Global Industrial Gases Market By Product (Oxygen, Nitrogen, Carbon Dioxide, Hydrogen, Argon, Acetylene, and Other Products), By Application, By Distribution, By End-User, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The Global Industrial Gases Market size was valued to be worth  USD 100.5 Billion in 2022. From 2023 to 2032, it is estimated to reach USD 192.6 billion growing at a CAGR of 6.9%.

The gaseous materials that are used in industrial applications are called industrial gas market size. The most important gases used in industries include nitrogen, oxygen, carbon dioxide, and hydrogen. These gases are delivered to different end-use industries via gas tankers. They come in both liquefied and gaseous forms.

These industrial gases are made by cryogenic air filtration through a variety of air separation units. These gases can also be called refrigerant, fuel, specialty, and medical, depending on their application in different industries. Global market growth is being driven by the growing demand for industrial gas from food and beverage, electronics, healthcare, and other sectors.

Due to the growing demand for industrial gas in emergency situations, there are many untapped market opportunities for market players in the industrial gas industry. Market players will likely invest in production expansion as a way to increase their market share and create growth opportunities over the next few years due to the rapid globalization of the manufacturing and processing industry.

Industrial gases are used extensively in steel, glass, oil, and fiber optics segments. These sectors are experiencing rapid growth and development in developing countries, which is contributing to the rapid expansion of the industrial gas market.

Key Takeaways

• Market Size: In 2022, the Industrial Gases Market was valued at USD 100.5 billion; by 2032 it is projected to experience a compound annual growth rate (CAGR) of 6.9%.
• Industrial Gas Types: At present, nitrogen, oxygen, carbon dioxide, and hydrogen gases are widely utilized within various industries and deliver both liquefied and gaseous forms to their end-users.
• Production Process: Industrial gases are produced through cryogenic air filtration in air separation units. These gases serve various purposes and can be classified as refrigerant, fuel, specialty, and medical gases based on their applications.
• Demand Drivers: The increasing demand for industrial gases is primarily fueled by industries such as food and beverage, electronics, healthcare, and more. These gases play a crucial role in these sectors.
• Market Growth Factors: Rising consumption of oil and gases contributes to the global growth of the industrial gas market. There is an increasing need for industrial gases in healthcare and the food & beverage sector. The expansion of the manufacturing and processing industry globally presents opportunities for market players. Rapid growth in sectors like steel, glass, oil, and fiber optics in developing countries drives market expansion.
• Challenges: Strict regulations and high costs associated with the storage, transportation, and manufacturing of gases can hinder market growth. High energy costs for gas separation, which include electricity costs, can significantly impact production costs. Crude oil price fluctuations may affect distribution costs.
• By Product Analysis: Oxygen holds the largest market share at 27.5%, with applications in steel melting, medical uses, and pollution control.
• Distribution Channels: Cylinders are the primary distribution method, where gases are compressed into containers and delivered to clients. Bulk (Liquid Gas Transport) and Onsite distribution methods are more efficient for high-demand situations.
• End-User Industries: The healthcare sector is the largest and fastest-growing segment, with applications in tissue preservation, MRI, and medical gases. Specialty gases are used in advanced lighting, insulation materials, and photovoltaic cells for solar power. Other industries benefiting from industrial gases include oil and gas, metallurgy, electronics, mining, and more.
• Regional Analysis: Asia Pacific is the dominant market region (34.4% share), driven by industrialization and urbanization, particularly in China, India, and Japan. North America, with its strong presence in the oil and gas industry, holds the second-largest market share.
• Key Players: Major players in the industrial gas market include Yingde Gases Group Company Limited, Air Liquide S.A, Linde Group, Airgas Inc., Messer Group, and others.

Driving Factors

Increasing Consumption of Oil and Gases Drives the Global Industrial Gases Market

The global industrial gas market will grow as public and private funds are able to expand into new industries such as metallurgy and food & drink, mining & metal, and more. In June 2020, UNCTAD published the World Investment Report 2020.

