Industrial gases are produced for use across various industries, from manufacturing and healthcare to energy and food processing. Common industrial gases like oxygen, nitrogen, hydrogen, carbon dioxide, and argon are used for welding, refrigeration, medical treatments, and chemical production, among others. Oxygen plays an important role in steelmaking, while nitrogen keeps products fresh, and hydrogen has gained importance as an energy source. Industrial gases play an important role in modern industries and contribute greatly to economic and technological advancement.

Industrial gas consumption has been steadily growing owing to their major use in various industries. Healthcare has experienced a marked surge in oxygen usage following the COVID-19 pandemic, while steel and metal industries require huge volumes of oxygen and argon for production processes, and electronics industries use high-purity gases like nitrogen and helium for semiconductor production. With global industry expansion occurring simultaneously with technological developments that promote cleaner energy sources, industry demand will only constantly grow for industrial gases.

One major trend in the industrial gas market is the growth in focus on sustainability. Companies are competing to reduce carbon emissions through cleaner production methods and investing in green hydrogen produced from renewable sources like solar or wind power. Further, there are expanding industrial gas applications in energy sector applications, specifically hydrogen's use as an antidote for fossil fuel dependency; developments in storage and transportation like liquefied gases or pipeline networks are improving the efficiency and reach of distribution of industrial gases.

Also, the recent pandemic highlighted the criticality of medical gases, particularly oxygen, as hospitals around the world experienced shortages, leading to increased production capacity and investment in medical gas infrastructure. A notable event was major gas companies' increasing commitment to green hydrogen projects.

Governments around the world are taking an active part in shaping the industrial gas market with policies and regulations. Environmental laws are driving companies towards cleaner production methods to lower carbon emissions, while subsidies and incentives for hydrogen production encourage its growth. Safety regulations within industries like healthcare and food processing also increase demand for high-quality, certified gases while driving innovations for cleaner production methods.

In the coming years, the industrial gas market is projected to experience rapid expansion driven by advances in clean energy production, healthcare delivery, and manufacturing. Hydrogen as an alternative fuel will likely open new opportunities for industrial gas companies, while industries like electronics and aerospace will need high-purity gases for advanced technology applications. Companies investing in sustainable production methods with efficient storage infrastructures and reliable distribution networks will be best be placed for future success; industrial gases will remain integral parts of global industries, supporting economic and technological advancement.

The US Industrial Gases Market

The US Industrial Gases Market is projected to reach USD 32.6 billion in 2025 at a compound annual growth rate of 11.4% over its forecast period.

The US industrial gas market has strong growth opportunities driven by expanding healthcare, manufacturing, and energy sectors. The growing demand for medical gases in hospitals and laboratories, along with the development of semiconductors and clean energy, fuels growth. The rise of hydrogen as a clean fuel and growing investments in industrial automation further create significant market expansion potential.

Further, there is a rising demand from the food processing and chemical industries, where gases like nitrogen and carbon dioxide play important roles in preservation and production processes. However, a major restraint comes from stringent environmental regulations around gas emissions and production processes, along with fluctuating raw material prices, which increase operational costs and create challenges for smaller industry players.

Industrial Gases Market: Key Takeaways

• Market Growth: The Industrial Gases Market size is expected to grow by USD 201.9 billion, at a CAGR of 12.1% during the forecasted period of 2026 to 2034.
• By Type: Oxygen is anticipated to get the majority share of the Industrial Gases Market in 2025.
• By Supply Mode: The packaged segment is expected to get the largest revenue share in 2025 in the Industrial Gases Market.
• Regional Insight: Asia Pacific is expected to hold a 39.0% share of revenue in the Global Industrial Gases Market in 2025.
• Use Cases: Some of the use cases of Industrial Gases include healthcare & medical, energy & clean fuels and more.

Industrial Gases Market: Use Cases

• Healthcare & Medical: Oxygen is used for respiratory treatments in hospitals, and other gases like nitrous oxide are used for anesthesia.
• Manufacturing & Metal Processing: Oxygen, nitrogen, and argon are critical in steelmaking, welding, and cutting processes, enhancing production efficiency.
• Food & Beverage Industry: Gases like nitrogen and carbon dioxide are used for food preservation, carbonation of drinks, and modified atmosphere packaging.
• Energy & Clean Fuels: Hydrogen is highly used as a clean fuel for vehicles and energy storage, supporting the global shift to renewable energy.

