Industrial Gases Market Set To Reach USD 254.8 Bn by 2034

Overview

New York, NY – April 21, 2025 – ​The global Industrial Gases Market is on a strong growth path, projected to increase from USD 112.7 billion in 2024 to approximately USD 254.8 billion by 2034, with an annual growth rate of 8.5%. This expansion is driven by rising demand across various sectors such as healthcare, electronics, food and beverages, and energy.

Atmospheric gases, including oxygen, nitrogen, and argon, led the industrial gases market with over 48.4% share. These gases are vital across industries like healthcare, metal fabrication, and food processing for applications such as welding. Merchant distribution, supplying gases in bulk or cylinders on demand, held over 44.4% of the industrial gases market. Its flexibility and cost-efficiency make it ideal for industries like manufacturing, healthcare, and food & beverage, allowing businesses to avoid large on-site storage. The healthcare sector accounted for over 23.6% of the industrial gases market, driven by the critical use of gases like medical oxygen, nitrous oxide.

The Asia Pacific region leads the global industrial gases market, holding a 38.9% share valued at approximately USD 43.8 billion. This dominance is driven by rapid industrialization in emerging economies like China, India, and Southeast Asia. Significant investments in energy, manufacturing, and healthcare sectors across these countries fuel demand for industrial gases.

Key Takeaways

• The global Industrial Gases Market is projected to grow from USD 112.7 billion in 2024 to USD 254.8 billion by 2034, at an 8.5% CAGR.
• Atmospheric gases (oxygen, nitrogen, and argon) hold over 48.4% market share due to widespread use in healthcare, metal fabrication, and food processing.
• Merchant distribution accounts for a 44.4% share, favored for its flexibility in supplying bulk/cylinders to industries like manufacturing and healthcare.
• Healthcare dominates with a 23.6% share, driven by demand for medical oxygen, nitrous oxide, and CO₂ in therapies and surgeries.
• Asia Pacific holds 38.9% market share, USD 43.8 billion, fueled by rapid industrialization in China, India, and Southeast Asia.

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Analyst Viewpoint

The Industrial Gases in the Asia Pacific, valued at USD 43.8 billion with a commanding 38.9% global share, presents compelling investment opportunities driven by the region’s rapid industrial and technological growth. Countries like China and India are at the forefront, with China’s massive steel and electronics sectors and India’s push for renewable energy, particularly hydrogen for solar and wind projects, fueling demand.

Investors can tap into opportunities in green hydrogen production and carbon capture technologies, which are gaining traction as companies respond to global sustainability goals. However, risks loom large; volatile raw material costs, especially for natural gas, can squeeze margins, and geopolitical tensions in the region may disrupt supply chains.

Consumer insights reveal a growing preference for sustainable and efficient gas solutions, particularly in healthcare and food processing, where high-purity gases like oxygen and nitrogen are non-negotiable. Hospitals and home healthcare providers in aging populations like Japan and China are driving medical gas demand, while food and beverage firms lean on gases for preservation and carbonation to meet rising consumer expectations for quality.

Technological advancements, such as improved gas separation and purification, are making production more efficient, lowering costs, and enabling smaller players to compete. Yet, the regulatory environment poses hurdles; stringent safety and environmental standards in countries like South Korea and Japan require hefty compliance investments, which can deter new entrants.

Report Scope

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Key Market Segments

By Product Type

• Atmospheric gases, including oxygen, nitrogen, and argon, led the industrial gases market with over 48.4% share. These gases are vital across industries like healthcare, metal fabrication, and food processing for applications such as welding, medical therapies, and food preservation. Their dominance stems from high demand and versatility.
• While niche gases are gaining ground in specialized uses, atmospheric gases are expected to maintain their lead due to widespread use in large-scale industries. Their cost-effectiveness and critical role in both established and emerging markets ensure continued market leadership, despite slight growth moderation.

By Distribution Type

• Merchant distribution, supplying gases in bulk or cylinders on demand, held over 44.4% of the industrial gases market. Its flexibility and cost-efficiency make it ideal for industries like manufacturing, healthcare, and food & beverage, allowing businesses to avoid large on-site storage.
• Despite competition from onsite and packaged gas solutions, merchant distribution remains dominant, particularly for small and medium-sized enterprises. Growth is supported by rising industrialization in emerging markets and steady demand from metal fabrication and chemical processing. The segment’s reliability and scalability ensure its leading position, barring significant shifts in procurement trends.

