Industrial Gases Market

Report Overview
The global market for industrial gases reached a value of USD 99.99 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 7.42% from 2023 to 2030. The growth is primarily attributed to the expanding manufacturing industry in developing economies of the Asia Pacific region. Rapid industrialization and the widespread use of industrial gases across various sectors such as manufacturing, mining, metals, food & beverage, and healthcare are expected to drive market growth in the coming years. However, environmental regulations, safety concerns, and high gas conversion costs may pose challenges to industry growth during the forecast period.

In the North America region, the United States holds a significant share of the market and is expected to maintain its leading position throughout the forecast period. The country has a strong presence of major industrial gas suppliers, including Linde, Air Liquide, Messer, and Air Products & Chemicals. The growing healthcare industry in the U.S., coupled with increased research and development activities in response to the COVID-19 pandemic, is expected to drive the demand for industrial gases. The electronics sector's dependence on industrial gases presents an additional opportunity for the market, given the wide range of applications in flat-panel displays, semiconductors, LED lights, and solar cells. Unlike other industries, the electronics sector requires suppliers to meet higher standards in terms of project experience, coverage, and technical specifications. Asia Pacific accounted for a significant revenue share in 2022 and is projected to continue dominating the global market during the forecast period. Countries such as China, India, and South Korea have shown strong economic growth, which is expected to continue driving the market. The presence of major electronics companies in the U.S. also contributes to the demand for industrial gases, as the country experiences a growing number of electronic devices and gadgets being manufactured. The expanding healthcare and electronics industries in the region are expected to further promote market growth, while the expansion of the industrial sector will fuel the regional market.

Product Insights
The global industry is segmented based on products, including oxygen, nitrogen, hydrogen, carbon dioxide, acetylene, and argon. In 2022, the oxygen segment dominated the industry, accounting for the highest share of 28.43% in terms of overall revenue. Oxygen finds applications in fabrication, steel melting, medical purposes, copper smelting, and more. It improves the thermal efficiency of fuel and can be used for hazardous waste cleanup, water treatment, and coal gasification systems. In the pulp and paper industry, oxygen is considered an alternative to chlorine for pollution reduction. Nitrogen exhibits the highest growth rate and penetration due to its extensive use in the medical and pharmaceutical industries. The global pandemic has led to increased demand for essential medical supplies and life-saving devices in healthcare facilities to prevent the spread of the virus and provide optimal care to infected patients.

Report Coverage & Deliverables
• Comparative analysis of competitors
• Historical data and future forecasts
• Company revenue distribution
• Regional opportunities assessment
• Latest trends and market dynamics analysis

Distribution Insights
In 2022, the cylinder segment dominated the industry and accounted for the largest revenue share of 36.55%. It is the preferred distribution method among consumers. Independent gas distributors purchase gas from producers and compress it in their packaging facilities, often supplying gases at room temperature in liquid form. These gases are stored at low pressure in thin-walled steel or composite aluminum cylinders. The bulk distribution segment, known as Liquid Gas Transport, held the second-largest share in 2022. This involves transporting gases in a liquefied or natural state via dedicated trailers on roads or through pipelines over long distances. This mode of delivery is suitable when gas demand is higher than packaged gas distribution but lower than onsite distribution. It is considered more efficient and ensures a continuous supply of gases. Onsite distribution is the most favorable method for manufacturing companies like Air Products & Chemicals, The Linde Group, and Air Liquide, as it reduces transportation costs. These companies typically integrate onsite facilities at refueling stations to optimize operations, using standardized components in their supply systems for maximum cost efficiency.

Application Insights
The manufacturing industry application segment accounted for the largest share (27.05%) of overall revenue in 2022 and is projected to have the second-highest compound annual growth rate (CAGR) during the forecast period. The demand for industrial gases in the manufacturing sector is expected to experience rapid growth due to various applications. Carbon dioxide is commonly used in the rubber industry as dry ice for non-abrasive cleaning of rubber molds, reducing production downtime and maintenance costs. Carbon dioxide also offers advantages over conventional cleaning methods for essential tool and mold cleaning in the rubber industry. The healthcare segment is estimated to be the fastest-growing from 2023 to 2030, driven by global investments in medical research to combat the novel coronavirus. Industrial nitrogen, used in the healthcare industry, is in high demand. Carbon dioxide finds wide application in cryopreservation, preserving tissues, gametes, cellular samples, and embryos at extremely low temperatures. Industrial gases are also used in various other industries, including automotive & transportation, aerospace & aircraft, water & wastewater treatment, and more.

Regional Insights
Geographically, the global industry is categorized into Asia Pacific, North America, Europe, Latin America, and Middle East & Africa. In 2022, Asia Pacific held the dominant position with a revenue share of 36.64% and is expected to be the fastest-growing region with a CAGR of 9.8% over the forecast period. The growth and expansion of end-use industries in key markets such as India, China, South Korea, and Japan are driving the demand for industrial gases in the region. China is the largest country market in the Asia Pacific region, driven by the increasing demand for industrial gases in the aerospace industry for high-quality gas solutions. The growth and expansion of the food & beverage and industrial sectors in China and India are also expected to fuel the demand for industrial gases. North America accounted for the second-largest revenue share in 2022. The growing healthcare industry and expansion of the industrial sector in the U.S. and Canada are expected to drive the demand for industrial gases in the region.

Key Companies & Market Share Insights
The global industry is characterized by intense competition, with the presence of numerous regional and multinational companies. Key market players are actively engaged in research and development as well as continuous innovation, which have become crucial factors for their success in this competitive industry. Some notable players operating in the global industrial gases market include:
Air Liquide
Air Products Inc.
INOX-Air Products Inc.
Iwatani Corp.
Linde plc
Messer
SOL Group
Strandmøllen A/S
Taiyo Nippon Sanso Corp.
These companies play a significant role in shaping the market and driving its growth through their offerings and advancements in the industrial gases sector.

Global Industrial Gases Market Segmentation
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2023 to 2030. For the purpose of this study, Grand View Research has segmented the global industrial gases market report based on product, application, distribution, and region:
Product Outlook (Volume, Million SCF; Revenue, USD Million, 2023 - 2030)
• Oxygen
• Nitrogen
• Hydrogen
• Carbon dioxide
• Acetylene
• Argon
Application Outlook (Volume, Million SCF; Revenue, USD Million, 2023 - 2030)
• Healthcare
• Manufacturing
• Metallurgy & Glass
• Food & Beverages
• Retail
• Chemicals & Energy
• Others
Distribution Outlook (Volume, Million SCF; Revenue, USD Million, 2023 - 2030)
• On-site
• Bulk (Liquid Gas Transport)
• Cylinder (Merchant)
Regional Outlook (Volume, Million SCF; Revenue, USD Million, 2023 - 2030)
• North America
o U.S.
o Canada
o Mexico
• Europe
o U.K.
o Germany
o France
o Italy
o Spain
o The Netherlands
• Asia Pacific
o China
o India
o Japan
o South Korea
o Australia
o Malaysia
o Thailand
o Singapore
• Latin America
o Brazil
• Middle East & Africa
o Saudi Arabia
o UAE