Industrial Gases Market by Product (Oxygen, Nitrogen, Hydrogen, Carbon dioxide, Acetylene, and Argon), Application (Healthcare, Manufacturing, Metallurgy & Glass, Food & Beverages, Retail, Chemicals & Energy, and Others), Distribution (On-site, Bulk, and Cylinder), and Region (North America, Europe, Asia-Pacific, and LAMEA): Opportunity Analysis and Industry Forecast, 2023-2032

Industrial Gases Overview

Industrial gases are comprised of elements, molecular compounds, or mixtures. The most common industrial gases are oxygen, hydrogen, nitrogen, carbon dioxide, and noble gases, such as argon, neon, xenon, and krypton. Some industrial gases, such as nitrogen, oxygen, argon, LNG, and liquefied petroleum gas are liquefied at high pressure for ease of storage and transport. At even lower temperatures these liquids can turn to a solid. Dry ice, a solid form of carbon dioxide, is a common example of a normally gaseous material (at ambient conditions) that has useful properties as a solid.  Much of the carbon dioxide will sublimate; meaning it will move directly to the gaseous phase from the solid phase without becoming a liquid.  Finally, some industrial gases, such as hydrogen, are highly volatile and need special handling and storage to ensure safe usage.

Global Industrial Gases Market Analysis

The global industrial gases market size was $100.22 billion in 2022 and is predicted to grow at a CAGR of 8.33%, by generating a revenue of $216.92 billion by 2032.

COVID-19 Impact on Global Industrial Gases Market

The industrial gases market experienced significant fluctuations in demand during the pandemic. Industries such as healthcare, pharmaceuticals, and food processing experienced increased demand for gases like oxygen and nitrogen due to the need for medical supplies, vaccine production, and food preservation. The industrial gases industry faced disruptions in the supply chain, mainly due to lockdown measures and restrictions on transportation. This caused challenges in the delivery of gases to customers. Many non-essential industries were temporarily shut down or operated at reduced capacity during lockdowns, leading to reduced demand for industrial gases in sectors like automotive, aerospace, and manufacturing.

As economies recover from the pandemic, industrial activities are resumed, leading to increased demand for industrial gases across various sectors. The healthcare sector is continued to drive the demand for medical gases, particularly in developing countries with expanding healthcare infrastructure. The pandemic accelerated the adoption of digital technologies and automation in the industrial gases sector, improving efficiency, and reducing operational costs.

Growing Industrialization and Economic Growth to Drive the Market Growth

Increasing industrial activities and manufacturing across various sectors drive the demand for industrial gases in processes, such as welding, cutting, and chemical manufacturing. The healthcare industry relies on industrial gases like oxygen and nitrogen for respiratory support, anesthesia, and medical procedures, contributing to sustained demand. The chemical sector's growth fuels the demand for gases in various chemical processes, including refining, petrochemicals, and specialty chemicals. The food and beverage sector requires gases like carbon dioxide for carbonation, preservation, and freezing applications. The demand for industrial gases in energy and power sectors, including natural gas processing, oil refining, and power plant operations, continues to grow.

Fluctuations in Energy Prices to Restrain Market Growth

Fluctuations in energy prices can affect the production and distribution costs of industrial gases. The industrial gases industry requires significant capital investment for setting up production facilities and distribution networks. Stringent environmental regulations may require the industry to invest in emission reduction technologies and shift towards greener alternatives. The industrial gases market is highly competitive, leading to pricing pressures and reduced profit margins for companies.

Advancements in Healthcare Industry to Drive Excellent Opportunities

The global push towards a low-carbon economy and the increasing focus on renewable energy sources are driving the demand for hydrogen as a clean fuel and energy carrier. Industrial gases companies have an opportunity to invest in hydrogen production and distribution infrastructure to support the emerging hydrogen economy. The healthcare industry relies heavily on industrial gases, especially oxygen and nitrogen, for medical treatments, diagnostics, and anaesthesia. With an aging population and increasing healthcare expenditures, there is a growing opportunity for industrial gas companies to expand their presence in the medical gases sector. The semiconductor industry relies on high-purity gases for various manufacturing processes. As demand for electronic devices continues to rise, industrial gases companies can capitalize on the increasing demand for specialty gases used in semiconductor fabrication. The food and beverage industry uses industrial gases for freezing, chilling, and modified atmosphere packaging to extend the shelf life of products. As the demand for processed and packaged foods grows, industrial gas companies can explore opportunities to supply gases and equipment to this sector.

