Saudi Arabia Industrial Gases Market, By Product (Oxygen, Nitrogen, Carbon Dioxide, Hydrogen, Argon, Helium), By Mode of Distribution (Tonnage/Gaseous, Bulk & Cylinder, Packaged), By Region, Competition Forecast and Opportunities, 2020-2030F

Market Overview

Saudi Arabia Industrial Gases Market was valued at USD 1.28 Billion in 2024 and is expected to reach USD 1.75 Billion by 2030 with a CAGR of 5.31%.

The Saudi Arabia Industrial Gases Market stands as a critical enabler of the Kingdom's industrial diversification and energy transition efforts, supplying essential gases such as oxygen, nitrogen, carbon dioxide, hydrogen, argon, and helium to sectors including oil and gas, metallurgy, healthcare, chemicals, and food processing. These gases facilitate processes like welding, refining, medical oxygenation, and food preservation, aligning with Vision 2030's emphasis on downstream industries and sustainable development. The market benefits from Saudi Arabia's vast hydrocarbon resources, which provide low-cost feedstocks for gas production through air separation units and reforming technologies. Government initiatives, such as the National Industrial Development and Logistics Program (NIDLP), promote local manufacturing of industrial gases, reducing import dependency and enhancing supply chain resilience under the In-Kingdom Total Value Add (IKTVA) program.

The oil and gas sector remains the dominant consumer, utilizing gases for enhanced oil recovery (EOR), purging, and blanketing to ensure operational safety and efficiency. The Ministry of Energy's strategies to expand natural gas production, including the Jafurah field development, underscore the need for gases in purification and transportation. In healthcare, gases support respiratory therapies and sterilization, driven by expanding hospital infrastructure under the National Transformation Program. The food and beverage industry employs gases for carbonation and modified atmosphere packaging, aligning with food security goals. Environmental regulations enforced by the Saudi Environmental Protection Authority (SEPA) mandate gases for emission control and wastewater treatment, supporting the Saudi Green Initiative's net-zero emissions target by 2060.

Emerging applications in hydrogen production and carbon capture position the market at the forefront of clean energy transitions, with projects like NEOM integrating green hydrogen technologies. Challenges include energy-intensive production and logistical complexities in remote areas, but opportunities arise from digitalization and renewable energy integration. Strategic partnerships with global firms and local R&D, backed by institutions like King Abdulaziz City for Science and Technology (KACST), drive innovation. The market's growth through 2030F reflects a balance between traditional industrial demands and sustainable practices, making it an appealing investment in the Middle East & Africa region.

Key Market Drivers

Expansion of Oil and Gas Midstream and Downstream Activities

The expansion of Saudi Arabia's oil and gas midstream and downstream sectors serves as a primary driver for the industrial gases market, fueled by the Kingdom's strategic focus on value-added hydrocarbon processing. Vision 2030's Downstream Development Program aims to increase refining and petrochemical capacities, requiring gases like hydrogen and nitrogen for catalytic reforming and inerting processes. Supporting data from the Ministry of Energy indicates ongoing mega-projects such as the Jafurah unconventional gas field, which utilizes gases for separation and purification to meet domestic energy needs. The IKTVA program incentivizes local gas production, with companies like Saudi Aramco partnering for on-site supply units. Policies such as the Gas Investment Law encourage investments in midstream infrastructure, boosting demand for gases in pipeline integrity testing and EOR techniques. Environmental mandates from SEPA require gases for sulfur recovery and emission reduction, aligning with the Circular Carbon Economy framework. This driver is strengthened by export-oriented strategies, where high-purity gases ensure compliance with international fuel standards.

Increasing Demand from Healthcare and Food Processing Industries

Rising demand from healthcare and food processing industries propels the industrial gases market, driven by population growth and sustainability initiatives. The National Health Transformation Program expands medical facilities, necessitating oxygen for respiratory support and nitrous oxide for anesthesia. Supporting facts from the Ministry of Health highlight investments in hospital infrastructure, promoting gases for sterilization and cryopreservation. In food processing, the National Food Security Strategy targets self-sufficiency, using carbon dioxide and nitrogen for packaging and freezing to extend shelf life. The Saudi Food and Drug Authority's regulations enforce gas usage for hygiene and quality control. This driver is amplified by the Saudi Green Initiative, which supports eco-friendly gas applications in controlled atmosphere storage.