Stats & Facts

• According to The Emissions Database for Global Atmospheric Research (EDGAR), global global greenhouse gas (GHG) emissions reached a record high of 53.0 Gt CO2eq in 2023, a 1.9% increase from 2022, primarily driven by fossil CO2 emissions, which remain the dominant contributor despite climate mitigation efforts. China, India, Russia, and Brazil increased emissions, with India recording the highest relative rise (6.1%) and China the largest absolute increase (784 Mt CO2eq).
• In addition, Global GHG emissions have steadily risen since the early 21st century, except during the 2009 financial crisis and the 2020 COVID-19 pandemic, mainly due to increasing fossil CO2 emissions from emerging economies like China and India. Fossil CO2 accounted for 73.7% of emissions in 2023, followed by CH4 (18.9%), N2O (4.7%), and F-gases (2.7%), which have increased by 294% since 1990.
• The EU27 reduced its GHG emissions by 33.9% since 1990, reaching 3.22 Gt CO2eq in 2023, with a 7.5% decline (-261 Mt CO2eq) from 2022, lowering its global emissions share from 6.8% to 6.1%. All EU27 countries except Croatia and Cyprus saw emission reductions, with Germany as the top emitter, followed by France, Italy, Poland, and Spain. The power sector saw the largest drop (-20.1%), followed by industrial combustion (-8.1%).
• World Metrological Organization (WMO) reported that 2024 is projected to be the hottest year on record, temporarily exceeding 1.5°C above pre-industrial levels, with 2023 GHG concentrations reaching record highs. SBSTA expressed "utmost concern" over these rising emissions and their impact on global temperatures, emphasizing the urgency of mitigation efforts.
• In addition, Global Greenhouse Gas Watch aims to improve monitoring of natural and anthropogenic GHG sources, complementing emission inventories to track climate action under the Paris Agreement. WMO warns that with over 40 billion tonnes of CO2 emitted annually, atmospheric levels continue to rise, driving increasingly severe climate impacts.
• Further, the Global Carbon Budget projects total CO2 emissions to rise to 41.6 billion tonnes in 2024, up from 40.6 billion in 2023, with fossil CO2 emissions reaching 37.4 billion tonnes and land-use changes (deforestation) contributing the remainder.
• According to International Energy Agency (IEA), natural gas markets stabilized in 2023 after the 2022 supply crisis, with Asian and European spot prices falling to pre-crisis levels in Q1 2024 due to improved supply fundamentals and an unseasonably mild winter. However, cold spells in the U.S., Europe, Russia, and China triggered record-breaking gas demand spikes, with the U.S. hitting 4 bcm/day in January and China reaching 1.42 bcm/day in mid-December.
• Increased LNG production (+3% y-o-y) and stronger pipeline gas deliveries to Europe and China eased supply constraints, while weak demand in the U.S. pushed natural gas prices to their lowest March average in over three decades. Lower prices supported higher industrial gas consumption, which grew by nearly 8% y-o-y across China, Europe, India, and the U.S., though European industrial demand remained 10% below 2020/21 levels.
• Further, Global natural gas demand is expected to grow by 2.3% in 2024, driven by Asia, with industry as the primary driver, followed by residential and commercial sectors. Gas-to-power demand will see only a marginal increase, as higher gas use in Asia-Pacific, North America, and the Middle East will be offset by declines in Europe.
• Limited LNG supply growth (only 3% expected in 2024) could constrain demand expansion in Asia and Europe, with risks including project delays, geopolitical tensions, feedgas shortages, and shipping constraints, according to IEA.

Market Dynamic

Driving Factors in the Industrial Gases Market

Rising Demand from Healthcare and Electronics Sectors
The growth in the need for high-purity gases in the healthcare industry, mainly after the COVID-19 pandemic, has boosted the need for medical oxygen, nitrogen, and other specialty gases. In addition, the fast-growing electronics sector, driven by the development of semiconductors, requires ultra-pure gases for manufacturing processes. As technology & healthcare constantly advance, the industrial gases market benefits directly from these growing sectors.

 
Shift Toward Clean Energy and Green Hydrogen
The global push for cleaner energy sources and net-zero targets is driving investments in hydrogen, mainly green hydrogen produced using renewable energy. Industrial gases like hydrogen, oxygen, and carbon dioxide are vital in renewable energy projects, carbon capture technologies, and clean transportation, which creates long-term growth opportunities for industrial gas producers.

Restraints in the Industrial Gases Market

High Production and Distribution Costs
Producing, storing, and transporting industrial gases demands advanced technology, specialized equipment, and higher energy consumption, which leads to major operational costs. Cryogenic distillation, compression, and liquefaction processes are costly and require constant maintenance. Long-distance transportation of gases also adds to logistical challenges, mainly for remote areas. These high costs can limit market growth, mainly in price-sensitive industries or developing economies.

Stringent Safety and Environmental Regulations
Industrial gases, mainly hazardous or flammable ones like hydrogen and oxygen, are subject to strict safety standards and environmental regulations. Companies need to invest mainly in compliance, safety systems, and emissions reduction technologies, which adds to operational expenses. Moreover, carbon footprint reduction targets require companies to adopt cleaner processes, which can be costly for implementation. Non-compliance can result in heavy fines, legal liabilities, or operational shutdowns, acting as a barrier to growth.

