Industrial Gases Market Size & Share, By Product (Nitrogen, Oxygen), Application (Healthcare, Manufacturing, Retail), Distribution (Bulk, Cylinder), Regional Forecast, Industry Players, Growth Statistics 2023-2030

Market Outlook:

Industrial Gases Market size surpassed USD 29.2 Billion in 2022 and is poised to reach USD 53.7 Billion, growing at over 7.6% CAGR between 2023 and 2030. With a steady increase in industrialization activities across various sectors and a rise in demand for energy, the market valuation for industrial gases is projected to reach unprecedented levels.

• Base Year Value (2022): USD 29.2 Billion
• CAGR (2023 - 2030): 7.6%
• Forecast Year Value (2030): USD 53.7 Billion
• Historical Data Period: 2018 - 2021
• Largest Region: North America
• Forecast Period: 2023 - 2030

Market Dynamics:

Growth Drivers & Opportunities:

- Increasing demand from emerging economies: Rapid industrialization and infrastructural development in emerging economies like China, India, and Brazil have fueled the demand for industrial gases. These countries are witnessing a massive surge in manufacturing activities, resulting in a higher need for industrial gases in diverse sectors such as chemicals, healthcare, and electronics.

- Growing energy sector: The energy sector is a major consumer of industrial gases, particularly in the production of natural gas, crude oil, and petroleum refining operations. The expansion of renewable energy projects, such as wind and solar power plants, is also contributing to the demand for industrial gases.

- Advancements in technology: Technological advancements have led to increased efficiency in the production and transportation of industrial gases. The development of onsite gas generation systems, advanced cryogenic technologies, and compressed gas storage solutions has facilitated easy access and enhanced the overall market growth.

 

Industry Restraints & Challenges:

Report Scope

Report Coverage	Details
Segments Covered	Product, Application, Distribution
Regions Covered	•North America (United States, Canada, Mexico), • Europe (Germany, United Kingdom, France, Italy, Spain, Rest of Europe), • Asia Pacific (China, Japan, South Korea, Singapore, India, Australia, Rest of APAC), • Latin America (Argentina, Brazil, Rest of South America), • Middle East & Africa (GCC, South Africa, Rest of MEA)
Company Profiled	Air Liquide, Linde plc, Air Products Inc., Taiyo Nippon Sanso Corp., Messer, SOL Group, Iwatani Corp., Matheson Tri-Gas, Inc., INOX-Air Products Inc., Strandmllen A/S

- High capital investments: Establishing industrial gas production plants and associated infrastructure involves substantial capital investments, which can be a hurdle for market entry and expansion. This limited accessibility to capital can restrain the growth of new entrants in the market.

- Stringent regulatory environment: The industrial gases industry operates under strict regulatory frameworks due to safety concerns and environmental considerations. Compliance with numerous regulations can pose challenges and additional costs for market players.

- Volatile raw material prices: The cost of sourcing raw materials required for industrial gases production, such as oxygen, nitrogen, and hydrogen, fluctuates frequently. These fluctuations in raw material prices can impact the overall profitability of the market, making it a challenge for businesses to maintain stable pricing and margins.

Overall, despite these challenges, the industrial gases market presents ample opportunities for growth. The increasing focus on environmental sustainability, coupled with the rising demand from various end-use industries, is expected to fuel the market's expansion. Additionally, innovations in gas utilization technologies and the development of novel applications are expected to drive market growth in the coming years.

Regional Forecast:

The global industrial gases market is expected to witness significant growth in the coming years, with North America, Asia Pacific, and Europe being the key regions driving this growth.

North America:

The industrial gases market in North America is projected to experience robust growth during the forecast period. Factors such as increasing industrial activities, rising investments in innovative technologies, and stringent government regulations to curb emissions are driving the demand for industrial gases in this region. Moreover, the presence of well-established end-use industries such as healthcare, metal fabrication, and automotive further boosts the market growth.

Asia Pacific:

The industrial gases market in the Asia Pacific region is anticipated to witness substantial growth in the coming years. Rapid industrialization, favorable government policies, and significant investments in infrastructure development are the key drivers fueling the market growth in this region. Additionally, the growing demand for industrial gases in countries like China and India, owing to the expanding manufacturing sector, is further contributing to market growth.

Europe:

Europe's industrial gases market is expected to witness steady growth due to the presence of a well-developed industrial sector and stringent environmental regulations. The region is making significant strides towards achieving energy efficiency and reducing carbon emissions, thereby driving the demand for industrial gases. Additionally, favorable government initiatives and increased investments in renewable energy sources are positively impacting market growth in Europe.

Segmentation Analysis:

1. Oxygen:

Oxygen is one of the essential industrial gases widely used in several industries. It finds extensive applications in the healthcare sector for respiratory support, in the metal fabrication industry for flame cutting and welding, and in the chemical industry for various processes. The growing demand for oxygen in the medical sector, especially for treating respiratory disorders and COVID-19 patients, is expected to fuel the market growth for this sub-segment during the forecast period.

Competitive Landscape:

The industrial gases market is highly competitive with a significant number of players operating globally. Some of the key market players include:

1. Linde plc

2. Air Products and Chemicals, Inc.

3. Air Liquide S.A.

4. Praxair, Inc.

5. Taiyo Nippon Sanso Corporation

6. Messer Group GmbH

7. Air Water Inc.

8. Sol Group

9. Gulf Cryo

10. Universal Industrial Gases, Inc.

The industrial gases market is characterized by intense competition among market players. These players focus on strategies such as mergers and acquisitions, collaborations, and product innovations to maintain their market position. Moreover, companies are also investing in research and development activities to develop advanced technologies and cater to the evolving customer demands. The competitive landscape is expected to remain dynamic as market players continue to expand their product portfolios and explore new market opportunities.