Industrial Gases Market to Grow by USD 31.1 Billion (2025-2029), Vendor Strategies Boost Growth, AI-Powered Market Evolution Report - Technavio

The industrial gases market is projected to experience significant growth, with a forecasted increase of USD 31.1 billion, driven by a compound annual growth rate (CAGR) of 5.7% from 2024 to 2029. This surge in demand is largely attributed to trends such as the expansion strategies of key industry players, mergers and acquisitions, and an increasing focus on sustainable gas solutions and gas production technology. The market is shaped by the continuous evolution of industrial gas types, particularly nitrogen, hydrogen, oxygen, and carbon dioxide, which are essential for diverse industrial gas applications in sectors like healthcare, manufacturing, chemicals, and food processing.In addition, gas suppliers are increasingly innovating to enhance gas efficiency, meet gas quality standards, and navigate fluctuating gas pricing. This focus on industrial gas innovations aims to meet the growing demand while ensuring safety and regulatory compliance. As industries expand their usage of industrial gases, from agriculture to semiconductor production, gas regulations are becoming more stringent, driving companies to adopt advanced technologies and improved processes to maintain competitiveness and safety in operations.Key insights into market evolution with AI-powered analysis. Explore trends, segmentation, and growth drivers- View Free Sample PDF

Market Drivers

• Facility Expansion by Vendors: Leading companies are investing in new air separation units (ASUs), hydrogen production plants, and specialty gas facilities to meet increasing industrial demand.
• Rising Demand in Healthcare: The healthcare sector's increasing need for medical gases such as oxygen and nitrous oxide is a key driver of market growth.
• Technological Advancements: The market is witnessing innovations such as low-carbon hydrogen production systems and advanced distribution technologies that cater to green energy and sustainability needs.
• Rising Environmental Concerns: The growing need for sustainable solutions in industries like energy, steel, and chemicals is driving the demand for low-carbon gases like hydrogen and oxygen.
• Mergers and Acquisitions: Companies are increasing their market share by acquiring facilities and forming strategic alliances to enhance operational efficiency and expand product portfolios.

Trends in the Market

1. Mergers and Acquisitions: Market consolidation through strategic mergers and acquisitions enables companies to expand their product offerings and reach. Air Products’ acquisition of a natural gas-to-syngas processing facility in Uzbekistan for USD 1 billion in May 2023 is a notable example.
2. Gas Efficiency: Increasing demand for efficient and reliable gas supply solutions in sectors such as semiconductor manufacturing, food preservation, and energy production is pushing companies to innovate their gas production and distribution technologies.

Challenges in the Industrial Gases Market

• Criticalities in Gas Distribution and Handling
  Efficient and safe distribution is crucial to the industrial gases market. Issues related to mishandling and transportation disruptions can significantly affect production schedules.
• Regulatory and Safety Compliance
  Stringent safety regulations and the need for consistent compliance with standards in handling, storing, and transporting gases is a constant challenge.

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Market Segmentation

The industrial gases market is segmented by end-user industry, gas type, and geography.

End-User Industry Segmentation

• Manufacturing
  • Subsegments: Aerospace, automotive, shipbuilding, railways
  • Industrial gases like nitrogen, hydrogen, and oxygen are used in welding, cutting, brazing, and heat treating processes.
• Chemical Processing
  • Industrial gases like nitrogen, hydrogen, and oxygen are crucial in producing ammonia, methanol, and other chemicals.
• Metal Fabrication
  • Oxygen, nitrogen, and hydrogen are used in metal cutting, welding, and steel production.
• Energy
  • Industrial gases are essential in coal gasification and renewable energy processes, where hydrogen and oxygen help improve thermal efficiency and reduce emissions.
• Others
  • Includes sectors such as electronics (semiconductor fabrication), healthcare (medical gases), food and beverages (food preservation), and agriculture (fertilizers).

Gas Type Segmentation

• Hydrogen
  • Used in refining, ammonia production, and fuel cells.
  • Key for green energy solutions and sustainable manufacturing.
• Oxygen
  • Critical for healthcare, steel production, and wastewater treatment.
  • Widely used in industrial applications requiring combustion and metal fabrication.
• Nitrogen
  • Essential in food preservation, fertilizer production, and semiconductor manufacturing.
• Carbon Dioxide
  • Used in food and beverage industries for carbonation, refrigeration, and preservation.
• Others
  • Includes gases like helium, acetylene, and argon, used in niche applications such as medical imaging, welding, and electronics.