Opportunities in the Industrial Gases Market

Expansion in Renewable Energy and Hydrogen Economy
The global transition to clean energy provides a major opportunity for industrial gas companies, mainly in green hydrogen production, storage, and distribution. With countries investing largely in hydrogen infrastructure, industrial gases like hydrogen, oxygen, and nitrogen will play major roles in green fuel production and carbon capture technologies, which opens up long-term revenue streams for gas producers.

Growing Demand from Emerging Economies
Rapid industrialization, urbanization, and infrastructure development in emerging economies across Asia-Pacific, Latin America, and Africa create strong demand for industrial gases. Sectors like manufacturing, healthcare, electronics, and food processing are expanding rapidly in these regions, driving the need for gases like oxygen, nitrogen, argon, and carbon dioxide, which creates an attractive market for industrial gas companies to expand their global footprint.

Trends in the Industrial Gases Market

Increased Focus on On-site Gas Generation
To minimize transportation costs and ensure a steady supply, many industries are transforming toward on-site gas generation systems. Companies prefer to install their gas production units, mainly in sectors like healthcare, food processing, and electronics, where consistent supply and purity are critical, which helps companies save on logistics, minimize carbon emissions, and improve operational efficiency. Industrial gas providers are responding by offering customized on-site solutions.

 
Rising Adoption of Digital Technologies and Automation
Industrial gas companies are mainly adopting digital tools like IoT sensors, predictive maintenance, and AI-based monitoring for production and distribution processes. These technologies enhance efficiency, reduce downtime, and improve safety by providing real-time data on gas quality, equipment health, and supply chain operations. Automation also helps minimize manual errors and optimize energy consumption, aligning with sustainability goals.

Research Scope and Analysis

By Type

The global industrial gases market can be divided into multiple product categories, including oxygen, nitrogen, hydrogen, carbon dioxide, acetylene, and argon. Among these, oxygen is expected to lead the market in 2025 by having the biggest revenue share of the overall market. Oxygen plays an important part in various industries owing to its wide-ranging applications. Within the steel & metal industries, oxygen plays an important role in processes like fabrication and steel melting, helping improve efficiency by increasing operational effectiveness. 

Oxygen also plays an important role in healthcare systems and life support systems, mainly in hospitals and emergency care settings. Furthermore, oxygen increases the thermal efficiency of fuel combustion processes to produce greater energy production from burning more effectively and producing greater results. Oxygen has long been recognized for its significant contributions to energy production processes.

 
Further, Nitrogen is expected to experience the fastest growth rate within the industrial gases market due to its rising use in healthcare and pharmaceutical applications. Nitrogen gas is used extensively in cryopreservation, pharmaceutical manufacturing and medical storage, three processes where maintaining low temperatures is of critical importance to preserve medicines and biological samples. Due to its inert properties, nitrogen is also ideal for creating safe environments in food packaging and chemical processing. The pandemic highlighted the necessity of having reliable nitrogen supplies available, prompting companies to expand production capacity and strengthen supply chains.

By Supply Mode

The packaged gas segment will be the leading form of supply mode in the industrial gas market in 2025, generating the highest revenue share, which is very popular among consumers because it is convenient and flexible. In this process, independent gas distributors buy gases directly from producers and then compress and store them into steel or aluminum cylinders at their packaging facilities. Many gases can also be stored as liquids at room temperature, making transportation easier. These cylinders are usually made of thin-walled steel or composite aluminum and are kept at low pressure to ensure safe storage and handling.

Further, the bulk segment will be holding the second-largest share in 2025, owing to the demand for gas being higher than what packaged gas can supply but lower than what is needed for onsite production. In bulk distribution, gases are transported in liquefied form either through dedicated trailers by road or over long distances through pipelines, which is considered more efficient compared to packaged gas distribution as it ensures a steady and continuous supply, which is especially important for large industrial users.

Further, the onsite distribution method is the most cost-effective option for manufacturing companies. Instead of transporting gases over long distances, companies build their onsite production facilities to produce and use gases directly at their location, which helps them cut transportation costs and streamline operations. Onsite plants are often integrated with refueling stations to further improve efficiency. These onsite supply systems are designed using standardized equipment to keep costs low while ensuring a reliable supply of gases for daily operations. This method is mainly useful for large-scale manufacturers that need a constant and dependable gas supply.

By End Use Industry

The healthcare industry is set to be one of the largest and fastest-growing segments in the industrial gases market, owing to industrial gases having many important uses in healthcare. Like nitrogen is used to preserve important medical samples like blood and tissue, helium is needed for MRI machines, and oxygen is vital for helping patients breathe in hospitals. The growing need for packaged food and growing investments in the food and beverage industry is also driving market growth because industrial gases play a big role in food processing and packaging.

