United States Medical Oxygen Market, By Form (Liquid Oxygen, Compressed Oxygen, and Oxygen Gas Mixture), By Delivery Mode (Tanks/Pipeline, Cylinder, and Others), By Application (Diagnostic, Therapeutic), By End User (Hospitals & Clinics, Ambulatory Care Centers, Homecare, Skilled Nursing Facilities, Assisted Living Facilities, and Others), By Region, Competition, Forecast and Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 253.34 Million
CAGR (2026-2031)	4.54%
Fastest Growing Segment	Liquid Oxygen
Largest Market	South
Market Size (2031)	USD 330.67 Million

Market Overview

The United States Medical Oxygen Market will grow from USD 253.34 Million in 2025 to USD 330.67 Million by 2031 at a 4.54% CAGR. Medical oxygen is a pharmaceutical-grade gas utilized as a critical therapeutic intervention for patients suffering from hypoxemia and respiratory compromise. The market is fundamentally driven by the sustained necessity for inpatient critical care and the rising prevalence of chronic health conditions requiring respiratory support. According to the American Hospital Association, in 2025, United States hospitals reported over 34 million total admissions, which substantiates the immense and consistent demand for medical gases in clinical settings. This high volume of patient intake ensures a stable consumption rate that underpins the industry's financial trajectory while validating the essential nature of the product across the healthcare continuum.

Nevertheless, a significant challenge impeding market expansion involves the intricate regulatory compliance required for production and safety labeling. The manufacturing of medical gases is subject to rigorous oversight by federal agencies, necessitating substantial capital investment in quality control and specialized distribution logistics. This complex operational environment, coupled with ongoing pressures regarding reimbursement rates for home-based oxygen therapies, creates a high barrier to entry and constrains the profit margins necessary for rapid supply chain scalability.

Key Market Drivers

The escalating prevalence of chronic respiratory disorders, specifically Chronic Obstructive Pulmonary Disease (COPD), serves as a foundational driver for the medical oxygen sector. As these progressive conditions deteriorate lung function, patients frequently require Long-Term Oxygen Therapy (LTOT) to manage hypoxemia and prevent acute exacerbations. This clinical necessity ensures a continuous revenue stream for gas manufacturers and equipment suppliers, as the patient base requiring daily respiratory support steadily widens. According to the Centers for Disease Control and Prevention, May 2025, in the 'NCHS Data Brief No. 529', COPD remained a critical health burden, ranking as the fifth leading cause of death in the United States and resulting in 141,733 fatalities in 2023. This high mortality and morbidity rate directly correlates with the intensified consumption of medical-grade gases in both emergency and palliative care settings.

Concurrently, technological advancements in portable oxygen concentrators (POCs) and the rising preference for home healthcare are reshaping delivery models. Innovations in battery life and oxygen pulse-dose delivery allow patients to maintain mobility, prompting a transition from traditional cylinder deliveries to self-generating portable devices. This trend is significantly boosting the financial performance of key equipment manufacturers who are meeting this evolving lifestyle demand. According to Inogen, Inc., February 2025, in the 'Fourth Quarter and Full Year 2024 Financial Results', the company reported total annual revenue of $335.7 million, representing a 6.4% year-over-year increase attributed largely to robust domestic business-to-business sales. The scale of this home-based care ecosystem is vast; according to the American Association for Homecare, in 2025, the United States home medical equipment industry provided services to approximately 16 million individuals, validating the critical shift of respiratory therapy from clinical facilities to residential environments.

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Key Market Challenges

The intricate regulatory compliance environment, exacerbated by restrictive reimbursement rates, stands as a formidable barrier hampering the growth of the United States Medical Oxygen Market. This challenging landscape forces manufacturers and suppliers to navigate rigorous federal oversight and safety labeling protocols, which demand significant capital expenditure. When these elevated operational costs intersect with stagnant or declining payment structures for home-based therapies, the financial viability of expanding supply chains is severely compromised. This dynamic deters new entrants and compels existing providers to consolidate rather than scale, ultimately limiting the market's physical reach and economic potential.

The impact of this financial compression is quantifiable and severe. According to the American Association for Homecare, in 2024, Medicare reimbursement rates for top durable medical equipment categories in non-rural areas faced cuts averaging 20.1%. Such a substantial reduction in recoverable revenue directly erodes the profit margins required to maintain complex distribution logistics. Consequently, suppliers are forced to restrict their service areas or reduce workforce capacity, creating a contraction in market availability that directly counteracts the rising clinical demand for respiratory support.

Key Market Trends

The integration of IoT and smart remote monitoring capabilities is reshaping the market by creating a connected ecosystem that enhances patient safety and device management. This technology allows for the continuous transmission of usage data, oxygen purity levels, and system diagnostics directly to clinicians, enabling proactive interventions that significantly reduce the risk of hospital readmissions. Manufacturers are embedding cellular connectivity into devices to facilitate this data exchange, effectively shifting the focus from simple gas delivery to comprehensive health management. According to ResMed Inc., August 2025, in the '2025 Annual Report', the company reported that its digital health technologies and cloud-connected medical devices enhanced the lives of over 144 million people, underscoring the significant scale of adoption for data-driven respiratory solutions.

