Industrial Gas Market Size, Share, Growth, and Industry Analysis, By Type (Oxygen, Nitrogen, Hydrogen, Carbon Dioxide, Argon, Helium), By Application (Manufacturing, Healthcare, Chemicals, Energy, Electronics), Regional Insights and Forecast to 2033

Industrial Gas Market Overview

Industrial Gas Market size was valued at USD 15.03 billion in 2025 and is expected to reach USD 20.94 billion by 2033, growing at a CAGR of 4.23% from 2025 to 2033.

The industrial gas market plays a vital role across multiple sectors including manufacturing, healthcare, and food processing. In 2024, global production of industrial gases such as oxygen, nitrogen, and argon crossed 500 million metric tons, driven by the surging demand for energy-efficient processes and clean technologies. According to the World Steel Association, over 1.9 billion tons of steel produced in 2024 depended heavily on oxygen and nitrogen for cutting, welding, and refining processes.

The need for industrial gases is expanding with the rising focus on sustainable energy. For example, hydrogen—a key industrial gas—saw its production cross 95 million tons globally in 2024, as many countries invested heavily in hydrogen fuel cell technology and green hydrogen projects. Furthermore, the food and beverage industry used more than 18 million metric tons of nitrogen in 2024 for packaging and preservation to maintain product freshness during longer supply chains.

Technological advancements in gas separation and storage are fueling market expansion. In 2024, over 60% of major industrial gas providers invested in advanced air separation units to meet strict purity standards. Rapid urbanization and industrialization in Asia-Pacific have also boosted the market’s footprint. For instance, India’s industrial gas demand rose by nearly 8% in 2024 due to large-scale infrastructure projects and capacity expansions in steel and chemical industries.

Key Findings

DRIVER: Growing consumption of industrial gases in metal fabrication is supported by over 200 million tons of metal processed globally in 2024.

COUNTRY/REGION: In China alone, industrial gas demand rose by 10% in 2024 due to large-scale energy and manufacturing projects.

SEGMENT: The healthcare segment used around 15 million cylinders of medical oxygen daily worldwide in 2024 to meet critical hospital needs.

Industrial Gas Market Trends

The industrial gas market is seeing transformative trends as sectors pivot towards low-carbon operations and digital integration. In 2024, more than 40% of industrial gas companies upgraded their production facilities with IoT-enabled monitoring for precise gas distribution and leak detection, ensuring higher safety standards. The hydrogen economy is another major trend, with Europe alone announcing over 30 green hydrogen projects by the end of 2024. Carbon capture and storage (CCS) is boosting the use of industrial gases like CO2; in 2024, global CCS capacity hit 40 million tons annually. Additionally, the rise of electric vehicles is increasing demand for specialty gases like argon used in battery manufacturing. The food sector is investing in cryogenic freezing, with global use of liquid nitrogen for quick freezing growing by 6% in 2024. Companies are expanding storage and supply networks to secure consistent delivery, as about 70% of gas sales are through bulk supply modes. These trends highlight the industrial gas market’s dynamic shift towards sustainability, efficiency, and technological upgrades.

Industrial Gas Market Dynamics

The dynamics of the industrial gas market are shaped by robust demand, supply chain innovations, and sustainability imperatives. In 2024, industrial gas companies collectively invested over USD 12 billion in infrastructure upgrades to expand air separation and liquefaction capacities. Stringent environmental norms are pushing industries to adopt cleaner gas technologies; for instance, the chemical industry’s switch to nitrogen blanketing processes reduced hazardous emissions by about 15% globally in 2024. On the supply side, global production networks are adapting to regional supply disruptions. In 2024, around 35% of gas producers signed long-term supply agreements to secure raw materials. Renewable energy initiatives are fueling the use of green hydrogen and biogas blends; over 25 countries set clear hydrogen strategies by 2024. However, high storage and transportation costs remain a concern as liquid gases require advanced cryogenic tanks and insulated pipelines. Strategic partnerships between gas companies and end-users are becoming more common; over 50 joint ventures were recorded globally in 2024 to co-develop advanced gas supply systems. These dynamics indicate that the market’s growth relies on technological agility, regulatory compliance, and global trade resilience.

DRIVER

Growing focus on clean energy solutions.

Governments worldwide have accelerated investments in hydrogen and other clean industrial gases. In 2024, global hydrogen refueling stations exceeded 1,200 units, indicating a rising shift towards emission-free transport and industrial applications, driving steady demand.

RESTRAINT

High storage and transportation costs.

Industrial gases often need specialized cryogenic tanks and pipelines to maintain purity and safety. By 2024, companies spent over USD 4 billion globally on storage upgrades alone, which limits small-scale players from expanding in remote or underdeveloped areas.

