initiatives like the PLI scheme for specialty steel, which incentivizes investments in oxygen-intensive technologies.

The Make in India campaign promotes chemical industry expansion, where liquid oxygen is used in synthesis and oxidation reactions. The Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) policy fosters integrated hubs, driving demand for high-purity gases. This driver aligns with export promotion strategies under the Foreign Trade Policy, enabling Indian firms to meet global standards through enhanced production efficiency. India’s relatively low but growing per-capita polymer and plastics consumption reflects the country's expanding industrial and manufacturing base, which directly supports rising demand in related sectors, including the liquid oxygen market.

In 2022, India’s per-capita polymer consumption was approximately 15 kg, while per-capita plastics usage was only 3 kg, significantly below the global average of 17 kg. For specific polymer derivatives, consumption stood at just 1.8 kg per person. This underlines the rapid pace of industrialization, infrastructure development, and healthcare expansion in India all of which require reliable oxygen supply chains. As the manufacturing, chemical processing, and medical sectors continue to scale, the need for high-purity industrial and medical-grade liquid oxygen is expected to grow proportionally, making it a critical enabler of this broader economic transformation.

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Key Market Challenges

Supply Chain and Logistics Constraints

Supply chain and logistics constraints represent a major challenge in the India Liquid Oxygen Market, affecting timely distribution across vast geographies. Inadequate cryogenic transportation infrastructure, as noted by the Ministry of Road Transport and Highways, leads to delays in delivering liquid oxygen to remote industrial and medical sites. Regulatory hurdles in interstate movement complicate operations, particularly during peak demand periods. High dependency on road tankers exposes the market to fuel price fluctuations and traffic disruptions. Addressing this requires investments in dedicated pipelines and rail networks, but limited funding for such projects hinders progress.

High Energy Costs and Technological Dependency

High energy costs pose a significant challenge, as cryogenic production of liquid oxygen is energy-intensive, impacting profitability amid rising electricity tariffs. The Bureau of Energy Efficiency highlights inefficiencies in air separation units, necessitating upgrades that strain smaller producers. Dependency on imported advanced technologies, as per the Department of Promotion of Industry and Internal Trade, increases vulnerability to global supply disruptions. Compliance with safety standards under the Petroleum and Explosives Safety Organisation adds operational complexities. Mitigating this demands local R&D incentives, but skill gaps in advanced engineering slow adoption.

Key Market Trends

Adoption of Green and Sustainable Production Methods

The adoption of green production methods is a prominent trend in the India Liquid Oxygen Market, driven by environmental sustainability goals under the National Action Plan on Climate Change. Companies are integrating renewable energy sources like solar power into air separation processes to reduce carbon footprints. This trend aligns with the Green Hydrogen Policy, promoting eco-friendly industrial gases. Collaborations with research institutions like the Indian Institute of Technology focus on low-emission technologies, enhancing market appeal in export-oriented sectors.

Digitalization and IoT Integration in Supply Chains

Digitalization through IoT is transforming the market, enabling real-time monitoring of storage and distribution. The Digital India initiative supports smart sensors in cryogenic tanks for predictive maintenance, reducing losses. This trend facilitates efficient inventory management in healthcare, as per the National Digital Health Mission, ensuring seamless supply during crises.

Segmental Insights

End User Insights

Based on end user, the medical is expected to emerge as the fastest-growing segment in the India Liquid Oxygen Market, driven by the rising demand for oxygen in hospitals, clinics, and emergency care settings. The increasing prevalence of chronic respiratory diseases, a growing number of surgical procedures, and a heightened focus on critical care infrastructure, especially in the wake of the COVID-19 pandemic, have significantly boosted the need for medical-grade liquid oxygen. Government initiatives to expand healthcare access in rural and semi-urban areas, along with investments in public health systems under programs like Ayushman Bharat, are further accelerating growth. As healthcare infrastructure continues to expand across the country, the demand for reliable and high-purity oxygen solutions is expected to rise sharply.

Type Insights

Based on type, the vertical storage tank segment holds the largest share in the India Liquid Oxygen Market, primarily due to its space-efficient design, high storage capacity, and suitability for both industrial and medical applications. Vertical tanks are ideal for storing cryogenic liquids like liquid oxygen, as they offer better thermal insulation, reduced evaporation losses, and easier integration into existing supply systems at hospitals, manufacturing plants, and distribution centres. Their structural advantages make them a preferred choice in densely populated or space-constrained environments, such as urban hospitals and industrial zones. Increased investments in healthcare and infrastructure development have led to widespread adoption of vertical tanks across both public and private sectors, reinforcing their dominant market position.

