Industrial Gases Market to Reach USD 195.36 Billion by 2032, Growing At An 7.44% CAGR - Credence Research

PUNE, India, Oct. 17, 2025 /PRNewswire/ --

Market Overview

The global industrial gases market is experiencing substantial growth, driven by expanding manufacturing activities, technological advancements, and increasing applications across diverse end-use industries. According to Credence Research newly published report, 'The global industrial gases market was valued at USD 87.6 billion in 2018, increased to USD 110.62 billion in 2024, and is anticipated to reach USD 195.36 billion by 2032, at a CAGR of 7.44% during the forecast period'. This robust expansion reflects the critical role of industrial gases including oxygen, nitrogen, hydrogen, carbon dioxide, argon, and helium across healthcare, manufacturing, electronics, food processing, and energy sectors. The market benefits from growing demand for clean energy solutions, advancing semiconductor production, expanding healthcare infrastructure, and increasing emphasis on sustainable manufacturing processes.

Key Growth Determinants

Rising Demand from Healthcare and Medical Applications

The healthcare sector represents a significant growth driver for industrial gases, led by demand for medical oxygen for respiratory care. Annually, an estimated 374 million people require medical oxygen, with 82% residing in low- and middle-income countries where a 70% gap exists between need and availability. Demand is sustained by the high prevalence of chronic respiratory illnesses; for instance, over 35 million people in the U.S. live with conditions like asthma or COPD, and more than 1.5 million people in North America depend on supplemental oxygen therapy. For instance, hospitals and emergency medical services require reliable, high-purity oxygen systems for patient treatment in cases like pneumonia, during surgical procedures, and in critical care units.

Beyond oxygen, healthcare facilities depend on other industrial gases for specialized procedures. Nitrous oxide is commonly blended with oxygen for anesthesia, while specialty gas mixtures like helium-oxygen blends (heliox) are used to treat severe asthma by reducing airway resistance. Furthermore, liquid nitrogen is essential for cryogenic applications, including the cryopreservation of biological samples like eggs and embryos and cryosurgery, which uses extreme cold to destroy unhealthy tissue. Sustained long-term demand is underpinned by demographic trends, such as the aging global population the number of U.S. adults aged 65 and over is projected to reach 83.7 million by 2050 and expanding healthcare access in emerging markets, which require stringent purity standards and delivery reliability..

Accelerating Electronics and Semiconductor Manufacturing

The electronics industry's rapid expansion, particularly in semiconductor manufacturing, drives substantial demand for ultra-high-purity gases essential for chip fabrication processes. Global semiconductor sales reached $59.0 billion in May 2025, a 19.8% increase from the previous year, reflecting the high production volumes that consume these materials. Advanced semiconductor production requires specialty gases including nitrogen trifluoride (NF₃) for chamber cleaning, ammonia (NH₃) for deposition, and silane (SiH₄) for wafer processing. For instance, ultra-pure nitrogen serves as an inert atmosphere to prevent oxidation, while hydrogen is utilized in various chemical vapor deposition (CVD) applications. This demand is concentrated in key manufacturing hubs, with Japan leading at 103 fabrication plants, followed by the United States (95), China (81), and Taiwan (80).

The proliferation of 5G technology, artificial intelligence (AI) computing, Internet of Things (IoT) devices, and electric vehicles necessitates increased semiconductor production capacity globally. As chipmakers like TSMC and Intel push toward smaller process nodes, such as 3nm and 2nm, the need for even higher-purity gases rises significantly. For example, these advanced processes rely on sophisticated techniques like EUV (extreme ultraviolet) lithography and atomic layer deposition (ALD), which use specialty gases like argon fluoride (ArF) and hydrogen bromide (HBr) for ultra-precise etching and design work. This technology shift requires highly sophisticated gas delivery systems and creates premium opportunities for suppliers who can meet the stringent purity and quality control demands of next-generation fabrication facilities.

