Global Industrial Gases Market- Industry Trends &
Forecast Report 2027
The global industrial gases market reached
USD 93.1 Billion in 2020. It is further projected to reach USD 147.1 Billion by
2027, at a CAGR of 6.5% during the forecast period (2021-2027). The rising
application of industrial gases in numerous areas such as health care, food and
beverage, electronics and semiconductors, flat panel display and printed
electronics, and fertilizer production is driving the growth of the
global industrial gases market. Additionally, the
increased demand for industrial gases has been fueled by the growing demand
for global crude oil and the need for refining.
Due to excessive demand from the healthcare and food
& beverage industries, companies operating in the global industrial gases
sector had to ramp up production of certain industrial gases like oxygen,
nitrogen, and carbon dioxide during the lockdown phase. Since companies are
always looking for cost-effective and sustainable processes for the production
of industrial gases, this factor is likely to propel the growth of the global
industrial gases market.
Global Industrial Gases Market Overview:
are the gases that are produced for industrial use. Gases like oxygen,
nitrogen, hydrogen, carbon dioxide, methane, ammonia, argon, helium, and
krypton-xenon are known as industrial gases. These gases are used in a variety
of industries for a variety of purposes. Industrial gases are used in the
chemical industry, science and analysis, the food and beverage industry,
manufacturing, trades and crafts, and rubber and plastics production, to name a
The most popular
methods for purifying industrial gases are cryogenic distillation and
adsorption. Other gases are generated using a variety of methods. For example,
the reaction of water with calcium carbide produces acetylene, while the
electrolysis of water produces hydrogen. The most common source of nitrogen is the
fractional distillation of air, which also yields a considerable amount of oxygen
and a negligible amount of argon. The Sabatier process produces methane, and
other industrial gases are generated as required.
Global Industrial Gases Market Forecast
Growing Demand for
Fertilizers & Agrochemicals
Fertilizers and agrochemicals are the
backbone of the agricultural economy. Farmers use fertilizers and agrochemicals
to provide necessary nutrients to plants. Nitrogen and methane are used
extensively in the fertilizer industry, while chlorine, oxygen, and nitrogen
are used extensively to produce agrochemicals. According to the International
Fertilizer Association (IFA), global fertilizer demand will be slightly less
than 200 MT by 2021-22, with nitrogen-based fertilizers increasing by 1.2% per
year, phosphoros-based fertilizers increasing by 1.5% per year, and
potassium-based fertilizers increasing by 2.1% per year. According to the IFA's
prediction, Africa, Eastern Europe, and Central Asia, and Latin America will
have the highest growth rates during the forecast period due to high
agricultural growth potential. IFA further said that the global fertilizer
industry is set to invest USD 110 billion between 2017-2021 in more than 65 new
fertilizer production units, increasing production capacity by more than 90
Industrial gases are critical
components of the fertilizer and agrochemical industries. During the forecast
period, the growth of the fertilizer and agrochemicals industries is expected
to support the development of the global industrial gases market. For example,
nitrogen is used in the production of ammonia, which is one of the key raw
materials used in manufacturing urea and ammonium fertilizers.
Dichlorodiphenyltrichloroethane (DDT) is produced using chlorine. It is worth
noting that India has the highest DDT production rate, followed by China.
Demand and Application of Industrial Gases in The healthcare Industry
Industrial gases are extensively
used in the healthcare industry. Oxygen is a critical component of the healthcare
industry. Medical-grade oxygen, medical air, and carbon dioxide are all widely
used in the healthcare industry for a variety of purposes. While medical-grade oxygen
is administered to patients suffering from respiratory conditions, medical air
(an ultra-pure, compressed form of air) is used when patients suffer from
oxygen toxicity. The European Industrial Gases Association said that the demand
for medical-grade oxygen went up in Europe in 2020 as a result of the COVID-19
pandemic. Its members, such as The Linde Group and Air Liquide, experienced
5-10 times the usual medical-grade oxygen demand. In Italy
and Eastern Europe, Air Liquide reported 4-6 times the average demand for
medical-grade oxygen. Linde, Germany's largest supplier of medical gases, was
running cylinder filling stations 24x7 in 2020 and had to boost cylinder
delivery to satisfy the increased demand. Likewise, Oximesa, a subsidiary of Nippon
Gases, had to shift to a 24*7 production schedule in Spain in 2020 to meet the
surging demand for medical-grade oxygen.