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Regional Insights

Based on region, the North region has emerged as the largest market in the India Liquid Oxygen Market, driven by its high concentration of healthcare facilities, dense population, and rapid industrial expansion. States like Delhi, Uttar Pradesh, Haryana, and Punjab have seen significant growth in hospital infrastructure, public health initiatives, and large-scale manufacturing units, all of which require consistent and high-volume supplies of medical and industrial-grade liquid oxygen. The region also plays a key role in emergency medical preparedness, as seen during past healthcare crises, leading to strengthened oxygen supply chains and storage capabilities. Ongoing infrastructure projects and government support for healthcare development contribute to sustained demand, solidifying the North's dominant position in the liquid oxygen market.

Recent Development

• In March 2025, the Ministry of Health and Family Welfare released the National Guidelines on Medical Oxygen Management at a workshop held at AIIMS, New Delhi. The event also marked the launch of the National Capacity Building Programme on Oxygen Management, aimed at training around 200 master trainers across the country. Union Health Secretary Smt. Punya Salila Srivastava highlighted the importance of maintaining and utilizing medical oxygen infrastructure to ensure preparedness for surge demands during emergencies, drawing on lessons from the COVID-19 pandemic. The guidelines provide a framework for efficient procurement, storage, and administration of medical oxygen, while the capacity-building initiative will strengthen skills of hospital administrators and medical officers, reducing wastage and improving patient safety across healthcare facilities nationwide.
• In June 2025, Linde India expanded its liquid oxygen facility in Jamshedpur to support the steel industry's growing demand. This expansion involved the acquisition of two additional large Air Separation Units (ASUs) to more than double Linde's onsite capacity.  The steel sector in India saw increased production of Liquid Medical Oxygen (LMO) in May 2021. However, the expansion in 2025 by Linde is related to supporting the growing demand for industrial gases, particularly oxygen, from the local merchant market and major steel players like Tata Steel. Tata Steel's expansion project at the Kalinganagar Industrial Complex is a key driver for this increased demand, with Linde signing a long-term agreement to supply oxygen, nitrogen, and argon for their needs. 
• In April 2024, INOX Air Products (INOXAP) announced the commissioning of a new cryogenic air separation unit (ASU) in Hosur, Tamil Nadu. This new facility, located at SIPCOT Phase II, has a production capacity of 200 Tons Per Day (TPD), with 150 Metric Tonnes per day dedicated to liquid oxygen production. The plant will also produce liquid nitrogen and liquid argon, and has a storage capacity of 1000 Metric Tonnes. This expansion is aimed at fulfilling the oxygen demand of over 100 hospitals in Tamil Nadu and supporting various industries.
• In August 2023, Air Liquide S.A. introduced a new portable liquid oxygen device for patients requiring supplemental oxygen therapy outside of traditional healthcare settings. This device, part of the "Access Oxygen" program, aims to improve access to medical oxygen in low- and middle-income countries.
• With the aid of programmes like the Oxygen Demand Aggregation Systems (ODAS) and the Oxygen Digital Tracking Systems (ODTS), states may now monitor and guarantee the delivery of oxygen at various points throughout the supply chain. Monitoring consumption and predicting demand can also be done using artificial intelligence and digital connectivity.
• Through the PM Cares fund, the central government has supported 1,222 PSA plants, which deliver 1,750 metric tonnes of captive oxygen daily. In addition, many plants have been established in states, thanks to government initiatives and business sponsorship.
• To meet the growing demand for liquid oxygen, many companies in India have expanded their production capacity. In February 2021, the Indian Oil Corporation (IOC) announced plans to set up a new oxygen plant in Bihar with a production capacity of 150 tonnes per day.
• In December 2020, the Adani Group announced plans to set up a 1,000 tonnes per day liquid medical oxygen plant in Gujarat. 
• In March 2020, the government announced that it would provide incentives for the production of medical oxygen, including a waiver of excise duty and customs duty on the import of equipment used for the production of medical oxygen.

Key Market Players

• INOX Air Products
• Ellenbarrie Industrial Gases
• India Glycols Pvt Ltd.
• UNIVERSAL BOSCHI
• Delhi Cryogenic Products Private Limited.
• Reliance Industries Ltd
• Praxair India Pvt. Ltd

Report Scope:

In this report, India Liquid Oxygen Market has been segmented into following categories, in addition to the industry trends which have also been detailed below:

•             India Liquid Oxygen Market, By Type:   

o   Vertical Storage Tank

o   Horizontal Storage Tank

•            India Liquid Oxygen Market, By End User:

o   Aerospace

o   Submarine

o   Gas Industries

o   Medical

o   Others

·      India Liquid Oxygen Market, By Region:

o   East

o   West

o   North

o   South

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the India Liquid Oxygen Market.

Available Customizations:

India Liquid Oxygen Market report with the given market data, TechSci 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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