It stated that over 30% of global FDI inflows came from Asia Pacific countries. Further, the organization reported that countries like China, India, Singapore, and Malaysia would be among the top economies in the region, attracting new investment opportunities.

The global demand for gas has increased in response to the rising demand for crude oil and the need for refining. Most industrial gases are used in the oil and natural gas industry. These include drilling, well raising, coiled tubing, pipe inerting, cooling, inspection, maintenance, and subsea work.

Market development is possible due to the expected increase in demand for industrial gases in different activities. The forecast period would see a rise in demand for gas due to the growing investment in the healthcare and food & beverage sectors. According to the report, Europe is the largest food producer. Germany also has the fourth-largest food and beverage industry. The country is also the third largest exporter of food & beverages.

Restraining Factors

Rules, Regulations, and High Costs Restrain the Industrial Market Growth

During the forecast period, the market expansion will be hampered by strict regulations and laws governing gas storage, transportation, and manufacturing. EU Regulation 231/2012 established the composition of hydrocarbons used in the storage and distribution of industrial gasses. The European Agreement on the Carriage of Dangerous Goods by Road (ADR 13) was used to regulate the transport of these gases.

Due to prolonged environmental inspections that resulted in the closure of manufacturing plants and significant increases in transit costs from China after COVID-19, industrial gas prices rose in Q4 and Q1 2021. Some enterprises have reduced their production to avoid being fined for not meeting emissions requirements. The increasing global cost of industrial gas will affect the market’s growth.

High energy costs for industrial gas separation make it a significant factor, accounting for half of the total production costs. Electricity accounts for nearly 50% of the production cost. This means that production costs swing with power costs. The weighting of cost components can vary according to individual country price changes.

Crude oil prices are expected to rise, which will increase distribution costs. It is also expected that the price of electricity will rise slightly, which will increase production costs. Large-scale production is more cost-effective than smaller, isolated ASUs that can produce industrial gases by themselves. Major industrial customers need to choose long-term gas purchase contracts due to the high capital costs of ASUs

By Product Analysis

With a 27.5% Share, the Oxygen Segment Dominated the Market through Product Analysis in 2022

The oxygen is used for steel melting, fabrication, and medical applications. It is well-known that oxygen can improve the fuel’s thermal efficiency. Oxygen can also be used to extract more energy from fuel. It can also be used to treat polluted water and clean up hazardous waste. It is used as an alternative to chlorine in pulp and paper industries to reduce pollution.

The main industrial application of nitrogen is the creation of ammonia, which is needed for fertilizer, explosives, and other materials. However, its uses extend far beyond these specific applications. Large-scale pharmaceutical and medical industries have the greatest impact on nitrogen’s growth and penetration. Healthcare facilities have been forced to purchase essential medical supplies and life-saving equipment to combat the virus’s spread and provide the best care for infected patients. These factors are expected to grow nitrogen in the product segment of the industrial gas market.

Carbon dioxide is used in many ways, including refrigerants or coolants. This applies to both its liquid and gaseous form, as well as to solid CO₂. Also, due to its inert properties, which mean it doesn’t react well with other materials, it can be used in the chemical and food industries. It can prevent products from oxidizing in the manufacturing industry and help key companies grow the industrial gas market.

By Application Analysis

The Cryogenic Fluids Segment Holds the Major Share in the Application Segment of the Industrial Gases Market

Because of its many applications, the cryogenic segment dominates the market with a 26.7% share. It is used primarily to make cryogenic fuels such as liquid hydrogen or liquid oxygen for spacecraft and rocket applications. Cryogenic fluids allow electrons to move freely in materials due to the extremely low temperatures they can achieve – an important benefit for superconductor designers and spacecraft equipment manufacturers. Cryosurgery has been used in healthcare for many years to treat various diseases, including benign and malignant skin conditions. This surgery involves freezing the cells and then removing them from your body.

The packaging market will continue to grow due to changing consumer lifestyles and increasing demand for packaged food products within the food and beverage industry. Foods must be packed securely and safely in order to preserve their shelf life. Food durability can be maximized by controlling the packaging and air used. Food processing uses nitrogen flushing to prevent food spoilage in storage. Many components of air can damage food and cause spoilage. Food packagers must carefully choose the right mix of gases when packing food items to preserve their freshness for customers.

