Industrial Gases Market Size 2024-2028

The industrial gases market size is forecast to increase by USD 30.65 billion, at a CAGR of 5.92% between 2023 and 2028. Market growth rates depend on several factors such as company strategies focusing on facility expansion, the adoption of industrial gases for advanced surface chilling technology, and overall industrial growth in emerging economies driving demand for industrial gases. companies' expansion strategies enhance production capacities and service capabilities, meeting growing market demands efficiently. The adoption of industrial gases such as liquid nitrogen for rapid surface chilling technology underscores advancements in food processing, enhancing efficiency and product quality. Additionally, industrial growth in emerging markets boosts manufacturing activities, creating substantial demand for gases as well as industrial gas storage cabinets in various industrial processes. These trends collectively drive market growth by fostering innovation, infrastructure development, and economic expansion. As industries embrace technology and expand operations, opportunities arise for gas suppliers to support sustainable industrial practices and capitalize on evolving market needs globally. 

What will be the Industrial Gases Market Size During the Forecast Period?

To learn more about the industrial gases market report, Request Free Sample

Industrial Gases Market Segmentation

The industrial gases market research and growth report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segment

• End-user Outlook 
  • Manufacturing
  • Chemical processing
  • Metal fabrication
  • Energy
  • Others

• Type Outlook
  • Hydrogen
  • Oxygen
  • Nitrogen
  • Carbon dioxide
  • Others

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile
    • Brazil
    • Argentina 
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

End-User Analysis 

The market share growth by the manufacturing segment will be significant during the forecast years. Industrial gases are predominantly used in several manufacturing industries, such as aerospace, automotive, glass, ceramics, pulp and paper, shipbuilding, semiconductors, and railways coach and wagon manufacturing. Industrial gases such as oxygen, nitrogen, hydrogen, and carbon dioxide are fundamental to a wide range of manufacturing processes.

Get a glance at the market contribution of the End User segments. Request Free Sample

The manufacturing segment was the largest and was valued at USD 22.58 billion in 2018. In the automotive industry, are used in automobile parts and body manufacturing as well as repair.  As industries increasingly focus on sustainability and environmental responsibility, the demand for clean energy technologies is growing. Industrialization and infrastructure development in emerging economies are driving the demand for manufactured goods, thereby increasing the need for manufacturing processes. The demand in the manufacturing sector is expected to continue growing as industries evolve, regulations become more stringent, and innovative applications emerge, which, in turn, will drive the growth of the global industrial gases market during the forecast period.

Type Analysis 

Based on the type, the industrial gases market has been segmented into hydrogen, oxygen, nitrogen, carbon dioxide and others. The hydrogen segment will account for the largest share of this segment.? Hydrogen is among the lightest gases present in the atmosphere. Hydrogen is predominantly used in chemical industries, petroleum refining, electronics, glass, and metal processing industries. It is commonly used in the refinery industry for lowering the sulfur content and to remove pollutants and impurities from transportation fuels. It, thus, helps refiners produce better-quality products from crude oil. Hydrogen is a potential source of renewable and clean energy. Hydrogen-based fuel cells are commonly used in the transportation industry as they are a pollution-free source of energy. Furthermore, hydrogen is used in ammonia (hydrogen-nitrogen) fertilizers. Ammonia is among the most preferred chemicals in fertilizer manufacturing. Globally, decreasing arable land and growing use of fertilizers to improve agricultural yield are anticipated to boost the demand for hydrogen during the forecast period.

Regional Analysis

APAC is estimated to contribute 39% to the growth of the global market during the projection period. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional market trends and analysis, and drivers influencing the industrial gases market's trajectory throughout the projection period.

For more insights on the market share of various regions, Request Free Sample

Further, APAC was the largest contributor to the market in terms of consumption. In addition, the region is expected to witness the fastest growth rate over the forecast period, mainly due to the rising industrialization and increasing demand from end-user industries such as metals and metal fabrication, chemical and petrochemical, and food and beverage. The demand is high in APAC due to the rapid expansion of infrastructure, which requires industrial gases to produce large volumes of steel. Also, the increasing need for alternate sources of energy is fueling the expansion of gasification plants and gas-to-liquids, coal-to-liquids, and coal-to-chemical plants. 

Additionally, with the rapidly depleting fossil fuel sources, the use of hydrogen as an energy source will gain traction during the forecast period. The use of nitrogen for food preservation and wastewater treatment services will also boost the growth of the market. The market in APAC is driven by increasing industrialization, rising economic growth, and the subsequent growing demand from end-user industries such as electronics and energy. Such factors are expected to drive regional industrial gases market growth during the forecast period. 

Industrial Gases Market Definition 

Industrial gases refer to a group of elemental and chemical gases (inorganic and organic) used in industrial applications. These gases are lightweight and usually have a low molecular weight. They can be used individually or as mixtures in various end-user industries.

To know more about the industrial gases market forecast report,  Request Free Sample

Industrial Gases Market Dynamics

The market for industrial gases is pivotal in supporting a wide range of industries, especially as global challenges like population growth and urbanization intensify. These gases play key roles in agriculture, particularly in modified atmosphere packaging (MAP), which extends shelf life and enhances food safety in the frozen food market. They are also crucial in semiconductor manufacturing, as well as in thermal processes like steel melting and copper smelting, where their thermal efficiency is invaluable. Beyond manufacturing, industrial gases are essential for environmental initiatives, contributing to wastewater treatment and environmental remediation by aiding in the cleanup of hazardous materials and treating polluted water.