Growing Industrial Manufacturing and Metal Fabrication

Expanding manufacturing activities across automotive, aerospace, construction, and general fabrication sectors generate substantial demand for industrial gases used in welding, cutting, and heat treatment applications. Oxygen and acetylene combinations enable metal cutting and welding operations, while argon and helium serve as shielding gases for specialized welding processes. For instance, manufacturers utilize nitrogen for laser cutting applications, carbon dioxide for metal fabrication, and various gas mixtures for specific metallurgical requirements. Additionally, steel production and metal processing industries consume massive volumes of oxygen for blast furnace operations and basic oxygen steelmaking processes. The global push toward infrastructure development, automotive production recovery, and advanced manufacturing technologies sustains strong industrial gas demand across multiple application segments.

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Key Growth Barriers

High Capital Investment and Infrastructure Requirements

Industrial gas production and distribution necessitate substantial capital investments in air separation units, hydrogen production facilities, liquefaction plants, and extensive distribution networks. Establishing cryogenic storage facilities, pipeline infrastructure, and cylinder filling stations requires significant upfront expenditure with extended payback periods. For instance, on-site gas generation plants for large industrial customers involve complex engineering, construction timelines, and long-term supply contracts to justify investments. Additionally, maintaining safety standards, regulatory compliance, and operational efficiency demands continuous capital allocation. These infrastructure barriers create market entry challenges for new participants and limit expansion capabilities in certain geographic regions, particularly in developing markets lacking established industrial gas infrastructure.

Energy-Intensive Production Processes and Cost Pressures

Industrial gas production, particularly air separation and liquefaction processes, consumes substantial electrical energy, making operations highly sensitive to energy cost fluctuations. Air separation units require significant power for compression and cooling operations, while hydrogen production through steam methane reforming or electrolysis involves considerable energy inputs. For instance, rising electricity prices directly impact production costs and margin profiles, creating pricing pressures in competitive market environments. Additionally, the industry faces increasing expectations to reduce carbon footprints and transition toward renewable energy sources, necessitating investments in energy efficiency improvements and sustainable production methods. These energy dynamics constrain profitability and require sophisticated energy management strategies.

Supply Chain Complexity and Logistics Challenges

The industrial gases business involves complex supply chain operations encompassing production, storage, transportation, and delivery across various modes including pipelines, bulk liquid tankers, and compressed gas cylinders. Cryogenic liquid gases require specialized insulated containers and temperature-controlled logistics to prevent product loss through boilization. For instance, remote customer locations and distributed demand patterns necessitate extensive distribution networks with significant operational costs. Additionally, safety regulations governing hazardous material transportation, cylinder tracking requirements, and emergency response capabilities add complexity to logistics operations. Supply chain disruptions, transportation cost increases, and regulatory compliance burdens challenge operational efficiency and service reliability across geographic markets.

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Key Market Trends

Hydrogen Economy Development and Clean Energy Transition

Hydrogen is emerging as a critical energy carrier for decarbonization efforts across transportation, industrial, and power generation sectors. While traditional steam methane reforming (SMR)—which releases 9 to 12 kg of CO2 for every kg of hydrogen produced—still accounts for 68% of global production, governments and industries are investing substantially in green hydrogen infrastructure. The European Union, for example, is targeting 10 million tonnes of renewable hydrogen production by 2030, driving investments in large-scale electrolysis facilities that use renewable electricity. Industrial gas companies are leading this transition; Air Liquide has committed over €250 million to projects like the ELYgator electrolyzer facility in the Netherlands to meet this growing demand.

This investment is creating tangible progress in end-use applications. In transportation, automakers are advancing fuel cell vehicle (FCV) commercialization.

• In 2025, Honda launched the CR-V e:FCEV in the U.S., the first vehicle to combine plug-in EV charging with a hydrogen fuel cell system.
• BMW's iX5 Hydrogen pilot fleet demonstrated a range of 500 kilometers with a refueling time of just 3–4 minutes.
• Toyota announced a partnership in January 2025 to help establish hydrogen fuel corridors across Europe.

