Medical Gas and Equipment Market: Growth, Size, Share, and Trends

Market Growth Outlook Summary

The global medical gas and equipment market growth forecasted to transform from USD 19.90 billion in 2024 to USD 26.44 billion by 2029, driven by a CAGR of 5.8%. Healthcare institutions utilize medical gas and equipment to supply, manage, and monitor gases required for patient care. Medical gases for therapeutic or anesthetic use, including oxygen, nitrous oxide, and medical air, are administered to the patients. The equipment involved in these systems includes cylinder tanks for gas delivery, regulators, flowmeters, storage devices, distribution devices, and associated monitoring devices. These tools are vital for accurate dosing, safe handling, and efficient delivery of gases in any treatment plan or procedure applied in hospital settings or homecare environments.

The medical gas and equipment market is expanding significantly due to rising respiratory illnesses that necessitate frequent medical gas treatment and growing demand for effective and safe gas delivery systems. Increased emphasis on home healthcare services and regulatory support for safer gas delivery methods are expected to boost market growth.

Attractive Opportunities in Medical Gas and Equipment Market

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Medical Gas and Equipment Market Dynamics

Driver:  Increasing prevalence of chronic respiratory diseases

The rising prevalence of chronic respiratory diseases, such as asthma, chronic obstructive pulmonary disease (COPD), and emphysema, is driving the medical gas and equipment market. The increased incidence rate of these diseases worldwide leads to a corresponding rise in demand for nitric oxide, oxygen, and carbon dioxide, among other gaseous agents. Consequently, healthcare practitioners largely demand devices utilized in administering and monitoring these gases, including ventilators, nebulizers, and oxygen concentrators. Furthermore, advancements in gas delivery systems used in healthcare solutions, along with more accessible facilities, further drive the market growth.

Restraint:  Declining reimbursements for respiratory therapies

The medical gas and equipment industry has been significantly hampered by declining reimbursement rates for respiratory treatments, raising financial barriers to suppliers and patients. The reimbursement cuts mean that healthcare service providers get lower earnings from administering respiratory therapies, which implies less money available for investment in advanced medical gases and equipment. Moreover, restricted reimbursement rates make it difficult for healthcare providers to get the latest medical devices or instruments and update their respiratory therapies for better patient management, thus resulting in poor service delivery and hindering market growth.

Opportunity: Rising demand for home healthcare services

The market for medical gas and equipment has a significant opportunity due to the rising demand for home healthcare services. As a result of increasing chronic diseases, an aging population, and a move toward more customized care at home, there is an increasing demand for portable oxygen concentrators, liquid oxygen tanks, and nebulizers. Patients seek cheaper and more convenient treatments, which has increased the need for oxygen and monitoring systems in their houses. Technological advancements for remote monitoring and treatment have also fueled the market for home-based medical solutions. Therefore, significant growth is expected to be witnessed in the medical gases and equipment market with the rising need for home healthcare services.

Challenge:  High costs of advanced medical gas systems

In the medical gas and equipment market, high prices of advanced medical gas systems and equipment raise serious challenges to market growth. Such systems usually need massive investment in special technology, infrastructure, and routine maintenance. This may not be affordable for small healthcare centers or those in emerging regions. Additionally, hiring specialists to operate these facilities contributes to the overall cost. Thus, the market is constrained to grow because higher prices may scare away potential buyers and reduce the adoption of new technologies in healthcare practices.

Medical Gas And Equipment Market Ecosystem

The ecosystem of the medical gas and equipment market comprises the elements present in this market. It includes products and services used in the field, along with its application areas and end users. The product category includes all hardware components, software, and standalone platforms used by industries, along with serialization and aggregation systems. Various medical gas and equipment manufacturers include the organizations involved in research, product development, optimization, and launch. Distributors include third parties and e-commerce sites linked with the organization for marketing this medical gas and equipment.

Research and product development include in-house research facilities and contract research organizations, as well as contract development and manufacturing organizations that play a key role in outsourcing services for product development to manufacturers. End users are where these medical gas and equipment are adopted during various stages of the supply chain. These end customers are the key stakeholders in the supply chain of the medical gas and equipment market. Investors/funders and health regulatory bodies are the major influencers in this market.

By type, the medical gas segment held the largest share in the medical gas and equipment market in 2023.

The medical gas and equipment market, by type, was dominated by the medical gases segment in 2023 due to its vital role in the healthcare industry. These gases are needed for various medical procedures such as anesthesia, respiration, or surgeries. For instance, patients rely on oxygen for life support during critical care, while nitrous oxide is mostly utilized for anesthesia. The increasing incidence rate of chronic respiratory diseases and a rise in the number of surgical operations have raised the demand for these gases, leading to fast growth in the medical gas market. Innovations in devices such as gas monitoring systems and portable oxygen condensers help improve patient care. Thus, the increasing rate of respiratory diseases and technological advancement related to gas equipment contribute to the market growth.

By application, the therapeutics applications segment is expected to have the largest share in the medical gas and equipment market during the forecast period.

The therapeutics application segment accounted for the largest share of the medical gases and equipment market due to the significant role of medical gases (oxygen, nitrous oxide, and carbon dioxide) in respiratory therapy, anesthesia, and pain. Oxygen therapy is particularly crucial for patients with chronic respiratory diseases such as COPD and asthma. Therapeutic gases are used in surgical operations and in managing acute medical emergencies. Therefore, more patients suffering from these chronic respiratory diseases, especially elderly ones, contribute to the demand for oxygen and other therapeutic gases, leading to further growth in the market.

