Oxygen Market Size and Outlook 2031

Report Description

Forecast Period	2027-2031
Market Size (2025)	USD 48.97 Billion
CAGR (2026-2031)	4.92%
Fastest Growing Segment	Gas
Largest Market	Asia Pacific
Market Size (2031)	USD 65.33 Billion

Market Overview

The Global Oxygen Market will grow from USD 48.97 Billion in 2025 to USD 65.33 Billion by 2031 at a 4.92% CAGR. Oxygen, a colorless and odorless chemical element, serves as a critical raw material across diverse sectors ranging from heavy industry to healthcare. The market is primarily propelled by the steel and metallurgy industries, where high-purity oxygen is indispensable for blast furnace operations to enhance combustion efficiency. Additionally, the chemical sector utilizes this gas for the oxidation of raw materials, while the medical field relies on it for life-sustaining respiratory therapies. According to the European Industrial Gases Association, in 2024, the global industrial gas market was valued at €86.9 billion, with oxygen and nitrogen collectively accounting for approximately 56% of this sector.

One significant challenge impeding market expansion is the high energy intensity required for cryogenic air separation. Producing high-purity oxygen demands substantial electricity, making operational costs highly sensitive to fluctuating energy prices. This volatility can erode profit margins for manufacturers and lead to supply instabilities, particularly in regions facing energy crises or grid reliability issues. Consequently, these elevated production costs often transfer to end-users, potentially dampening demand in cost-sensitive industrial applications.

Key Market Drivers

The Expansion of the Steel and Metallurgy Industry in Emerging Economies serves as a foundational force propelling the global oxygen market. In blast furnace and electric arc furnace operations, high-purity oxygen is essential for enriching air to increase combustion temperatures, thereby enhancing steel quality and reducing production times. This dependency is particularly acute in developing nations where rapid infrastructure development necessitates vast quantities of structural steel, directly correlating to increased industrial gas consumption. According to the World Steel Association, October 2024, in the 'Short Range Outlook October 2024', global steel demand is forecast to rebound by 1.2% in 2025 to reach 1,772 Mt, a trajectory that ensures sustained volume requirements for oxygen in heavy manufacturing hubs.

Emerging Utilization in Green Hydrogen and Carbon Capture Technologies represents a strategic driver reshuffling market priorities toward decarbonization. Oxygen plays a dual role in this transition: it is required for partial oxidation processes to generate low-carbon hydrogen and is critical for oxy-combustion technologies that facilitate efficient carbon capture by producing a concentrated CO2 stream. Major industry players are responding with significant capital allocation to build dedicated infrastructure for these clean energy applications. For instance, according to Air Liquide, June 2024, in the press release 'Air Liquide selected to invest up to 850 MUSD in largest low-carbon oxygen production in the Americas', the company announced an investment of up to $850 million to construct air separation units supplying 9,000 metric tons of oxygen daily for a low-carbon hydrogen project. Underscoring the financial scale of the key suppliers supporting these industrial shifts, according to Linde plc, in 2024, the company reported third-quarter sales of $8.4 billion.

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Key Market Challenges

The high energy intensity required for cryogenic air separation represents a substantial barrier to the growth of the global oxygen market. Cryogenic distillation is an electrically intensive process that necessitates significant power to compress and cool air to liquefaction temperatures. Consequently, electricity constitutes a major portion of variable production costs for manufacturers. When energy markets experience volatility or sustained price increases, the operational expenses for running air separation units surge, eroding profit margins and creating financial instability for producers who cannot easily absorb these spikes.

This cost pressure directly hampers market expansion by elevating the final price of oxygen, thereby dampening demand in price-sensitive industrial sectors. Manufacturers are often compelled to transfer the burden of rising energy bills to end-users, making high-purity oxygen increasingly expensive for heavy industries that are already managing tight budgets. According to the 'World Steel Association', in 2024, global steel demand was forecast to contract to 1,751 million tonnes, indicating that this primary consumer base is operating under economic strain and is highly sensitive to input cost escalations. As key industrial consumers face these compounded financial challenges, their ability to sustain or increase oxygen consumption diminishes, effectively stalling overall market growth.

