Industrial Oxygen Market

2021 Analysis and Review: Industrial Oxygen Market by Product Type – Compressed Oxygen Gas, Liquefied Gas, and Oxygen Gas Mixture for 2021 – 2031

Industrial Oxygen Market Snapshot

Newly released data from Future Market Insights (FMI) predicts the global demand for compressed oxygen gas to rise at year-on-year (YoY) growth of 8.4% in 2021, reaching a valuation of US$ 60.03 Bn by the end of year.

Driven by growing investments in healthcare, construction, and aerospace sectors, the demand for industrial oxygen is rising around the world. The demand for liquefied oxygen is expected to be the higher among all, accounting for 56.7% of sales in the market in 2021.

Key Points Covered in Industrial Oxygen Market Study

  • Market estimates and forecast 2016-2031
  • Key drivers and restraints impacting market growth
  • Segment-wise, Country-wise, and Region-wise Analysis
  • Competition Mapping and Benchmarking
  • Brand share and Market Share Analysis
  • Key Product Innovations and Regulatory Climate
  • COVID-19 Impact on Industrial Oxygen Market and How to Navigate
  • Recommendation on Key Winning Strategies

2016-2020 Industrial Oxygen Market Outlook Compared to 2021-2031 Forecast

The demand for industrial oxygen rose at approximately 7% CAGR between 2016 and 2020. Expansion of the construction and infrastructure sector has been aiding the growth of the market owing to the growing consumption of metals.

The consistently rising demand from medical and healthcare sector has been boosting the sales of industrial oxygen. The healthcare sector owing to strong investments by the government following the outbreak of the COVID-19 pandemic is estimated to bolster the consumption of industrial oxygen in the coming years.

Demand for industrial oxygen is projected to remain high in chemical industries, owing to the requirement of oxygen as a raw material and as an oxidizing agent for the production of several chemicals.

The growing water treatment sector is also anticipated to benefit the market. The demand for liquid fuel or jet fuel in the aerospace sector also has contributed to growth. FMI projects the industrial oxygen market to grow at a CAGR of 7.9% during the forecast period 2021-2031.

How Will Demand Steel and Chemical Industries Affect Industrial Oxygen Sales?

Oxygen is a critical gas in terms of global demand by volume. Various industries such as steel making & metal cutting, chemical industry applications, which includes petrochemical industries, water treatment and oxy-fuel combustion applications, pulp and paper processing, and others rely on oxygen and its compounds in small or bulk quantities.

Applications in the steel industry are expected to grow rapidly due to massive infrastructural developments in Asia Pacific followed by North America.

Increasing oxygen applications such as, those in refined products, petrochemicals, agrochemicals, polymers, pigments, oleo chemicals, and gas-to-Liquid projects are also expected to drive the demand of industrial oxygen.

What is the Impact of the COVID-19 Crisis on the Industrial Oxygen Market?

Growing number of COVID-19 patients has boosted the demand for oxygen in the year 2020 and 2021. Demand is expected to surge amid first and second wave of the pandemic. The outbreak of third wave in certain regions has also boosted demand in the healthcare sector which has compensated the negative outlook of oxygen demand in other industries.

Since COVID-19 is related to respiratory syndrome, major growth in consumption has been witnessed during the crisis. The negative outlook of the construction sector also has resulted in decreased sales of industrial oxygen in the steel, welding industries.

Country-wise Insights

How is the Industrial Oxygen Market Faring in the U.S.?

In 2021, the U.S. industrial oxygen market grew by 8.9% year on year, bucking initial scepticism about how the market would perform during a global pandemic. Across North America, total sales of compressed oxygen gas reached US$ 4.8 billion.

Expansion of end-use sectors such as healthcare, chemicals, metal fabrication and welding, and construction and metallurgy, including the iron and steel industry is anticipated to boost the demand for industrial oxygen in the coming years.

Increasing investments in the healthcare and medical sector and the construction and aerospace sector are estimated to witness a jump during the forecast period.

Why is Demand for Industrial Oxygen Increasing in Germany?

Significant growth in the automotive, aerospace, iron and steel, chemical, metal fabrication, and welding industries and the healthcare sector are anticipated to boost the growth of the industrial oxygen market in Germany.

The market will witness growth at the rate of 7.3% over the forecast period. Germany is anticipated to remain one of the prominent markets in Europe. Expanding chemical industry and rising food and beverage applications are also expected to boost the growth of the market during the assessment period. Demand for oxygen in the healthcare sector has witnessed a surge due to the significant number of covid-19 patients in Germany.

How is China’s Strong Industrial Development Beneficial for Industrial Oxygen Sales?

China is anticipated to remain one of the prominent countries in the global market of industrial oxygen and is anticipated account for about 67% of the value share in East Asia. Significant investments in construction and metallurgy are boosting growth.

Strong development in the infrastructure sector has boosted the growth of the iron and steel industry in China which in turn has increased the consumption of industrial oxygen in the country.

Growing healthcare and medical expenditure in China has benefited the sales of industrial oxygen. Further the substantial development in the chemical industry also has bolstered the growth of the industrial oxygen market with use as an oxidizing agent.

What are the Factors Driving Industrial Oxygen Sales in India?

India is estimated to witness a growth of about 10.0% CAGR in terms of industrial oxygen in 2021. This is owing to a significant rise in the demand of oxygen from the second wave of covid-19.

Recovery of the economy and improvements in the performance of the industries in 2021 is anticipated to result in a high rate of growth in the market. Significant growth in the iron and steel, metal fabrication and welding industries are also expected to boost demand during the forecast period. This is due to the significant growth of the construction and infrastructure sector of the country.

