Industrial Gases Market Analysis: Growth, Size, Share & Future Trends (2024-2029)
The report covers a comprehensive analysis segmented by Product Type (Nitrogen, Oxygen, Carbon dioxide, Hydrogen, Helium, Argon, Ammonia, Others), by End User Industry (Chemical Processing and Refining, Electronics, Food and Beverage, Oil and Gas, Metal Manufacturing and Fabrication, Medical and Pharmaceutical, Automotive and Transportation, Others), by Geography (North America, South America, Asia Pacific, Europe, The Middle East, Africa).
Industrial Gases Market Snapshot
Industrial Gases Market Overview
The global industrial gases market is estimated to be at $112.29 Bn in 2024 and is anticipated to reach $144.68 Bn in 2029. The global industrial gases market is registering a CAGR of 5.2% during the forecast period 2024-2029. The industrial gases market encompasses a diverse range of gases used across various industries for applications such as manufacturing, healthcare, electronics, food processing, and metal fabrication. Key gases include oxygen, nitrogen, hydrogen, argon, carbon dioxide, and helium, among others. The market is characterized by its vital role in enabling numerous industrial processes and applications, contributing significantly to global economic development.
One of the primary drivers of the industrial gases market is industrialization, particularly in emerging economies, where rapid urbanization and infrastructure development drive demand for gases in construction, metal fabrication, and manufacturing. Additionally, the healthcare sector’s growing demand for medical gases, such as oxygen and nitrogen, for therapeutic and diagnostic purposes further propels market growth.
Technological advancements and innovations play a crucial role in shaping the industrial gases market landscape. Advancements in gas production, purification, storage, and transportation technologies enhance market efficiency and expand the range of applications for industrial gases. For example, the development of membrane separation and cryogenic distillation techniques has improved the production efficiency of high-purity gases like oxygen and nitrogen.
Moreover, environmental sustainability initiatives and regulations drive the adoption of cleaner production methods, spurring demand for industrial gases as alternatives to traditional fossil fuel-based processes. Hydrogen, has gained attention as a clean energy carrier for fuel cells and renewable energy storage, further driving market growth.
However, the industrial gases market faces challenges such as fluctuating raw material prices, capital-intensive production facilities, and stringent regulatory requirements. Fluctuations in raw material prices, especially for gases like helium and argon, can impact profit margins for industrial gas suppliers. Additionally, the capital-intensive nature of gas production facilities and the high costs associated with regulatory compliance create barriers to entry for new players, limiting competition and innovation within the market.
Despite these challenges, the industrial gases market is poised for continued growth, driven by ongoing industrialization, technological advancements, and the transition towards cleaner and more sustainable production methods. Strategic investments in R&D, infrastructure, and supply chain management will be crucial for companies to capitalize on emerging opportunities and maintain competitiveness in this dynamic market landscape.
​​​Industrial Gases Market Coverage
| Historical & Forecast Period | 2018-2029 |
| Base Year | 2023 |
| Forecast Period | 2024-2029 |
| Units | Billion US$ |
| Segments | Product Type, End User Industry |
| Geographies | North America, South America, Asia Pacific, Europe, The Middle East, Africa |
| Key Vendors | L’Air Liquide S.A., LINDE PLC, Air Products and Chemicals, Inc., Messer SE & Co. KGaA, Nippon Sanso Holdings Corp. |
Key Geographies of Industrial Gases Market, 2023
Porter’s 5 Forces Analysis of the Industrial Gases Market
Industrial Gases Market Trends
The industrial gas market is witnessing notable trends driven by several factors. The increasing demand comes from diverse end-use industries such as healthcare, manufacturing, metallurgy, and electronics. This demand surge is primarily attributed to the growing adoption of industrial gases for various applications, including welding, cutting, medical gases, and chemical synthesis.