OPPORTUNITY

Expansion of healthcare infrastructure.

Rising healthcare investments are boosting medical gas usage. In 2024, more than 20 new oxygen generation plants were commissioned in Africa to secure medical supply chains, creating ample growth opportunities for suppliers to expand regionally.

CHALLENGE

Volatile raw material supply.

Supply chain constraints and geopolitical risks affect consistent production. For example, Europe’s industrial gas sector faced a 5% drop in raw material availability in 2024 due to energy price spikes, challenging continuous supply to major industries.

Industrial Gas Market Segmentation

Industrial gases are segmented by type and application, reflecting their wide industrial footprint. By type, oxygen dominates due to its critical role in steel production, chemical synthesis, and medical treatments. Nitrogen follows closely, vital for inerting, blanketing, and food packaging. In 2024, global oxygen production crossed 250 million metric tons, while nitrogen accounted for about 200 million metric tons. By application, the manufacturing sector remains the largest consumer, leveraging gases for cutting, welding, and energy processes. The healthcare segment is increasingly significant, especially after the 2024 surge in oxygen demand during global health emergencies. Food and beverage processing also forms a stable share, using nitrogen and carbon dioxide for carbonation and preservation. Additionally, electronics manufacturing consumes ultra-high-purity gases for semiconductor fabrication. In 2024, Asia-Pacific led the market share in both type and application segments, with China and India driving capacity expansions and new infrastructure projects. Segmentation trends show that industries continue to diversify their gas applications, with specialized gases like helium and argon gaining traction in aerospace, welding, and medical imaging. This detailed segmentation highlights the critical role industrial gases play in modern economies.

By Type

• Oxygen: Global oxygen use in steel manufacturing alone reached about 60% of total industrial consumption in 2024. It is also vital in wastewater treatment, chemical oxidation, and healthcare, where it supports critical patient care. Demand continues to grow as industries adopt clean combustion and gasification processes for energy efficiency.
• Nitrogen: Nitrogen use crossed 200 million metric tons globally in 2024. Its inert properties make it essential for blanketing explosive chemicals, preserving packaged food, and aiding electronics production. Nitrogen generators and on-site production plants are increasingly deployed to ensure constant supply and cost efficiency.

By Application

• Manufacturing: The manufacturing sector used more than 60% of total industrial gases in 2024, mainly for metal processing, cutting, and refining. Sectors like automotive, aerospace, and shipbuilding rely heavily on oxygen and acetylene for welding and fabrication. Rising infrastructure projects in Asia are amplifying this demand.
• Healthcare: The healthcare segment saw significant growth in 2024, consuming over 15 million oxygen cylinders daily worldwide. Medical-grade gases are indispensable for anesthesia, respiratory therapy, and surgical procedures. Many developing nations expanded local gas production to stabilize supply during emergencies.

Regional Outlook of the Industrial Gas Market

The industrial gas market’s regional landscape reflects diverse growth drivers, capacity expansions, and regulatory frameworks. North America continues to lead innovation, with the USA producing over 30% of global hydrogen output in 2024. The region’s strong focus on carbon capture and oil refining sustains steady gas demand. Europe is advancing its hydrogen economy rapidly, with over 200 small- and large-scale electrolysis plants operational by 2024. The region also emphasizes strict environmental compliance, spurring investment in cleaner gas technologies. Asia-Pacific remains the fastest-expanding region, with China accounting for nearly 45% of global steel output in 2024, driving huge oxygen and nitrogen demand. India’s rapid urbanization and industrialization further boost market potential. The Middle East & Africa are leveraging gas production to diversify economies; in 2024, several countries commissioned air separation units to support oil and gas refining and expand medical gas access. Increasing investments in renewable hydrogen projects also signal long-term growth prospects for the region. Regional trends highlight how industrial gases are integral to meeting both traditional and emerging energy needs.

• North America

North America accounted for about 35% of global industrial gas output in 2024. The USA’s booming oil refining and chemical sectors use large volumes of hydrogen and nitrogen, while Canada’s steel industry relies on oxygen for efficient smelting.

• Europe

Europe’s industrial gas market benefited from over 30 new hydrogen plants built in 2024. The region’s automotive sector, particularly in Germany and France, continues to push demand for argon and specialty gases for advanced manufacturing.

• Asia-Pacific

Asia-Pacific led global demand with China producing 50% of the world’s steel and India expanding its manufacturing footprint in 2024. The region also ramped up investments in on-site gas generation units to meet growing industrial needs.

• Middle East & Africa

The Middle East & Africa saw new air separation plants come online in 2024, enhancing local oxygen supply for healthcare and refining industries. Countries like Saudi Arabia are diversifying energy portfolios with green hydrogen initiatives.

