USD 104.23 billion
Report ID:
SQMIG15D2010 |
Region:
Global |
Published Date: July, 2025
Pages:
193
|Tables:
161
|Figures:
77
Global Industrial Gases Market size was valued at USD 104.23 billion in 2023 and is poised to grow from USD 110.07 billion in 2024 to USD 170.2 billion by 2032, growing at a CAGR of 5.6% during the forecast period (2025-2032).
The Industrial Gases Market is rapidly growing due to strong drivers such as surging demand from the end-use segments of manufacturing, healthcare, food and beverages, electronics, and energy. Growth in the healthcare segment, in particular from the use of medical grade gases such as oxygen and nitrous oxide, has strongly driven market growth. In addition, the industrialization of developing countries and increased demand from the steelmaking, petrochemicals, and metal fabrication industries has spurred demand for industrial gases. Adoption of clean energy such as using high-purity hydrogen for fuel cells is also a growing driver for the Industrial Gases Market, especially in countries adopting decarbonization strategies; as more investment is directed towards gas production technologies and infrastructure development in these growing markets.
On the restraints side, the industrial gases market is facing challenges to market growth. One of the main restraints is the cost of production and distribution, which can be substantial for gases that require more specialized distributions, such as cryogenic tanks or pipelines. In addition, government regulations are also a factor, as industry has to adhere to strict regulations/safety norms in particular when it comes to gases and emissions of gases such as carbon dioxide (CO2) or ammonia (NH3). The regulatory complexity leads to increasing compliance costs for gas producers as well. Also, as raw materials for hydrogen production (natural gas) are subject to price volatility, this can impact profit margins or long-term contracts, particularly in price sensitive developing markets. Nevertheless, the overall market outlook continues to be positive - looking at trends for innovation and consolidation. Major players continue to focus on strategic partnerships, acquisitions, and regional expansion to facilitate competitive advantages, and to enhance supply chain efficiencies. Further gas separation and purification technology improvements continues to reduce costs and possible environmental impacts, in support of sustainable outcomes within the market. Furthermore, to the added focus on circular economy and carbon capture utilization and storage (CCUS) projects will create more opportunities for growth and lessen some of the current constraints in the coming years.
How AI is Transforming Industrial Gases Market?
AI is revolutionizing the industrial gases market by optimizing production, safety, and innovation. Companies like Air Liquide and Linde leverage AI-driven predictive maintenance and process control to reduce downtime and energy consumption, analyzing billions of daily data points for real-time adjustments. AI-enabled smart logistics also handles scheduling and inventory, cutting delivery costs and streamlining supply chains.
In September 2024, the U.S. Department of Energy awarded $1 million to GE Vernova’s “H2Net” project to develop HySAGE, an AI assistant for hydrogen permitting and training. This initiative enhances safety and regulatory compliance in hydrogen infrastructure deployment
Market snapshot - (2025-2032)
Global Market Size
USD 104.23 billion
Largest Segment
Oxygen
Fastest Growth
Oxygen
Growth Rate
5.6% CAGR
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Global Industrial Gases Market is segmented by Gase Type, Production Method, Application, End User Industry, Delivery Mode and region. Based on Gase Type, the market is segmented into Oxygen, Nitrogen, Hydrogen, Carbon dioxide, Acetylene, Argon and Others. Based on Production Method, the market is segmented into Air Separation, Steam Methane Reforming (SMR), Electrolysis, Partial Oxidation, Chemical Reactions and Others. Based on Application, the market is segmented into Packaging, Coolant, Carbonation, Cryogenic, Cutting & Welding, Laboratory, Air Separation and Others. Based on End User Industry, the market is segmented into Healthcare, Manufacturing, Metallurgy & Glass, Food & Beverages, Retail, Chemicals & Energy and Others. Based on Delivery Mode, the market is segmented into On-site, Bulk, Cylinder and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Why Does Oxygen Dominate While Nitrogen Leads Growth in the Industrial Gases Market?
Oxygen is the dominant industrial gas in the industrial gases market (with a revenue share of over 30%) primarily because of its importance in steelmaking (55% of commercial oxygen use), healthcare, chemical processing, and environmental control. In the COVID-19 federal and state response, India’s Ministry of Steel converted 28 steel-plant units into medical oxygen plants and supplied 1,500 MT of medical oxygen on a daily basis.
