Global Industrial Gas Market Size By Type (Nitrogen, Oxygen, Hydrogen, Carbon di oxide, Acetylene, Argon, and Others), Application (Manufacturing, Healthcare, Food & Beverage, Metallurgy & Glass, Chemicals & Energy, Retail, and Others), and Region - Market Share, Trend Analysis, Competitive Intelligence, Historical Data, and Forecast 2023 - 2030
Market Perspective
The global Industrial Gas Market was worth around USD 96.52 billion in 2022 and is anticipated to grow to around USD 167.26 Billion by 2030 at a CAGR of around 7.32% between 2023 and 2030.
The global industrial gas market is witnessing robust growth driven by numerous factors. Increasing demand from various end-use industries such as manufacturing, healthcare, energy, and electronics is a key factor driving industry expansion. Industrial gases, including oxygen, nitrogen, hydrogen, and carbon dioxide, play a crucial role in diverse applications ranging from metal fabrication and chemical synthesis to medical treatments and electronics manufacturing.
The market is experiencing positive effects due to the continuous growth of the manufacturing sector, especially in developing countries that are currently undergoing industrialization. The demand for industrial gases in various applications such as metal processing, welding, and cutting is significantly contributing to the market's growth. Moreover, the surging emphasis on sustainable practices is encouraging the usage of industrial gases in environmentally friendly processes, thereby fueling the expansion of the market.
Technological progress, particularly in advanced gas separation and purification techniques, is significantly improving the effectiveness of industrial gas manufacturing. This positive development is favorably influencing the market, guaranteeing a consistent availability of superior-quality industrial gases.
The growth of the market faces obstacles due to factors like the unpredictability of raw material costs and strict regulatory requirements. Changes in energy prices can impact the production and distribution expenses of industrial gases, thereby influencing the overall market dynamics.
Key Insights
- Based on type, the oxygen segment acquired the largest market share of 27.38% in 2022
- Based on application, the chemicals & energy segment is growing with the highest CAGR of 8.49%
- On the basis of region, Asia-Pacific accounted for the largest market share of 33.22% in 2022
Bio and Green Fuels to Offer Exponential Opportunities for Market Expansion
With the global shift towards sustainable energy solutions, there is a growing need for green hydrogen production, which presents an appealing opportunity for industrial gases. Green hydrogen, produced through electrolysis using renewable energy, has become a popular and environmentally friendly substitute for conventional production methods. Hydrogen, specifically, plays a vital role in driving this transition. According to the International Energy Agency (IEA), global demand for hydrogen is predicted to increase tenfold by 2050, with a substantial portion being fulfilled by green hydrogen.
With nations globally pledging to achieve ambitious carbon reduction targets, there is an imminent surge in the requirement for environmentally friendly hydrogen. This presents a highly profitable opportunity for companies operating in the industrial gas sector. Strategic investments in the development of green hydrogen production technologies and supporting infrastructures is anticipated to offer lucrative opportunities.
Moreover, numerous nations are setting ambitious targets to advance green hydrogen initiatives. For instance, Germany aims to have 5 gigawatts (GW) of electrolysis capacity for hydrogen production by 2030, escalating to 10 GW by 2040. Australia, a key player in the global hydrogen market, is targeting the production of hydrogen at less than USD 2 per kilogram by 2030, enhancing its position in the green hydrogen landscape. Furthermore, the European Union envisions the installation of at least 40 GW of electrolyzers by 2030, emphasizing the strategic role of industrial gases in achieving these targets.
Price Volatility to Challenge Market Growth
The volatility of raw material prices poses a significant challenge for the global industrial gas market. Industrial gas companies heavily rely on feedstock like natural gas and other hydrocarbons, and any fluctuations in their prices has a considerable impact on production costs and profit margins. Additionally, geopolitical events, disruptions in the supply chain, and global economic uncertainties further contribute to the instability of raw material prices, making it even more difficult for players in the industrial gas market. For instance, geopolitical instability caused an increase in the cost of hydrogen by approximately 40% for a few major countries in 2022. It is crucial for companies in this sector to effectively navigate and mitigate the effects of price fluctuations to maintain their competitiveness and ensure sustainable growth in a dynamic market environment.