Key Market Trends

The adoption of Pressure Swing Adsorption (PSA) and Vacuum Swing Adsorption (VSA) technologies is accelerating as healthcare facilities and industrial users seek to minimize supply chain risks associated with bulk liquid delivery. By installing independent on-site production systems, these sectors can generate oxygen directly at the point of use, thereby stabilizing operational costs and ensuring uninterrupted availability during demand surges. This shift is particularly evident in the increasing orders for gas generation and processing equipment which supports decentralized infrastructure. According to Atlas Copco, July 2024, in the 'Second-quarter report 2024', the company reported a 6% organic revenue growth in its Compressor Technique business area, driven significantly by strong order intake for gas and process compressors used in these applications. This uptake underscores the rising strategic priority placed on self-sufficient generation capabilities to enhance resilience against external logistics disruptions.

Simultaneously, the market is witnessing a robust expansion in the development of miniaturized portable oxygen concentrators (POCs) designed to support active lifestyle management for patients with chronic respiratory conditions. Manufacturers are prioritizing ultra-lightweight designs and connectivity features that allow for remote monitoring and improved patient compliance, moving beyond traditional heavy tanks. This demand for advanced mobility solutions is reflected in the recent financial performance of specialized medical device manufacturers. According to Inogen, August 2024, in the 'Second Quarter 2024 Financial Results', the company announced that total revenue increased by 6.1% to $88.8 million compared to the same period in the prior year, primarily fueled by higher demand in business-to-business sales. Such financial traction highlights the growing end-user preference for compact, technology-integrated respiratory devices that facilitate mobility and home-based care.

Segmental Insights

The gas segment is emerging as the fastest-growing component of the global oxygen market due to increasing demand for on-site generation solutions across industrial and medical sectors. Manufacturing facilities, particularly in metallurgy and chemicals, utilize gaseous oxygen via pipelines to enhance combustion efficiency without the logistical costs of liquid handling. Additionally, healthcare providers are adopting on-site generation systems to secure autonomous supply lines, reducing dependency on external liquid deliveries. This transition toward decentralized production and direct pipeline supply underscores the accelerated adoption of oxygen in its gaseous form.

Regional Insights

Asia Pacific maintains market leadership in the Global Oxygen Market, primarily due to extensive industrialization in major economies like China and India. This dominance is largely supported by the metallurgical sector, specifically steel manufacturing, which necessitates significant volumes of industrial gas. Data from the World Steel Association identifies the region as the primary contributor to global crude steel output, a factor that directly drives industrial oxygen consumption. Furthermore, government initiatives to upgrade healthcare infrastructure for a growing population have increased the requirement for medical-grade oxygen. These combined industrial and medical factors ensure the region remains the focal point of global market demand.

Recent Developments

In January 2025, Messer announced a capital investment of $70 million to establish a new air separation unit in Berryville, Arkansas. This initiative was undertaken to address the rising demand for atmospheric gases, including oxygen, nitrogen, and argon, throughout the southern United States. The facility was planned to support a diverse range of industries, such as healthcare, food and beverage, and metal processing, by providing a dependable local gas supply. The project underscored the company's strategy to expand its production footprint and improve service reliability for customers in key regional markets.
In October 2024, Air Liquide entered into a long-term contract to supply oxygen to LG Chem for a new cathode active material plant in the United States. To fulfill this agreement, the company committed to investing $150 million to construct, own, and operate a new air separation unit, liquefier, and pipeline infrastructure in Clarksville, Tennessee. This strategic project was designed to support the expanding battery manufacturing ecosystem necessary for the energy transition. The investment also aimed to significantly increase the company's local production capacity for liquid oxygen, nitrogen, and argon to serve other regional merchant customers.
In October 2024, Linde announced the start of industrial gas supply to PT Freeport Indonesia following the completion of a significant infrastructure project in Manyar. The company invested $120 million to build and operate a new on-site air separation unit, which was established as the largest facility of its kind in Indonesia. This plant was dedicated to providing a reliable stream of oxygen and nitrogen to support the customer's new copper smelter and refining operations. The development enhanced the efficiency of the smelting process and strengthened the company's supply network density in East Java.
In June 2024, Atlas Copco expanded its industrial gas generation portfolio by launching the OGP 2-225 oxygen generator. This new system was engineered to provide businesses with a cost-effective and energy-efficient solution for on-site oxygen production, utilizing advanced Pressure Swing Adsorption technology. The generator offered users the ability to produce oxygen with purity levels of up to 93 percent directly at their facilities, thereby reducing dependence on external bulk deliveries. The launch addressed the growing market demand for independent supply chains and sustainable operational models across various industrial applications.