Nitrogen is also the fastest growing industrial gas with more than global production of 150 million metric tons annually (according to the U.S. Energy Information Administration’s Data). According to government reports, nitrogen is over 50% of the global fertilizer nutrient use and this increase in fertilizer nutrient demand is led by Asia (composed of overall fertilizer nutrient consumption) due to the agricultural policies of India and China. The dramatic increase in fertilizer demand, coupled with nitrogen’s importance in semiconductors and food packaging demonstrate the potential power we expect nitrogen to unleash in the marketplace.
Why Are Air Separation and SMR Emerging as Dominant Production Methods in the Industrial Gases Market?
The air separation is a dominant method of producing industrial gases because cryogenic Air Separation Units (ASUs) can deliver ultra high purity oxygen, nitrogen, and argon at scale which represent slightly under 75 % of ASU market share globally. With many government policies now mandating emissions and purity requirements (ex: Canada’s Net Zero Governance document, August 2023) industrial gases will need to invest heavily into ASUs to create a compliant and friendly and environmentally efficient industrial gas output.
Steam Methane Reforming (SMR) leads hydrogen production thanks to its cost-efficiency, established infrastructure, and strong government backing. The U.S. Clean Hydrogen Production Tax Credit offers up to $3/kg, while the European Green Deal supports CCUS-integrated SMR, and China’s carbon neutrality goal underpins low-emission SMR expansion.
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Why Asia Pacific Dominant Industrial Gases Market in 2024?
Asia Pacific is the dominant industrial gases market representing ~36% of the total industrial gases market in 2023, it is also the fastest growing industrial gases market globally. Key drivers of growth in the Asia Pacific region are a strong level of government backing for industrial growth and hydrogen projects and include key initiatives, like the Green Hydrogen Mission announced by the Indian government and a massive investment in air separation units in China
China Industrial Gases Market
In the Asia Pacific market, China makes up ~45.5% of the market share. Underlying its market leadership is its enormous chemical industry, massive steel and infrastructure production, a highly developed semiconductor industry, and recently announced breakthroughs in Cambrian shale gas. For example, In March 2023, Air Liquide, backed by the Chinese central government, announced they would spend €60 million upgrading their two air separation units in Tianjin to support the transition to carbon capture utilization and storage (CCUS) and lower-emissions hydrogen production.
India Industrial Gases Market
India is now ranked second for share in the Asian market based on its massive demand creation from its manufacturing sector and increased healthcare demands. Under the National Green Hydrogen Mission (mission launched in January 2023 with USD 2.36 bn in funding), INOX Air Products is expected to increase the capacity by adding 1,000 t/day of ASU capacity at Hazira. The Indian government has also increased the incidence of guidance to modalities to track green hydrogen production towards export markets.
South Korea Industrial Gases Market
The South Korean industrial gas market sits at the interface of green hydrogen and industrial gases and connects to the Hydrogen Economy Roadmap (published in 2019). There is already a pilot hydrogen system based on green hydrogen and financed by the government which has already built 188 km of pipeline in Ulsan to transport green hydrogen (and to develop a commercial model). Kukdong Oil is now finishing its hydrogen plant in Cheongju with a design capacity of 92,000 Nm³/hr.
How is North America is Fastest Growing in Industrial Gases Industry?
North America is the leading market with USD 24 billion revenue tracked in 2023. The U.S. is enabling growth by enacting the Inflation Reduction Act and $7B hydrogen hub investments, expected in 2025 under the Infrastructure Act. Federal incentives are fueling the development and adoption of clean hydrogen and large-scale gas initiatives.
U.S. Industrial Gases Market
U.S. industrial gases industry is being led by Air Products, with significant revenue related to hydrogen. Air Products is poised to take large strides in the U.S. hydrogen market due to $2.2 billion Department of Energy (DOE) grants awarded in November 2024 to establish clean hydrogen hubs on the Gulf Coast and in the Midwest, plus huge mega green and blue hydrogen plants (like Texas - AES electrolyzer and Casa Grande facility) and is being driven by tax incentives from the Inflation Reduction Act
Canada Industrial Gases Market
Canada, Linde is the leading industrial gas player with several major ASU (air separation units) and hydrogen hubs. Linde is investing C$2 billion in Alberta for the purpose of supplying Dow's Path2Zero plant (including 2 M t CO₂ CCUS) slated to go online in 2028, and also has associated carbon capture utilization and storage (CCUS) being funded by the Federal Government and Provincial Government support. Canada's hydrogen strategy and CCUS incentives are enabling a major push for clean hydrogen.
