Report Details:
15 Companies Covered
100 Pages
Market Research Future (MRFR) has updated the reports that the Industrial Gases Market reached an estimated USD 105.8 billion in 2025 and is projected to grow from USD 111.3 billion in 2026 to USD 167.4 billion by 2035, registering a 5.2% CAGR during the forecast period, according to Market Research Future (MRFR). Two forces are accelerating this trajectory: the global push toward green hydrogen production, backed by over USD 280 billion in announced electrolyzer and hydrogen hub investments worldwide, and the rapid expansion of semiconductor fabrication, which demands ultra-high-purity nitrogen, argon, and specialty gas blends at unprecedented volumes.
Industrial Gases Industry Overview
On-site industrial gas generator installations and pipeline supply networks are supplanting legacy merchant distribution arrangements in which liquid gasses were trucked from centralized air separation units to end customers. In 2024, Linde announced a USD 2 billion investment cycle in on-site hydrogen supply installations along the U.S. Gulf Coast, while carbon capture, utilization and storage operations under the U.S. 45Q tax credit are creating entirely new demand pools for food-grade and technical-grade carbon dioxide.
Key Trends & Growth Drivers
- Green Hydrogen Economy Scale-Up: The U.S. DOE's Hydrogen Shot initiative targets USD 1/kg clean hydrogen by 2031, and each gigawatt of electrolyzer capacity demands roughly 9,000 tonnes of oxygen as a co-product, positioning the market to capture an incremental USD 18-22 billion in hydrogen-related revenue by 2035.
- Semiconductor Fabrication Growth: The CHIPS and Science Act allocated USD 52.7 billion to domestic semiconductor manufacturing, and TSMC, Samsung, and Intel have collectively committed over USD 200 billion in new fab construction through 2030.
- Healthcare Oxygen Infrastructure: The World Bank's USD 4 billion Health Emergency Preparedness initiative has funded pressure-swing-adsorption plant installations across 35 developing nations since 2022, with India alone adding over 1,500 PSA plants between 2021 and 2024.
- Carbon Capture and CCUS Deployment: Section 45Q now offers USD 85/tonne for geologically stored CO2, and over 230 CCUS projects are in various development stages globally with combined capture capacity exceeding 280 Mtpa by 2030.
Industrial Gases Industry Segmentation / Detailed Insights
By Gas Type: Oxygen holds the largest share at approximately 28%, driven by steelmaking, healthcare, and wastewater-treatment demand, while hydrogen is projected to reach USD 32.6 billion by 2035 as green electrolysis capacity scales.
By Distribution Mode: Bulk delivery contracts account for roughly 42% of revenue, while on-site generation is expanding at a 6.1% CAGR, particularly in semiconductor and refinery clusters.
By End-Use Industry: Metal production and fabrication is the largest consuming sector at 31% share, while healthcare is growing fastest at a 6.8% CAGR as medical oxygen and anesthesia demand rises.
Industrial Gases Industry Regional Landscape
North America: The largest market for industrial gases at roughly 33% of worldwide revenue, driven by petrochemical refining hubs and the hydrogen-economy buildout; the U.S. hosts seven DOE-designated hydrogen hubs.
Europe: Accounts for the second-greatest share at over 27%, with the EU Hydrogen Strategy allocating €470 billion for clean hydrogen through 2050.
Asia-Pacific: The fastest-growing market with a 6.4% CAGR, driven by China's steel decarbonization standards and India's burgeoning healthcare-oxygen infrastructure; China's steelmaking complex alone consumes over 35 million tonnes of oxygen annually.
Middle East & Africa: Anchored by Saudi Arabia's NEOM green hydrogen project, an USD 8.4 billion venture set to produce 600 tonnes/day of hydrogen for export as green ammonia.
Industrial Gases Industry Competitive Landscape
The market is relatively highly concentrated, with an estimated HHI of about 1,800 and the top three firms accounting for 55-60% of global revenues. Key players are Linde plc, Air Liquide S.A., Air Products & Chemicals, Taiyo Nippon Sanso, Messer Group, SOL Group, Iwatani Corporation, Buzwair Group, Ellenbarrie Industrial Gasses and Gulf Cryo.
- Air Products (November 2024): Maintained its hydrogen-first capital allocation strategy, focusing on large-scale blue hydrogen production and carbon capture complexes along the U.S. Gulf Coast.
- S. DOE (June 2024): Finalized USD 7 billion in awards to seven Regional Clean Hydrogen Hubs under the Bipartisan Infrastructure Law, anchoring demand for bulk gas supply volumes.
- Linde plc (September 2021): Signed a 20-year on-site gas supply agreement with TSMC's Arizona fab, installing a dedicated on-site generation complex for nitrogen and specialty gases.
Future Outlook
MRFR anticipates global electrolyzer capacity to expand from less than 1 GW in 2022 to 134 GW by 2030, taking hydrogen from a niche product to a mainstream energy carrier and co-produced oxygen creating new sources of income. Smart ASU operations through AI-driven process optimization can reduce energy consumption by 8-12% and unplanned downtime by 30%. Carbon border adjustment mechanisms in the EU, US and UK are driving asymmetric demand for verified low-carbon industrial gasses through the rest of the decade.
Source: Market Research Future, “Industrial Gases Market Size, Share, Trends, Report 2035.” Full report available at marketresearchfuture.com.
