Industrial Gases Market - Size, Share, Industry Trends, and Forecasts (2025 - 2032)

By Gas Type:

Based on gas type, the market is segmented into oxygen, nitrogen, hydrogen, carbon dioxide, argon, helium, acetylene, and others.

Industrial gases like oxygen, nitrogen, hydrogen, carbon dioxide, argon, helium, and acetylene are essential for numerous industries, including manufacturing, healthcare, and food production. Oxygen is crucial for respiration, welding, cutting, and various chemical processes. Nitrogen is used in inert gas blankets, chemical synthesis, food packaging, and as a carrier gas in chromatography. Hydrogen is a fuel source for fuel cells, used in refining petroleum, and as a protective gas in heat treatment. Carbon Dioxide is used in carbonated beverages, food preservation (cryogenics), fire suppression, and as a shielding gas in welding. Moreover, argon is an inert gas used as a shielding gas in arc welding and other high-temperature applications, as well as in the electronics industry. Helium is used as a buoyancy gas in balloons, as a cooling agent in cryogenics, and as a carrier gas in chromatography. Acetylene is a high-energy fuel gas commonly used for welding, cutting, and torch work.

Trends in the gas type:

• As countries invest in developing their electronics manufacturing capabilities to reduce dependence on imports and boost technological advancements, the need for on-site gases is expected to surge. This inclination is supported by governmental initiatives and policies aimed at promoting domestic electronics production.
• The increasing emphasis on environmental sustainability and energy efficiency is driving the market.

The nitrogen segment accounted for the largest revenue share of 24.56% in the year 2024.

Nitrogen is the key gas type driving the market, primarily due to its applications in the electronics and food & beverage industries. Further, nitrogen gas is widely used for packaging and preserving food items, preventing oxidation, and extending their shelf life. The rising global consumer demand for fresh and long-lasting food products has escalated the use of nitrogen gas, particularly in modified atmosphere packaging (MAP) technologies. This is further propelled by the increasing awareness regarding food safety and quality, encouraging food producers to adopt advanced packaging solutions that leverage the benefits of nitrogen gas.

• For instance, in February 2024, Air Liquide invested more than 50 million euros (USD 56.88 million) in two key locations to boost its supply of high-purity nitrogen to GlobalFoundries (GF).

Thus, based on the above industrial gases market analysis, these factors are further driving the industrial gases market growth.

The hydrogen segment is anticipated to register the fastest CAGR during the forecast period.

The segment growth can be attributed to the increasing need for clean energy solutions and the pivotal role of hydrogen gas in enabling the transition to a low-carbon economy. As countries worldwide strive to reduce carbon emissions and meet international climate goals, hydrogen gas emerges as a critical energy carrier, while offering a versatile and sustainable alternative to fossil fuels. Further, governments and organizations across the globe are actively promoting hydrogen as a clean energy source due to its potential to decarbonize various sectors, including transportation, power generation, and industrial activities.

• For instance, in April 2025, the Dutch government has approved a Euro 2.8 billion (USD 3.2 billion) initiative called the Green Growth Package to promote hydrogen energy. Additionally, Euro 662 million (USD 753.09 million) has been allocated to increase the use of hydrogen in various industrial applications, in turn stimulating the need for gases.

Thus, based on the above analysis, these factors are expected to drive the industrial gases market share during the forecast period.

By Production & Delivery Method:

Based on production & delivery method, the market is segmented into on-site production, bulk & cylinder delivery, and merchant liquid delivery.

On-site production allows for generating gases including oxygen, nitrogen, and argon at the facility itself, potentially saving costs and ensuring a consistent supply. Bulk and cylinder delivery provide a more traditional route, with gases transported in large tanks or cylinders to the customer's location. Merchant liquid delivery involves delivering liquid gases, often in cryogenic tankers, to storage tanks at the customer's site.

Trends in the production and delivery method:

• The continuous advancements in gas generation technologies and the development of hybrid systems combining multiple methods further enhance the capabilities and efficiency of production and delivery solutions.
• The integration of digital technologies, IoT sensors, and advanced control systems in industrial gas plants and distribution networks is improving operational efficiency, safety, and remote monitoring capabilities for production and delivery of gases.

The bulk & cylinder delivery segment accounted for the largest revenue in the year 2024.

This method involves supplying smaller quantities of compressed or liquefied gases in individual cylinders of varying sizes. Cylinders are transported to the customer's site via trucks. This is suitable for lower-volume users, applications requiring portability, or gases that are not needed in large continuous quantities. Industries with high gas consumption, such as steel manufacturing, chemical processing, and large-scale food processing, are driving the need for bulk delivery. Further, bulk delivery streamlines gas supply management, improving overall efficiency and reducing operational costs. Thus, based on the above analysis, these factors would further supplement the global market share.

The on-site production segment is anticipated to register the fastest CAGR during the forecast period.

