Industrial Gases Market Overview

The global industrial gases market is on a strong uptrend, underpinned by broad-based demand from metals & fabrication, chemicals and refining, healthcare, food processing, and the rapidly expanding electronics and energy transition value chains. Valued at USD 122.4 billion in 2025, the market is projected to reach USD 213.9 billion by 2033, registering a CAGR of 7.4% over 2025–2033.

Industrial gases (produced by cryogenic air separation, non-cryogenic generation, or as by-products of chemical processes) include oxygen, nitrogen, hydrogen, carbon dioxide, argon, helium, acetylene, and a wide range of specialty/electronic gases. They are supplied through three principal modes—on-site/pipeline (tonnage), bulk/liquid, and cylinder/packaged—selected based on customer volume, purity, and continuity needs.

Growth is propelled by steady capital spending in steel and non-ferrous metals, refinery upgrades, pharmaceutical and hospital oxygen expansion, cold-chain intensification in food & beverage, and semiconductor capacity additions that require ultra-high-purity gases. Parallelly, the energy transition is creating new demand pools in low-carbon hydrogen, carbon capture, utilization & storage (CCUS), biogenic CO₂, e-fuels, and green ammonia. Asia-Pacific leads in absolute volume growth, while North America and Europe see robust activity in hydrogen hubs, electronics gases, and healthcare resiliency. With rising focus on sustainability (renewable power for ASUs/electrolyzers, circular CO₂, and molecule-as-a-service models), the market is evolving toward long-term, integrated gas and utilities partnerships.

Industrial Gases Market Drivers and Opportunities

Semiconductor & High-Tech Manufacturing Upswing

The rapid expansion of semiconductor and high-tech manufacturing is driving significant demand for industrial gases. New fabrication plants (fabs) for logic chips, memory devices, and advanced packaging require extremely high-purity gases such as nitrogen, argon, hydrogen, helium, and specialty gases like silane, fluorocarbons, and nitrogen trifluoride. These gases are vital for processes such as etching, deposition, cleaning, and cooling, where even trace impurities can compromise chip performance. The industry’s stringent requirements for purity, redundancy, and uninterrupted supply favor on-site nitrogen plants, reliable bulk delivery systems, and advanced gas purification and abatement technologies. As semiconductor manufacturing involves large capital investments and long operating lifecycles, gas suppliers benefit from multi-year, high-value contracts that ensure stable revenues. This trend creates higher-margin opportunities for industrial gas companies while securing long-term partnerships with global chipmakers. With rising demand for electronics, automotive semiconductors, and AI-driven devices, this segment will remain a growth engine.

Healthcare Resilience & Food Safety

Healthcare and food industries are crucial growth drivers for the industrial gases market, especially after the pandemic highlighted the importance of a reliable oxygen supply. Hospitals worldwide have expanded capacity, and many are upgrading infrastructure to ensure sufficient oxygen and nitrous oxide availability. Beyond hospitals, home care oxygen demand is increasing as aging populations and respiratory diseases require continuous at-home care solutions. Simultaneously, the food and beverage industry is increasingly dependent on gases for safety and preservation. Modified-atmosphere packaging (MAP) using nitrogen and CO₂ helps extend shelf life and maintain freshness, while cryogenic freezing with liquid nitrogen ensures product quality in meats, bakery, and frozen foods. These applications are expanding, particularly in emerging economies, where growing urbanization and cold-chain development are reshaping food logistics. Together, these two sectors are boosting demand for both bulk and packaged gases, providing stable, recurring revenue streams and making healthcare and food safety key pillars of market growth.

Opportunity: On-site/Pipeline Models & Digital Service Layers

The growing complexity and scale of industrial operations are creating opportunities for gas companies to move beyond traditional supply models into integrated service partnerships. Many large industries are outsourcing their gas and utility needs through Build-Own-Operate (BOO) tonnage plants and pipeline networks. These on-site solutions guarantee uninterrupted supply, optimize energy use, and transfer operations and maintenance responsibilities to gas suppliers. Additionally, advanced digital service layers—such as digital twins, predictive maintenance, and real-time purity monitoring—are improving system reliability, efficiency, and customer trust. These innovations lock in long-term, often multi-decade contracts, ensuring recurring revenue for suppliers. At the same time, merchant bulk and packaged cylinder networks continue to play a critical role in serving SMEs, welding shops, laboratories, and clinics, especially in developing markets. This dual approach allows gas companies to tap into both large-scale, high-value contracts and smaller, flexible supply models, significantly strengthening their market reach and profitability.

Industrial Gases Market Scope

Industrial Gases Market Report Segmentation Analysis

The global industrial gases market industry analysis is segmented by product, by supply mode, by End-user, and by region.