Category-wise Insights

Which Product Type is Highly Sought-after?

Liquefied oxygen is anticipated to remain a key offering in the market of industrial oxygen which is estimated to account for around 55% of the overall market. Liquid oxygen was first utilized as an oxidizer in the liquid-fueled rocket.

Liquefied oxygen is also used for industrial and medical purposes including the construction, metallurgy, healthcare, metal fabrication, and welding sectors. Liquid oxygen is extracted by fractional distillation of air which consist of 20% of oxygen in a cryogenic air separation plant.

Who is the Leading End User of Industrial Oxygen?

Revenues in the construction and metallurgy segment of the industrial oxygen market grew a robust 6.6% year over year in 2021. Demand in medical and healthcare applications increased 7.5% between 2020 and 2021, giving the combined market a year over year growth of 7.1% in 2021.

Growing infrastructure investments including the construction of airports, bridges, and more along with the construction of residential, commercial, and institutional buildings are expected to bolster the growth of iron and steel industries in the coming years.

The growing demand from the metallurgy and mining sectors are also anticipated to boost the demand of industrial oxygen over the forecast period.

Competitive Landscape

Companies operating in the industrial oxygen market are aiming at expanding production capacities by setting new production units especially in the emerging economies. They are also focussing on strategic mergers and acquisitions to enhance their geographic market presence. Key market participants are also focusing on technological developments to boost their production capacity at minimal operating cost. For instance:

  • In May 2015, Praxair, Inc. entered into a long-term contract with Gerdau, a leading long steel manufacturer. The company has been contracted to build and operate an 80 MTPA non-cryogenic system of vacuum pressure swing adsorption production technology to fulfill demand for oxygen in steel plants.
  • In September 2018, Air Liquide launched the world's largest oxygen production unit for Sasol, an international energy and chemicals company.
  • In October 2018, Linde A.G. and Praxair Inc. completed the merger of their global industrial gas business. The new entity formed is operating under the name Linde Plc. This is done so that the companies can become global leader in the business.

The latest study conducted by Future Market Insights covers all the strategies and success factors of key manufacturers of the market.

Scope of Report



Forecast Period


Historical Data Available for


Market Analysis

USD Million for Value and Kilo Tons for Volume

Key Regions Covered

North America, Latin America, Europe, East Asia, South Asia & Pacific, and the Middle East & Africa

Key Countries Covered

US, Canada, Germany, U.K., France, Italy, Spain, Russia, China, Japan, South Korea, India, Thailand, Malaysia, Indonesia, Australia, New Zealand, GCC Countries, Turkey, Northern Africa, and South Africa

Key Segments Covered

Product type, End Use and Region

Key Companies Profiled

  • Matheson Tri-Gas Inc
  • Air Products and Chemicals, Inc.
  • Noble Gas Solutions
  • Air Liquide
  • LINDE plc
  • Gulf Cryo
  • SOL Spa
  • Messer Group GmbH
  • Showa Denko K.K.
  • Air Water Inc.
  • Ellenbarrie Industrial Gases Ltd.
  • Taiyo Nippon Sanso Corporation
  • Yingde Gases Group Co., Ltd.
  • Daesung Group
  • INOX Air Products Private Limited
  • International Industrial Gases Limited
  • Axcel Gases
  • ECHO Gases Pvt. Ltd.
  • Premier Cryogenics Ltd.
  • Bhuruka Gases Limited
  • Seva Gases Private Limited
  • Piramala Gases

Report Coverage

Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives

Customization & Pricing

Available upon Request

Key Questions Answered in the Report

  • What is industrial oxygen market size?

    The overall industrial oxygen market is projected to surpass US$ 60 Bn in 2021.

  • At what rate did the industrial oxygen market grow in the last five years?

    Demand in the industrial oxygen market increased at 7.3% CAGR between 2016 and 2020.

  • What are the key trends shaping the industrial oxygen market?

    Market players are likely to focus on applications in the construction and metallurgy sectors. Cost-effective production of industrial oxygen for healthcare applications will remain important for the foreseeable future.

  • What is the share of the leading industrial oxygen companies?

    Leading industrial oxygen companies include Linde Plc, Air Liquide, Air Products and Chemicals Inc., Taiyo Nippon Sanso Corporation, and Air Water Inc., who cumulatively account for 26.6% of the market.

  • What is the North America industrial oxygen market outlook?

    North America is a leading market for industrial oxygen and will register a 7.2% CAGR through the end of the forecast period.

  • Which countries are key producers of industrial oxygen?

    The U.S., India, Japan, and China are the leading producers of industrial oxygen products.

  • Which countries are key exporters of industrial oxygen?

    Belgium, France, Germany, the U.S., and China are the top exporters of industrial oxygen.

  • Which are the top five countries driving industrial oxygen market demand?

    Leading countries driving demand in the industrial oxygen market are the U.S., India, Japan, Germany, and China.

  • Which countries are key importers of industrial oxygen?

    Industrial oxygen is largely imported by Netherlands, Germany, France and Luxembourg.

Industrial Oxygen Market by Category

By Product Type:

  • Compressed Oxygen Gas
  • Liquefied Oxygen
  • Oxygen Gas Mixture

By End Use:

  • Automotive & Aerospace
  • Chemical Processing
  • Energy
  • Construction & Metallurgy
  • Medical & Healthcare
  • Food & Beverages
  • Welding & Metal Fabrication
  • Others

By Region:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia Pacific
  • Middle East and Africa

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Industrial Oxygen Market