|
Forecast
Period
|
2026-2030
|
|
Market
Size (2024)
|
USD
116.07 Billion
|
|
Market
Size (2030)
|
USD
178.14 Billion
|
|
CAGR
(2025-2030)
|
7.40%
|
|
Fastest
Growing Segment
|
Manufacturing
|
|
Largest
Market
|
Asia
Pacific
|
Market Overview
The Industrial
Gases market was valued at USD 116.07 Billion in 2024 and is expected to
reach USD 178.14 Billion by 2030 with a CAGR of 7.40%. The Global
Industrial Gases Market, though well-established, is undergoing a strategic
transformation driven by its indispensable role across core industries such as advanced
manufacturing, renewable energy, healthcare technology, precision chemicals,
food-grade processing, microelectronics, and metallurgy. Key gases including oxygen,
nitrogen, hydrogen, carbon dioxide, and argon are no longer treated as standard
consumables; they are increasingly integrated into critical production
workflows to optimize process yield, quality control, safety, and emissions
compliance.
The industry is
shifting away from a volume-based, commodity supply model toward a technology-enabled,
service-centric framework. This shift is fueled by mounting demand from sectors
undergoing digital automation, decarbonization, and electrification. Industrial
gas suppliers are now viewed as strategic collaborators, providing not only
gases but also on-site generation systems, remote telemetry, purity analytics,
and sustainability solutions.
Industrial
gases are becoming mission-critical inputs in areas such as semiconductor
etching, hydrogen-based refining, oxygen-enriched combustion, and CO₂ recovery. As industries recalibrate
around carbon neutrality, operational resilience, and real-time efficiency, the
market is poised for robust and durable growth. Companies that proactively
invest in low-carbon gas portfolios, digital infrastructure, and
custom-engineered delivery models will capture long-term value and secure
competitive advantage in this high-performance, innovation-led economy.
Key Market Drivers
Rapid Industrialization and
Infrastructure Development
Rapid
industrialization and infrastructure development are among the most powerful
drivers of growth in the Global Industrial Gases Market, fueling demand across
a wide spectrum of sectors including steel, construction, chemicals, energy,
electronics, and automotive. As emerging and developed economies expand their
manufacturing capacity and invest in large-scale infrastructure projects, the
consumption of industrial gases rises significantly both in volume and
complexity. As highlighted in the Economic Survey, India’s manufacturing
sector has consistently led industrial performance, recording an average annual
growth rate of 5.2% over the past decade. In FY23, the sector contributed 14.3%
to the country’s Gross Value Added (GVA) and accounted for 35.2% of total
industrial output, underscoring its deep integration across value chains. Industrial
gases such as oxygen, nitrogen, acetylene, and argon are integral to Steelmaking
(e.g., basic oxygen furnaces, electric arc furnaces), Cutting, welding, and
fabrication of metal structures, Cement production and glass manufacturing. Countries
undergoing rapid urbanization and industrial development such as India, China,
Indonesia, and Vietnam are investing heavily in housing, roads, bridges,
railways, and ports. These projects require vast quantities of processed
materials, where industrial gases play a critical role in enhancing production
speed, efficiency, and product quality.
Emerging
markets are positioning themselves as global manufacturing hubs through
initiatives like “Make in India”, China’s Belt and Road Initiative (BRI), Indonesia’s
industrial corridors, Vietnam’s FDI-led export manufacturing model. These
strategies have led to the proliferation of manufacturing units in: Automotive,
Electronics and semiconductors, Chemicals and plastics, Heavy machinery and
industrial equipment. Each of these sectors requires various industrial gases
for cooling, inerting, purging, oxidation, annealing, and cleaning processes,
driving both bulk and specialty gas demand. As nations invest in power plants,
oil refineries, wastewater treatment facilities, and energy transmission
networks, industrial gases become vital for Enhanced combustion efficiency
(using oxygen-enriched air), Pipeline pressure testing and purging (using
nitrogen), Desulfurization and hydrocracking in refineries (using hydrogen), Water
purification and sludge treatment (using oxygen and ozone). These projects not
only create direct consumption of gases but also support long-term industrial
utility needs, strengthening recurring demand across regions.
Governments
are promoting industrialization through cluster-based development and the
establishment of Special Economic Zones (SEZs) and Industrial Parks, which Attract
foreign and domestic investment in high-volume production, Enable the
co-location of gas-intensive industries, Justify large-scale on-site gas
generation plants or centralized gas distribution networks. Such developments
offer cost and logistics advantages for industrial gas suppliers, increasing
opportunities for long-term contracts and economies of scale.
