Air Separation Unit Market Report 2026

The air separation unit market size has grown strongly in recent years. It will grow from $5.93 billion in 2025 to $6.29 billion in 2026 at a compound annual growth rate (CAGR) of 6%. The growth in the historic period can be attributed to steel production expansion, growth of industrial gas demand, petrochemical capacity additions, healthcare oxygen consumption, chemical manufacturing growth.

The air separation unit market size is expected to see strong growth in the next few years. It will grow to $7.83 billion in 2030 at a compound annual growth rate (CAGR) of 5.7%. The growth in the forecast period can be attributed to hydrogen economy development, expansion of EV battery manufacturing, growth of carbon capture projects, demand for high purity gases, industrial decarbonization initiatives. Major trends in the forecast period include expansion of cryogenic air separation capacity, adoption of modular asu designs, integration of energy efficient distillation systems, rising use of on-site gas generation, growing preference for non-cryogenic technologies.

The rising demand for energy is expected to drive the growth of the air separation unit market in the coming years. Energy demand is increasing due to global population growth, expanding industrial activities, and greater consumption of energy-intensive technologies and appliances. Air separation units play a critical role in meeting this demand by supplying essential gases, such as oxygen and nitrogen, which support efficient combustion and process optimization in energy production and industrial applications. For example, in April 2023, the Energy Information Administration, a US-based government agency, reported that overall energy consumption in the United States is projected to increase between 0% and 15% from 2022 to 2050, with industrial energy use expected to grow by approximately 5% to 32% during the same period. Consequently, the rising energy demand is fueling the expansion of the air separation unit market.

Key companies in the air separation unit market are leveraging strategic partnerships to enhance the availability of argon, oxygen, and nitrogen in Eastern European markets. Strategic partnerships allow companies to combine strengths and resources to achieve shared objectives and mutual benefits. For instance, in August 2023, SIAD Group, an Italy-based chemical group, partnered with SOL Group, an Italy-based chemical company, to form a joint venture named OXY Technical Gases in Croatia. In this venture, SIAD holds a 60% stake and SOL holds 40%, aiming to increase the supply of nitrogen, oxygen, and argon in Croatia and neighboring countries. OXY Technical Gases is investing $56.1 million to build an air separation unit (ASU) in Velika Gorica, near Zagreb, which will provide high-purity liquid oxygen, nitrogen, and argon produced at cryogenic temperatures to hospitals, industrial facilities, and other customers throughout the region.

In July 2024, Honeywell International Inc., a US-based industrial goods and machinery company, acquired Air Products and Chemicals Inc. for $1.81 billion. This acquisition is intended to strengthen Honeywell’s energy transition solutions and expand its capabilities in the air separation unit market. Air Products and Chemicals Inc. is a US-based provider of essential industrial gases, related equipment, and applications.

Major companies operating in the air separation unit market are Linde Plc, Air Liquide S.A., Air Products and Chemicals Inc., Nippon Sanso Holdings Corporation, Messer Group GmbH, Matheson Tri-Gas Inc., Yingde Gases Group Co. Ltd., Gulf Cryo, Cryogenmash, SIAD Macchine Impianti S.p.A., Bhoruka Gases Limited, MVS Engineering Pvt. Ltd., Novair Industries AB, CRYOTEC Anlagenbau GmbH, Ranch Cryogenics Inc., Buzwair Industrial Gases Factories, Shanghai Chinllenge Gases Co. Ltd., Kaifeng Air Separation Group Company Limited, Sichuan Air Separation Plant Group.

Asia-Pacific was the largest region in the air separation unit market in 2025 and it is expected to be the fastest-growing region in the forecast period. The regions covered in the air separation unit market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the air separation unit market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The air separation unit market includes revenues earned by entities by providing services such as design and engineering, installation, maintenance and support, optimization, and gas supply. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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