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Key Market Challenges

High Energy Consumption and Operational Costs

High energy consumption poses a significant challenge to the Saudi Arabia Industrial Gases Market, as air separation processes are power-intensive, impacting profitability amid fluctuating electricity prices. The Saudi Energy Efficiency Program notes inefficiencies in legacy plants, requiring upgrades that strain capital resources. Dependency on grid power increases vulnerability to supply disruptions, particularly in remote industrial zones. Compliance with SEPA's energy standards adds costs for renewable integration. Mitigating this demands investment in efficient technologies, but limited incentives for smaller producers hinder progress.

Logistical and Supply Chain Complexities

Logistical complexities present a challenge, with vast geography complicating gas distribution via cylinders and tankers. The Ministry of Transport highlights infrastructure gaps in remote areas, leading to delays in timely supply for critical applications. Regulatory requirements for hazardous material handling, under the Civil Defense Authority, increase operational burdens. Geopolitical tensions affecting shipping routes exacerbate import dependencies for specialty gases. Addressing this requires expanded pipeline networks, but high upfront costs and permitting delays slow implementation.

Key Market Trends

Adoption of Green Hydrogen and Sustainable Gas Production

The adoption of green hydrogen production is a key trend, driven by the Saudi Green Initiative's renewable energy targets. Electrolysis technologies, utilizing solar and wind, produce hydrogen without emissions, supporting applications in refining and transportation. Collaborations with KACST focus on scalable solutions, aligning with circular economy principles. This trend enhances export potential for low-carbon gases, meeting global sustainability demands.

Integration of IoT and Digital Monitoring Systems

Integration of IoT in gas production and distribution is transforming the market, enabling real-time monitoring for efficiency and safety. The Digital Transformation Program promotes smart sensors in air separation units, reducing downtime through predictive analytics. Companies like Linde adopt Industry 4.0 tools for inventory management, optimizing supply in petrochemical plants. This trend aligns with Vision 2030's innovation goals, improving competitiveness.

Segmental Insights

Product Type Insights

Based on product type, the hydrogen segment is expected to emerge as the fastest-growing segment in the Saudi Arabia Industrial Gases Market, driven by the country’s strategic focus on clean energy transition and diversification of its energy portfolio under Vision 2030. Increasing investments in green hydrogen production, fueled by abundant renewable energy resources such as solar and wind, are propelling demand. Hydrogen’s growing applications in refining, petrochemicals, power generation, and emerging sectors like fuel cell technology and export opportunities further accelerate market growth. Saudi Arabia’s commitment to reducing carbon emissions and developing a sustainable energy ecosystem positions hydrogen as a key industrial gas with significant growth potential throughout the forecast period.

Mode of Distribution Insights

Based on mode of distribution, the Bulk & Cylinder segment holds the largest share in the Saudi Arabia Industrial Gases Market, primarily due to its versatility and efficiency in meeting diverse industrial and medical gas requirements. Bulk deliveries enable large-scale, continuous supply to industries such as petrochemicals, manufacturing, and healthcare, ensuring uninterrupted operations. Cylinders, on the other hand, provide convenient and portable gas solutions for smaller-scale or mobile applications. The established infrastructure for bulk storage and cylinder distribution across Saudi Arabia, combined with the country’s strong industrial base and expanding healthcare sector, drives sustained demand for these delivery modes. Bulk and cylinder distribution offers cost-effectiveness and flexibility, reinforcing their dominant position in the market.

