Industrial Gases Market

Updated on : October 10, 2024

Industrial Gases Market

The global industrial gases market was valued at USD 105.6 billion in 2023 and is projected to reach USD 137.9 billion by 2028, growing at 5.5% cagr from 2023 to 2028. Industrial gases, including nitrogen, hydrogen, and oxygen, are integral in the manufacturing of a wide range of chemicals and fertilizers, playing key roles in processes such as synthesis, purification, and combustion. As global population growth and urbanization fuel the demand for chemicals in various industries, and as agriculture faces the challenge of feeding a growing population, the versatile applications of industrial gases position them as essential contributors to advancing both chemical production and agricultural productivity. This symbiotic relationship underscores the critical role industrial gases play in supporting key sectors that are integral to global economic development and sustainability. The Asia Pacific is the largest market for industrial gases followed by North America, and Europe.

Attractive Opportunities in the Industrial Gases Market

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Industrial Gases Market Dynamics

Driver: Growing demand for frozen food

The expanding frozen food market is poised to be a key driver for the industrial gases sector. As consumer preferences shift towards convenient and frozen food options, industrial gases such as nitrogen and carbon dioxide play a pivotal role in the freezing and preservation processes. Nitrogen's cryogenic properties aid in quick-freezing, maintaining the texture and nutritional value of frozen products, while carbon dioxide is widely used in cold storage and transportation. The demand for industrial gases in the growing frozen food industry underscores their critical role in meeting the evolving needs of the food supply chain, emphasizing the importance of these gases in ensuring the quality, safety, and convenience of frozen food products.

Restraint: Strict regulatory compliance

Strict regulatory compliance poses a notable restraint on the industrial gases market, requiring companies to adhere to stringent safety, environmental, and quality standards. Compliance with a complex web of regulations, both at the national and international levels, adds operational challenges and costs for industrial gas manufacturers. Meeting stringent standards often necessitates substantial investments in monitoring systems, safety protocols, and emissions control technologies, impacting overall production expenses.

Opportunities: Growing semiconductor market

The growing semiconductor market presents a significant opportunity for the industrial gases sector. As the demand for advanced electronic devices continues to soar globally, industrial gases such as ultra-high purity gases, nitrogen, and argon play crucial roles in semiconductor manufacturing processes. These gases are essential for processes like chemical vapor deposition, wafer cleaning, and inert gas purging, contributing to the production of high-quality semiconductors. The rapid technological advancements and increasing complexity of semiconductor fabrication further amplify the demand for specialized industrial gases, positioning the industry to capitalize on the growth of the semiconductor market and foster innovation in the electronics sector.

Challenges: Ensuring the safety of employees

Ensuring the safety of employees represents a paramount challenge in the industrial gases sector. The handling, production, and transportation of industrial gases involve inherent risks, including exposure to hazardous materials, high-pressure systems, and cryogenic temperatures. Stringent safety protocols are crucial to mitigate these risks and prevent accidents. Maintaining comprehensive training programs, implementing robust safety measures, and investing in state-of-the-art equipment are imperative to safeguard employees' well-being. The diverse nature of industrial gases applications and the global reach of the industry further compound the challenge, requiring continuous efforts to harmonize and uphold safety standards across different regions.

Industrial Gases Market Ecosystem

By Type, Oxygen accounted for the highest CAGR during the forecast period.

Oxygen stands out as the fastest-growing type in the industrial gases market due to its indispensable role across various industries, driving heightened demand. Oxygen plays a pivotal role in environmental applications, such as wastewater treatment and environmental remediation. As environmental consciousness rises globally, the demand for oxygen in processes aimed at reducing pollutants and improving water quality is contributing to its status as the fastest-growing type in the industrial gases market. The versatile applications of oxygen across healthcare, industry, and environmental sectors collectively position it as a key driver in the ongoing expansion of the industrial gases market.

By End-use Industry, food and beverages accounted for the highest CAGR during the forecast period.

The growing consumer demand for packaged and processed foods, coupled with the industry's adoption of advanced freezing and chilling technologies, further propels the need for industrial gases. Cryogenic gases like liquid nitrogen are instrumental in quick-freezing food products, preserving their texture and nutritional value. Furthermore, the industry's increasing emphasis on sustainability aligns with the use of industrial gases in modified atmosphere packaging (MAP), reducing the reliance on chemical preservatives and enhancing the overall environmental profile of food products.

Asia Pacific is projected to account for the highest CAGR during the forecast period.

The Asia Pacific region has emerged as the fastest-growing market for industrial gases, driven significantly by the booming semiconductor production within the region. With Asia Pacific serving as a global hub for electronics manufacturing, particularly in countries like China, Taiwan, and South Korea, the demand for industrial gases, including specialty gases crucial for semiconductor fabrication processes, has skyrocketed. The rapid expansion of the semiconductor industry, fueled by technological advancements and the increasing global demand for electronic devices, underscores Asia Pacific's pivotal role in the industrial gases market.

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Industrial Gases Market Players

The industrial gases market comprises key players such as Air Liquide (France), Linde plc (England), Air Products & Chemicals, Inc.  (US), Messer SE & Co. KGaA (Germany), and Nippon Sanso Holdings Corp. (Japan) ,  and others. Expansions, acquisitions, joint ventures, and new product developments are some of the major strategies adopted by these key players to enhance their positions in the industrial gases market.

Read More: Industrial Gases Companies

Industrial Gases Market Report Scope

This research report categorizes the global industrial gases market based on type, end-use industry, and region.

Industrial Gases Market on the basis of Type:

• Oxygen
• Nitrogen
• Hydrogen
• Carbon Dioxide
• Acetylene
• Inert Gases
• Other Types (ammonia, methane, butane, and propane)

Industrial Gases Market on the basis of the End-use Industry:

• Chemicals Chemicals
• Electronics
• Food and Beverages
• Healthcare
• Manufacturing
• Metallurgy
• Refining
• Other End-Use Industries (mining, water & wastewater treatment, and agriculture)

Industrial Gases Market on the basis of Region:

• North America
• Asia Pacific
• Europe
• South America
• Middle East & Africa

The market has been further analyzed for the key countries in each of these regions.

Recent Developments in Industrial Gases Market

• In November 2023, Air Liquide has partnered with Groupe ADP, to support the development of hydrogen infrastructure in airports.
• In March 2023, Air Liquide has announced the construction of an industrial-scale ammonia (NH3) cracking pilot plant, in Belgium.
• In December 2023, Linde Plc has increased the liquid hydrogen production capacity at its facility in McIntosh, Alabama.
• In September 2022, Abdullah Hashim Industrial Gases & Equipment Co. Ltd. (a joint venture of Air Products & Chemicals, Inc.) has announced the acquisition of Air Liquide’s Merchant Industrial Gases Business (i.e., Al Khafrah Industrial Gases)..
• In April 2023, Air Products & Chemicals, Inc.has announced to build own, and operate two nitrogen plants in Penang’s Bayan Lepas Free Industrial Zone and Batu Kawan Industrial Park, in Malaysia.
• In March 2023, Messer SE & Co. KGaA has started a new air separation plant in Vratimov, Czech Republic.

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