Increasing Demand from
Electronics and Semiconductor Industries
The
increasing demand from the electronics and semiconductor industries is playing
a pivotal role in driving the growth of the Global Industrial Gases Market. As
the world rapidly shifts toward a digital-first economy fueled by smart
devices, data centers, electric vehicles, and emerging technologies like AI and
5G the semiconductor industry is witnessing unprecedented expansion. This surge
directly translates into heightened demand for ultra-high-purity (UHP)
industrial gases, which are critical to the precision, quality, and efficiency
of electronic component manufacturing. In December 2021, the Government of
India launched the India Semiconductor Mission (ISM) with a strategic
investment of approximately USD 10 billion, aimed at establishing a comprehensive
semiconductor and display fabrication ecosystem. Semiconductor
manufacturing processes rely heavily on a variety of industrial and specialty
gases for Etching (using fluorine-based gases like CF₄, SF₆), Oxidation and diffusion (using oxygen
and nitrogen), Deposition techniques like CVD and PVD (requiring silane,
ammonia, hydrogen, nitrogen, and argon), Wafer cleaning and chamber purging
(using nitrogen, hydrogen, helium). Because even microscopic impurities can
compromise chip performance, these processes demand extremely high-purity
gases, making the electronics industry one of the most technically demanding
and high-margin markets for gas suppliers.
The
global shortage of chips in recent years has led to massive investment in
semiconductor fabrication plants ("fabs") worldwide. Leading
initiatives include CHIPS and Science Act (USA) Stimulating domestic chip
manufacturing, Semiconductor Mission (India) Promoting local fab development, Made
in China 2025 Driving China's semiconductor self-sufficiency, Strategic
investments in Taiwan and South Korea by global leaders like TSMC and Samsung. Each
fab requires dedicated gas storage, supply, purification, and monitoring
systems, creating long-term and recurring demand for bulk and specialty gases. The
rise of emerging technologies is significantly boosting demand for advanced
electronics, which in turn expands the gas market. Key applications include 5G
infrastructure, Autonomous vehicles and electric mobility, Internet of Things
(IoT) devices, Wearables and smart appliances, High-performance computing and
AI processors. Manufacturing these advanced chips involves more complex
architectures (like 3D NAND and FinFETs), which require greater volumes and
purity levels of industrial gases to achieve nanoscale precision.
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Key Market Challenges
High Capital Investment and
Operational Costs
The
industrial gases sector is highly capital-intensive, requiring substantial
upfront investment in: Production facilities (e.g., air separation units,
hydrogen plants), On-site generation systems, Cryogenic storage and
distribution infrastructure, Specialty gas purification and blending systems.
Additionally,
the sector faces ongoing operational expenses, including Energy consumption
(particularly for cryogenic processes), Maintenance of pressurized equipment, Skilled
labor for plant operation and safety compliance.
New
entrants face high barriers to entry, limiting competition and innovation. Small
and medium enterprises (SMEs) may struggle to afford tailored gas solutions. Projects
with long payback periods deter investments in regions with uncertain
industrial policies or weak infrastructure. In volatile energy markets,
fluctuating electricity costs can impact production margins, especially for
energy-intensive gases like oxygen and nitrogen.
Stringent Safety,
Environmental, and Regulatory Requirements
The
production, storage, transport, and handling of industrial gases are governed
by complex and strict regulations, due to the hazardous nature of many gases
(e.g., flammability, toxicity, cryogenic risks). Companies must comply with: Occupational
safety standards (e.g., OSHA, ISO, and national regulations), Environmental
norms related to greenhouse gas emissions, water usage, and air quality, Transportation
and storage protocols under hazardous materials laws. In some countries,
permits and regulatory approvals for setting up gas plants or pipelines can be
time-consuming and politically sensitive.
Increases
compliance costs and legal liabilities for market players. Slows down project
implementation and market entry into new geographies. Smaller players may lack
the resources to meet global certification and auditing requirements, leading
to consolidation or market exits. Delays in approvals or non-compliance can
result in fines, shutdowns, or reputational damage, especially in healthcare or
food-grade gas segments.
Key Market Trends
Integration of On-Site and
Modular Gas Generation Systems
There
is a notable shift toward decentralized, on-site gas generation systems,
especially in industries with continuous, high-volume gas requirements such as
steel, glass, food & beverage, and pharmaceuticals. Instead of relying on
traditional bulk deliveries, many industrial users are opting for custom-built
or skid-mounted generation units that are installed directly at the point of
use.
Reduces
dependency on cryogenic transportation and cylinder logistics, mitigating
delivery delays and supply chain risks. Offers real-time control over gas
purity and volume, improving production consistency and minimizing wastage. Enables
cost optimization over time, especially in regions with high logistics costs or
limited gas infrastructure.
Leading
industrial gas players like Linde and Air Liquide are investing heavily in
build-own-operate (BOO) models for on-site plants, securing long-term supply
contracts while giving clients flexibility and operational control.