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Regional Insights

Based on region, the Northern & Central region has emerged as the largest market in the Saudi Arabia Industrial Gases Market, driven by its concentration of heavy industries, petrochemical plants, and manufacturing hubs. The presence of major industrial cities and oil refineries in this region fuels substantial demand for industrial gases such as oxygen, nitrogen, and hydrogen. Ongoing infrastructure development and government initiatives to boost industrial growth further contribute to market expansion. The region’s well-established logistics and distribution networks facilitate efficient supply, supporting continuous consumption across various sectors. These factors collectively position the Northern & Central region as the dominant market within Saudi Arabia’s industrial gases industry.

Recent Development

• In March 2025, Saudi Aramco finalized the acquisition of a 50% stake in Blue Hydrogen Industrial Gases Company (BHIG), located in Jubail. This investment is aimed at boosting low-carbon hydrogen production within the Kingdom of Saudi Arabia. The remaining 50% stake in BHIG is held by Air Products Qudra. This joint venture is expected to contribute to the development of a hydrogen network in Saudi Arabia's Eastern Province, supporting Aramco's carbon capture and storage (CCS) hub in Jubail.
• In July 2025, SABIC announced plans to explore an IPO for its subsidiary, National Industrial Gases Co. (GAS). The move is aimed at unlocking value from its industrial gases portfolio, strengthening capital efficiency, and supporting future growth opportunities in Saudi Arabia’s chemicals and energy sector.
• In 2025, Air Products announced that construction of the NEOM Green Hydrogen facility had reached 80% completion, marking significant progress in one of the world’s largest renewable hydrogen projects. The facility, being developed in partnership with ACWA Power and NEOM, will use solar and wind energy to produce green ammonia for global export. Once operational, it is expected to produce up to 600 tonnes of carbon-free hydrogen per day, supporting Saudi Arabia’s ambition to become a global leader in sustainable energy and clean fuels.
• In July 2023, Barrak Gas Factories commissioned a new gas filling station in Najran, aimed at strengthening distribution networks in the region. This expansion is expected to improve supply reliability, support growing energy demand, and enhance service efficiency across Saudi Arabia.
• In December 2022, Saudi Arabian Oil Company (Aramco) and Total Energies have collaborated to construct a new petrochemicals complex located in Jubail, eastern region of Saudi Arabia as extension of Saudi Aramco Total Refining and Petrochemical Co.(SATORP). The construction of new complex involved investment of USD 11 billion and  is expected to complete in 2027.
• In December 2021, the Saudi Aramco announcement stated that USD 12.4 billion lease and leaseback transaction has concluded in June with a conglomerate lead by EIG Global Energy Partners, which involved Aramco’s stabilized crude oil pipeline network.
• The official statement of Minister of Energy stated that they are going to hike the price of the industrial gases to some of exporter countries by countering that gas and liquids price are not same. Such steps are taken to increase the profitability by selling industrial gases to other countries.

Key Market Players

• Linde-SIGAS
• Air Products and Chemicals, Inc.
• Abdullah Hashim Industrial Gases &Equipment Co. Ltd
• Gulf Cryo Saudi
• Saudi Basic Industries Corporation (SABIC)
• Aldakheel Industrial Gases Plant (DIGAS)
• Jubail Gas Plant Co, Ltd.
• ACWA Holding
• Taiyo Nippon Sanso Corporation
• Barrack Industrial Gases Factory

Report Scope:

In this report, Saudi Arabia Industrial Gases Market has been segmented into following categories, in addition to the industry trends which have also been detailed below:

·         Saudi Arabia Industrial Gases Market, By Product Type:   

o   Oxygen

o   Nitrogen

o   Hydrogen

o   Carbon Dioxide

o   Argon

o   Helium

·    Saudi Arabia Industrial Gases Market, By Mode of Distribution:

o   Bulk & Cylinder

o   Tonnage/Gaseous

o   Packaged

o   Others

·      Saudi Arabia Industrial Gases Market, By Region:

o   Eastern Saudi Arabia

o   Western Saudi Arabia

o   Northern & Central Saudi Arabia

o   Southern Saudi Arabia

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Saudi Arabia Industrial Gases Market.

Available Customizations:

Saudi Arabia Industrial Gases 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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