By end user, the hospitals & clinics segment is expected to have the largest share in the medical gas and equipment market during the forecast period.

In the medical gas and equipment market, the hospitals & clinics segment holds the largest market share in 2023 due to the larger demand for medical gas and related equipment supplies. Oxygen, nitrous oxide gas, and carbon dioxide are indispensable to various clinical processes such as anesthetics, respiratory therapy, and others. The growing number of global surgeries coupled with an increase in chronic diseases has increased the demand for medical gas and equipment. Advanced medical devices used by hospitals include ventilators, anesthetic machines, and diagnostic devices that have increased the demand for associated gas delivery systems and equipment such as regulators, flowmeters, and more. Moreover, especially in developing countries, expanding healthcare infrastructure contributes significantly to market growth.

North America accounted for the largest market share of the global medical gas and equipment market during the forecast period.

The medical gas and equipment market is anticipated to be dominated by the North American region due to the highly developed healthcare infrastructure with large medical device companies and major pharmaceutical firms. There is an increasing prevalence of long-term conditions such as COPD, asthma, and cardiovascular diseases that require chronic medical gas therapy. An increasing aging population in North America has resulted in higher demands for home healthcare services and respiratory therapies needing medicinal gases used at home. The Food and Drug Administration (FDA) imposes strict regulations on these products for more safety and efficiency.

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Key Market Players

The key players in the medical gas and equipment market include Air Liquide (France), Linde Plc (Germany), Taiyo Nippon Sanso Corporation (Japan), Air Products and Chemicals Inc. (US), Atlas Copco AB (Sweden), GCE Group (Sweden), Messer SE & Co. KGaA (Germany), SOL Spa (Italy), Rotarex (Europe), Norco Inc. (US), Genstar Technologies (US), Southern Gas Limited (India), Calox Inc. (US), Ellenbarrie Industrial Gases (India), Steelman Gases Pvt. Ltd. (India), Butler Gas Products Company (US), SCI Analytical (US), Amico Group of Companies (US), Oxygen & Argon Works Ltd. (Israel), AOPL (India), Apex Medical Gas Inc. (US), Chengdu Taiyo Industrial Gases Co., Ltd. (China), Carbide and Chemicals (India), Holston Gases (US), and MEC Medical Ltd. (UK).

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Scope of the Report

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The research report categorizes medical gas and equipment market into the following segments:

By Type

• Medical Gases
  • Pure Medical Gases
    • Oxygen
    • Carbon Dioxide
    • Nitrogen
    • Nitrous Oxide
    • Medical Air
    • Others
  • Medical Gas Mixtures
    • Blood-Gas Mixtures
    • Lung Diffusion Mixtures
    • Nitrous oxide- Oxygen Mixtures
    • Carbon dioxide- Oxygen Mixtures
    • Laser-Gas Mixtures
    • Anaerobic Gas Mixtures
    • Aerobic Gas Mixtures
    • Helium- Oxygen Mixtures
    • Others
  • Medical Gas Equipment
    • Equipment Accessories
      • Vacuum Systems
      • Manifolds
      • Regulators
      • Flowmeters
      • Hoses
      • Valves with Integrated Pressure Regulators (VIPRs)
      • Monitoring Systems (Alarms & Monitors)
      • Medical Air Compressors
      • Other Equipment
    • Gas Delivery Systems
    • Cryogenic Products (Freezers)

By Application

• Therapeutic Applications
  • Respiratory Therapies
  • Cardiovascular Therapies
  • Anesthesia Delivery
  • Cryosurgery
  • Other Therapeutic Applications

By End User

• Hospitals & Clinics
• Home Healthcare
• Pharmaceutical and Biotechnology Companies
• Academic & Research Institutions
• Other End Users

By Country

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • South Korea
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East and Africa
• GCC Countries

Recent Developments

• In June 2024, Messer Group GmbH (Germany) acquired the Federal Helium System, including the Federal Helium Reserve, Cliffside Field, its gathering and well system, and other operational assets. Through the acquisition, both organizations will ensure a smooth operation of the Helium System and continue to serve the many industries, such as medicine and aerospace, that rely on this vital resource.
• In June 2023, Nippon Gases (Japan) acquired most of the share of the Spanish medical equipment manufacturer Noxtec Development SL. This will enable the two companies to work together on technological improvements in medical equipment used for nitrous oxide treatment.
• In March 2023, Atlas Copco AB (Sweden) acquired the operating assets of FS Medical. The acquisition complemented Atlas Copco's existing service footprint in the West Coast region. The business was integrated into BeaconMedaes LLC, part of the Medical Gas Solutions Division in the Compressor Technique Business Area.
• In January 2023, ESAB Corporation (a subsidiary of GCE Group (Sweden)) acquired Ohio Medical, a global leader in oxygen regulators and central gas systems. This acquisition enhanced the offerings of the company in medical gas control products and services, expanding the selection available through Ohio Medical and GCE Group.
• In July 2022, Air Liquide (France) expanded its Home Healthcare activities by acquiring entities in Belgium and the Netherlands, reinforcing its presence and service offerings in these countries. This acquisition supported the strategic focus of Air Liquide on Home Healthcare, which specializes in treating respiratory insufficiency and sleep apnea and providing infusion or nutrition treatments.

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