Global Industrial Gas Market Size By Type (Nitrogen, Oxygen, Argon), By Application (Metal Production, Automotive, Chemical & Petrochemical), By Geographic Scope and Forecast

Industrial Gas Market Size And Forecast

Global Industrial Gas Market size was valued at USD 110.72 Billion in 2024 and is projected to reach USD 172.66 Billion by 2031, growing at a CAGR of 6.30% from 2024 to 2031.

• Industrial gases are a class of gases used in industrial operations that are necessary for a number of applications such as manufacturing, healthcare, food processing, and energy production.
• They include gases such as nitrogen, oxygen, argon, hydrogen, and carbon dioxide, each with a specific function such as increasing combustion, enabling chemical reactions, or preserving food.
• The future of the industrial gas market looks optimistic, thanks to technological improvements, rising demand for energy-efficient solutions, and the rise of sectors such as renewable energy, medicines, and electronics.

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Global Industrial Gas Market Dynamics

The key market dynamics that are shaping the global industrial gas market include:

Key Market Drivers:

• Increasing Demand for Healthcare and Medical Applications: The growing usage of industrial gases in medical treatments, particularly oxygen therapy, is propelling market expansion. Chronic obstructive pulmonary disease (COPD) is the world’s third greatest cause of death, accounting for 3.23 million fatalities in 2019. According to the American Lung Association, more than 16.4 million people have been diagnosed with COPD in the United States alone. The increased prevalence of respiratory disorders is driving up demand for medical oxygen, an important section of the industrial gas market.
• Expansion of the Food and Beverage Industry: The food and beverage industry’s expansion is driving the industrial gas market, notably in packaging and freezing applications. According to the United States Department of Agriculture (USDA), the food and beverage manufacturing sector employed 1.7 million people in 2020, accounting for 1.1% of total nonfarm employment in the United States. Furthermore, Statista predicts that the global food and beverage market will reach $8.9 trillion by 2026, rising at a 3.7% CAGR from 2021 to 2026. This increase is driving up demand for nitrogen and carbon dioxide, which are utilized in food packaging and preservation.
• Rapid Industrialization in Emerging Economies: The industrial gas market benefits from rapid industrialization in developing countries, particularly in the Asia-Pacific region. Despite global economic concerns, the United Nations Industrial Development Organization (UNIDO) estimates that manufacturing value added (MVA) in developing and emerging industrial economies will increase by 2.9% in 2022. China, the world’s largest manufacturing hub, saw industrial production rise 3.6% year on year in 2022, according to the National Bureau of Statistics of China. This industrial expansion is fueling demand for various industrial gases utilized in manufacturing processes.
• Increasing the Use of Hydrogen in Renewable Energy Initiatives: The global push for clean energy solutions is increasing the industrial gas industry, notably in the hydrogen category. According to the International Energy Agency (IEA), global hydrogen output will reach over 94 million tonnes in 2021, with demand likely to increase rapidly in the future years. In June 2023, the US Department of Energy announced the selection of seven Regional Clean Hydrogen Hubs for $7 billion in financing, with the goal of accelerating the commercial-scale deployment of low-cost, clean hydrogen. The government’s backing and increased investment in hydrogen infrastructure are likely to fuel significant growth in the industrial gas sector.

Key Challenges:

• Volatile Raw Material Prices: The industrial gas sector is strongly reliant on raw resources including natural gas, air, and other feedstocks. Prices for these commodities fluctuate due to geopolitical concerns, market demand, and supply chain interruptions, which can have a considerable impact on production costs and profit margins for industry companies.
• Regulatory Compliance: Industrial gas firms must follow the strict environmental and safety rules enforced by governments and international organizations. These restrictions differ by location, requiring businesses to spend in compliance procedures and technology to fulfill requirements, which can raise operational costs and make market entry difficult for new players.
• Technological Advancements: Rapid technical advancements are changing the industrial gas landscape. Companies must continue to spend in R&D to stay up with developments such as the growing use of hydrogen as a cleaner energy source, as well as advancements in gas production and distribution technology. Failure to adjust to these developments may result in a loss of competitive advantage.
• Market Competition: The industrial gas market is characterized by fierce competition among both existing firms and new entrants. To gain a competitive advantage, businesses must differentiate themselves through service offers, pricing strategies, and technology innovation. Furthermore, mergers and acquisitions between competitors can result in market concentration, making it difficult for smaller enterprises to compete effectively.

Key Trends:

• Shift towards Sustainable Solutions: The industrial gas sector is placing a greater emphasis on sustainability, owing to increased regulatory pressure and consumer demand for environmentally friendly practices. Companies are investing in technology that will enable greener industrial processes, such as carbon capture and storage (CCS) and renewable hydrogen development. This development is consistent with worldwide initiatives to minimize carbon emissions and boost renewable energy sources.
• Rising Demand for Specialty Gases: The industrial gas industry is experiencing a surge in demand for specialty gases used in a variety of industries, including electronics manufacturing, healthcare, and food processing. These gases frequently demand precise purity standards and are essential for modern manufacturing processes such as semiconductor manufacture. This trend is encouraging businesses to broaden their offerings of specialty gas products and improve their manufacturing capabilities.
• Growth in Emerging Markets: Emerging economies, notably those in Asia Pacific, are rapidly industrializing and urbanizing, resulting in increased demand for industrial gases. Manufacturing, construction, and healthcare are expanding, increasing the demand for gases such as oxygen, nitrogen, and argon. Companies seeking to enter these markets are investing in infrastructure development and local partnerships to strengthen their presence in these regions.
• Digital Transformation and Automation: The combination of digital technologies and automation is altering the industrial gas sector. Companies are using Internet of Things (IoT) solutions to monitor gas production and supply chains in real time, resulting in increased efficiency and lower operational costs. Furthermore, predictive analytics and data-driven decision-making assist businesses in optimizing operations and responding more effectively to market needs.