Additionally, startups and mid-sized companies are entering the market with
modular PSA (pressure swing adsorption) or membrane-based solutions, fostering
competition and innovation in gas delivery formats.
Electrification and Low-Carbon
Industrial Transitions
As
industrial customers begin transitioning toward electrification and
low-emission production, demand is shifting from conventional combustion gases
to those that support clean processing technologies, such as: Green hydrogen
(produced via electrolysis using renewable electricity), Oxygen for
oxy-combustion (to reduce nitrogen oxide emissions), Carbon dioxide for capture
and utilization (CCUS applications). The adoption of sustainable manufacturing
practices, driven by ESG mandates and regulatory pressure, is realigning the
industrial gas product mix.
Introduces
new market segments for high-purity, low-carbon gases, particularly in green
steel, green ammonia, and battery materials manufacturing. Enables gas
suppliers to embed themselves into decarbonization roadmaps of clients creating
value beyond commodity supply. Shifts capital investment toward electrolyzer
integration, carbon capture hubs, and low-emission gas distribution
infrastructure.
This
trend is pushing major players to reposition themselves as energy transition
partners. For instance, Air Products’ investment in large-scale green hydrogen
facilities and Linde’s partnerships in low-carbon steel and refining projects
highlight a strategic pivot from volume-based growth to sustainability-linked,
value-driven engagements.
Segmental Insights
Application Insights
Based
on the category of Application, the Manufacturing segment emerged as the fastest
growing in the market for Industrial Gases in 2024. Industrial gases such as
oxygen, acetylene, argon, and carbon dioxide are indispensable in metal
cutting, welding, brazing, and heat treatment processes. The resurgence of
construction, shipbuilding, and infrastructure projects across emerging
economies has accelerated demand for metalworking services, particularly in Asia
Pacific (notably China and India), Latin America, Eastern Europe. These
applications require precise gas mixtures to ensure high-performance welds,
energy efficiency, and safety driving increased consumption of industrial gases
in metal-centric manufacturing.
Electric
vehicle (EV) adoption accelerated significantly in 2023, with EVs accounting
for nearly 20% of all new car sales globally. Approximately 14 million electric
cars were registered worldwide during the year, bringing the total number of
EVs on the road to over 40 million,
lightweight vehicles, and aerospace innovation is boosting the use of
industrial gases in Laser and plasma cutting of components, Heat treating of
engine parts, Surface coating and material hardening, Battery manufacturing
(lithium and hydrogen technologies). Nitrogen, argon, and hydrogen are
especially critical in creating inert atmospheres and high-purity environments
required in precision automotive and aerospace assembly lines.
Modern
electronics manufacturing relies on ultra-high-purity (UHP) industrial gases,
including nitrogen, argon, helium, and hydrogen, for processes such as Silicon
wafer production, Semiconductor etching and doping, Printed circuit board (PCB)
assembly. Countries like South Korea, Taiwan, China, and the U.S. are making
substantial investments in semiconductor fabs and chip production facilities,
significantly contributing to gas consumption growth in this segment. These
factors contribute to the growth of this segment.
Product Insights
Based
on the category of Product, the Oxygen segment emerged as the dominating segment
in the market for Industrial Gases in 2024. One of the most significant drivers
of oxygen demand is its extensive use in metal production and fabrication,
particularly in Basic Oxygen Furnaces (BOF) in steel manufacturing, where
oxygen is used to oxidize impurities such as carbon, silicon, and sulfur. Oxy-fuel
cutting and welding, where oxygen improves flame temperature and cutting
efficiency. As steel demand grows across construction, automotive, and
infrastructure projects especially in emerging economies the consumption of
industrial-grade oxygen remains consistently high.
The
healthcare industry is a major consumer of oxygen, particularly medical-grade
oxygen used in Respiratory treatments and oxygen therapy, Surgical procedures, Ventilator
support, Emergency response and critical care units. The COVID-19 pandemic
significantly underscored the life-saving importance of oxygen, leading to
expanded oxygen infrastructure globally. Even in the post-pandemic landscape,
increasing healthcare investments and aging populations continue to drive demand.
Oxygen
is increasingly being used in environmental applications, such as: Biological
wastewater treatment, where oxygen supports aerobic digestion of organic
matter. Air enrichment in combustion systems for cleaner burning and reduced
emissions. As industrial and municipal regulations tighten around pollution
control and sustainability, the role of oxygen in environmental compliance is
expanding, particularly in developed markets and industrial hubs.