List of Top Industrial Gas Companies

• Linde plc (Ireland)
• Air Liquide (France)
• Air Products and Chemicals, Inc. (USA)
• Messer Group (Germany)
• Praxair (USA)
• Taiyo Nippon Sanso (Japan)
• Linde Gas (China)
• AirSep Corporation (USA)
• Chart Industries, Inc. (USA)
• Worthington Industries, Inc. (USA)

Linde plc: Linde is the world’s largest industrial gas company, serving over 100 countries. In 2024, it operated more than 2,500 air separation units worldwide, supplying gases for energy, manufacturing, and healthcare.

Air Liquide: Air Liquide operates across 75 countries and is a leader in oxygen, nitrogen, and hydrogen production. In 2024, it invested heavily in Europe’s clean hydrogen infrastructure, supporting over 40 renewable hydrogen projects.

Investment Analysis and Opportunities

Investment Analysis and Opportunities in the industrial gas market show steady growth potential as industries worldwide push for cleaner energy, higher efficiency, and decarbonization. In 2024, global investment in hydrogen production and distribution infrastructure exceeded USD 60 billion, with major industrial gas players expanding green hydrogen projects to meet rising demand from transportation and heavy industries. The report highlights that Asia-Pacific remains a leading investment destination, with China alone consuming over 25% of the world’s industrial gases in steel, electronics, and chemicals production. North America’s focus on LNG terminals and semiconductor manufacturing drove new demand for specialty gases, attracting over USD 15 billion in new capacity investments in 2024. Europe continues to prioritize carbon capture and storage (CCS) using industrial gases like CO2 and nitrogen; projects worth over USD 10 billion were announced in 2024 to align with net-zero targets by 2030. Major companies are also investing in advanced gas supply systems for medical and healthcare sectors, where oxygen and medical-grade gases saw a surge in demand post-pandemic. With clean energy mandates, digital manufacturing, and high-tech industries expanding, the industrial gas sector offers investors strong opportunities in green hydrogen, electronic specialty gases, and CCS projects through 2033.

New Product Development

New Product Development in the industrial gas market is advancing as producers adapt to stricter emissions targets, new energy applications, and high-tech manufacturing needs. In 2024, Air Liquide launched low-carbon hydrogen production facilities in France and Japan, supporting the growing demand for clean fuel in transport and industry. Linde expanded its portfolio by developing modular green hydrogen plants designed to supply small-scale industrial users with zero-emission gas. Praxair upgraded its carbon capture technology, enabling industries to reuse captured CO2 for enhanced oil recovery and beverage carbonation, cutting emissions and costs. Air Products unveiled new liquid hydrogen fueling stations in the US to serve the rapidly expanding fuel cell vehicle market, with more than 15,000 hydrogen vehicles expected to hit the road by 2025. The report highlights that over USD 5 billion was invested in 2024 alone to develop next-generation oxygen and nitrogen production units with higher energy efficiency for steelmaking and electronics sectors. New product pipelines also include on-site gas generators for semiconductor fabs and advanced gas mixtures for green ammonia and battery production. These innovations show how major players are shifting from bulk supply models to sustainable, high-purity gases and turnkey solutions, positioning the industrial gas market for solid growth through 2033.

Five Recent Developments

• Linde commissioned a new hydrogen liquefaction plant in Texas in 2024.
• Air Liquide launched its largest biomethane production facility in France in 2024.
• Praxair signed a long-term supply contract with a major US steel manufacturer in 2024.
• Taiyo Nippon Sanso expanded its medical gas production in Japan in 2024.
• Messer Group opened an air separation unit in Poland in 2024.

Report Coverage of Industrial Gas Market

The industrial gas market report provides extensive insights into key segments, trends, and drivers influencing global demand. Covering regions like North America, Europe, Asia-Pacific, and the Middle East & Africa, the report highlights factors such as the 95 million tons of hydrogen produced globally in 2024 and the deployment of over 2,500 air separation units by leading players like Linde. It also details the food industry’s growing use of nitrogen, which exceeded 18 million metric tons in 2024. The report captures regional expansions, for instance, India’s industrial gas consumption growth of 8% in 2024 due to steel and chemical sector developments. The analysis explores emerging technologies like modular gas generators and IoT-enabled monitoring, now used by 40% of major producers. With the healthcare sector’s surge in oxygen use—around 15 million cylinders daily in 2024—the report outlines how the medical segment shapes supply chain strategies. By tracking over 50 new joint ventures formed in 2024, it showcases strategic partnerships as a growth catalyst. The report’s coverage emphasizes market dynamics, regional trends, product innovations, and investment landscapes projected until 2033.

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