Recent Development
June 2023 (Acquisition): Safran announced the potential acquisition of Air Liquide Advanced Technologies' aeronautical oxygen and nitrogen operations, excluding the cryogenic activities linked to naval applications. This proposed acquisition is aimed at expanding Safran Aerosystems' product portfolio, particularly with the inclusion of On-Board Oxygen Generation Systems (OBOGS), positioning Safran as a prominent player in systems integration.
May 2023 (Acquisition): Air Products announced that it has entered into an investment agreement with the Government of the Republic of Uzbekistan to purchase, possess, and operate a natural gas-to-syngas processing facility in Qashqadaryo Province for a sum of USD 1 billion.
Segmentation Analysis
Based on type, the industrial gas market is categorized into nitrogen, oxygen, hydrogen, co2, acetylene, argon, and others. Oxygen accounted for the highest value of USD 26.43 billion in 2022. Its extensive applications across industries, including metal production, healthcare, and chemical manufacturing, due to its pivotal role in combustion processes as well as its use in medical treatments, enhanced its demand and revenue contribution. The robust growth of industries, coupled with the increasing adoption of oxygen in healthcare applications, propels its dominant position in the market.
Hydrogen is anticipated to experience the fastest growth at a CAGR of 8.51% over 2023–2030. This surge is fueled by the global push toward sustainable and clean energy solutions. Hydrogen plays a crucial role in various applications, including fuel cells for transportation and industrial processes. Government initiatives and increased investments in renewable energy projects further accelerate the demand for hydrogen.
Based on application, the industrial gas market is further divided into manufacturing, healthcare, food & beverage, metallurgy & glass, chemicals & energy, retail, and others. Manufacturing accounted for the highest revenue of USD 24.39 billion in 2022 on account of the extensive utilization of gases for metal fabrication, welding, and chemical processes. The robust growth of manufacturing activities worldwide, especially in emerging economies, further bolsters the demand for industrial gases in the manufacturing sector.
Chemicals & energy is estimated to experience the fastest growth at an 8.49% CAGR over 2023-2030. This growth is propelled by the increasing global emphasis on sustainable practices and the transition towards cleaner energy sources. Industrial gases play a crucial role in various chemical processes and are integral to energy-related applications. The rising demand for hydrogen, particularly in green hydrogen production, further accelerates the growth of the chemicals & energy segment.
Asia-Pacific is the Dominating Region Owing to Rapid Industrialization and Urbanization
Asia-Pacific accounted for the highest value of USD 32.07 billion in 2022 and is anticipated to experience the fastest growth at a CAGR of 7.86% between 2023 and 2030. This is attributed to several factors driving the robust growth of industrial gas demand. The burgeoning manufacturing sector in countries like China and India significantly contributes to the growing demand for industrial gases in metal fabrication, electronics manufacturing, and other production processes. Moreover, rapid industrialization, urbanization, and infrastructure development across the Asia-Pacific region are further amplifying the need for industrial gases. The region's robust economic activities, coupled with a burgeoning focus on sustainability, has resulted in Asia-Pacific’s dominance as well as a major player in the industrial gas market in the coming years.
Competitive Landscape
- Air Liquide
- Air Products and Chemicals, Inc.
- Gulfcryo
- Linde plc
- Praxair Technology, Inc.
- INOX-Air Products Inc.
- MESSER SE & CO. KGAA
- AIR WATER INC.
- MATHESON TRI-GAS, INC.
- SOL Group
The global Industrial Gas Market is segmented as follows:
By Type
- Nitrogen
- Oxygen
- Hydrogen
- Carbon dioxide
- Acetylene
- Argon
- Others
By Application
- Manufacturing
- Healthcare
- Food & Beverage
- Metallurgy & Glass
- Chemicals & Energy
- Retail
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Rest of Asia-Pacific
- Middle East & Africa
- GCC
- South Africa
- North America
- Rest of Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
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Global Industrial Gas Market Size By
- December-2023
- 148
- Global
- oil-and-gas
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