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Canada Industrial Gases Market

ID: MRFR/EnP/52992-HCR
200 Pages
Snehal Singh
October 2025

Canada Industrial Gases Market Research Report By Type (Hydrogen, Oxygen, Nitrogen, Carbon-dioxide, Others) andBy End User (Industry, Transportation, Agriculture, Energy, Others)- Forecast to 2035

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Canada Industrial Gases Market Summary

As per Market Research Future analysis, the Canada industrial gases market Size was estimated at 131.77 USD Million in 2024. The Canada industrial gases market is projected to grow from 140.44 USD Million in 2025 to 265.67 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 6.5% during the forecast period 2025 - 2035

Key Market Trends & Highlights

The Canada industrial gases market is experiencing a robust growth trajectory driven by sustainability and technological advancements.

  • Sustainability initiatives are increasingly shaping the operational strategies of industrial gas companies in Canada.
  • Technological advancements are enhancing the efficiency and safety of gas production and distribution processes.
  • The demand for specialty gases is on the rise, particularly in sectors such as healthcare and manufacturing.
  • Key market drivers include the growing demand in the healthcare sector and the expansion of the food and beverage industry.

Market Size & Forecast

2024 Market Size 131.77 (USD Million)
2035 Market Size 265.67 (USD Million)
CAGR (2025 - 2035) 6.58%

Major Players

Air Products and Chemicals (US), Linde (DE), Praxair (US), Air Liquide (FR), Messer Group (DE), Taiyo Nippon Sanso Corporation (JP), Matheson Tri-Gas (US), Nippon Gases (JP)

Canada Industrial Gases Market Trends

The industrial gases market in Canada is currently experiencing a dynamic evolution, driven by various factors including technological advancements and increasing demand across multiple sectors. Industries such as healthcare, manufacturing, and food processing are significantly contributing to the growth of this market. The rising emphasis on sustainability and environmental regulations is prompting companies to adopt cleaner technologies, which in turn influences the types of gases produced and utilized. Furthermore, the ongoing development of infrastructure and industrial facilities is likely to enhance the distribution and accessibility of these gases, thereby fostering market expansion. In addition, the industrial gases market is witnessing a shift towards the adoption of specialty gases, which are increasingly being utilized in applications such as electronics and pharmaceuticals. This trend suggests a diversification of product offerings, catering to specific industry needs. The competitive landscape is also evolving, with both established players and new entrants striving to innovate and capture market share. Overall, the industrial gases market appears poised for continued growth, driven by technological innovation and changing consumer preferences.

Sustainability Initiatives

The industrial gases market is increasingly influenced by sustainability initiatives, as companies strive to reduce their carbon footprint. This trend is evident in the adoption of cleaner production methods and the development of gases that support environmentally friendly processes. Regulatory pressures and consumer demand for greener solutions are likely to drive further innovation in this area.

Technological Advancements

Technological advancements are playing a crucial role in shaping the industrial gases market. Innovations in gas production, storage, and distribution are enhancing efficiency and safety. Moreover, the integration of automation and digital technologies is expected to streamline operations, reduce costs, and improve service delivery across various sectors.

Specialty Gases Demand

There is a growing demand for specialty gases within the industrial gases market, particularly in sectors such as electronics and healthcare. This trend indicates a shift towards more tailored solutions that meet specific application requirements. As industries evolve, the need for high-purity gases and customized mixtures is likely to increase, presenting opportunities for market players.

Market Segment Insights

By Type: Hydrogen (Largest) vs. Oxygen (Fastest-Growing)

In the Canada industrial gases market, hydrogen holds the largest share among the various types of gases, driven by its critical applications in sectors such as energy production and automotive industries. Oxygen follows closely, primarily due to its essential role in medical applications and metal fabrication processes. Other gases like nitrogen and carbon-dioxide also contribute to the market, but their shares are comparatively smaller, indicating a focused demand for hydrogen and oxygen within the sector. The growth trends in the Canada industrial gases market suggest a rapid increase, especially for oxygen, which is becoming increasingly popular in healthcare applications, including respiratory treatments. Hydrogen is expected to maintain its dominant position as industries focus on sustainable energy sources and cleaner production practices. Innovations in gas production and distribution technologies further enhance the potential for growth in this market segment.

Hydrogen (Dominant) vs. Oxygen (Emerging)

Hydrogen, as the dominant segment, offers versatility across various applications, including energy storage, fuel cells, and industrial processes. Its increasing adoption is largely propelled by technological advancements aimed at reducing carbon emissions. On the other hand, oxygen is emerging strongly in the market, especially in healthcare and some manufacturing processes. The demand for oxygen is spurred by the rise in healthcare services and procedures that require high-purity oxygen, as well as its use in steel manufacturing. Both gases exhibit robust market positions, with hydrogen leading due to its expansive application range and oxygen rapidly gaining ground through its essential role in medical and industrial fields.

By End User: Industry (Largest) vs. Transportation (Fastest-Growing)

In the Canada industrial gases market, the distribution of market share among the end user segments reveals significant dominance from the industry sector, which captures the largest share due to its extensive application in manufacturing and production processes. Following this, transportation emerges with growing importance, fueled by the increasing demand for efficient logistics and transportation solutions that leverage industrial gases in various applications. Growth trends indicate that while the industry segment continues to thrive, the transportation segment is on an accelerated growth path. This is driven by innovations in fuel cell technologies and the push for cleaner transportation solutions. Furthermore, stricter environmental regulations and a shift toward sustainable practices are fueling investments in industrial gases within these sectors, enhancing their respective market positions.