Oxygen Segment Dominates the Product Type of Industrial Gases Market

Oxygen remains the largest product segment in the industrial gases market due to its wide-ranging applications across multiple industries. In steelmaking, oxygen is critical for blast furnace and electric arc furnace processes, enhancing combustion efficiency and reducing impurities in molten metal. The chemical and refining industries also rely heavily on oxygen for oxidation reactions, petrochemical processing, and wastewater treatment. Beyond heavy industry, oxygen plays a vital role in the healthcare sector, where it is essential for hospitals, emergency care, and home healthcare systems. The growing demand for medical oxygen during and after the pandemic further solidified its dominance. Additionally, oxygen is used in glass manufacturing, pulp and paper processing, and energy production, including oxy-fuel combustion for cleaner and more efficient power generation. Its versatility, high consumption volume, and indispensable role in critical industries ensure that oxygen continues to dominate the industrial gases market, accounting for the largest revenue share.

On-site/Pipeline Supply Mode Segment Drives Industrial Gases Market

The on-site/pipeline supply mode is the driving force of the industrial gases market, particularly for large-scale consumers such as steel mills, petrochemical refineries, and semiconductor fabs. In this model, industrial gas companies build, own, and operate (BOO) production facilities—often air separation units (ASUs) or hydrogen plants—directly on customer sites or connected through pipeline networks. This ensures uninterrupted supply, cost efficiency, and energy optimization for clients who require high volumes of gases continuously. The model provides long-term contracts, often spanning decades, which generate stable and predictable revenue streams for gas suppliers. Additionally, on-site systems reduce logistics and storage costs, making them ideal for high-demand industries. With industries increasingly focusing on operational efficiency, sustainability, and reliable utility outsourcing, the on-site/pipeline model is expanding globally. Its combination of guaranteed supply and integrated service solutions positions it as the backbone of the industrial gases market, driving both growth and customer retention.

Metals & Fabrication End-User Segment Leads the Industrial Gases Market

Metals and fabrication are the leading end-user segments in the industrial gases market, supported by the global demand for steel, aluminum, and other metal products. Oxygen, argon, and hydrogen are essential in this sector for processes such as steelmaking, welding, cutting, and heat treatment. Oxygen is widely used in blast furnaces and electric arc furnaces to boost efficiency and reduce carbon emissions, while argon is critical for shielding in welding and maintaining product quality. Hydrogen is increasingly adopted for cleaner, low-carbon steel production through direct reduction of iron (DRI) methods. With construction, automotive, and infrastructure projects fueling steel consumption, the metals sector remains the largest consumer of industrial gases. Additionally, rapid industrialization in emerging economies such as China, India, and Southeast Asia continues to expand demand. As the shift toward green steel accelerates, the reliance on industrial gases in metal production and fabrication is set to grow even further.

The following segments are part of an in-depth analysis of the global Industrial Gases Market:

Industrial Gases Market Share Analysis by Region

The Asia Pacific region is the leading region driving Industrial Gases Market

Asia-Pacific is the largest and fastest-growing region, propelled by steel production, chemicals capacity, and a dense pipeline of electronics investments in China, South Korea, Taiwan, Japan, and India. North America benefits from hydrogen hubs, LNG and CCUS initiatives, and semiconductor reshoring, while Europe advances low-carbon steel, green hydrogen, and circular CO₂. Middle East investments in blue/green ammonia and petrochemicals expand on-site opportunities, and Latin America & Africa grow steadily with metals, food processing, healthcare build-outs, and gasification projects.

Global Industrial Gases Market Recent Developments News:

• On August 27, 2025, Air Liquide announced its $3.31 billion acquisition of South Korea’s DIG Airgas, strengthening its Asian presence in semiconductors and secondary batteries. DIG Airgas reported a €510 million turnover in 2024 with nearly 20 secured projects.
• On August 26, 2025, Plug Power received a $2 million grant from NYSERDA to develop hydrogen distribution trailers using cryo-compression technology with Verne. These mobile trailers will make hydrogen accessible to small and mid-sized businesses lacking on-site infrastructure.
• On August 26, 2025, PetroChina agreed to acquire three natural gas storage facilities from its parent, CNPC, for $5.59 billion. The assets expand storage by 10.97 billion cubic meters, securing supply reliability amid rising clean energy demand.

The Global Industrial Gases Market is dominated by a few large companies, such as

●        Linde plc

●        Air Liquide S.A.

●        Air Products and Chemicals, Inc.

●        Messer Group GmbH

●        Nippon Sanso Holdings Corporation

●        Taiyo Nippon Sanso (TNSC) / Matheson

●        INOX Air Products

●        Yingde Gases Group

●        Gulf Cryo

●        SOL Group

●        SIAD Group

●        Iwatani Corporation

●        Air Water Inc.

●        Grupo Infra

●        Axcel Gases

●        Other Prominent Players