Industrial Gas Global Market Opportunities and Strategies to 2032

This report describes and explains the industrial gas market and covers 2017-2022, termed the historic period, and 2022-2027, 2032F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global industrial gas market reached a value of nearly $128.04 billion in 2022, having grown at a compound annual growth rate (CAGR) of 8.2% since 2017. The market is expected to grow from $128.04 billion in 2022 to $240.79 billion in 2027 at a rate of 13.5%. The market is then expected to grow at a CAGR of 13.2% from 2027 and reach $447.31 billion in 2032.

Growth in the historic period resulted from the emerging markets growth, increase in industrialization, rise in government support and increase in demand for frozen and stored food. Factors that negatively affected growth in the historic period were global supply chain disruptions and high costs for gas manufacturing.

Going forward, rapid urbanization, growing natural gas consumption, increasing demand from the healthcare industry and growth in the aerospace industry will drive the market. Factors that could hinder the growth of the industrial gas market in the future include transportation challenges and reductions in free trade.

The industrial gas market is segmented by type into nitrogen, oxygen, carbon dioxide, hydrogen, helium, argon, neon, xenon, krypton and other industrial gas. The nitrogen market was the largest segment of the industrial gas market segmented by type, accounting for 27.4% or $35.02 billion of the total in 2022. Going forward, the argon segment is expected to be the fastest growing segment in the industrial gas market segmented by type, at a CAGR of 17.8% during 2022-2027.

The industrial gas market is segmented by end user industry into chemicals, metallurgy, manufacturing, food and beverage, healthcare, electronics and other end user industries. The manufacturing market was the largest segment of the industrial gas market segmented by end user industry, accounting for 25.9% or $33.13 billion of the total in 2022. Going forward, the healthcare segment is expected to be the fastest growing segment in the industrial gas market segmented by end user industry, at a CAGR of 15.5% during 2022-2027.

The industrial gas market is segmented by mode of supply into bulk, packaged and on-site. The bulk market was the largest segment of the industrial gas market segmented by mode of supply, accounting for 43.4% or $55.62 billion of the total in 2022. Going forward, the on-site segment is expected to be the fastest growing segment in the industrial gas market segmented by mode of supply, at a CAGR of 14.7% during 2022-2027.

Asia-Pacific was the largest region in the industrial gas market, accounting for 44.8% or $57.36 billion of the total in 2022. It was followed by North America, Western Europe and then the other regions. Going forward, the fastest-growing regions in the industrial gas market will be Africa and the Middle East, where growth will be at CAGRs of 22.2% and 17.8% respectively. These will be followed by South America and Asia-Pacific, where the markets are expected to grow at CAGRs of 17.2% and 14.0% respectively.

The global industrial gas market is fairly fragmented, with a large number of small players operating in the market. The top ten competitors in the market made up to 21.57% of the total market in 2022. The market fragmentation can be attributed to the presence of large number of players in different geographies. Prominent players are acquiring the products and entering into partnerships with the other companies to consolidate their market positions across the globe, while others are distributing products. Air Liquide S.A. was the largest competitor with a 7.22% share of the market, followed by Linde Plc with 6.37%, Air Products and Chemicals, Inc with 2.49%, Mitsubishi Chemical Group Corporation with 2.43%, Nippon Sanso Holdings Corporation with 1.72%, Air Water Inc with 0.63%, Messer SE & Co. KGaA with 0.32%, Iwatani Corporation with 0.25%, Gulf Cryo with 0.11% and PT Samator Indo Gas TBK with 0.03%.

The top opportunities in the industrial gas market segmented by type will arise in the oxygen segment, which will gain $28.19 billion of global annual sales by 2027. The top opportunities in the industrial gas market segmented by end user industry will arise in the manufacturing segment, which will gain $32.28 billion of global annual sales by 2027. The top opportunities in the industrial gas market segmented by mode of supply will arise in the bulk segment, which will gain $44.93 billion of global annual sales by 2027. The industrial gas market size will gain the most in China at $33.03 billion.

Market-trend-based strategies for the industrial gas market include use of new generative artificial intelligence (AI) tools in the oil and gas industry, advancements in carbon gas production plant, advanced laser-based technology for accurate and real-time gas quality monitoring in industrial settings, increasing investments in green hydrogen, launch of IoT-enabled medical oxygen plants and advancements in oxygen generators.

Player-adopted strategies in the industrial gas market include strengthening operational capabilities through business expansions, enhancing business operations through securing new contracts and business expansion through mergers and acquisitions.

To take advantage of the opportunities, the analyst recommends the industrial gas companies to focus on use of new generative artificial intelligence (ai) tools in the oil and gas industry, focus on advancements in carbon gas production plants, focus on advanced laser-based technology for accurate and real-time gas quality monitoring, focus on increasing investments in green hydrogen, focus on launch of IoT-enabled medical oxygen plants, focus on advancements in oxygen generators, focus on fast-growing product types, expand in emerging markets, continue to focus on developed markets, focus on competitive pricing, participate in trade shows and events, continue to focus on B2B promotions, focus on urban population and focus on fast-growing end-user industries.