With the rising prevalence of chronic diseases and the growing aging population, the need for medical-grade gases is expected to increase substantially. Additionally, the COVID-19 pandemic has highlighted the importance of a reliable supply of medical oxygen, creating prospects for investments in on-site gas generation systems in healthcare facilities. Moreover, hydrogen plays a crucial role in fuel cell technology and other sustainable energy solutions. The increasing investments in hydrogen infrastructure and the development of hydrogen-based energy systems present significant growth opportunities for on-site hydrogen generation technologies.

• For instance, Air Products on-site gas generation offers tailored solutions by producing hydrogen, oxygen, nitrogen, and argon with precise purity, pressure, and flow rates directly at the users’ facility.

These developments are anticipated to further drive the industrial gases market trends during the forecast period.

By Application:

Based on application, the market is segmented into air separation, coolant, carbonation, cutting & welding, cryogenic, and others.

Industrial gases like nitrogen, oxygen, carbon dioxide, and argon are crucial in various industrial applications. Air separation plants extract gases like nitrogen, oxygen, and argon from the atmosphere, using methods like cryogenic distillation and pressure swing adsorption. Moreover, gases are used as coolants, especially in cryogenics where they help to achieve extremely low temperatures for research, storage, and industrial processes. These gases enable various welding techniques and metal cutting processes in industries like manufacturing, construction, and automotive. Cryogenics involves achieving extremely low temperatures, and gases like nitrogen, helium, and argon are used to cool materials and substances to these temperatures.

Trends in the application:

• The development of cryogenic distillation, pressure swing adsorption, and membrane separation technologies have transformed the sector, allowing to produce ultra-pure gases required in both conventional and emerging applications.
• As the need for high-quality glass products increases, particularly in sectors such as construction and automotive, the integration of advanced gas technologies is becoming essential. Thus, based on the above analysis, these factors are anticipated to further drive the industrial gases market trends during the forecast period.

The cryogenic segment accounted for the largest revenue share in the year 2024 and it is expected to register the highest CAGR during the forecast period.

Cryogenic technology is widely used for the production of high-purity gases such as oxygen, nitrogen, and argon. This technology involves the liquefaction of air and subsequent distillation to separate the different gases based on their boiling points. Moreover, cryogenic air separation units (ASUs) are commonly employed in large-scale industrial applications, providing a reliable and efficient supply of high-purity gases.

• For instance, in October 2024, Linde Engineering announced partnership with NEXTCHEM, to supply their carbon capture technology, HISCORP, for Ghasha and ADNOC's Hail industrial project. This gas development for industrial project aims for net-zero emissions and will play a crucial role by efficiently capturing and purifying 1.5 million tonnes of CO₂ annually for sequestration.

Therefore, based on the above analysis, these factors are driving the industrial gases market growth.

By End-User:

Based on end user, the market is segmented into healthcare, food & beverage, chemical, manufacturing, electronics & semiconductors, oil & gas, automotive, and others.

Industrial gases play critical roles in various processes, from medical procedures to manufacturing and chemical synthesis. In healthcare, these gases are used in respiratory therapy, scans, cryotherapy, and medical treatments. In food and beverage, these gases are used in carbonation of beverages and as a fire extinguisher. In chemical sector, they are primarily used in chemical synthesis and processes. In electronics and semiconductors, these are used in cleaning and inert gas blanketing in semiconductor manufacturing. Additionally, these gases are also used in metal manufacturing, energy generation, and various other applications.

Trends in the end user:

• The growing need for metal products in construction, automotive, and aerospace industries drives the adoption of on-site gas generation systems in metal manufacturing & fabrication facilities.
• The continuous advancements in electronics technology and the increasing production of electronic devices drive the need for on-site gas generation systems, ensuring a consistent supply of high-purity gases required for precision manufacturing processes.
• Therefore, the aforementioned factors are driving the industrial gases market demand.

The chemical segment accounted for the largest revenue share in the year 2024.

The chemical sector is a major segment of industrial gas applications, utilizing them in various processes such as synthesis, refining, and production of different chemicals. Further, the need for on-site gas generation systems in chemical plants is driven by the need for a consistent and reliable supply of high-purity gases to ensure optimal production efficiency and product quality.

• For instance, in March 2023, Air Liquide announced the development of an industrialized ammonia (NH3) in the port of Antwerp, Belgium. The chemical plant has the facility to transform NH3 into hydrogen, with an improved carbon footprint and innovative technology.

Hence, the above factors are further driving the global market trends.

The healthcare segment is anticipated to register the fastest CAGR during the forecast period.

Governments worldwide are investing in medical research, coupled with the efforts of medical institutes and pharmaceutical companies to develop COVID-19 vaccines and treatments, in turn fueling the need for industrial nitrogen in the healthcare sector. These gases are essential for respiratory therapy, anesthesia, and monitoring of patients. The COVID-19 pandemic has emphasized the critical importance of a reliable supply of medical oxygen in healthcare facilities, leading to heightened investments in gas generation systems to enhance preparedness and response capabilities.

• For instance, HORIBA provide wide range of gas analyzers, such as continuous impurities monitor in oxygen, nitrogen, and carbon dioxide, and other gases, to resolve issues in industrial and medical gas manufacturing.

The above factors are anticipated to further drive the industrial gases market expansion during the forecast period.