In industry, steel manufacturers are exploring hydrogen-based direct reduction (DRI) processes to replace carbon-intensive blast furnaces. Pilot projects like HYBRIT and H2 Green Steel in Sweden aim to begin commercial production using hydrogen by 2025. In a significant breakthrough in March 2025, Utility's H2Gen system successfully produced the world's first hydrogen from steel plant off-gas at a North American facility. This development of a hydrogen economy represents transformative opportunities for industrial gas suppliers that possess production expertise and distribution capabilities.

On-Site and On-Demand Gas Generation Systems

The market is experiencing a shift toward on-site gas generation systems that enable customers to produce gases at point of use, eliminating dependency on delivered supplies and reducing logistics costs. Technologies including pressure swing adsorption for nitrogen and oxygen generation, membrane separation systems, and compact hydrogen generators are becoming increasingly viable for mid-sized industrial customers. For instance, food packaging facilities utilize on-site nitrogen generators for modified atmosphere applications, while electronics manufacturers implement point-of-use systems ensuring gas purity and supply reliability. These distributed generation solutions offer cost advantages, improved operational flexibility, and reduced carbon footprints associated with transportation, though they require upfront capital investments and maintenance capabilities.

Digital Technologies and Smart Gas Management

Industrial gas suppliers are implementing digital technologies including Internet of Things sensors, predictive analytics, and remote monitoring systems to enhance operational efficiency and customer service. Smart cylinders equipped with sensors track gas levels, usage patterns, and location data, enabling automated replenishment and optimized delivery routing. For instance, telemetry systems monitor bulk tank levels at customer sites, triggering delivery schedules based on consumption forecasts and preventing supply disruptions. Additionally, manufacturers utilize advanced analytics for predictive maintenance of production facilities, optimizing energy consumption, and improving asset utilization. These digital capabilities strengthen customer relationships through enhanced reliability while reducing operational costs and improving environmental performance.

Key Opportunities

Emerging Market Expansion and Industrialization

Developing economies across Asia, Africa, and Latin America present substantial growth opportunities as industrialization, infrastructure investments, and healthcare expansion drive industrial gas demand. Countries including India, Indonesia, Vietnam, and various African nations are experiencing manufacturing sector growth, urbanization, and rising living standards creating diverse gas application requirements. For instance, steel production capacity additions, electronics manufacturing investments, and food processing industry development generate demand for various industrial gases with local production and distribution capabilities. Additionally, expanding healthcare infrastructure and medical facility modernization necessitate reliable medical gas supply systems. Companies establishing production facilities, distribution networks, and technical service capabilities in these high-growth markets can capture significant market share while supporting economic development.

Carbon Capture and Environmental Applications

Growing emphasis on carbon emissions reduction creates opportunities for industrial gases in carbon capture, utilization, and storage technologies. Carbon dioxide recovery from industrial processes, power generation, and direct air capture applications represents expanding market segments. For instance, food and beverage industries utilize recovered CO2 for carbonation and preservation applications, while enhanced oil recovery operations inject carbon dioxide for improved extraction efficiency. Additionally, ammonia production facilities and biogas upgrading operations implement carbon capture systems reducing emissions while generating marketable products. Industrial gas companies possessing CO2 purification expertise, transportation infrastructure, and end-market relationships can develop integrated carbon management solutions supporting customer sustainability objectives.

Specialty Gases and High-Purity Applications

Advancing technologies in semiconductors, pharmaceuticals, research laboratories, and analytical instrumentation drive growing demand for specialty gases with extremely high purity levels and precise composition specifications. These niche segments command premium pricing and require technical expertise in production, purification, handling, and quality assurance. For instance, rare gases including xenon, krypton, and neon serve specialized applications in lighting, electronics, and medical imaging with limited supply sources. Additionally, calibration gas mixtures for environmental monitoring, custom blends for research applications, and isotope-enriched gases for medical and scientific uses represent high-value opportunities. Companies investing in specialty gas capabilities, technical customer support, and quality certification systems can establish differentiated positions in premium market segments.