Key Market Players

Linde
Air Liquide
Air Products
Praxair
Messer
Taiyo Nippon Sanso
Air Water Inc.
Messer Group
Gulf Cryo
Iwatani

By Form	By Application	By Region
Gas Liquid Solid	Metals & Mining Chemical Oil & Gas Healthcare Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

Oxygen Market, By Form:

Gas
Liquid
Solid

Oxygen Market, By Application:

Metals & Mining
Chemical
Oil & Gas
Healthcare
Others

Oxygen Market, By Region:

North America

United States
Canada
Mexico

Europe

France
United Kingdom
Italy
Germany
Spain

Asia Pacific

China
India
Japan
Australia
South Korea

South America

Brazil
Argentina
Colombia

Middle East & Africa

South Africa
Saudi Arabia
UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Oxygen Market.

Available Customizations:

Global 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).

Global Oxygen 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 [email protected]

Table of content

1. Product Overview

1.1. Market Definition

1.2. Scope of the Market

1.2.1. Markets Covered

1.2.2. Years Considered for Study

1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market

3.2. Overview of Key Market Segmentations

3.3. Overview of Key Market Players

3.4. Overview of Key Regions/Countries

3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Oxygen Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Form (Gas, Liquid, Solid)

5.2.2. By Application (Metals & Mining, Chemical, Oil & Gas, Healthcare, Others)

5.2.3. By Region

5.2.4. By Company (2025)

5.3. Market Map

6. North America Oxygen Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Form

6.2.2. By Application

6.2.3. By Country

6.3. North America: Country Analysis

6.3.1. United States Oxygen Market Outlook

6.3.1.1. Market Size & Forecast

6.3.1.1.1. By Value

6.3.1.2. Market Share & Forecast

6.3.1.2.1. By Form

6.3.1.2.2. By Application

6.3.2. Canada Oxygen Market Outlook

6.3.2.1. Market Size & Forecast

6.3.2.1.1. By Value

6.3.2.2. Market Share & Forecast

6.3.2.2.1. By Form

6.3.2.2.2. By Application

6.3.3. Mexico Oxygen Market Outlook

6.3.3.1. Market Size & Forecast

6.3.3.1.1. By Value

6.3.3.2. Market Share & Forecast

6.3.3.2.1. By Form

6.3.3.2.2. By Application

7. Europe Oxygen Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Form

7.2.2. By Application

7.2.3. By Country

7.3. Europe: Country Analysis

7.3.1. Germany Oxygen Market Outlook

7.3.1.1. Market Size & Forecast

7.3.1.1.1. By Value

7.3.1.2. Market Share & Forecast

7.3.1.2.1. By Form

7.3.1.2.2. By Application

7.3.2. France Oxygen Market Outlook

7.3.2.1. Market Size & Forecast

7.3.2.1.1. By Value

7.3.2.2. Market Share & Forecast

7.3.2.2.1. By Form

7.3.2.2.2. By Application

7.3.3. United Kingdom Oxygen Market Outlook

7.3.3.1. Market Size & Forecast

7.3.3.1.1. By Value

7.3.3.2. Market Share & Forecast

7.3.3.2.1. By Form

7.3.3.2.2. By Application

7.3.4. Italy Oxygen Market Outlook

7.3.4.1. Market Size & Forecast

7.3.4.1.1. By Value

7.3.4.2. Market Share & Forecast

7.3.4.2.1. By Form

7.3.4.2.2. By Application

7.3.5. Spain Oxygen Market Outlook

7.3.5.1. Market Size & Forecast

7.3.5.1.1. By Value

7.3.5.2. Market Share & Forecast

7.3.5.2.1. By Form

7.3.5.2.2. By Application

8. Asia Pacific Oxygen Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Form

8.2.2. By Application

8.2.3. By Country

8.3. Asia Pacific: Country Analysis

8.3.1. China Oxygen Market Outlook

8.3.1.1. Market Size & Forecast

8.3.1.1.1. By Value

8.3.1.2. Market Share & Forecast

8.3.1.2.1. By Form

8.3.1.2.2. By Application

8.3.2. India Oxygen Market Outlook

8.3.2.1. Market Size & Forecast