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Regional Insights
North
America emerged as the largest market in the global Industrial Gases market in
2024, holding the largest market share in terms of value. Asia Pacific hosts
some of the world’s largest and fastest-growing industrial sectors, including Steel
and metal fabrication, Electronics and semiconductors, Petrochemicals and
refining, Healthcare and pharmaceuticals, Food and beverage processing. Countries
such as China, India, Japan, and South Korea are experiencing a surge in demand
for industrial gases like oxygen, nitrogen, hydrogen, carbon dioxide, and argon
for applications ranging from metal cutting and welding to medical therapies
and semiconductor manufacturing.
China
alone accounts for a significant share of the Asia Pacific industrial gases
market due to Its status as the world’s largest steel producer and a global
manufacturing hub. Continued investments in clean energy (e.g., hydrogen
economy), infrastructure, and advanced electronics. National policies like
“Made in China 2025” and decarbonization efforts which are fueling demand for
specialty and ultra-high-purity gases.
The
rise of semiconductor fabrication facilities (fabs), particularly in Taiwan,
South Korea, and China, is a major growth driver. These facilities require
large volumes of ultra-pure industrial gases for Wafer cleaning, Deposition
processes, Etching, Lithography. The ongoing global shift toward digitization,
electric vehicles, and 5G infrastructure is further intensifying this demand.
Recent Developments
- In
April 2025, Linde announced plans to expand its supply of ultra-high-purity
atmospheric, process, and specialty gases to support Samsung’s advanced
semiconductor manufacturing facility in Pyeongtaek, South Korea. This scale-up
reflects Linde’s strategic role in enabling next-generation chip production,
ensuring Samsung has access to the critical gas infrastructure required for
high-precision fabrication processes at one of the world’s most sophisticated
semiconductor sites.
- In
March 2025, Aramco, a global leader in integrated energy and chemicals, has
finalized the acquisition of a 50% equity stake in Blue Hydrogen Industrial
Gases Company (BHIG), located in Jubail, through a strategic partnership with Air
Products Qudra (APQ). This collaboration brings together Aramco’s downstream
expertise and APQ’s industrial gas capabilities to develop and supply large-scale
hydrogen solutions including lower-carbon hydrogen to the Jubail Industrial
City region. The move aligns with Aramco’s broader strategy to advance clean
energy technologies and support the decarbonization of industrial clusters in
the Middle East.
- In
October 2023, Linde India has signed a long-term agreement to supply hydrogen,
nitrogen, and compressed dry air to Indian Oil Corporation’s Panipat refinery,
a key energy infrastructure site in Northern India. These gases are critical to
enabling clean fuel production and optimizing core refining operations. The
project includes the development of Linde’s second large-scale hydrogen
production facility for Indian Oil and will directly support the refinery’s planned
capacity expansion from 15 to 25 million metric tons per annum. This strategic
collaboration reinforces Linde’s commitment to deploying advanced gas
technologies and scaling its operational footprint in North India’s
fast-growing industrial corridor.
Key Market Players
- Air
Liquide
- Air Products and Chemicals, Inc.
- INOX-Air Products Inc.
- Iwatani Corporation
- Linde PLC
- Messer SE & CO.
KGaA
- SOL Group
- Strandmøllen
- TAIYO NIPPON SANSO CORPORATION
|
By
Product
|
By
Application
|
By
Distribution Channel
|
By
Region
|
- Oxygen
- Nitrogen
- Hydrogen
- Carbon
dioxide
- Acetylene
- Argon
|
- Healthcare
- Manufacturing
- Metallurgy
& Glass
- Food
& Beverages
- Retail
- Chemicals
& Energy
- Others
|
- On-site
- Bulk
(Liquid Gas Transport)
- Cylinder
(Merchant)
|
- North
America
- Europe
- Asia
Pacific
- South
America
- Middle
East & Africa
|
Report Scope:
In this report, the Global Industrial Gases Market
has been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- Industrial Gases Market, By Product:
o Oxygen
o Nitrogen
o Hydrogen
o Carbon dioxide
o Acetylene
o Argon
- Industrial Gases Market, By Application:
o Healthcare
o Manufacturing
o Metallurgy & Glass
o Food & Beverages
o Retail
o Chemicals & Energy
o Others
- Industrial Gases Market, By Distribution Channel:
o On-site
o Bulk (Liquid Gas Transport)
o Cylinder (Merchant)
- Industrial Gases Market, By Region:
o North America
§ United States
§ Canada
§ Mexico
o Europe
§ France
§ United Kingdom
§ Italy
§ Germany
§ Spain
o Asia-Pacific
§ China
§ India
§ Japan
§ Australia
§ South Korea
o South America
§ Brazil
§ Argentina
§ Colombia
o Middle East & Africa
§ South Africa
§ Saudi Arabia
§ UAE
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Global Industrial
Gases Market.
Available Customizations:
Global Industrial Gases 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).
Global Industrial
Gases Market is an upcoming report to be released soon. If you wish an early
delivery of this report or want to confirm the date of release, please contact
us at
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