Industry: Chemicals and Materials
Published Date: July-2024
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 272
Report ID: PMRREP2986
The industrial gases market is estimated at US$99.2 Bn in 2024 and is expected to be valued at US$197.0 Bn by 2031. The market for industrial gases is expected to reach a growing, steady CAGR of 10.3% from 2024 to 2031.
Key Highlights of the Market
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Attributes |
Key Insights |
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Market Size (2024E) |
US$99.2 Bn |
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Projected Market Value (2031F) |
US$197.0 Bn |
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Forecast Growth Rate (CAGR 2024 to 2031) |
10.3% |
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Historical Growth Rate (CAGR 2018 to 2023) |
9.8% |
The industrial gases market plays a crucial role in various industries, providing essential gases such as nitrogen, oxygen, carbon dioxide, hydrogen, and more. The market is anticipated to reach US$99.2 Bn in 2024 and expected to be valued at US$197.0 Bn by 2031.
The market is driven by the growth of end-user industries such as chemicals, electronics, food and beverage, oil and gas, and automotive. The increasing demand for these gases in these sectors is expected to fuel industrial gasses market growth.
Developing economies are witnessing a surge in manufacturing activities, which is driving the demand for these gases. These gases are essential for various manufacturing processes, including metal fabrication, chemical processing, and refining.
Industrial gas manufacturers are increasingly entering into strategic agreements or contracts with end-use industries to ensure a steady supply of gases. For example, Air Liquide announced a significant investment to revamp its Air Separation Units in China, highlighting the importance of infrastructure upgrades in the industry.
Further, the market is witnessing technological advancements aimed at improving the production, storage, and transportation of gases. These market trends and advancements enhance efficiency, safety, and environmental sustainability in the industry.
The industrial gas market has experienced significant growth over the years, driven by the increasing demand from various industries. It accounted for US$61.9 Bn in 2018 and reached US$89.9 Bn in 2023. Since then, the market has witnessed steady growth, fueled by the expansion of key industries.
The market is predicted to reach US$99.2 Bn in 2024 and US$197.0 Bn by 2031. This growth is attributed to several factors.
One of the major market trends is use in healthcare. The healthcare sector increasingly uses medical gases for respiratory therapy, anesthesia, and diagnostics. Additionally, the use in the energy sector, particularly in natural gas processing and liquefaction, is expected to grow.
Technological advancements are expected to play a crucial role in shaping the market's future. Innovations in gas production, storage, and transportation technologies will enhance efficiency, safety, and environmental sustainability.
Additionally, integrating digitalization and automation in the industry will drive operational efficiency and optimize supply chain management.
Further, the industry is witnessing a shift towards greener solutions and sustainable practices. Companies are investing in renewable energy sources and developing technologies to capture and store carbon dioxide. This focus on sustainability will drive the market demand that enable cleaner processes and reduce greenhouse gas emissions.
Increasing Demand from the Healthcare Sector
The healthcare sector is a major growth driver for the industrial gases market. The rising need for medical gases in respiratory therapies, anesthesia, and diagnostics is fueling the demand.
Additionally, the aging population, advancements in medical treatments, and the growing prevalence of chronic diseases are further driving the demand for industrial gases in the healthcare sector. Companies are investing in research and development to develop new medical gas applications, which is expected to contribute to market growth.
Expansion of Manufacturing Industries
The expansion of manufacturing industries, particularly in emerging economies, is another significant growth driver for the market. As industries such as chemicals, electronics, and automotive continue to grow, the demand for industrial gases in various manufacturing processes, including metal fabrication, welding, and chemical reactions, is increasing.
The demand is driven by the need for efficient and reliable gases that enhance production processes, improve product quality, and ensure safety.
Technological Advancements and Innovations
Technological advancements and innovations are driving the demand. Companies are investing in research and development to improve gas production, storage, and transportation technologies.
Advancements in gas separation, purification, and liquefaction technologies are enhancing the efficiency and cost-effectiveness of industrial gas production.
Additionally, the integration of digitalization, automation, and artificial intelligence in the industrial gas industry is optimizing supply chain management, improving safety measures, and reducing environmental impact, which is expected to drive market sales.
Regulatory Compliance, and Administrative Load
The requirement for continual monitoring, reporting, and compliance with regulatory requirements increases administrative load and operational complexity, potentially impeding market development and competition in places with strong regulatory frameworks.
The need to adhere to strict regulations and standards can pose challenges for industrial gas companies, requiring them to invest in compliance measures and navigate complex regulatory landscapes.
High Cost of Ownership and Maintenance
The industrial gases market faces challenges related to the high cost of ownership for the instruments required for gas production, storage, and transportation systems.
The capital investment required for infrastructure, equipment, and maintenance can be significant, especially for specialized gases and complex distribution systems. These costs can act as barriers to entry for new players and may limit market growth in certain regions or industries.
It is important to note that these factors are based on available market research and analysis. The industrial gas market is dynamic, and other factors may also impact its growth and development.
