Industrial Gases Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The world market for industrial gases is valued at about $1,993,241,000 in 2023, and is forecast to grow at a strong CAGR of 6.12% from 2024 to 2050. The rising demand for industrial gases is due to the growing industrialization, the development of technology and the rising need for energy conservation. In the future, the industrial use of oxygen, nitrogen and hydrogen will be more and more pronounced, especially in the medical, industrial and energy industries. There are many reasons for this growth, such as the continuous shift to cleaner energy sources and the use of new technology in the production and distribution of gases. Especially the rise of hydrogen as an important part of the energy transition, and the development of gas separation technology, will further promote market growth. Leading companies such as Air Products and Chemicals, The Linde Group and Praxair are investing heavily in research and development, forming strategic alliances and launching new products to take advantage of these developments. For example, Air Products has made significant investments in hydrogen production and has become a leader in the hydrogen economy. The strategic moves of these companies reflect the growing competition and the great opportunities for growth in the industrial gases market.

Regional Market Size

Regional Deep Dive

The market for industrial gases is characterized by a wide range of applications in various industries, such as manufacturing, health, and energy. In North America, the market is driven by technological innovations, the development of industry, and the increasing demand for clean energy solutions. The region is experiencing a shift towards sustainable practices. The focus is on reducing the carbon footprint and increasing the operational efficiency. In addition, the presence of large players and the well-developed distribution network will further stimulate the market growth. North America is one of the most important industrial gases markets in the world.

Europe

• In this connection, the European Union’s Green Deal, which aims to make Europe the first climate-neutral continent by 2050, is bound to promote an increase in the use of industrial gases for the development of renewable energy sources and the capture of CO2. In this field, the leading companies are Linde and Air Liquide.
• Among other things, the implementation of the ETS in the European Union is putting pressure on industries to adopt cleaner processes, which is increasing the demand for industrial gases which can be used to lower emissions.

Asia Pacific

• China's commitment to achieving carbon neutrality by 2060 has led to significant investments in industrial gases, particularly in the hydrogen sector, with companies like Sinopec and Air Products collaborating on large-scale hydrogen projects.
• The rapid industrialization and urbanization in India are driving the demand for industrial gases in sectors such as steel and chemicals, with government initiatives like 'Make in India' further boosting the market.

Latin America

• Brazil's industrial gases market is being shaped by the growing demand for oxygen and nitrogen in the healthcare sector, particularly in response to the COVID-19 pandemic, with companies like White Martins expanding their production capabilities.
• The region is also seeing a rise in renewable energy projects, particularly in wind and solar, which is increasing the demand for industrial gases used in energy storage and production.

North America

• The stricter regulations on the United States EPA on the emission of greenhouse gases are causing the industrial gas companies to make innovations in carbon capture and sequestering technology, which is expected to increase the market demand for specialty gases.
• Companies such as Plug Power and Nel ASA have led the way in recent advances in hydrogen production, especially electrolysis.

Middle East And Africa

• The Middle East is witnessing a surge in industrial gas demand due to the expansion of the petrochemical industry, with companies like Gulf Cryo and Air Products investing in new facilities to cater to this growth.
• Regulatory frameworks in the region are evolving, with governments focusing on diversifying their economies away from oil dependency, which is leading to increased investments in industrial gases for various applications.

Did You Know?

“Did you know that industrial gases account for approximately 20% of the total energy consumption in the manufacturing sector?” — International Energy Agency (IEA)

Segmental Market Size

The industrial gas division is currently experiencing a steady increase. The demand for industrial gases is mainly driven by the increasing efficiency of production processes, the increasingly stringent regulations promoting the use of clean energy, and the development of gas separation technology. For example, the need for a reduction in emissions in the steel and cement industries is leading to the use of oxygen and nitrogen gases for the oxidation of fuel. Air Liquide and Linde are the leading companies in this field in Europe and North America. In the first place, the metal-working, food-preservation and medical industries require argon and carbon dioxide. The increasing trend towards sustainability, and the growing desire for governments to limit the carbon footprint, are accelerating this growth. In addition, the cryogenic distillation and membrane separation processes, which are improving the efficiency of gas production and use, are influencing the evolution of the industry.

Future Outlook

Industrial gases will be in great demand from 2023 to 2050. The market is estimated to increase from $1,093,242,000 to $5,847,062,000,000. This reflects a CAGR of 6.13%. The demand for industrial gases is largely due to the increasing demand for them in the manufacturing, medical and energy industries. The increased automation and advanced manufacturing processes in the various industries will require more gases such as oxygen, nitrogen and argon. In key applications such as welding, metalworking and food preservation, the penetration rate of industrial gases in the market will be as high as 75% by 2050. The key technological developments, especially in the production and distribution of gases, will have a major influence on the market. The technological developments in membrane separation and cryogenic distillation are expected to improve efficiency and reduce costs, making industrial gases more accessible. Meanwhile, the growing emphasis on the environment and the drive for greater efficiency will lead to the adoption of green gases such as hydrogen and biogas. This will diversify the market. Also, the integration of digital technology and the development of circular economy will change the working dynamics of the industry, ensuring that it remains resilient and flexible in the face of future challenges.