By End-Use Type

• The healthcare sector accounted for over 23.6% of the industrial gases market, driven by the critical use of gases like medical oxygen, nitrous oxide, and carbon dioxide in respiratory therapies, anesthesia, and surgeries. Demand is fueled by aging populations, rising chronic diseases, and expanding global healthcare infrastructure.
• While growth may stabilize post-pandemic, healthcare’s dominance persists due to investments in medical facilities in emerging markets and upgrades in developed nations. Home healthcare trends further boost demand for portable oxygen solutions. The sector’s reliance on high-purity gases ensures its strong market position, unlikely to wane without major technological shifts reducing gas dependency.

Regional Analysis

• The Asia Pacific region leads the global industrial gases market, holding a 38.9% share valued at approximately USD 43.8 billion. This dominance is driven by rapid industrialization in emerging economies like China, India, and Southeast Asia. Significant investments in energy, manufacturing, and healthcare sectors across these countries fuel demand for industrial gases.
• Government initiatives to enhance high-tech manufacturing, particularly in semiconductors, have further increased the need for specialty gases. In India, renewable energy projects, such as solar and wind, drive demand for gases like hydrogen used in energy storage and fuel cells. Additionally, widespread infrastructure development, including metro rails, airports, and commercial hubs, boosts the need for metals and chemicals, further propelling the industrial gases market in the region.

Top Use Cases

• Healthcare: Industrial gases like oxygen, nitrous oxide, and medical air are critical in hospitals for respiratory therapies, anesthesia, and life support. The COVID-19 pandemic boosted oxygen demand, revealing its life-saving role. With rising chronic diseases and aging populations, medical gas demand will keep growing, making healthcare a key driver for the industrial gases market.
• Manufacturing & Metalworking: Gases like argon, helium, and acetylene are essential in welding, cutting, and metal fabrication. They improve precision and safety in the automotive, aerospace, and construction industries. As manufacturing expands in emerging markets, demand for industrial gases in metalworking will rise, supporting market growth.
• Food & Beverage: Nitrogen and carbon dioxide are used in food packaging (MAP) and carbonation to extend shelf life and maintain freshness. With rising demand for packaged and processed foods, especially in urban areas, industrial gases play a vital role in reducing food waste and ensuring quality.
• Energy & Clean Fuel: Hydrogen is gaining traction as a clean fuel for vehicles and power generation, reducing carbon emissions. Governments worldwide are investing in green hydrogen projects, creating huge opportunities for industrial gas companies. This shift toward sustainable energy will significantly boost market growth.
• Electronics and Semiconductor Manufacturing: High-purity gases like nitrogen, argon, and specialty gases are crucial in chip production and electronics manufacturing. With the rapid growth of AI, IoT, and 5G technologies, semiconductor demand is surging, driving the need for industrial gases in this high-tech sector.

Recent Developments

1. Linde plc

• Linde has been expanding its hydrogen production and carbon capture projects to support clean energy transitions. Recently, it signed a long-term agreement to supply green hydrogen to a major European refinery. The company is also investing in on-site gas generation solutions for industries like electronics and healthcare. Linde continues to lead in sustainability, aiming for net-zero emissions.

2. Air Liquide S.A.

• Air Liquide recently commissioned a large-scale carbon capture unit in Normandy, France, to reduce industrial CO₂ emissions. The company is also expanding its biogas and hydrogen infrastructure in the U.S. and Europe. Additionally, it partnered with a major steel producer to develop low-carbon steelmaking solutions using hydrogen. Air Liquide remains a pioneer in industrial gas innovation and sustainability.

3. Messer Group

• Messer has been focusing on mergers and acquisitions to strengthen its market presence, including buying industrial gas assets in South America and Europe. The company is also investing in helium recovery technologies to address global supply shortages. Additionally, Messer is expanding its nitrogen and oxygen production for the food and pharmaceutical industries.

4. Yingde Gases Group Company Limited

• Yingde Gases has been expanding in China’s growing industrial gas market, focusing on on-site gas supply solutions for steel and chemical plants. The company is also investing in specialty gases for electronics and healthcare. Recently, it partnered with a major Chinese energy firm to explore hydrogen applications.

5. Buzwair Industrial Gases Factory

• Buzwair has been enhancing its gas production capacity in the Middle East, particularly for medical oxygen and welding gases. The company is also investing in digital monitoring systems to improve supply chain efficiency. Recently, it secured contracts to supply industrial gases to Qatar’s construction and oil & gas sectors.

Conclusion

​The Industrial Gases Market is on a strong growth path. In healthcare, gases like oxygen and nitrogen are essential for medical treatments and equipment. The electronics industry relies on high-purity gases for manufacturing semiconductors and displays. Additionally, the food and beverage sector uses gases for packaging and preservation, while the energy industry utilizes them in refining and clean energy production. The Asia-Pacific region, particularly countries like China and India, is leading the market due to rapid industrialization and urbanization.

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