Moreover, there is a notable shift towards eco-friendly and sustainable production processes, leading to a rise in demand for industrial gases like hydrogen and nitrogen for applications such as hydrogen fuel cells and nitrogen blanketing. This trend is further fueled by stringent environmental regulations pushing industries to adopt cleaner technologies. For instance, several automotive manufacturers, such as Toyota, Hyundai, and Honda, have been investing heavily in hydrogen fuel cell vehicles (FCVs) as part of their efforts to reduce greenhouse gas emissions and meet stricter environmental regulations. Hydrogen fuel cells produce electricity through a chemical reaction between hydrogen and oxygen, emitting only water vapor and heat as byproducts, making them an interesting alternative to traditional internal combustion engines.
Additionally, advancements in technology and innovation are directing the market forward with the development of specialized gases tailored to specific industrial processes. This includes the advent of high-purity gases for semiconductor manufacturing and specialty gases for analytical and calibration purposes.
Furthermore, the market is witnessing consolidation activities with mergers, acquisitions, and strategic partnerships among key players to expand their product portfolios and geographical presence. This trend aims to capitalize on emerging market opportunities and strengthen competitiveness in the global industrial gases landscape. For example, in 2018, Linde AG and Praxair Inc. completed their merger to create Linde plc, a key player in industrial gases and engineering. This merger brought together two industry players, each with a strong presence in different regions and complementary product portfolios. Linde plc now operates across various sectors, including manufacturing, healthcare, and electronics, providing a wide range of industrial gases and related services.
Overall, the industrial gases market is poised for steady growth driven by evolving industrial needs, sustainability initiatives, technological advancements, and strategic collaborations.
Industrial Gases Market Driving Factors
Driver analysis of the industrial gases market reveals several key factors propelling its growth. Increasing industrialization across various sectors like manufacturing, healthcare, and electronics fuels demand for industrial gases, particularly oxygen, nitrogen, and hydrogen, for processes such as welding, cutting, and packaging. Additionally, the growing adoption of industrial gases in healthcare applications, such as medical oxygen and anesthesia gases, contributes to market expansion.
Moreover, stringent environmental regulations drive the shift towards cleaner production methods, boosting demand for industrial gases as alternatives to traditional fossil fuel-based processes. Furthermore, rapid technological advancements and innovations in gas production, storage, and transportation technologies enhance market efficiency and accessibility. Countries like Germany and Japan have ambitious plans to develop hydrogen economies, with targets set for increasing hydrogen production and infrastructure development. For instance, Germany’s National Hydrogen Strategy aims to establish a comprehensive hydrogen infrastructure by 2030.
Additionally, the rising demand for specialty gases in semiconductor manufacturing, food processing, and chemical industries further stimulates market growth. Furthermore, the expansion of the automotive and aerospace industries increases the need for industrial gases for applications like metal fabrication and heat treatment. Companies specializing in industrial gases, such as Linde, Air Products, and Praxair, have been strategically investing in expanding their capacity and capabilities to meet the rising demand from semiconductor manufacturers worldwide. For instance, in 2020, Linde announced a significant investment to expand its ultra-high purity gases production capacity in the U.S. Gulf Coast region. This expansion aimed to meet the increasing demand for specialty gases used in semiconductor manufacturing, particularly in advanced nodes for chip fabrication.
Overall, factors like industrialization, environmental concerns, technological advancements, and diverse industrial applications collectively act as significant drivers for the growth of the industrial gas market.
Industrial Gases Market Challenges
The industrial gases market reveals several key obstacles impacting its growth trajectory. The market faces fluctuations in raw material prices, particularly for gases like helium and argon, which are sourced in limited quantities. These price instabilities can adversely affect profit margins for industrial gas suppliers. For instance, in the late 2010s, the global helium market experienced significant price increases due to supply shortages. This shortage was attributed to factors such as plant shutdowns, maintenance issues, and geopolitical tensions affecting helium production in key exporting countries like Qatar and the United States. As a result, industrial gas suppliers and end-users faced challenges securing a stable supply of helium at affordable prices. This volatility in raw material prices negatively impacted the profit margins of industrial gas suppliers and increased costs for businesses reliant on helium for their operations.