Segmentation

By Gases Type

• Oxygen
• Nitrogen
• Hydrogen
• Carbon Dioxide
• Acetylene
• Argon
• Others

By Application

• Packaging
• Coolant
• Carbonation
• Cryogenic
• Cutting & Welding
• Laboratory
• Air Separation
• Others

By End-User Industry

• Healthcare
• Manufacturing
• Metallurgy & Glass
• Food & Beverages
• Retail
• Chemicals & Energy
• Others

By Production Method

• Air Separation
• Steam Methane Reforming (SMR)
• Electrolysis
• Partial Oxidation
• Chemical Reactions
• Others

By Delivery Mode

• On-site
• Bulk
• Cylinder
• Others

 Based on the Geography:

• North America
• U.S.
• Canada
• Mexico
• Europe
• UK
• France
• Germany
• Italy
• Spain
• Russia
• Belgium
• Netherlands
• Austria
• Sweden
• Poland
• Denmark
• Switzerland
• Rest of Europe
• Asia Pacific
• China
• Japan
• South Korea
• India
• Australia
• Thailand
• Indonesia
• Vietnam
• Malaysia
• Philippines
• Taiwan
• Rest of Asia Pacific
• Latin America
• Brazil
• Argentina
• Peru
• Chile
• Colombia
• Rest of Latin America
• Middle East
• UAE
• KSA
• Israel
• Turkey
• Iran
• Rest of Middle East
• Africa
• Egypt
• Nigeria
• Algeria
• Morocco
• Rest of Africa

Regional Analysis

Asia Pacific dominates the global industrial gases market, driven by robust manufacturing growth, expanding electronics production, and large-scale infrastructure development. China represents the world's largest industrial gas consumer, with massive steel production capacity, chemical manufacturing industries, and rapidly growing semiconductor sector generating substantial demand across all gas categories. India is experiencing significant market expansion supported by government initiatives promoting manufacturing, healthcare infrastructure improvements, and rising industrial activities.

North America maintains a significant market presence characterized by advanced manufacturing capabilities, well-established distribution infrastructure, and substantial energy sector demand. The United States demonstrates strong consumption across healthcare, electronics, food processing, and chemical industries, with ongoing investments in hydrogen production for emerging clean energy applications. The region's shale gas resources support cost-effective hydrogen production through steam methane reforming.

Europe exhibits strong emphasis on sustainability, carbon reduction initiatives, and technological innovation driving industrial gas demand. Germany, United Kingdom, and France represent major consumption markets with advanced manufacturing sectors, stringent environmental regulations, and substantial investments in hydrogen economy development. The region's focus on green hydrogen production and industrial decarbonization creates growth opportunities.

Middle East benefits from abundant natural gas resources supporting hydrogen and ammonia production for export markets, while expanding petrochemical industries generate substantial industrial gas demand. Latin America presents emerging opportunities with developing manufacturing sectors and resource extraction activities.

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Credence Research's Competitive Landscape Analysis

Credence Research's Competitive Landscape Analysis delivers comprehensive evaluation of competitive dynamics within the global industrial gases market, examining major multinational corporations and regional participants. The analysis assesses market share distribution, strategic positioning, and competitive advantages including production scale, distribution network coverage, customer relationships, and technological capabilities. It evaluates key players' investments in production capacity expansion, acquisition strategies, and geographic market penetration initiatives shaping competitive structures. The analysis examines differentiation strategies around specialty gas portfolios, on-site generation solutions, digital service offerings, and sustainability commitments influencing customer preferences. Additionally, it identifies partnership developments with end-use industries, research collaborations for emerging applications, and vertical integration strategies affecting competitive positioning and future growth prospects across regional and product segments.