Why Europe is Environment-Driven Industrial Gases Market?
Europe has a mature and environmental framework regulated market that is predicted to grow at 3–6% CAGR. It has a commitment of producing/importing 10 Mt of green hydrogen by 2030 under the REPowerEU plan and Hydrogen Bank, plus funds of €800M.
Germany Industrial Gases Market
Linde, is leading the industry with the Leuna chemical park as a green hydrogen hub, with an €15 m grant from the Ministry of Economy with funding of a €60 m electrolyser / liquefier plant that has capacity of producing 3,200 t/yr H₂, and which is also developing with BASF the world's first electrically heated steam cracker, with funding of a €14.8 m federal grant.
France Industrial Gases Market
Air Liquide is leading in France, with massive capital investments in renewable hydrogen. Under EU and national subsidy programmes, they have developed the 200 MW Normand’Hy electrolyser based in Normandy, a 25,000 t/yr plant at La Mède, and a plan to install more than 100 H₂ stations along the Seine corridor, plus government support of over €400 m
UK Industrial Gases Market
In the UK, Linde has approximately a ~60% share of the gases market. Linde are jointly developing a 24 MW PEM electrolyser at Leuna (ITM Linde Electrolysis). ITM Power is expanding their Sheffield gigafactory with government funded trials (e.g. HyDeploy) and deploying NEPTUNE electrolysers.
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Industrial Gases Market Drivers
Surge in Green Hydrogen Initiatives:
Expanding Healthcare and Medical Gas Demand:
Industrial Gases Market Restraints
High Production and Operational Costs:
Stringent Safety and Environmental Regulations:
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Global leaders Air Liquide, Linde, and Air Products continue defending market share through large-scale, state-sponsored green hydrogen projects. Air Liquide secured €110M EU Innovation Fund for its ENHANCE ammonia‑to‑hydrogen plant in Antwerp. Linde partnered with Siemens and the German government (via IPCEI) to ramp up electrolyser production to 3 GW/yr by 2025. Meanwhile, Air Products formed a state-backed joint venture in Hamburg for a green ammonia-to-hydrogen import terminal, developing crucial distribution infrastructure. These firms are leveraging public funding to decarbonize sectors while enhancing electrolyser and pipeline capacity—securing technological dominance.
Top Player’s Company Profiles
Recent Developments in Industrial Gases Market
Is hydrogen pipeline build-out accelerating globally?
Government-sponsored policies are advancing expansions in hydrogen pipeline infrastructure, specifically, the EU Hydrogen Backbone program and state programs in Japan, South Korea and the U.S. Further, projects such as Germany's ONTRAS H₂ (25 km connecting a 30 MW electrolyser in 2025) and a term sheet with Fluxys for a 300–400 km pipeline in Oman (2025) reflect rapid movement on infrastructure growth.
Are governments driving CCUS integration with industrial gases?
the U.K. is committing £21.7 billion over 25 years on CCS industrial clusters, including HyNet and Teesside. In the U.S., there also are federal CCUS investment commitments ($12 billion through the Infrastructure Act and treble 45Q tax credits) that also will facilitate the growth of CO₂ transport and storage infrastructure tied to hydrogen production.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.
According to SkyQuest, increased investments in green hydrogen, more demand in high-purity gas for healthcare, and government infrastructure support are anticipated to support the growth of the industrial gases market throughout the forecast period to 2033. However, the high capital cost associated with gas production and strict environmental and safety regulations could limit market uptake in the long run. Rapid industrialisation, growing national hydrogen strategies, and growing manufacturing sector have kept the Asia Pacific market leading for industrial gases. Also, large scale public investments in hydrogen pipelines, carbon capture integration, and electrolyser manufacturing are expected to unlock growth for key global players.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 104.23 billion |
Market size value in 2032 | USD 170.2 billion |
Growth Rate | 5.6% |
Base year | 2024 |
Forecast period | (2025-2032) |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Industrial Gases Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Industrial Gases Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Industrial Gases Market:
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