Industrial Gas Market

Industrial Gas Market Outlook (2024 to 2034)

As revealed in the newly published analysis by Fact.MR, revenue from the sales of industrial gases is estimated to reach US$ 110.81 billion in 2024. The global industrial gas market is forecasted to expand at a CAGR of 5.3% and reach a value of US$ 185.73 billion by the end of 2034.

The industrial gas market growth is strengthened with surging manufacturing activities across several industries, such as chemicals, food & beverages, and others. Thereby, there is an increase in the demand for industrial gases, such as oxygen, nitrogen, carbon dioxide, hydrogen, and others around the world.

Potentially high growth countries, such as India, Vietnam, and others are witnessing an increase in the demand for industrial gases. These gases are pivotal for use in several manufacturing procedures, such as chemical processing, metal fabrication, and refining. Active involvement of some leading market players in technological advancements aiming for improved storage, production, and transportation of gases is helping them strengthen their position across regions. These advancements are also helpful in enhancing safety, efficiency, and environmental stability.

The rising production of clean-burning fuels and low sulfur is stimulating the requirement for hydrogen for the hydrotreatment of petroleum distillates, thereby driving demand for merchant supplies. The growing popularity of electronic devices along with an accelerating renewables demand is also contributing to the rising sales of different types of industrial gases.

• Demand for industrial gases in South Korea is evaluated to accelerate at a CAGR of 6.1% from 2024 to 2034.
• East Asia is analyzed to possess 38.4% of the industrial gas market share by the end of 2034.
• Sales of industrial gases in the market in Canada are forecasted to rise at 6.5% CAGR through 2034.

Report Attribute	Detail
Industrial Gas Market Size (2024E)	US$ 110.81 Billion
Forecasted Market Value (2034F)	US$ 185.73 Billion
Global Market Growth Rate (2024 to 2034)	5.3% CAGR
Market Share of Chemicals (2034F)	19%
North America Market Share (2034F)	29.1%
Japan Market Growth Rate (2024 to 2034)	4.8% CAGR
Key Companies Profiled	Air Products Inc.; Messer Group; INOX-Air Products Inc.; Linde Plc; Iwatani Corp.; Air Liquide; Dubai Industrial Gases; Matheson Tri-Gas; Gulf Cryp; BASF; Universal Industrial Gases Ltd.; Bristol Gases; Bhuruka Gases Ltd.; Southern Company Gas; Ellenbarrie Industrial Gases Ltd.; Concorde-Corodex Group; Nippon Gases Operations; Enel Green Power Italia.

What is Responsible for Increasing Demand for Industrial Gases?

“Accelerating Consumption of Industrial Gases in the Oil & Gas Industry”

The increasing demand for crude oil along with a surging requirement for refining is creating prospects for suppliers of industrial gases. These gases are utilized in the oil & gas industry at a larger scale for downstream and upstream applications, such as well lifting, drilling, coiled tubing, leak testing, pipe inerting and cooling, inspection, subsea works, and other applications. A noteworthy expansion of the oil & gas industry is pushing demand for industrial gases, which is further creating prospects for market players.

What Drawbacks of Industrial Gases are Hindering Market Expansion?

“Stringent Regulatory Compliance Standards”

The global market growth is hampered by the imposition of stringent regulatory compliance issues on the use of industrial gases as companies need to adhere to set environmental, safety, and quality standards. Complying with the set regulations web at the international and national levels brings some operational challenges and financial burdens for manufacturers of industrial gases, which is adversely impacting market growth dynamics.

Which Industrial Gas Market Trends are New Market Players Capitalizing On?

“Focusing on Sustainable and Greenhouse Energy Technologies for Reducing Emissions”

It is expected from new market players to invest more in R&D activities for bringing innovations in the production and storage of industrial gases for enhancing their safety and efficacy. Moreover, integrating automation and digitalization in production techniques will assist in the operational effectiveness and optimization of supply chain management.

A noteworthy shift to sustainable practices and greener solutions is stimulating startups for investing in developing technologies and renewable energy sources for capturing and storing carbon dioxide. Increased focus on sustainability practices and renewable energy technologies for minimizing greenhouse gas emissions and enabling cleaner processes are generating lucrative opportunities for startups.

Country-wise Insights

A 38.4% share of the global market is projected to be held by East Asia by the end of 2034, according to the newly published report by Fact.MR, a market research and competitive intelligence provider. Increasing semiconductor production in regional countries, such as China, South Korea, and Japan is stimulating demand for industrial gases in the manufacturing process. For instance, helium is pivotal for cooling semiconductor materials during production, thereby ensuring precise temperature control.

What is Expected from the United States Going Forward?

“Presence of Several Prominent Market Players Helping the United States Stand Out”

Attribute	United States
Market Value (2024E)	US$ 23.63 Billion
Growth Rate (2024 to 2034)	5.5% CAGR
Projected Value (2034F)	US$ 40.3 Billion

The United States is forecasted to contribute 74.6% share of North America by 2034-end. The country is emerging as one of the prominent suppliers of industrial gases with the presence of several market players, such as Air Liquide, Linde, Messer, and Air Products & Chemicals. An expansion of the electronics sector is also stimulating demand for industrial gases with their broad application range from semiconductors and flat-panel displays to solar cells and LED lights. Unlike the metallurgy and petrochemical industry, the electronics sector is embracing greater standards for technical specifications, coverage, and project experience, which is having a positive impact on the demand for industrial gases.