 
The chemical industry is also boosting the demand for industrial gases. Gases like oxygen, hydrogen, carbon dioxide, and methane are used in many chemical processes to make products like plastics, fertilizers, and fuels. In the oil and gas industry, industrial gases are used at several stages of production. Like, liquid nitrogen and carbon dioxide help extract oil and gas from the ground. These gases are used for essential processes like hydraulic fracturing, pressure testing, and drilling support. As energy companies look for both conventional and unconventional sources of oil and gas, the need for these gases will continue to rise.

Moreover, the metallurgy industry is another sector pushing market growth because of its heavy dependency on welding gases. Industrial gases are used in welding, metal cutting, flame cleaning, and arc welding processes, all of which are important in metal production and fabrication. Other industries like mining, pulp and paper, automotive, utilities, construction, and plastic recycling also depend on industrial gases for various processes. As these industries continue to expand and modernize, their demand for reliable industrial gases will keep increasing, supporting steady market growth in the years ahead.

The Industrial Gases Market Report is segmented on the basis of the following:

By Type

• Oxygen
• Nitrogen
• Carbon Dioxide
• Hydrogen
• Acetylene
• Inert Gases
• Others

By Supply Mode

• Packaged
• Bulk
• On-site

By End Use Industry

• Chemicals
• Electronics
• Food & Beverages
• Healthcare
• Manufacturing
• Metallurgy
• Refining
• Others

Regional Analysis

Leading Region in the Industrial Gases Market
Asia Pacific is anticipated to lead the industrial gases market by 2025, accounting for 39% of total revenue share and being the region with the fastest-growing sales during this forecast period, which can be owing to the rapid industrial development in countries like China, India, South Korea, and Japan, with China, in particular, emerging as one of the major markets within Asia Pacific due to the high-quality gas demands in aerospace industries. Chinese and Indian industrial growth will only add fuel to this growth; food and beverage manufacturers, industrialists, healthcare facilities, and technology firms all play a role. Asia Pacific remains a key region for the future expansion of the industrial gases market.

Other Region with Significant share in the Industrial Gases Market
North America will be holding the second-largest market for industrial gases in 2025, contributing significantly to global revenue. One of the main reasons for this strong presence is the growing healthcare industry in the region, mainly in countries like the United States and Canada. With the growing demand for medical gases used in treatments, surgeries, and diagnostics, the need for industrial gases continues to rise. Along with healthcare, expanding industrial sectors across industries like manufacturing, chemicals, and energy are also driving the demand for gases like oxygen, nitrogen, and carbon dioxide.

By Region

Competitive Landscape

The industrial gases market is highly competitive, with many global and regional players offering various products to meet different industry needs. Companies emphasize developing advanced technologies for efficient gas production, improving supply chains, and providing customized solutions to attract customers. The market also sees strategic partnerships, mergers, and acquisitions as common practices to expand market reach & strengthen product portfolios. Overall, constant innovation, cost management, and expansion into emerging markets are key strategies driving competition in this industry.

• Linde
• Air Liquide
• Messer
• BASF
• Gruppo SIAD
• Air water
• Sapio Group
• Gulf Cryo
• Axcel Gases
• Holston Gases
• Other Key Players

Recent Developments

• In January 2025, Messer announced its plans to invest over USD 70 million to build an air separation unit (ASU) in Berryville, the Arkansas Economic Development Commission, as the plant is expected to address the growing demand for industrial gases in the southern part of the United States. The gases the company produces include oxygen, carbon dioxide, nitrogen, helium, and hydrogen.
• In August 2024, Nikkiso Clean Energy & Industrial Gases expanded its manufacturing operations in Wurzen, Saxony, Germany. The additional space will nearly double the group’s manufacturing capacity in Europe. With the additional space, the group will build on its existing carbon capture business and bring new manufacturing capabilities for cryogenic pump assembly.
• In July 2024, Honeywell and Air Products announced that Honeywell agreed to acquire Air Products' liquefied natural gas (LNG) process technology and equipment business for USD 1.81 billion in an all-cash transaction. As a result of the acquisition, Honeywell will be able to provide customers with a complete, top-tier solution for managing their energy transformation journey. The new holistic offering will include natural gas pre-treatment and advanced liquefaction, using digital automation technologies unified under the Honeywell Forge and Experion platforms.
• In May 2024, Linde unveiled the signing of a long-term agreement with H2 Green Steel for the supply of industrial gases to the world’s first large-scale green steel production plant. The company will invest about USD 150 million to build, own, and operate an on-site air separation unit (ASU) in Boden, northern Sweden.