Growing Demand from Developing Economies
Emerging economies, particularly in the Asia Pacific region, present significant growth opportunities for the industrial gases market. Countries like China and India are witnessing rapid industrialization, urbanization, and infrastructure development, which are driving the demand for industrial gases.
The expansion of manufacturing industries, construction activities, and the increasing focus on environmental sustainability in these regions create favorable conditions for market growth.
Advancements in Electronics and Healthcare Industries
The electronics and healthcare industries offer promising opportunities for the industrial gases market. The electronics industry relies heavily on industrial gases for various applications, including semiconductor manufacturing, flat-panel displays, LED lights, and solar cells.
As the demand for electronic devices continues to rise, the need for industrial gases in this sector is expected to grow. Similarly, the healthcare industry utilizes industrial gases for respiratory therapies, anesthesia, and medical diagnostics, and the growing healthcare sector worldwide presents opportunities for industrial gases market expansion.
Oxygen Spearheads on Account of the Most Versatile Application Range
Oxygen emerges as the industrial gases market's fastest-growing type, fueled by its essentiality across industries and increased demand. Oxygen product segment dominated by holding highest share of 28.43% in 2022. Its pivotal role in environmental applications, like wastewater treatment and remediation, is driving its growth.
The global rise in environmental consciousness and the need for oxygen in pollution reduction and water quality improvement processes contribute to its status as the market's fastest-growing type. Oxygen's versatile applications in healthcare, industry, and the environment position it as a crucial driver in the ongoing industrial gases market expansion.
More than 36% market share Comes from Demand in F&B
The food and beverages industry exhibits the highest industrial gases market revenue share of nearly 36.55%. This growth can be attributed to the increasing consumer demand for packaged and processed foods.
Additionally, the industry's adoption of advanced freezing and chilling technologies has driven the need for industrial gases. Cryogenic gases, such as liquid nitrogen, play a vital role in quick-freezing food products, preserving their quality.
Moreover, the industry's focus on sustainability aligns with the use of industrial gases in modified atmosphere packaging (MAP), reducing the reliance on chemical preservatives and improving the environmental profile of food products.
Cylinders to be the Leading Choice Among End Users
In 2022, the cylinder segment dominated the industry, capturing a significant revenue share of 36.55%. Consumers prefer this form of distribution, where independent gas distributors purchase and compress gas from producers in their packaging facilities.
Many gases are supplied in a liquid state at room temperature, stored at low pressure in thin-walled steel or composite aluminum cylinders. The bulk distribution segment, transporting gases in liquefied or natural form via dedicated trailers or pipelines, held the second-largest share.
Asia Pacific Witnessing Accelerated Sales, China Maintains the Leading Position
In 2022, the Asia Pacific region dominated the industry with a revenue share of 36.64% and is projected to be the fastest-growing region, with a CAGR of 9.8% over the forecast period.
The industrial gases market analysis shows that the industry in the region is driven by the growth and expansion of end-use industries in key markets like India, China, South Korea, and Japan. China, in particular, is the largest country market in the region, with increasing demand for industrial gases in the aerospace industry for high-quality gas solutions.
North America Sets Stage for Market Growth
North America held the second-largest revenue share in 2022. The region is anticipated to experience an increased demand for industrial gases due to the growth of the healthcare industry and the expansion of the industrial sector in the US, and Canada.
Companies in the industrial gases market are actively seeking growth through acquisitions and innovation. Startups introducing new offerings further enrich the competitive landscape.
To maintain a competitive edge, companies are investing in expanding their production capabilities and improving technological features. They aim to develop innovative functionalities and seamlessly integrate technologies into this dynamic sector, facilitating successful market entry and widespread adoption.
Recent Industry Developments
In January 2024, Linde supplies oxygen, nitrogen, and argon to SAIL's Rourkela steel plant in Odisha, eastern India, through two on-site air separation units (ASUs) operating at total capacity. However, under a new contract, Linde will construct, own, and operate an additional 1,000 tons of ASU daily, doubling Linde's production facility in Rourkela. This expansion project represents an investment of approximately USD 60 million. Furthermore, the new Linde plant, expected to be operational by 2026, will also serve as a source of industrial gases for Linde's existing and new local commercial customers in the region.
In April 2023, Enel Green Power Italia and Nippon Gases Operations agreed to build a new plant in Piancastagnaio, Italy, to reuse, purify, and liquefy CO2 naturally present in the geothermal fluids of the Piancastagnaio power plants. The plant will use renewable energy sources to comply with stringent quality specifications for the purity and reliability of CO2 required by the food, beverage, and pharmaceutical markets. The project will account for about 30% of the nationwide demand for "pure" carbon dioxide.
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Attributes |
Details |
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Forecast Period |
2024 to 2031 |
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Historical Data Available for |
2018 to 2023 |
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Market Analysis |
US$ Billion for Value |
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Key Country Covered |
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Key Market Segments Covered |
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Key Companies Profiled |
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Report Coverage |
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Customization & Pricing |
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