Concurrently, the rising implementation of on-site oxygen generation systems is driven by a critical need for supply chain resilience and operational autonomy. Healthcare facilities are increasingly investing in specialized pressure swing adsorption (PSA) infrastructure to enable the localized production of medical-grade gas, thereby eliminating dependency on volatile external liquid deliveries. This transition insulates providers from logistical disruptions and stabilizes long-term procurement costs. The momentum behind this infrastructure modernization is quantifiable; according to Chart Industries, Inc., July 2025, in the 'Second Quarter 2025 Financial Results', the company secured orders totaling $1.50 billion, demonstrating the substantial capital investment currently flowing into the critical gas handling and equipment sector.

Segmental Insights

Liquid oxygen is identified as the fastest-growing segment in the United States Medical Oxygen Market primarily due to its high storage density and efficiency for large-scale applications. Hospitals and long-term care facilities prioritize this form because it permits significant bulk storage within limited physical space compared to compressed gas cylinders. The rising incidence of chronic respiratory conditions necessitates a continuous and high-volume supply, which liquid oxygen systems effectively deliver. Furthermore, established safety protocols by the United States Food and Drug Administration facilitate the streamlined adoption of these bulk systems in healthcare infrastructure.

Regional Insights

The South maintains a leading position in the United States Medical Oxygen Market, primarily driven by the significant prevalence of chronic respiratory disorders across the region. Data from the Centers for Disease Control and Prevention consistently highlights a higher concentration of Chronic Obstructive Pulmonary Disease (COPD) in Southern states compared to other areas. This elevated disease burden directly correlates with increased demand for supplemental oxygen therapy and related equipment. Furthermore, the region’s expanding geriatric demographic and robust network of home healthcare providers further solidify its market dominance, ensuring a steady requirement for both stationary and portable oxygen solutions.

Recent Developments

• In January 2025, CAIRE Inc. expanded its respiratory care portfolio with the launch of the IntenOxy 5 Stationary Oxygen Concentrator in the United States. This new stationary system was introduced to provide home medical equipment providers with a durable and reliable solution for patients requiring high-flow oxygen therapy in a home setting. The release of the IntenOxy 5 was part of the company's broader strategy to offer a comprehensive range of oxygen supply equipment, catering to the evolving needs of the healthcare market. The device was designed to support individuals with serious respiratory conditions by ensuring consistent and effective oxygen delivery.
• In November 2024, a subsidiary of Belluscura entered into a credit facility agreement valued at $4 million to finance the commercial launch of the DISCOV-R portable oxygen concentrator in the United States. This financing arrangement was secured shortly after the device received reimbursement approval from Medicare, a regulatory milestone that positioned the product for broader distribution in the business-to-business market. The DISCOV-R was developed as a next-generation, lightweight oxygen enrichment device intended to improve mobility for patients suffering from chronic lung diseases. The funds were allocated to support inventory, accounts receivable, and other working capital needs associated with the product's rollout.
• In October 2024, Inogen commenced the United States market release of the Rove 4 Portable Oxygen Concentrator, a device designed to further support patients with chronic respiratory conditions. This new concentrator integrated the company's patented pulse-dose Intelligent Delivery Technology, which was engineered to detect breath with high sensitivity and deliver oxygen within the first 250 milliseconds of inhalation. The release of the Rove 4 represented a strategic expansion of the company's product offerings in the homecare setting, providing a lightweight and efficient option for users requiring supplemental oxygen. This development underscored the manufacturer's commitment to advancing respiratory care technology for the domestic market.
• In January 2024, O2 Concepts introduced the Oxlife LIBERTY 2 portable oxygen concentrator to the United States market, expanding its portfolio of wearable respiratory devices. This new model was engineered to offer enhanced therapeutic versatility, featuring continuous flow capabilities of up to 2.0 liters per minute and a broader range of pulse flow settings. The device also incorporated proprietary DNA Technology, a cellular connectivity solution designed to provide durable medical equipment suppliers with improved asset management tools and clinicians with critical usage data. The launch aimed to provide a single-device solution that balanced the clinical efficacy of stationary units with the mobility required by patients on long-term oxygen therapy.

Key Market Players

• Lincare Holdings Inc.
• Linde plc
• Inogen Inc.
• DeVilbiss Healthcare
• Philips Respironics
• Invacare Corporation
• CAIRE Inc.
• O2 Concepts LLC
• AirSep Corporation
• Chart Industries Inc.

By Form	By Delivery Mode	By Application	By End User	By Region
Liquid Oxygen Compressed Oxygen Oxygen Gas Mixture	Tanks/Pipeline Cylinder Others	Diagnostic Therapeutic	Hospitals & Clinics Ambulatory Care Centers Homecare Skilled Nursing Facilities Assisted Living Facilities Others	Northeast Midwest South West

Report Scope:

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

• United States Medical Oxygen Market, By Form:

• Liquid Oxygen
• Compressed Oxygen
• Oxygen Gas Mixture

• United States Medical Oxygen Market, By Delivery Mode:

• Tanks/Pipeline
• Cylinder
• Others

• United States Medical Oxygen Market, By Application:

• Diagnostic
• Therapeutic

• United States Medical Oxygen Market, By End User:

• Hospitals & Clinics
• Ambulatory Care Centers
• Homecare
• Skilled Nursing Facilities
• Assisted Living Facilities
• Others

• United States Medical Oxygen Market, By Region:

• Northeast
• Midwest
• South
• West