Demand for medical-grade oxygen has
increased to 8,000 MT per day as the second wave of COVID-19 sweeps through the
Indian subcontinent. To meet the increasingly rising demand, global leaders
such as The Linde Group, Air Liquide, and local manufacturers are all ramping
Apart from oxygen and medical air, carbon
dioxide is also in high demand in the healthcare sector as it is used to enlarge
and stabilize body cavities to provide better visibility of the surgical area
during minimally invasive surgeries like laparoscopy, endoscopy, and arthroscopy.
Thus, the demand for medical-grade oxygen and other medical-grade gases is
expected to remain high during the forecast period and drive the growth of the global
industrial gases market.
More Stringent Regulatory Requirements on Gases Used in The
Food & Beverage Industry
The food & beverages industry has always been one of the most heavily
regulated industry. Government and regulatory bodies are always on their toes regarding
the chemicals and ingredients used in food & beverages. Companies are
constantly experimenting with new flavors, textures, colors, tastes, and other
aspects of existing foods in order to draw customers while lowering the cost of
the products. To do so, businesses often resort to using low-cost chemicals
that are hazardous to human health. The food and beverage industry often makes
use of toxic gases such as carbon dioxide, carbon monoxide, and sulfur dioxide.
As a result, regulatory bodies are constantly attempting to impose stringent
controls on the use of these gases in the food and beverage industry.
For example, Carbon dioxide is used extensively in carbonated drinks and
also for freezing food items. Carbon monoxide is used to freeze meat products
like beef, pork, and chicken as it maintains their colour. Sulfur dioxide is
used in the winemaking process. Excessive doses of such gases can damage
consumers' health, which is why companies must adhere to strict regulations set
out by the Global Food Safety Initiative (GFSI), as well as local governments
and regulatory bodies, in order to market such goods. These stringent
regulations and standards are expected to stifle the growth of the global
industrial gases market over the forecast period.
Global Industrial Gases Market: By Gas
The global industrial gases market is segmented into oxygen, nitrogen,
hydrogen, carbon dioxide, acetylene, argon, and others segment based on gas type.
Oxygen held the largest market share in global industrial gases market in 2020.
The widespread use of oxygen in the medical and healthcare sectors, as well as
oxy-fuels, contributed significantly to oxygen's large market share. The demand
for medical-grade oxygen has also gone up as a result of the ongoing pandemic. According
to The European Industrial Gases Association, in 2020, companies operating in European
countries registered 5-10 times the usual medical-grade oxygen demand. To
meet the sudden increase in demand for medical oxygen, many companies had to
transition to 24-hour production. Indian is currently facing a shortage of
medical-grade oxygen. According to the Ministry of Home Affairs, India has
ramped up its medical-grade oxygen production to 9,103 metric tons oxygen from 7,259
metric tons to meet the exponentially rising demand. The oxygen demand is
expected to remain high in the near future, which is likely to contribute to
the growth of the global industrial gases market.
Global Industrial Gases Market: By
Based on application, the
global industrial gases market is segmented into healthcare, manufacturing,
food & beverages, metallurgy & glasses, chemicals & energy, and
others. The healthcare segment held the largest market share in the global
industrial gases market in 2020. The healthcare sector's substantial market
share in the global industrial gases market was largely due to the exponential
rise in medical-grade oxygen demand. The demand for medical-grade oxygen has
increased dramatically in Europe, Latin America, Africa, and Asia-Pacific, with
medical-grade oxygen shortages in Latin American countries, Sub-Saharan African
countries, and India. The healthcare segment is expected to hold a significant
share at the end of the forecast period owing to the surging demand for
medical-grade oxygen from the healthcare industry.
Impact of COVID-19 in the industry
The onset of novel coronavirus has affected
the global economy besides affecting business operations. Due to the high
infection rate and adverse impact on public health systems, various countries
had to enforce nationwide lockdowns. Industry players are currently considering
reinforcing the damaged supply chains to serve the community and create new
COVID-19, however, affected the global industrial
gases market positively. The demand for medical-grade oxygen skyrocketed owing
to COVID-19. Companies had to ramp up their production, shift to 24*7
production schedules, operate filling stations 24*7, and increase the number of
cylinders. In India, the steel industry, oil & gas industry, fertilizer
industry all had to shift to oxygen manufacturing to fulfill the growing demand
for medical-grade oxygen.
Nevertheless, due to severely damaged supply
chains and travel restrictions, procurement of raw materials is becoming
difficult, affecting the production of industrial gases, especially oxygen. The
global industrial gases market is expected to register significant growth in upcoming
years owing to an increase in demand from the healthcare segment.
