Industrial Gases Market Overview, 2024-2029

The industrial gases market plays a critical role in various industrial processes across the globe. These gases, encompassing elements like oxygen, nitrogen, hydrogen, and a variety of specialty gases, serve a diverse range of purposes. Oxygen, for instance, is essential for steel production, metal fabrication processes like welding and cutting, and various applications in the chemical and food processing industries. Nitrogen, an inert gas, finds use in creating oxygen-free environments for preventing oxidation and contamination during sensitive operations like electronics manufacturing and food storage.

Hydrogen, with its high energy density, is gaining traction as a clean fuel source for various applications, while specialty gases cater to specific needs in sectors like healthcare, research and development, and environmental monitoring. The global industrial gases market landscape is characterized by a unique interplay between established industry giants and emerging players. Leading multinational corporations with a long-standing presence in the market boast extensive production facilities, robust distribution networks, and a diversified product portfolio. These companies have a strong presence in developed regions with well-established manufacturing sectors.

However, a growing trend within the global landscape is the emergence of regional players in developing economies. These regional players often cater to specific domestic market needs and offer competitive pricing models. For instance, some developing countries might have abundant natural gas reserves, a key feedstock for industrial gas production. Regional players in these countries can leverage this advantage to offer cost-effective gas solutions within their domestic markets. This emergence of regional players necessitates a focus on customization and market-specific solutions within the global industrial gases market.

Leading multinational corporations are increasingly tailoring their product offerings and distribution strategies to cater to the unique needs of regional markets. This can involve establishing local production facilities to reduce reliance on imports, developing partnerships with regional distributors for efficient last-mile delivery, and offering specialized gas mixtures catering to specific industrial applications within a particular region. Furthermore, the growing emphasis on sustainability is prompting both established and emerging players to invest in cleaner production technologies and explore alternative feedstocks to reduce the environmental impact of industrial gas production.

According to the report, the market is anticipated to cross USD 146 Billion by 2029, increasing from USD 103 Billion in 2023. One of the most fascinating aspects of the global industrial gases market lies in the complex web of production, transportation, and distribution that ensures gases reach their end users. Unlike many other commodities, industrial gases are not readily available in their natural state. Instead, they are produced through various methods, including air separation plants which utilize cryogenic processes to separate the different components of air. For certain gases like hydrogen, production might involve electrolysis of water or reforming of natural gas.

Following production, the challenge lies in transporting these gases efficiently. For bulk users like steel mills or large chemical plants, a network of pipelines delivers industrial gases directly to production facilities. This pipeline infrastructure ensures a continuous and cost-effective supply for high-volume consumers. However, for smaller-scale users or those in remote locations, alternative transportation methods come into play. Cylinders of various sizes, pre-filled with specific gases, offer a portable and flexible solution. These cylinders can be transported by truck or rail, catering to a wider range of users with varying gas consumption needs. The intricate web of transportation doesn't end there.

Specialized cryogenic containers are employed for transporting certain gases like liquefied natural gas (LNG) over long distances. These containers maintain extremely low temperatures, ensuring the gases remain in their liquid state during transportation. Furthermore, for highly reactive or hazardous gases, specialized transportation vessels and safety protocols are implemented to guarantee safe delivery. Furthermore, the concept of a circular economy is gaining traction within the industrial gases market. The circular economy emphasizes reducing waste and maximizing resource recovery.

In the context of industrial gases, this translates to capturing and reusing waste gases generated during various industrial processes. For instance, the steel industry produces significant amounts of carbon dioxide as a byproduct. This CO2 can be captured and purified, then reintroduced into other industrial processes or even utilized for carbon capture and storage initiatives. By embracing circular economy principles, the industrial gases market can minimize its environmental impact and contribute to a more sustainable future.