Carbon dioxide is used to make carbonates and bicarbonates and is also a component of carbonated beverages. These compounds can be used in the manufacture of final products, intermediates for extraction, molecules in the manufacture of complex chemicals, or as substitutes in the manufacture of sulfates, nitrogen, and other compounds. In food and beverages, a carbonator mixes carbon dioxide with a liquid, and the carbon dioxide is mixed with temperature-controlled water under pressure. Syrups, sweeteners, and other ingredients are added to make the final product.

By Distribution Analysis

Cylinder Leads the Distribution Segment in Industrial Gases Market.

The largest revenue share is held by the cylinder category. This section shows the use of packed gas cylinders to deliver gases. This delivery type is only for clients with a fair need for industrial gases. Nearly all gases can be easily compressed into cylinders for distribution at pressures up to 300 bar. Many gases can also be found in liquid form at room temperature.

Independent gas distributors use this distribution method to purchase gas directly from the producers and then compress them into their packaging containers. Many gases can also be supplied at room temperature in liquid form. Low-pressure gas cylinders made of thin-walled steel and composite aluminum are used to store the gases. The gas is transported in a liquefied state (or natural) by road (dedicated trucks) or via pipelines over long distances.

This delivery method is best used when there is a greater demand than for packaged gas distribution or onsite distribution. Because it provides a continuous gas supply, this distribution method is more efficient and, therefore, more popular than other distribution methods. The onsite distribution method is the best for manufacturing companies such as Air Products & Chemicals and The Linde Group because it lowers their transport costs. The company’s onsite plant often includes onsite fueling stations to optimize operations. The supply systems are built around standard components to ensure maximum cost efficiency.

By End-User Analysis

Healthcare Sector Has the Majority Share in the Industrial Gases Market.

The healthcare sector is the most important and fastest-growing segment. It includes nitrogen for tissue preservation, helium to perform MRIs, and oxygen to help you breathe. Market growth would be driven by the increasing consumption of packaged foods and increased investment in the food- and beverage industries. Specialty gases are used to make advanced lighting and insulation materials and photovoltaic cells, which can be further used in solar power panels. The rising demand for renewable energy will drive the demand for specialty gases.

Widespread use of oxygen, hydrogen, and carbon dioxide for chemical processes in the chemical industry will also be able to gain more market share. A high market share is expected to be seen in the oil and gas industry, as liquid nitrogen and carbon dioxide can be used to make conventional and unconventional hydrocarbons. These gases are used in hydraulic fracturing and coiled tubing. They also serve as a means of completing drilling stem testing, pressure testing, stick drill pipe testing, and other operations in the oil & natural gas industry.

Market growth will also be driven by the metallurgical sector, where welding applications such as arc welding and flame cleaning are increasing. The market will be driven by electronics, mining, pulp and paper, and other segments such as construction, utilities, plastics and recycling, and automotive.

Key Market Segments

Product

• Oxygen
• Nitrogen
• Carbon dioxide
• Hydrogen
• Argon
• Acetylene
• Other Products

Application

• Packaging
• Coolant
• Carbonation
• Cryogenic
• Cutting & Welding
• Laboratory
• Air Separation
• Other Applications

Distribution

• Onsite
• Bulk (Liquid Gas Transport)
• Cylinder (Merchant)

End-User

• Metallurgy
• Healthcare
• Chemical
• Food & beverage
• Oil & Gas
• Power
• Pulp & Paper
• Electronics
• Water Treatment
• Mining
• Other End-Users

Growth Opportunity

Growing Demand for Industrial Gases in Emergency Situations is Expected to Boost the Market in the Forecast Period

Global market growth is being driven by the growing demand for industrial gas from the food & beverage, electronics, and healthcare sectors. Due to the growing demand for industrial gas in emergency situations, there are many untapped opportunities for market participants in the industrial gas market.