The capital-intensive nature of gas production facilities and distribution networks poses a significant barrier to entry for new players, limiting competition and innovation within the market. Additionally, stringent regulatory requirements for gas handling, storage, and transportation increase compliance costs for companies operating in the industry. For example, the establishment and operation of air separation units (ASUs) for oxygen and nitrogen production. Air Liquide, a key player in the industrial gases industry, provides a compelling case. Air Liquide invested significantly in building and operating ASUs worldwide to produce industrial gases. These ASUs require substantial capital investment for construction, equipment procurement, and infrastructure development. Additionally, operational costs include energy consumption and maintenance expenses, further adding to the capital intensity of the business.
Moreover, the industrial gases market is vulnerable to economic downturns and cyclical fluctuations in end-user industries such as manufacturing and construction. Slowdowns in these sectors can lead to reduced demand for industrial gases, impacting revenue and profitability for gas suppliers.
Furthermore, technological disruptions and advancements in alternative energy sources pose a long-term challenge to the market, particularly for traditional gas applications like combustion processes. The emergence of renewable energy technologies and electrification trends may reduce the reliance on certain industrial gases, requiring suppliers to adapt their offerings and business models accordingly.
Overall, addressing these challenges requires strategic planning, innovation, and proactive risk management to sustain growth and competitiveness in the industrial gases market.
Industrial Gases Market – Key Industry News
- In November 2023, Adani Total Gas Ltd. (ATGL), collaborated with TotalEnergies, to launch a ‘Green Hydrogen Production and Blending Pilot Project’. This initiative aims to integrate Green Hydrogen (GH2) with natural gas for more than 4,000 residential and commercial consumers in Ahmedabad, Gujarat.
- In June 2023, Air Liquide partnered with Groupe ADP, to support the development of hydrogen infrastructure in airports.
- In April 2023, Nippon Gases Operations, a division of Nippon Gases Italia, has signed an agreement with Enel Green Power Italia to construct a new plant for the reuse, purification, and liquefaction of CO2, naturally present in the geothermal fluids of the Piancastagnaio power plants in the province of Siena, for food purposes. The significant investment is part of a series of operations planned by the company in Italy to improve production capacity, competitiveness, and customer closeness, emphasizing long-term growth.
Industrial Gases Market Competitive Landscape
The competitive landscape of the industrial gases market is characterized by the presence of several key players, including Linde PLC, Air Liquide, Air Products and Chemicals, Inc. These multinational companies dominate the market, holding significant market shares globally.
Intense competition drives companies to focus on innovation, product differentiation, and strategic partnerships to maintain their competitive edge. For example, Linde and Praxair merged in 2018 to create the world’s largest industrial gas company, leveraging combined resources to enhance market presence and efficiency.
Regional players also contribute to the competitive landscape, catering to local markets with tailored solutions and services. Additionally, niche players specialize in providing specialty gases and niche applications, offering targeted solutions to specific industries.
Technological advancements and sustainability initiatives drive competition, with companies investing in research and development to develop advanced gas production, purification, and delivery technologies. Furthermore, strategic acquisitions and expansions into emerging markets enable companies to capitalize on growth opportunities and strengthen their market positions.
Overall, the industrial gases market’s competitive landscape is dynamic and multifaceted, characterized by innovation, strategic partnerships, and a focus on sustainability to meet evolving customer demands and industry trends.