What is the Future of Industrial Gases in China?

“Accelerating Demand for Liquefied Natural Gas for Reduced Carbon Emissions”

Attribute	China
Market Value (2024E)	US$ 22.88 Billion
Growth Rate (2024 to 2034)	6.3% CAGR
Projected Value (2034F)	US$ 42 Billion

China is approximated to capture a share of 58.9% of the East Asian market by the end of 2034. The growing use of industrial gases in automotive production is creating prospects for market players in the country. Further, the country is switching from industrial coal to gases and emphasizing the use of LNG (liquefied natural gas) for underpinning economic growth. Increased emphasis on carbon emission is supporting demand for LNG as a natural gas.

Will Industrial Gas Manufacturers Do Well in Japan?

“Appreciation for Cleaner Future Creating Prospects for Market Players in Japan”

Attribute	Japan
Market Value (2024E)	US$ 11.82 Billion
Growth Rate (2024 to 2034)	4.8% CAGR
Projected Value (2034F)	US$ 18.94 Billion

Japan is analyzed to occupy 26.6% share of East Asia by 2034-end. There is a growing emphasis on opting for alternatives to conventional fuel options owing to the constantly increasing issues of climate change, which is stimulating demand for hydrogen. This trend is having a positive impact on the demand for industrial gases. Several developments are taking place for advancements aiming for a cleaner environment and distributing clean nitrogen and hydrogen, which is ultimately leading to expanding industrial gas market size.

Category-wise Insights

As stated in Fact.MR report, more end-use industries, such as chemicals, electronics, food & beverages, and others are giving preference to cylindered distribution of industrial gases. Independent gas distributors generally purchase and then compress gases in their packaging facilities. Several gases are supplied in liquid form at room temperature and stored in composite aluminum cylinders.

Which End Use of Industrial Gases is Generating More Profit?

“Extensive Application of Industrial Gases in Chemical Industry”

Attribute	Chemicals
Segment Value (2024E)	US$ 20.5 Billion
Growth Rate (2024 to 2034)	5.6% CAGR
Projected Value (2034F)	US$ 35.27 Billion

Chemicals are evaluated to account for a share of 19% of the global market by the end of 2034. There is an extensive application of several types of gases, such as hydrogen, oxygen, methane, carbon dioxide, and others in chemical procedures. Carbon dioxide and liquid nitrogen find application in the production of conventional as well as unconventional hydrocarbons. Several gases are utilized for coiled tubing, hydraulic fracturing, drill stem testing, stuck drill pipe, pressure testing, and other procedures.

Which Type of Industrial Gas is in Increased Demand?

“Prominence of Oxygen for its Versatile Application Scope”

Oxygen is emerging as one of the prominently used gases across end-use industries, such as manufacturing, electronics, food & beverages, and others. The growing use of oxygen in environmental applications, such as remediation and wastewater treatment is creating prospects for market players globally. Moreover, rising consciousness about the environmental footprints along with a recurring emphasis on oxygen consumption in reducing pollution is stimulating its demand. Thereby, the versatile application of oxygen in the environment as a pivotal industrial gas is creating prospects for market players.

Competitive Landscape

Key players in the Industrial Gas market are actively taking certain initiatives, such as innovation, acquisitions, agreements, mergers, collaborations, and others for extending their market presence. In addition, they are also establishing new production facilities for matching set requirements from end-use industries.

For instance :

• Linde, in January 2024, started supplying nitrogen, oxygen, and argon to the Rourkela steel plant of SAIL in Odisha, Eastern India. Under the new contract, the company is planning to construct, own, and operate an additional capacity of 1,000 tons of ASU on a daily basis.
• Nippon Gases Operations and Enel Green Power Italia entered into an agreement for building a new plant in Piancastagnaio, Italy, in April 2023. This will help in reusing, purifying, and liquefying CO2 present naturally in the geothermal fluids of power plants of Piancastagnaio. Renewable energy sources will be used in this plant for complying with set stringent quality specifications for the reliability and purity of CO2 required by the pharmaceutical, beverage, and food markets.

Fact.MR provides detailed information about the price points of key players in the industrial gas market positioned across the world, sales growth, production capacity, and speculative technological expansion, in this newly published market report.

Segmentation of Industrial Gas Market Research

• By Type :

  • Oxygen
  • Inert Gases
  • Nitrogen
  • Acetylene
  • Hydrogen
  • Carbon Dioxide

• By End Use :

  • Chemicals
  • Food & Beverages
  • Electronics
  • Manufacturing
  • Healthcare
  • Refining
  • Metallurgy
  • Others

• By Distribution :

  • Cylinder (Merchant)
  • Bulk (Liquid Gas Transport)
  • On-site

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • MEA