Key Player Analysis

• Linde plc (Ireland)
• Air Liquide S.A. (France)
• Air Products and Chemicals, Inc. (United States)
• Taiyo Nippon Sanso Corporation (Japan)
• Messer Group GmbH (Germany)
• Iwatani Corporation (Japan)
• SOL Group (Italy)
• SIAD S.p.A. (Italy)
• Gulf Cryo (Kuwait)
• nexAir, LLC (United States)
• Goyal MG Gases Pvt. Ltd. (India)
• Universal Industrial Gases, Inc. (United States)
• INOX Air Products Ltd. (India)
• National Industrial Gas Plants (NIGP) (Saudi Arabia)
• Bhagawati Oxygen Ltd. (India)
• Cryogenic Industrial Solutions, LLC (United States)
• Ellenbarrie Industrial Gases Ltd. (India)
• Yateem Oxygen (Bahrain)
• Axcel Gases (India)

 Recent Industry Developments

• September 2025
  Linde completed its acquisition of Airtec, increasing its stake to over 90%. The move expands Linde's footprint across the GCC, including Kuwait, UAE, Qatar, Bahrain, and Saudi Arabia, strengthening its regional industrial gas network.
  QatarEnergy signed a long-term helium supply deal with Germany's Messer to deliver 100 million cubic feet of helium annually from Ras Laffan. The deal reinforces Qatar's leadership in global helium production.
  Linde India began commercial production at its new gas facility in Unnao, Lucknow, supporting the supply of medical and industrial gases and improving distribution efficiency.
• July 2025
  AHG Group announced a $20 million investment in a new industrial gas plant in Dammam, Saudi Arabia. The project aligns with Vision 2030 to boost local manufacturing and supply chain independence.
• June 2025
  Linde revealed plans to double CO₂ production capacity at its Freeport, Texas site by 2027, adding a second liquefaction unit. The facility, sourcing CO₂ from MEGlobal's plant, is the first in the U.S. to gain ISCC PLUS certification.
• April 2025
  Air Liquide became the first registered provider of renewable hydrogen certified by RFNBO. The company expanded nitrogen supply in Tianjin, China, reinforcing its Asia-Pacific operations.
• March 2025
  Saudi Aramco finalized its 50% acquisition of Blue Hydrogen Industrial Gases Co. (BHIG), a joint venture with Air Products Qudra. The move supports Saudi Arabia's Vision 2030 through low-carbon hydrogen development.
  gasworld Intelligence launched Atom, an analytics platform for industrial gases, offering forecasted CO₂ market insights and strategic tools for decision-making.
• February 2025
  Air Liquide started up a new air separation unit in Kyushu, Japan. The plant provides oxygen and nitrogen for the semiconductor and automotive sectors, improving regional production efficiency.
• January 2025
  Air Liquide Healthcare signed contracts with 20 hospitals, including its first in Brazil, to supply low-carbon medical gases via its ECO ORIGIN™ line, helping cut CO₂ emissions by over 70%.
  Messer announced a $70 million investment in a new air separation unit in Berryville, Arkansas, creating jobs and strengthening U.S. gas supply.
  The Indian government approved ₹44.4 billion (~USD 513 million) in subsidies under SIGHT-II to support 3 GW/year of domestic electrolyser production for the National Green Hydrogen Mission.
• December 2024
  South Australia issued a $590 million procurement report for its Hydrogen Jobs Plan (2025–2030), featuring 200 MW power generation, electrolysers, and storage at Whyalla.

 Reasons to Purchase this Report:

• Gain a comprehensive understanding of the market through qualitative and quantitative analyses, considering both economic and non-economic factors, with segmentation and sub-segmentation details provided in terms of market value (USD Billion).
• Identify regions and segments expected to experience the fastest growth or dominate the market, with a detailed analysis of geographic consumption patterns and the factors driving or hindering market performance in each region.
• Stay informed about the competitive environment, with rankings of major players, recent product and service launches, partnerships, business expansions, and acquisitions from the past five years.
• Access detailed profiles of major market players, including company overviews, insights, product benchmarking, and SWOT analysis, to understand competitive advantages and market positioning.
• Explore the present and forecasted market landscape, with insights into growth opportunities, market drivers, challenges, and constraints for both developed and emerging regions.
• Benefit from Porter's Five Forces analysis and Value Chain insights to evaluate various market perspectives and competitive dynamics.
• Understand the evolving market scenario, including potential growth opportunities and trends expected in the coming years.

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