Market Drivers

• Ongoing growth and diversification of the manufacturing sector: The increasing demand for high-tech products and complex components across various industries, such as automotive, electronics, and aerospace, necessitates a consistent and reliable supply of industrial gases for critical manufacturing processes. For instance, oxygen is essential for metal cutting and welding, while nitrogen is used to create inert atmospheres during production processes to prevent oxidation or contamination. The continued expansion and diversification of the manufacturing sector act as a significant driver for the global industrial gases market.
• Growing adoption of advanced technologies: The increasing use of robotics in automation, 3D printing for rapid prototyping, and advancements in medical treatments all rely on specific industrial gases for optimal functioning. For instance, the burgeoning field of robotics utilizes compressed air for pneumatic actuators, while 3D printing often requires inert gas environments to ensure proper material properties. Furthermore, medical applications like cryotherapy and hyperbaric oxygen therapy rely on specialized industrial gases. The adoption of advanced technologies across a wide range of sectors creates a significant demand for industrial gases, propelling the global market forward.
• Rising focus on food safety and preservation: Industrial gases like carbon dioxide and nitrogen play a crucial role in modified atmosphere packaging (MAP) techniques that extend the shelf life of perishable food items. Additionally, nitrogen is used in controlled-atmosphere storage facilities to prevent spoilage and maintain freshness. The growing demand for safe and readily available food options, coupled with the expansion of the global food and beverage industry, translates to a heightened demand for industrial gases within this sector.

Market Challenges

• Fluctuating prices of raw materials: Natural gas is a primary feedstock for producing various industrial gases. The volatility in global energy prices can significantly impact the production costs of industrial gases, creating challenges for market stability and supplier profitability. Diversifying feedstock options and exploring alternative energy sources for gas production can help mitigate the impact of price fluctuations in the long run.
• Ensuring safe and reliable gas transportation: Industrial gases are often transported in pressurized containers or cryogenic tankers, requiring strict adherence to safety regulations and specialized transportation infrastructure. Accidents involving gas transportation can have severe environmental and safety consequences. Investing in robust safety protocols, training for transportation personnel, and maintaining a well-maintained transportation network are crucial for ensuring safe and reliable gas delivery within the global market.
• Stringent safety regulations associated with industrial gas production, storage, and transportation: Industrial gases can be flammable, explosive, or toxic if not handled properly. Strict regulations necessitate adherence to safety protocols throughout the entire supply chain, from production facilities to transportation and end-user consumption. Investing in robust safety infrastructure, employee training programs, and proper handling equipment is essential for ensuring safe operations and minimizing the risk of accidents.

Market Trends

• Emergence of on-site gas generation technologies: Environmental concerns and rising energy costs are leading to the development and adoption of eco-friendly technologies across the industrial gases production chain. This includes the use of renewable energy sources like solar or wind power to generate electricity for air separation units, the facilities that produce industrial gases from atmospheric air. Additionally, research and development efforts are focused on capturing and reusing waste gases generated during production processes, minimizing environmental impact. Furthermore, the growing demand for bio-based feedstocks for industrial gas production, such as biogas for generating hydrogen, signifies a shift towards more sustainable practices within the market. This trend towards sustainability is driven by both regulatory pressure and a growing demand from environmentally conscious customers across various industries.
• Emergence of on-site gas generation technologies: Traditional industrial gas supply relies on a network of production facilities, transportation infrastructure, and storage tanks to deliver gases to end-users. However, on-site generation technologies, such as pressure swing adsorption (PSA) for nitrogen production and on-site electrolysis for hydrogen generation, are gaining traction within the market. These technologies offer several benefits, including reduced reliance on transportation infrastructure, lower overall gas costs for high-volume users, and improved supply chain agility. The adoption of on-site generation is particularly relevant for remote locations or industries with fluctuating gas demands. This trend signifies a shift towards a more decentralized model of industrial gas production and supply.
• Growing integration of digital technologies: This includes the adoption of cloud-based platforms for remote monitoring of gas storage tanks, predictive maintenance for production facilities, and real-time data analysis to optimize logistics and delivery schedules. Additionally, the use of digital tools for customer relationship management and online gas ordering is streamlining processes and enhancing customer service within the market. The integration of digital technologies allows industrial gas companies to improve operational efficiency, optimize resource allocation, and provide a more customer-centric experience.

Oxygen leads in the Industrial Gases market due to its widespread use in various applications like metal fabrication, chemical processing, and medical treatments.

Within the global industrial gases market, oxygen emerges as the undisputed leader, commanding a significant market share and playing a critical role across various industries. Its dominance stems from the fundamental role oxygen plays in combustion processes, a cornerstone of numerous industrial applications. The steel industry is a primary driver of oxygen demand, with oxygen-enriched air or pure oxygen essential for efficient steel production in blast furnaces and basic oxygen furnaces (BOFs). Similarly, the chemical industry utilizes oxygen for various processes, including the production of ammonia, nitric acid, and ethylene oxide.

Furthermore, oxygen finds applications in metal fabrication processes like oxy-fuel cutting and welding, essential for shaping and joining metal components in diverse sectors like construction, shipbuilding, and automotive manufacturing. Beyond these established applications, oxygen is experiencing growing demand in emerging sectors. The electronics industry utilizes oxygen plasma etching for semiconductor fabrication, a critical step in the production of integrated circuits. Furthermore, the environmental protection sector leverages oxygen for wastewater treatment processes and flue gas desulfurization in power plants, contributing to cleaner air emissions.

The versatility of oxygen and its applicability across a wide range of industries solidify its position as the leading segment within the global industrial gases market. Looking deeper, the dominance of oxygen can be further attributed to regional variations in its consumption patterns. Developing economies in Asia, particularly China and India, are witnessing a surge in industrial activity, which translates to a heightened demand for oxygen across various sectors like steel production, construction, and chemical manufacturing. Additionally, the maturing industrial landscape in developed regions like North America and Europe presents a steady demand for oxygen for maintenance and repair activities within established industries.

The metal and mining industry leads the Industrial Gases market due to its extensive reliance on gases for processes like metal cutting, welding, and inert atmospheres during extraction and refinement.

Within the global industrial gases market, the Metal & Mining industry stands out as the leading segment in terms of industrial gas consumption. This dominance can be attributed to several key factors intertwined with the very foundation of metal production and processing. Firstly, various stages within the metal production lifecycle rely heavily on industrial gases for essential functions. Oxygen, for instance, plays a critical role in primary steelmaking processes like the Basic Oxygen Furnace (BOF) converter method. During the BOF process, oxygen is injected into molten iron to remove impurities and convert it into steel.

Similarly, oxygen is used in oxy-fuel cutting for metal scrap processing and dismantling obsolete structures within the mining sector. Beyond oxygen, other industrial gases like nitrogen and argon are crucial for specific metalworking applications. Inert gas environments created by nitrogen are essential for welding and heat treatment processes to prevent oxidation and ensure the quality and integrity of metal components. Argon, with its inert properties, is used in various shielding applications like Gas Tungsten Arc Welding (GTAW) and plasma arc cutting, protecting the weld zone from contamination and ensuring clean, high-quality welds.

Furthermore, the growing demand for specialty metals like titanium and aluminum alloys necessitates the use of industrial gases in various stages of their production. These specialty metals often require inert gas environments during melting, casting, and processing stages to prevent contamination and ensure their unique properties are maintained. The increasing application of these lightweight yet high-strength metals in sectors like aerospace, automotive, and shipbuilding further drives the demand for industrial gases within the Metal & Mining industry. Looking ahead, the global focus on sustainable metal production practices presents an interesting dynamic within this segment.

Several industrial gas companies are developing innovative gas mixtures and delivery systems that can optimize metal production processes and reduce environmental impact. For instance, the use of oxygen enrichment in blast furnaces can enhance fuel efficiency and minimize carbon dioxide emissions during steelmaking. Similarly, advancements in oxy-fuel technologies using specific gas mixtures can offer cleaner and more efficient metal cutting solutions.

Cylinders lead the Industrial Gases market due to their portability and affordability, making them ideal for low-volume users and diverse on-site applications.

Within the global industrial gases market, the cylinder segment stands out as the leading mode of distribution, particularly for gases required in smaller quantities, for specialty applications, or in locations without access to pipeline infrastructure. This dominance stems from several key factors that cater to the diverse needs of various industries. Firstly, cylinders offer unmatched flexibility and portability. They come in a range of sizes, from small, portable units for on-site applications to larger, high-pressure cylinders for industrial use. This allows businesses to choose the cylinder size that best suits their gas consumption and storage capacity.

Furthermore, cylinders are easily transportable by truck or rail, making them ideal for remote locations or situations requiring temporary gas supply. This flexibility is particularly crucial for industries like construction, welding, and medical gas applications, where gas needs might be on-site specific or fluctuate depending on project requirements. Secondly, cylinders provide a cost-effective solution for low-volume gas users. The upfront investment cost associated with cylinders is typically lower compared to pipeline installations. This makes them an attractive option for businesses with limited gas consumption or those requiring a variety of different industrial gases.

Additionally, cylinder leasing programs offered by gas suppliers eliminate the need for a large initial investment, further enhancing affordability for smaller-scale users within the global market. Thirdly, cylinders facilitate ease of use and minimal infrastructure requirements. They typically come pre-filled with specific gases and require minimal setup for operation. This user-friendliness is crucial for applications where rapid gas deployment is necessary, such as emergency response situations or field maintenance tasks. Furthermore, the self-contained nature of cylinders eliminates the need for complex pipeline installations or ongoing maintenance associated with permanent gas delivery systems.

This simplicity makes them suitable for a wider range of users, including smaller workshops, research laboratories, and individual professionals across various industries. However, the cylinder segment also faces limitations. They are not ideal for high-volume gas users due to the need for frequent replacements and potential disruptions in supply. Additionally, managing a large inventory of cylinders can be cumbersome, requiring dedicated storage space and logistical considerations.

North America leads the Industrial Gases market due to the resurgence of its manufacturing sector, abundant and affordable natural gas supplies, and ongoing infrastructure investment.

The Asia-Pacific (APAC) region stands out as a dominant force within the global industrial gases market, driven by a confluence of factors that create a high demand environment. One of the key drivers is the presence of several established and emerging manufacturing hubs within the region. China, Japan, South Korea, and India boast thriving manufacturing sectors encompassing industries like electronics, automotive, construction, and chemicals. These industries are major consumers of industrial gases, such as oxygen, nitrogen, and inert gases, used in various production processes like welding, metal cutting, and creating controlled atmospheres.

The ongoing industrial expansion and development within APAC countries further fuel the demand for industrial gases, necessitating a robust and reliable supply network to meet the ever-growing needs of these manufacturing powerhouses. Beyond established industries, the APAC region is witnessing rapid growth in emerging sectors that rely heavily on industrial gases. The increasing focus on clean energy sources like solar and wind power translates to a demand for specific gases like high-purity helium and nitrogen used in the manufacturing of solar panels and wind turbine components. Similarly, the burgeoning electronics industry within the APAC region requires specialty gases for semiconductor fabrication and microchip production.

This sectoral diversification creates a multi-faceted demand for a wide range of industrial gases, positioning the APAC market at the forefront of technological advancements and specialized gas applications. Another factor contributing to APAC's leading position is the growing domestic production of industrial gases. Several countries within the region have witnessed significant investments in local gas production facilities. This reduces dependence on imports, improves supply chain security, and potentially leads to more competitive pricing for industrial gas users within the region. Furthermore, the presence of a skilled workforce and a well-developed infrastructure network in many APAC countries facilitates the efficient production, distribution, and storage of industrial gases. This combination of domestic production capabilities and robust infrastructure strengthens the APAC region's position as a leader within the global industrial gases market.

Years considered in this report:

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in the report:

• Industrial Gases market outlook with its value and forecast, along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type:

• Oxygen
• Nitrogen
• Hydrogen
• Carbon Dioxide
• Acetylene
• Other Types (Ammonia, Methane, Butane, And Propane)

By End user Industry:

• Manufacturing Industry
• Chemical Industry
• Metal & Mining Industry
• Energy & Power Industry
• Food & Beverage Industry
• Healthcare Industry
• Others

By Mode of Distribution:

• On-Site pipe line
• By Bulk
• By Cylinder

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. After this, the research team made primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once the research team attained the primary data, they verified the details obtained from secondary sources.

Intended Audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Industrial Gases industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.