Industrial gases have become an integral part of many industries, as it’s use spans from cooling and food preservation to energy and lighting conservation. As the market extends its size in the year 2024, the market is expected to accumulate USD 74.94 billion by the year-end.
The producers in the oil and gas sector focus on achieving a decarbonized global energy sector, pushing the demand for cleaner fuels like hydrogen to rise. By 2034, the market has the potential to reach USD 158.19 billion, by assuming a pace of 7.80% over the forecast period.
| Attributes | Key Insights |
|---|---|
| Industrial Gas Market Size (2024E) | USD 74.94 billion |
| Market Valuation (2034F) | USD 158.19 billion |
| Value-based CAGR (2024 to 2034) | 7.80% |
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| Leading Product Type | Oxygen |
|---|---|
| Value Share (2024) | 74.0% |
The oxygen segment is projected to acquire a value share of 74.0% in 2024. The product is recognized to improve the fuel’s thermal efficiency. Its rising applications in the medical field are conducive to segment growth. Apart from that, oxygen is widely used in numerous sectors.
| Leading Application | Manufacturing |
|---|---|
| Value Share (2024) | 57.50% |
The manufacturing sector is expected to acquire 57.50% of the global market. The expanding manufacturing sector in developing countries is creating demand for industrial gases like oxygen, nitrogen, hydrogen, and carbon dioxide.
| Countries | Forecast CAGR (2024 to 2034) |
|---|---|
| The United States | 4.30% |
| Germany | 3.60% |
| Spain | 5.80% |
| China | 8.70% |
| India | 11.60% |
The United States’ industrial gas market is projected to grow at an average of 4.30% over the upcoming decade. The country holds a notable position in the region and is driven by surging demand for healthcare and the electronic market. Expanding the industrial sector is another factor that is raising the prospects for the industrial gas business.
Increasing hydrogen demand, stemming from oil refiners, who utilize it to meet the standard environmental laws set for reducing the sulfur in fuel is also supporting the market growth. Hydrogen production is mainly outsourced to industrial gases firms like Praxair, Air Products, and Air Liquide.
Surging demand for alternatives to greenhouse gas-producing fuels, due to consistent problems posed by climate change is a leading propeller for hydrogen. This trend is predicted to positively influence the future growth of this industrial gas market.
Many relevant developments are thus taking place to advance the aforementioned trend. For instance, in February 2024, Linde and OCI announced a partnership in which the former company will distribute clean hydrogen as well as nitrogen to the latter’s new blue ammonia facility under progress in Beaumont, Texas.
The industrial gas market in Germany is assuming a growth of 3.60% over the next ten years. Consistent renewal of supply deals is propelling the market growth. For instance, in February 2024, Air Liquide and Dow renewed the supply agreement in Stade, which is a leading chemical production sites in Germany.
According to this renewed agreement, Air Liquide offers to supply industrial gases over the long term, meanwhile committing to invest around 40 billion euros to modernize its assets. The main intent behind this investment is to bolster the operational efficiency and reduction of CO2 emissions. The company is slated to complete its modernization of these assets by the year end 2024.
In another development, Equinor inked a long-term natural gas supply deal Germany’s SEFE, short for Securing Energy for Europe with around 111 terawatt-hours (TWh) of natural gas every year from 1st January 2024 until 2034.
The India industrial gas market is raising the demand for 11.60% over the forecast time frame. The booming semiconductor market is charging up the industrial gas sector as many players like Micron, Foxconn, and Vedanta plan to move aggressively on their semiconductor plans.
The component industry is thus seeking government help with land allotment, technology transfer, capital subsidy, and electricity, since several new gases will be required to be produced domestically. The high purity gases showcase a bigger material spending after silicon for a typical fab unit.
Strengthening operations and rapid growth in the industrial sector of northern India are propelling the market growth. For instance, in October 2023, Linde gains an industrial gas supply deal for Panipat refinery of Indian Oil Corporation.
Under this agreement, the entities of Linde planned to establish and operate on-site facilities to distribute nitrogen, hydrogen, and compressed dry air to Indian Oil on a Job Work bases. Thus, ensuring the Panipat refinery’s expansion from 15 to 25 million metric tons every year.
The China industrial gas market is accelerating at a CAGR of 8.70% over the next decade. Rising use of industrial gas in the end use sector and increasing automotive production are contributing to the market growth.
China is now rapidly switching from industrial coal to gas as the country is using more LNG to underpin its economic growth. This is expected to fuel market growth in the years to follow. As the country is bent on reducing its carbon emissions, the demand for LNG is predicted to stay buoyant.
Sensing a heightened demand for natural gas in China, Novatek, a Russia based natural gas producer is building a new China-based team to market the fuel, a move that indicates stronger bilateral energy trade ties on the back of benefits and mutual respect.
The industrial gas market demand in Spain is expected to jump at a 5.80% CAGR in the following years. The market is being led by chemical, refining, and pharmaceutical sectors as well as power and heat (CHP) plants collectively.
New developments by industrial gas players are also propelling the market growth. For instance, in August 2023, Adnoc, Abu Dhabi’s national energy firm has given a USD 3.6 billion project to extend its gas processing structure to a joint venture between UAE based National Petroleum Construction Company (NPCC) and Spain’s Técnicas Reunidas.
The country also vies to take the lead in the EUs green hydrogen sector. Since Spain is abundant in wind and sun, it is positioning itself as Europe’s future leading producer of green hydrogen to clean up heavy industries. According to International Energy Agency, the country is expected to account for half of Europe’s growth in the renewable capacity for hydrogen production.
The market is crowded with a several market players, which is driving intense market competition. Market players are employing various penetration strategies in the industrial gas industry like developing new, multifunctional products and improving the quality of their products to offer competitive prices.
Players are further increasing the production of natural-based industrial gases like hydrogen to meet the decarbonation goals adopted by several industries. Additionally, players are partnering with other companies to distribute clean hydrogen and nitrogen. Players are also renewing their supply deals to increase their market growth.
Local businesses are supplying multinational corporations and boosting their domestic sales to enjoy economies of scale and gain larger consumer base.
News Coverage Containing Recent Developments Occurring in the Industrial Gas Market
Current projections of the market indicate a valuation of USD 74.94 billion in 2024
Looking ahead to 2034, the current forecast projects a CAGR of 7.80% for the industry.
FMI predicts the market to reach USD 158.19 billion by the year 2034.
The manufacturing segment is predicted to hold a significant market share during the forecast period.
India and China are predicted to offer lucrative opportunities for investors and stakeholders.
Yingde Gases Group Company Limited, Air Liquide S.A, and Linde Group are powerful players in the industrial gas industry.
Industrial Gas Market
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