Market players will also benefit from the increased growth potential of the manufacturing and processing industries in the coming years. Industrial gases are required for the intensive use of steel, glass, oil, and fiber optics segments. These sectors are experiencing rapid growth and development in developing countries, which is contributing to the rapid expansion of the industrial gas market.

The increasing awareness of the need for clean energy and the protection of the environment has led to an increase in industrial gas consumption in many countries. Photovoltaic plants can also use industrial gases to make semiconductors, flat panels, and solar displays. The demand for industrial gases is increasing due to the rising popularity and acceptance of electronic devices around the world. Market growth is also being driven by the increasing use of industrial gases within the metal and mining industries.

Latest Trends

Global crude oil demand is increasing, and so is the need for refinement. Industrial gases industry analysis are used on a large scale for upstream and downstream applications in the oil and gas industry. These include drilling, well lifting and cooling, pipe inerting & cooling, and leak testing. The market would grow further if the oil and gas industry expanded.

Many emerging and developed countries are experiencing rapid increases in urbanization and industrialization, which will influence industrial gases market trends during the forecast period. The market in the processing and manufacturing industries will benefit as a result of urbanization. According to reports, urbanization will increase the demand for these gases in many major countries such as India, China, and Italy.

Regional Analysis

Asia Pacific Region is Predicted to Dominate the Industrial Gases Market during the Forecast Period

Due to increasing industrialization and urbanization and the increased use of gases in many end-use industries like metallurgy and healthcare, oil and gas, and power helps, the Asia Pacific industrial gases market dominates the industry at 34.4% market share. China, India, and Japan are just a few emerging economies interested in investing in sustainable energy development.

Due to their large consumer base, many companies also invest in these countries. China was the biggest market on a national scale. Asia Pacific was the largest market for industrial gases in 2020, largely because the aerospace industry increasingly needs high-quality solutions. It is expected that there will be ample market expansion opportunities during the projection period due to the enormous growth in the food, drink, and pharmaceutical industries in emerging economies such as China and India.

North America holds the second-largest share of the global market due to the increased use of gas in the oil and gas industry. The growth of the chemical sector would also drive the regional market. The U.S. held the largest revenue share in North American markets and is expected to have the highest CAGR over the forecast period. North America’s growing healthcare and electronic industries will likely help it expand. The growth of the local industrial sector is also expected to help the market grow.

Key Regions and Countries

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Players Analysis

There has been substantial investment by both small and large companies in the healthcare and pharmaceutical sectors, which has fueled the potential for industry expansion. The market is expected to grow due to the improving economic situation and the growing metal processing and manufacturing industries. These include oil and gas, chemicals, food, beverages, and transportation. Some players, such as Linde and Air Products, dominate due to their established customer base and strong supply chains.

Numerous participants operate at both the regional and national levels, including Bombay Oxygen Corporation Limited. SICGIL India Limited. Yateem Oxygen. Goyal MGgases Pvt. Ltd. and many other organizations are constantly striving to supply different gases to strengthen their positions across the regions. Many of these organizations are taking new initiatives to deliver different gases in a more efficient manner. This will likely help to increase their market share and propel the global industrial gas industry.

Market Key Players:

• Yingde Gases Group Company Limited
• Air Liquide S.A
• Linde Group
• Airgas Inc.
• Messer Group
• Buzwair Industrial Gases Factories
• Air Products and Chemicals Inc.
• Taiyo Nippon Sanso Corporation
• Air Water Incorporation
• BASF SE
• INOX-Air Products Inc.
• Iwatani Corporation
• Other Key Players

Recent Developments:

• In April 2022, Linde signed a supply contract with a major space company. Linde will supply liquid oxygen and nitrogen to major space companies under a newly signed long-term contract. The bulk of the industrial gas supply will come from an air separation plant in Mims, Florida, which is currently being expanded.
• In June 2021, Air Products and Chemicals Inc., Canada’s Government, and Alberta announced a multibillion-dollar project to create a net zero hydrogen energy complex. This plan will allow Air Products to manage Canada’s green hydrogen network.

Report Scope: