Industrial Gases Market Overview
According to a new report published by Allied Market Research, the industrial gases market size was valued at $93.8 billion in 2021 and is estimated to reach $162.8 billion by 2031, growing at a CAGR of 5.7% from 2022 to 2031. The steady expansion of end-use industries such as healthcare, electronics, construction, and energy & power is significantly driving the growth of the industrial gases market across the globe.
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Industrial gases mainly include oxygen, nitrogen, carbon dioxide, hydrogen, and noble gases such as helium, neon, argon, krypton, xenon, and radon. These gases are typically derived from atmospheric air through liquefaction and separation processes. With rapid technological advancements and increasing industrial applications, the industrial gases market is witnessing substantial growth across multiple sectors.
Growing Importance of Industrial Gases in Healthcare and Pharmaceuticals
The healthcare sector has emerged as a major contributor to the industrial gases market growth. With rising emphasis on better quality of life and advanced medical treatments, the demand for medical-grade gases such as oxygen, nitrous oxide, nitric oxide, and carbon dioxide has increased significantly. These gases play a crucial role in respiratory therapies, anesthesia, pharmaceutical manufacturing, and laboratory research.
Moreover, innovations in drug development and stem cell therapies, particularly induced pluripotent stem cells (IPS), are boosting the demand for high-purity industrial gases. Gases such as liquid nitrogen and carbon dioxide are indispensable for cell cultivation, preservation of tissues, and advanced biomedical applications. This increasing adoption in the healthcare and pharmaceutical industries is expected to create strong growth opportunities for the industrial gases market during the forecast period.
Rising Demand Across Multiple End-Use Industries
The industrial gases market is experiencing strong demand from various end-use industries including consumer electronics, semiconductors, food & beverages, mining, aerospace, and energy & power. Oxygen, nitrogen, hydrogen, and argon are widely used in manufacturing, packaging, metal processing, and chemical production processes.
In the electronics and semiconductor industries, industrial gases are essential for fabrication, cooling, and cleaning processes. Similarly, in the food & beverage sector, gases such as carbon dioxide and nitrogen are used for food preservation, packaging, and carbonation. The expanding industrial base in emerging economies is further accelerating the demand for industrial gases worldwide.
Countries such as India and China are expected to witness rapid growth in the industrial gases market due to ongoing industrialization, urbanization, and infrastructure development. The increasing number of manufacturing facilities and industrial projects in these countries is generating consistent demand for industrial gas supply.
Technological Advancements in Energy and Power Sector
The increasing demand for energy and power over the past decade has led to the development of advanced technologies such as hydrogen fuel cells, green ammonia, and nuclear fusion, which are positively impacting the industrial gases market. Hydrogen gas, in particular, is gaining significant traction as a clean energy carrier and is widely used in refineries, fuel cells, and energy storage systems.
Furthermore, rapid advancements in nuclear fusion and small-scale nuclear fission reactors are expected to boost the demand for noble gases used in nuclear reactors and laser ignition systems. Global investments in fusion energy technology and the vision to achieve commercial nuclear fusion by 2050 are likely to create lucrative opportunities for industrial gas manufacturers.
In addition, the growing focus on hydrogen-based energy solutions and decarbonization initiatives across developed and developing nations is strengthening the role of hydrogen in the industrial gases market. Increased investments in hydrogen fuel cell technologies and energy harvesting engines are expected to further support market expansion.
Market Segmentation by Type
Based on type, the industrial gases market is segmented into oxygen, nitrogen, carbon dioxide, hydrogen, noble gases, and others. Among these, the oxygen segment accounted for the largest market share of 35.2% in 2021. The widespread use of oxygen in healthcare, metal fabrication, chemical processing, and energy applications has contributed to its dominant position in the global industrial gases market.
Nitrogen and hydrogen segments are also witnessing significant growth due to their extensive applications in electronics manufacturing, oil refining, and clean energy technologies. The increasing demand for hydrogen in refineries and renewable energy systems is expected to drive strong growth in the hydrogen segment during the forecast period.
Market Segmentation by End Use
On the basis of end use, the industrial gases market is categorized into healthcare, electronics, aerospace, construction, energy & power, and others. The construction sector is projected to contribute a market share of 27.7% by 2031, driven by the increasing infrastructure development and urban construction projects worldwide.
The healthcare segment continues to be a key revenue generator due to the rising demand for medical oxygen and specialty gases. Meanwhile, the aerospace sector is also gaining traction with the increasing privatization of space exploration and growth in space-based activities, which require high-purity industrial gases for propulsion and testing purposes.
Regional Analysis of the Industrial Gases Market
Region-wise, the industrial gases market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific held the largest industrial gases market share in 2021 and is expected to maintain its dominance during the forecast period. The region’s growth is primarily attributed to rapid industrialization, increasing energy demand, and expanding manufacturing activities.
South Korea is projected to exhibit a CAGR of 6.5% during 2022–2031, while Japan is expected to grow at a CAGR of 5.3% during the same period. The strong presence of electronics, automotive, and semiconductor industries in these countries is significantly driving the demand for industrial gases.
North America and Europe are also witnessing steady growth due to technological advancements, increasing healthcare investments, and the adoption of clean energy technologies. The presence of well-established industrial gas manufacturers further supports market growth in these regions.
Impact of COVID-19 on the Industrial Gases Market
The COVID-19 pandemic had a mixed impact on the industrial gases market. The global economic slowdown, disruptions in trade, and lockdown restrictions severely affected industrial production and infrastructure activities. The shutdown of manufacturing facilities across several countries led to a decline in the utilization of industrial gases, thereby negatively impacting market growth.
However, the pandemic also increased the demand for medical oxygen and healthcare-related gases, partially offsetting the decline in industrial consumption. Post COVID-19, the gradual recovery of industries supported by vaccination programs has significantly boosted the demand for industrial gases.
Additionally, the increase in oil & gas activities and refinery operations has driven the demand for hydrogen gas. The rising privatization of space exploration and growing aerospace activities in both developed and developing countries are further contributing to the growth of the industrial gases market.
Competitive Landscape and Key Market Players
The global industrial gases market is highly competitive with the presence of several key players adopting strategies such as acquisitions, partnerships, product launches, and business expansions to strengthen their market position. Major companies operating in the industrial gases market include Linde plc, Air Liquide S.A., Air Products & Chemicals, Messer Group, Praxair Technology, Universal Industrial Gases, Gulf Cryo, Taiyo Nippon Sanso, BASF, and MVS Engineering Pvt. Ltd.
These companies are focusing on expanding production capacities, enhancing supply chain efficiency, and investing in research and development to meet the growing global demand for industrial gases.
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Future Outlook of the Industrial Gases Market
The future of the industrial gases market appears highly promising, driven by increasing industrialization, rising healthcare demand, and rapid advancements in clean energy technologies. The growing adoption of hydrogen fuel, nuclear technologies, and advanced manufacturing processes is expected to create new growth avenues for the market.
Furthermore, the expanding applications of industrial gases in renewable energy, aerospace, electronics, and pharmaceutical industries will continue to accelerate market growth. With continuous technological innovations and increasing investments in energy and infrastructure projects, the industrial gases market is poised for steady and sustainable growth through 2031.
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Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of “Market Research Reports” and “Business Intelligence Solutions.” AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.
Pawan Kumar, the CEO of Allied Market Research, is leading the organization toward providing high-quality data and insights. We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.