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Global Industrial Gas Market Regional Analysis

Here is a more detailed regional analysis of the global industrial gas market:

North America:

• North America leads the industrial gas market due to its strong industrial infrastructure, advanced healthcare sector, and large investments in R&D. The existence of significant industrial gas companies, a robust manufacturing base, and growing demand from diverse end-use industries all contribute to the region’s market supremacy. According to Verified Market Research, the industrial gas market was valued at USD 110.72 Billion in 2023 and is predicted to rise at a 6.30% CAGR between 2024 and 2031. The United States, in instance, maintains the biggest market share within the area. According to the U.S. Census Bureau, the country’s manufacturing sector contributed USD 2.3 Trillion to the economy in 2021, showing the enormous need for industrial gases across various manufacturing processes.
• Furthermore, In February 2024 Praxair stated that North America remains their strongest market, accounting for 40% of total sales, with particular growth in specialty gases for semiconductor manufacturing and medical gases for healthcare applications.

Asia Pacific:

• The Asia Pacific area is currently the fastest-growing market for industrial gases, owing to rapid economic expansion and industrialization in important nations such as China, India, and South Korea. The manufacturing industry, notably in the electronics and automotive industries, is a significant user of industrial gases. For example, oxygen is required for metal manufacture, whereas nitrogen is required to create inert conditions in electronics manufacturing. Furthermore, rising demand for medical-grade gases, such as oxygen for respiratory care, is driving development. Rising disposable incomes and improving healthcare facilities are likely to keep the demand for industrial gases robust in the region.
• Companies engage in cleaner technology and sustainable practices to comply with these rules, which has an impact on operational strategy and market dynamics. Recent expenditures in R&D for gas purification technology and eco-friendly production processes emphasize the competitive landscape as enterprises attempt to expand their services while maintaining compliance.?

Global Industrial Gas Market: Segmentation Analysis

The Global Industrial Gas Market is segmented based on Type, Application, and Geography.

Global Industrial Gas Market, By Type

• Nitrogen
• Oxygen
• Argon

Based on Type, the Global Industrial Gas Market is segmented into Nitrogen, Oxygen, and Argon. The nitrogen category is now the most prevalent type in the worldwide industrial gas market, owing to its widespread use in applications such as food preservation, chemical processing, and inerting. In contrast, the oxygen segment is the fastest-growing, owing to its increasing use in healthcare, metal manufacturing, and combustion processes, all of which are expanding in tandem with technological improvements and rising healthcare demand.

Global Industrial Gas Market, By Application

• Metal Production
• Automotive
• Chemical & Petrochemical

Based on Application, the Global Industrial Gas Market is segmented into Metal Production, Automotive, and Chemical & Petrochemical. The metal production category now dominates the worldwide industrial gas market, owing to the extensive usage of gases such as oxygen and argon in processes such as steelmaking and metal fabrication. Meanwhile, the chemical and petrochemical market is the fastest-growing, owing to rising demand for industrial gases in processes such as refining and chemical manufacture, which is being fueled by the global chemical industry’s expansion.

Global Industrial Gas Market, By Geography

• North America
• Europe
• Asia Pacific
• Rest of the World

Based on the Geography, the Global Industrial Gas Market are classified into North America, Europe, Asia Pacific, and Rest of the World. North America currently dominates the worldwide industrial gas market, driven by strong demand from a variety of industries including industry, healthcare, and energy. Asia Pacific is the fastest-growing area, driven by rapid industrialization, increased infrastructure investments, and emerging economies’ growing demand for energy-efficient solutions.

Key Players

The “Global Industrial Gas Market” study report will provide valuable insight with an emphasis on the global market. The major players in the market are Air Liquide SA, Air Products and Chemicals, Inc., Praxair Inc., Linde Group, Messer Group GmbH, Gulf Cryo, Taiyo Nippon Sanso Corporation, Iwatani Corporation, Southern Industrial Gas, and SOL Group.

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with its product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Industrial Gas Market Recent Developments

• In September 2024, Linde announced the successful commissioning of a new hydrogen production facility in Texas, which would deliver low-carbon hydrogen to the booming industrial sector. This investment demonstrates Linde’s commitment to sustainability and places it as a significant player in the burgeoning hydrogen economy, meeting both energy and manufacturing needs.
• In March 2024, EnLink Midstream announced a collaboration with many industrial gas companies to build a comprehensive pipeline network for carrying hydrogen in the Gulf Coast region. This collaboration is expected to improve hydrogen delivery, promote its usage as a sustainable energy source, and facilitate the transition to a hydrogen economy.

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• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors
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• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled
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