Gases Market: Regional Insights
The global industrial gases market is
segmented into five regions: North America, Europe, the Asia-Pacific, Latin
America, and the Middle East & Africa. The Asia-Pacific industrial gases
market accounts for the largest share in the global industrial gases market and
is expected to lead the market in the forecast period.
The Asia-Pacific region led the market in
2020 due to its large fertilizer industry, surging demand for medical-grade
oxygen, and large food & beverage industry. China and India are two of the
biggest consumers of nitrogen. China is the world’s largest nitrogen consumer
with annual consumption of 44.97 million tons. India is in second place with annual consumption of
16.48 million tons, according to the Food and Agriculture Organization.
India witnessed an increase in demand for medical-grade oxygen in
September 2020 amid the first wave of COVID-19. India ramped up its oxygen
production capacity from 5,913 MT in April 2020 to 6,862 MT in September 2020. Additionally,
the food & beverages industry also witnessed growth in the frozen food
segment. Nitrogen and carbon dioxide are used extensively to freeze food items
in the industry. All these factors are driving the development of the global
industrial gases market in the Asia-Pacific region and are expected to drive
the growth of the global industrial gases market in the region during the forecast
global industrial gases market has several key players operating in the market.
Some of the key players operating in the market are The Linde Group, Air
Liquide S.A., Praxair Inc., Taiyo Nippon Sanso Corporation, Matheson Tri-Gas
Inc., Air Products and Chemicals, Inc., Iwatani Corporation, Messer Group GmbH,
Gulf Cryo, Yingde Gas Group Co., Ltd., and other prominent players. Acquisitions
and mergers are some of the strategies adopted by the key manufacturers. Major
players often employ tactics such as new product releases or emphasize
continuous technological advancement to gain a competitive edge in the market.
Companies are also investing in research and development in an attempt to
dominate the industry.
various companies are striving to gain market share by adopting competitive
strategies such as joint ventures and research partnerships. The
market players compete based on product quality, conformance to standards and
performance, and a cost-effective
manufacturing process, which optimizes the process for better production.
2021, Gujarat Narmada Valley Fertilizers and Chemicals Ltd (GNFC)
tripled its medical-grade oxygen production capacity from 10,000 liters to
30,000 liters within a week. Since April 19, 2021, the company has been
providing free medical-grade liquid oxygen. The company initially provided
10,000 liters of oxygen per day, but within a week, production had increased to
30,000 liters of medical-grade oxygen.
2021, Linde India, a subsidiary of The
Linde Group, announced that it had partnered with TATA Group to secure 24
cryogenic containers for transporting medical-grade oxygen. A total of 20
metric tonnes of liquid oxygen can be transported in each container.
Scope of the Report
Historical data – 2017-2020
Base Year – 2021
Forecast – 2022 – 2027
Revenue in USD Million
Volume in MT
U.S., Canada, Germany, U.K., France, Italy, Spain, Russia, Netherlands,
China, India, Japan, South Korea, Mexico, Brazil, Saudi Arabia, UAE, and South
By Gas Type, By Application, By
Distribution & Transportation, By Region
Key players operating in the market include The Linde Group, Air Liquide S.A., Praxair Inc., Taiyo Nippon Sanso
Corporation, Matheson Tri-Gas Inc., Air Products and Chemicals, Inc., Iwatani
Corporation, Messer Group GmbH, Gulf Cryo, Yingde Gas Group Co., Ltd., and others prominent players
Scope of the Report
Distribution & Transportation
Gas Transport (Bulk Transport)
& Africa (MEA)
What is the
current size of the global industrial gases market?
Ans: Current size of the global industrial gases market is USD 93.1 billion.
What are the major
factors driving the growth of global industrial gases market?
Ans: Growing application in the healthcare sector, expanding food &
beverages industry, application in electronic and semiconductors, application
in fertilizer production are some of the major factors driving the growth of
global industrial gases market.
Who are the key
players in the global industrial gases market?
Linde Group, Air Liquide S.A., Praxair Inc., Taiyo Nippon Sanso Corporation, Matheson
Tri-Gas Inc., Air Products and Chemicals, Inc., are some of the key players in
global industrial gases market.
Which gas type segment
accounted for the largest market share in global industrial gases market?
Ans: oxygen gas segment accounted for the largest market share in the global industrial
accounted for the largest market share in global industrial gases market?
Ans: The Asia-Pacific region accounted for the largest market share in global industrial