Geographical Segmentation

The market is divided into several regions, each contributing differently to the overall growth:

• APAC
  • Countries: China, India, Japan, South Korea
  • APAC is expected to contribute 45% to the global market growth. Industrialization, infrastructure development, and growing industries like chemicals, metals, and food processing are driving demand.
• Europe
  • Countries: Germany, UK, France, Italy
  • Europe continues to grow, driven by the need for green energy solutions and a strong demand from industries like manufacturing and healthcare.
• North America
  • Countries: United States, Canada
  • Steady growth due to advances in technology, particularly in the healthcare and electronics sectors. The focus is on reducing carbon emissions and adopting sustainable technologies.
• South America
  • Countries: Brazil, Argentina, Chile
  • South America is witnessing growth, particularly in food processing and chemical manufacturing industries.
• Middle East and Africa
  • Countries: Saudi Arabia, UAE, South Africa
  • The region is growing due to investments in the energy sector and a rise in industrial activities.

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Key Players in the Industrial Gases Market

Key players in the industrial gases market are leveraging strategies such as expansions, acquisitions, and technological innovations to strengthen their market presence:

• Air Liquide SA
  • A global leader in industrial gases, offering a range of gases including oxygen, nitrogen, hydrogen, argon, and specialty gases for industries like healthcare, chemicals, and metals.
• Linde Plc
  • A major player providing industrial gases, including hydrogen and oxygen, focusing on sustainable energy solutions and gas production for the chemical, healthcare, and automotive industries.
• Air Products and Chemicals Inc.
  • Specializes in hydrogen production, gasification technologies, and offering industrial gases to industries such as energy, chemicals, and electronics.
• Messer SE and Co. KGAa
  • Supplies industrial gases to steel, chemical, and food sectors. Messer focuses on gas distribution and improving efficiency in various industries.
• Airgas Inc.
  • Provides industrial, medical, and specialty gases, including carbon dioxide, oxygen, and nitrogen, to a wide range of industries.
• BASF SE
  • Known for chemical production, BASF supplies specialty gases for diverse industrial applications, including environmental solutions and food processing.
• Norco Inc.
  • A supplier of industrial gases like nitrogen, oxygen, and argon to industries including manufacturing, food, and healthcare.
• Taiyo Nippon Sanso Corp.
  • Focuses on providing gases for electronics, semiconductor fabrication, and other high-tech industries.
• Iwatani Corp.
  • Specializes in industrial gases, including hydrogen and oxygen, with a focus on energy, metal fabrication, and electronics.
• Goyal Group
  • Supplies industrial gases to various sectors, with a strong presence in India’s growing manufacturing and chemical industries.
• Yingde Gas Group Co. Ltd.
  • One of China’s leading suppliers of industrial gases, offering oxygen, nitrogen, and other specialty gases.
• SOL Spa
  • Known for providing gases for industrial applications, including chemicals, metallurgy, and energy sectors.
• Asia Technical Gas Co Pte Ltd.
  • Focuses on providing industrial gases to a wide range of industries, with a strong presence in Southeast Asia.
• Coregas Pty Ltd.
  • Supplies industrial gases to sectors including healthcare, food, and manufacturing in the Australian market.

Other key vendors include AIR WATER INC., Buzwair Industrial Gases Factories, Chemix Specialty Gases and Equipment, Guangdong Huate Gas Co. Ltd., and Gulfcryo

Recent Market Developments

• December 2024: Air Liquide launched a range of industrial gases focused on enhancing sustainability in manufacturing processes.
• November 2024: Linde introduced a renewable hydrogen production system designed to cater to the clean energy demands in transportation and chemicals.
• October 2024: Praxair expanded its food and beverage supply chain solutions, improving preservation techniques with nitrogen and carbon dioxide.
• September 2024: Air Products opened a new gas production facility in Asia to meet the growing demand from the semiconductor industry.