Industrial Gases Market Company Share Analysis, 2023 (%)
Industrial Gases Market – Key Companies
Reason to Buy from us
Table of Contents
| 1. Introduction |
|---|
| 1.1. Research Methodology |
| 1.2. Scope of the Study |
| 2. Market Overview / Executive Summary |
| 2.1. Global Industrial Gases Market (2018 – 2022) |
| 2.2. Global Industrial Gases Market (2023 – 2029) |
| 3. Market Segmentation |
| 3.1. Global Industrial Gases Market by Product Type |
| 3.1.1. Nitrogen |
| 3.1.2. Oxygen |
| 3.1.3. Carbon dioxide |
| 3.1.4. Hydrogen |
| 3.1.5. Helium |
| 3.1.6. Argon |
| 3.1.7. Ammonia |
| 3.1.8. Others |
| 3.2. Global Industrial Gases Market by End User Industry |
| 3.2.1. Chemical Processing and Refining |
| 3.2.2. Electronics |
| 3.2.3. Food and Beverage |
| 3.2.4. Oil and Gas |
| 3.2.5. Metal Manufacturing and Fabrication |
| 3.2.6. Medical and Pharmaceutical |
| 3.2.7. Automotive and Transportation |
| 3.2.8. Others |
| 4. Regional Segmentation |
| 4.1. North America |
| 4.1.1. The U.S |
| 4.1.2. Canada |
| 4.1.3. Mexico |
| 4.2. South America |
| 4.2.1. Brazil |
| 4.2.2. Argentina |
| 4.2.3. Colombia |
| 4.2.4. Chile |
| 4.2.5. Rest of South America |
| 4.3. Asia Pacific |
| 4.3.1. China |
| 4.3.2. India |
| 4.3.3. Japan |
| 4.3.4. South Korea |
| 4.3.5. Rest of Asia Pacific |
| 4.4. Europe |
| 4.4.1. UK |
| 4.4.2. Germany |
| 4.4.3. Italy |
| 4.4.4. France |
| 4.4.5. Spain |
| 4.4.6. Rest of Europe |
| 4.5. The Middle East |
| 4.5.1. Turkey |
| 4.5.2. UAE |
| 4.5.3. Saudi Arabia |
| 4.5.4. Rest of the Middle East |
| 4.6. Africa |
| 4.6.1. Egypt |
| 4.6.2. South Africa |
| 4.6.3. Rest of Africa |
| 5. Value Chain Analysis of the Global Industrial Gases Market |
| 6. Porter Five Forces Analysis |
| 6.1. Threats of New Entrants |
| 6.2. Threats of Substitutes |
| 6.3. Bargaining Power of Buyers |
| 6.4. Bargaining Power of Suppliers |
| 6.5. Competition in the Industry |
| 7. Trends, Drivers, and Challenges Analysis |
| 7.1. Market Trends |
| 7.1.1. Market Trend 1 |
| 7.1.2. Market Trend 2 |
| 7.1.3. Market Trend 3 |
| 7.2. Market Drivers |
| 7.2.1. Market Driver 1 |
| 7.2.2. Market Driver 2 |
| 7.2.3. Market Driver 3 |
| 7.3. Market Challenges |
| 7.3.1. Market Challenge 1 |
| 7.3.2. Market Challenge 2 |
| 7.3.3. Market Challenge 3 |
| 8. Regulatory Landscape |
| 9. Competitive Landscape |
| 9.1. L’Air Liquide S.A. |
| 9.2. LINDE PLC |
| 9.3. Air Products and Chemicals, Inc. |
| 9.4. Messer SE & Co |
| 9.5. Nippon Sanso Holdings Corp. |
| 9.6. Company 6 |
| 9.7. Company 7 |
| 9.8. Company 8 |
| 9.9. Company 9 |
| 9.10. Company 10 |
Industrial Gases Market – Frequently Asked Questions (FAQs)
What is the current size of the global industrial gases market?
The market size for the global industrial gases market in 2024 is $112.29 Bn.
Who are the major vendors in the global industrial gases market?
The major vendors in the global industrial gases market are L’Air Liquide S.A., LINDE PLC, Air Products and Chemicals, Inc., Messer SE & Co. KGaA, Nippon Sanso Holdings Corp.
Which segments are covered under the global industrial gases market segments analysis?
This report offers in-depth insights into each product type, end user industry.