8.3.2.1.1. By Value

8.3.2.2. Market Share & Forecast

8.3.2.2.1. By Form

8.3.2.2.2. By Application

8.3.3. Japan Oxygen Market Outlook

8.3.3.1. Market Size & Forecast

8.3.3.1.1. By Value

8.3.3.2. Market Share & Forecast

8.3.3.2.1. By Form

8.3.3.2.2. By Application

8.3.4. South Korea Oxygen Market Outlook

8.3.4.1. Market Size & Forecast

8.3.4.1.1. By Value

8.3.4.2. Market Share & Forecast

8.3.4.2.1. By Form

8.3.4.2.2. By Application

8.3.5. Australia Oxygen Market Outlook

8.3.5.1. Market Size & Forecast

8.3.5.1.1. By Value

8.3.5.2. Market Share & Forecast

8.3.5.2.1. By Form

8.3.5.2.2. By Application

9. Middle East & Africa Oxygen Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Form

9.2.2. By Application

9.2.3. By Country

9.3. Middle East & Africa: Country Analysis

9.3.1. Saudi Arabia Oxygen Market Outlook

9.3.1.1. Market Size & Forecast

9.3.1.1.1. By Value

9.3.1.2. Market Share & Forecast

9.3.1.2.1. By Form

9.3.1.2.2. By Application

9.3.2. UAE Oxygen Market Outlook

9.3.2.1. Market Size & Forecast

9.3.2.1.1. By Value

9.3.2.2. Market Share & Forecast

9.3.2.2.1. By Form

9.3.2.2.2. By Application

9.3.3. South Africa Oxygen Market Outlook

9.3.3.1. Market Size & Forecast

9.3.3.1.1. By Value

9.3.3.2. Market Share & Forecast

9.3.3.2.1. By Form

9.3.3.2.2. By Application

10. South America Oxygen Market Outlook

10.1. Market Size & Forecast

10.1.1. By Value

10.2. Market Share & Forecast

10.2.1. By Form

10.2.2. By Application

10.2.3. By Country

10.3. South America: Country Analysis

10.3.1. Brazil Oxygen Market Outlook

10.3.1.1. Market Size & Forecast

10.3.1.1.1. By Value

10.3.1.2. Market Share & Forecast

10.3.1.2.1. By Form

10.3.1.2.2. By Application

10.3.2. Colombia Oxygen Market Outlook

10.3.2.1. Market Size & Forecast

10.3.2.1.1. By Value

10.3.2.2. Market Share & Forecast

10.3.2.2.1. By Form

10.3.2.2.2. By Application

10.3.3. Argentina Oxygen Market Outlook

10.3.3.1. Market Size & Forecast

10.3.3.1.1. By Value

10.3.3.2. Market Share & Forecast

10.3.3.2.1. By Form

10.3.3.2.2. By Application

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)

12.2. Product Launches (If Any)

12.3. Recent Developments

13. Global Oxygen Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry

14.2. Potential of New Entrants

14.3. Power of Suppliers

14.4. Power of Customers

14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Linde

15.1.1. Business Overview

15.1.2. Products & Services

15.1.3. Recent Developments

15.1.4. Key Personnel

15.1.5. SWOT Analysis

15.2. Air Liquide

15.3. Air Products

15.4. Praxair

15.5. Messer

15.6. Taiyo Nippon Sanso

15.7. Air Water Inc.

15.8. Messer Group

15.9. Gulf Cryo

15.10. Iwatani

16. Strategic Recommendations

17. About Us & Disclaimer

Report Description

Table of content

Figures and Tables

Frequently asked questions

What was the market size of the Global Oxygen Market in 2025?

Which is the dominating region in the Global Oxygen Market?

Which is the fastest growing segment in the Global Oxygen Market?

What is the expected growth rate of the Global Oxygen Market?

Oxygen Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Form (Gas, Liquid, Solid), By Application (Metals & Mining, Chemical, Oil & Gas, Healthcare, Others), By Region and Competition, 2021-2031F

Report Description

Table of content

Figures and Tables

Frequently asked questions

What was the market size of the Global Oxygen Market in 2025?

Which is the dominating region in the Global Oxygen Market?

Which is the fastest growing segment in the Global Oxygen Market?

What is the expected growth rate of the Global Oxygen Market?