Moreover, industrial gases have applications in advanced technologies like coal gasification systems and viral disinfection using chlorine. As industries face the pressure to meet environmental regulations and increase efficiency, the industrial gases sector continues to evolve, offering critical solutions for sustainable development and efficient operations worldwide. The largest industrial gas companies, along with the major industrial gas suppliers, are shaping the future of the global industrial gases market as demand for industrial gas continues to rise. Our market forecasting report includes a comprehensive analysis of drivers, trends, and challenges, providing insights from historical data (2018-2022) and examining the current market scenario.

Key Market Driver

The adoption of industrial gases for rapid surface chilling technology is notably driving industrial gases market growth. These gases play a vital role in various sectors, including metallurgy, electronics, and the glass industry. In addition, their application in the food & beverages and healthcare sectors is significant, with a focus on cryogenic filtration and air separation units. Furthermore, the steel segment benefits from industrial gases, particularly in processes like cryogenically cooled liquid nitrogen for rapid surface chilling technology.

Further, this technology, crucial in the food industry, relies on gases like liquid nitrogen and carbon dioxide, aligning with environmental protection and clean energy trends. As industries recognize the benefits, the demand for industrial gases is expected to surge, driving market growth in the forecast period.

Significant  Market Trends 

Increasing use of industrial gases as an alternative source of energy is an emerging trend shaping industrial gases market growth. Hydrogen is the most abundantly found element, particularly in water. In addition to being an industrial gas, it can be used for reducing the emission of GHGs. It is an alternative to petroleum-based fuels as it is renewable and abundant and does not produce any emissions. Industrial gases such as hydrogen and methane can be used to store and transport energy generated from renewable sources such as solar and wind power. Hydrogen, for example, can be produced during periods of excess renewable energy production and later converted back to electricity or used as a fuel when renewable energy generation is low. 

Further, liquid nitrogen is primarily used as a coolant and as a source of primary power in automotive. There is a shifting trend toward hybrid buses, which use hybrid propulsion systems. This system reduces nitrogen oxide and carbon dioxide emissions during acceleration after stopping. This will create new lucrative opportunities for the companies in the market and will, therefore, positively impact the growth of the market during the forecast period.

Major Market Challenge

The slowdown of the manufacturing sector in China is a significant challenge hindering industrial gases market growth. The country manufactures a wide range of automotive and aircraft components as well as industrial machines and electronics. However, the Chinese economy, as well as its manufacturing sector, is facing a slowdown due to the decline in global exports and low foreign investments. The companies that had taken excessive loans for maintaining operations faced a severe crisis due to the manufacturing overcapacity in the country and dwindling profits. The average labor costs are also rising, rendering China a less attractive investment destination. The policy changes in the US, which is China's biggest export market, may also significantly affect the growth of its manufacturing sector.

However, the US government is in the process of implementing several trade reforms that may restrict the import of manufactured goods into the country from China. Weak global commodity prices have further affected China's exports to several other countries, which are currently undergoing an economic recession. Such factors hinder the growth in China, which may hamper the market growth and trends during the forecast period.

Key Industrial Gases Market Companies

Companies are implementing various market growth and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.

Air Liquide SA - The company offers industrial gases including oxygen, nitrogen, hydrogen, argon, carbon dioxide, helium, acetylene, and specialty gases for refining, petrochemical and metal industries.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including Air Liquide SA, Air Products and Chemicals Inc., AIR WATER INC, Airgas Inc., Asia Technical Gas Co Pte Ltd., BASF SE, Buzwair Industrial Gases Factories, Chemix Specialty Gases And Equipment, Goyal Group, Guangdong Huate Gas Co. Ltd., Gulf Cryo Holding CSC, Iwatani Corp., Linde Plc, Messer SE and Co. KGaA, Norco Inc., Praxair Technology Inc., SOL Spa, Taiyo Nippon Sanso Corp., Wesfarmers Ltd., and Yingde Gas Group Co. Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Analyst Overview

The industrial gases market is integral to various industries, driven by factors such as global population growth and the expanding semiconductor market. These gases are essential in semiconductor fabrication processes for wafer cleaning and ensuring ultra-high purity in the manufacturing of electronic devices like flat-panel displays, LED lighting, and solar cells. The largest industrial gas companies play a key role in meeting the demand for industrial gas, adhering to stringent safety regulations across packaging facilities and using thin-walled steel and composite aluminum cylinders for bulk distribution and onsite needs. Industrial gases also support the food and beverage industries, where applications like dry ice are used for non-abrasive cleaning and preserving perishables. In addition, they play a critical role in the rubber industry, aiding in the production of molded rubber products and minimizing production downtime. As industries continue to innovate, industrial gases remain essential for enhancing safety, efficiency, and environmental sustainability in global manufacturing and processing operations.

Furthermore, the global industrial gases market is crucial for ensuring safety regulations and employee safety across various industries, including food and beverages and semiconductors. Ultra-high purity gases, such as hydrogen and oxygen, are widely used in semiconductor manufacturing processes to maintain strict quality standards. These gases are also vital in healthcare settings, where they support treatments for infected patients and sterilization protocols. In industrial applications, cylinder segments and liquid gas transport facilitate onsite distribution and support processes like rubber molding. As industries prioritize safety and efficiency, the future of industrial gases remains essential for maintaining ecosystem balance and improving manufacturing processes worldwide. Major industrial gas suppliers are expected to continue playing a significant role in this evolving market.

Request Free Sample

What are the Key Data Covered in this Industrial Gases Market Research Report?

• CAGR of the market forecast during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2024 and 2028
• Precise estimation of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across APAC, Europe, North America, South America, and Middle East and Africa
• Thorough market analysis and report of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

We can help! Our analysts can customize this industrial gases market research and growth report to meet your requirements. Get in touch