Global Industrial Gases Market Share, by Product, 2022

The oxygen sub-segment accounted for the highest market share in 2022. Oxygen is widely used in the production of iron and steel through the basic oxygen furnace (BOF) and electric arc furnace (EAF) processes. The injection of oxygen into these processes enhances the combustion of impurities, leading to more efficient steel production and reduced energy consumption. The healthcare sector is one of the significant consumers of medical oxygen. Oxygen therapy is commonly used in hospitals and clinics to treat patients with respiratory conditions, as well as during surgical procedures. The COVID-19 pandemic further highlighted the critical importance of medical oxygen in managing respiratory distress in severe cases.

Global Industrial Gases Market Share, by Application, 2022

The manufacturing sub-segment accounted for the highest market share in 2022. Industrial gases offer a wide range of properties and applications, making them suitable for various manufacturing processes across different industries. They can be used as raw materials, reactants, coolants, purging agents, and carriers in different stages of manufacturing. Gases like nitrogen, argon, and helium are commonly used to create inert atmospheres in manufacturing processes. Inert atmospheres prevent unwanted reactions, oxidation, and contamination, ensuring the quality and purity of the final product. Industrial gases can be used to control temperatures during manufacturing processes, such as in welding, cutting, and heat treatment. Gases like oxygen and acetylene are employed in oxy-fuel processes, generating high-temperature flames for welding and cutting metals. Industrial gases often provide safer alternatives to hazardous substances in manufacturing processes. In sectors like electronics and semiconductor manufacturing, the use of ultra-pure gases ensures high-quality end products.

Global Industrial Gases Market Share, by Distribution, 2022

The cylinder sub-segment accounted for the highest market share in 2022. Cylinders are designed to be easily transportable, making them a convenient option for delivering industrial gases to various locations. They can be moved and installed quickly at the customer's site, providing flexibility for industries that require gases on-demand or in remote locations. Gas cylinders are engineered to meet strict safety standards and regulations. They are designed to withstand the pressure of the gas they contain and have safety valves to prevent overpressure situations. Proper handling, storage, and transportation procedures ensure the safe distribution of gases to end-users. Cylinder-based distribution allows for relatively straightforward handling, especially for smaller quantities of gases. The cylinders are typically equipped with handles or grips, making them easy to move and position for use. Cylinder distribution often involves a system of exchange or refill.

Global Industrial Gases Market Share, by Region, 2022

The Asia-Pacific industrial gases market generated the largest revenue in 2022. This is mainly because Asia-Pacific is known as a manufacturing powerhouse, with a significant presence of industries, such as automotive, electronics, chemicals, steel, and more. These industries heavily rely on industrial gases for various processes, driving high demand for gases like oxygen, nitrogen, and hydrogen. With the region's large and growing population, the healthcare sector in the region has been expanding. Industrial gases, particularly medical oxygen, play a crucial role in providing respiratory support and medical treatments, contributing to the demand for industrial gases. Ongoing infrastructure development projects, such as construction, power generation, and transportation, require industrial gases for welding, cutting, and other applications.

Competitive Scenario in the Global Industrial Gases Market

There are several major players functioning in the highly competitive global industrial gases market. Companies in the industrial gases market often diversify their product portfolio to offer a wide range of gases and gas-related services to cater to different industries and customer needs. Industrial gas companies aim to expand their presence in new and emerging markets, especially in regions experiencing rapid industrialization and urbanization, such as Asia Pacific and Latin America.

Some of the leading industrial gases market players are Air Liquide, Air Products Inc., INOX-Air Products Inc., Iwatani Corp., Linde plc, Messer, SOL Group, Strandmøllen A / S, and Taiyo Nippon Sanso Corp.