Industry: Manufacturing (Dominant) vs. Transportation: Logistics (Emerging)

The manufacturing industry stands as the dominant end user in the Canada industrial gases market, owing to its broad applications across various sectors such as metal fabrication, chemical production, and food processing. The reliance on industrial gases like oxygen, nitrogen, and argon is pivotal for processes including welding, cutting, and preservation. Conversely, the transportation sector is positioned as an emerging player, particularly within logistics where innovations in gas-powered vehicles and initiatives for reducing carbon footprints are becoming increasingly relevant. The integration of industrial gases in improving fuel efficiency and transitioning to alternative fuels is reshaping the landscape, marking transportation as a significant area of growth.

Get more detailed insights about Canada Industrial Gases Market

Key Players and Competitive Insights

The industrial gases market in Canada is characterized by a competitive landscape that is increasingly shaped by innovation, sustainability, and strategic partnerships. Key players such as Air Products and Chemicals (US), Linde (DE), and Air Liquide (FR) are actively pursuing growth through technological advancements and regional expansions. Air Products and Chemicals (US) has focused on enhancing its hydrogen production capabilities, which aligns with the growing demand for cleaner energy solutions. Meanwhile, Linde (DE) emphasizes its commitment to sustainability by investing in carbon capture technologies, thereby positioning itself as a leader in environmentally friendly practices. Air Liquide (FR) is also making strides in digital transformation, leveraging data analytics to optimize operations and improve customer service, which collectively influences the competitive dynamics of the market.
The business tactics employed by these companies reflect a trend towards localizing manufacturing and optimizing supply chains to enhance efficiency. The market structure appears moderately fragmented, with several players vying for market share while also collaborating on joint ventures and partnerships. This collective influence of key players fosters a competitive environment where innovation and operational excellence are paramount.
In October 2025, Air Products and Chemicals (US) announced the launch of a new hydrogen production facility in Alberta, which is expected to significantly increase its production capacity and cater to the rising demand for hydrogen in various industrial applications. This strategic move not only reinforces the company's position in the market but also aligns with Canada's commitment to reducing carbon emissions and transitioning to a hydrogen economy. The facility is anticipated to create numerous jobs and stimulate local economic growth, further enhancing Air Products' reputation as a responsible corporate citizen.
In September 2025, Linde (DE) unveiled a partnership with a leading Canadian renewable energy firm to develop a large-scale green hydrogen project. This collaboration aims to produce hydrogen using renewable energy sources, thereby reducing reliance on fossil fuels. The strategic importance of this partnership lies in Linde's ability to leverage its technological expertise while contributing to Canada's sustainability goals. This initiative is likely to enhance Linde's competitive edge in the market, as it positions the company as a key player in the green energy transition.
In August 2025, Air Liquide (FR) expanded its digital services portfolio by launching a new platform that utilizes AI to optimize gas supply chains for its customers. This platform is designed to enhance operational efficiency and reduce costs, which is increasingly critical in a competitive market. The strategic importance of this development is underscored by the growing trend towards digitalization in the industrial gases sector, as companies seek to leverage technology to improve service delivery and customer satisfaction.
As of November 2025, the competitive trends in the industrial gases market are heavily influenced by digitalization, sustainability initiatives, and the integration of AI technologies. Strategic alliances are becoming more prevalent, as companies recognize the need to collaborate to address complex challenges and enhance their market positions. Looking ahead, it appears that competitive differentiation will increasingly hinge on innovation, technological advancements, and the reliability of supply chains, rather than solely on price. This shift suggests a transformative phase in the market, where companies that prioritize sustainable practices and technological integration are likely to emerge as leaders.

Key Companies in the Canada Industrial Gases Market include

Industry Developments

In recent months, the Canada Industrial Gases Market has seen notable developments. In October 2023, Air Products announced plans to invest in a significant new oxygen production facility in Ontario to support the growing demand for industrial gases, particularly in the healthcare and manufacturing sectors. The Canadian government is actively promoting the use of hydrogen as a clean energy source, influencing companies like Linde and Taiyo Nippon Sanso to expand their portfolios in hydrogen production technologies. Messer Group has also been enhancing its market presence in Quebec, focusing on high-purity gases to cater to the semiconductor industry.

In terms of mergers and acquisitions, a noteworthy event occurred in September 2023 when Air Liquide confirmed the acquisition of a local gas provider to strengthen its distribution network across Alberta, enhancing operational efficiency. The market has experienced growth in valuation, with several companies reporting increased revenues as demand surged post-pandemic, particularly among sectors like healthcare and food processing. Furthermore, in July 2021, Western Industrial Gas expanded its operations into the Western provinces, which has since contributed positively to its overall market share in Canada.

Future Outlook

Canada Industrial Gases Market Future Outlook

The industrial gases market in Canada is projected to grow at a 6.58% CAGR from 2024 to 2035, driven by increasing demand in healthcare, manufacturing, and energy sectors.

New opportunities lie in:

  • Expansion of hydrogen production facilities for clean energy applications.
  • Development of advanced gas storage solutions for industrial applications.
  • Implementation of digital monitoring systems for gas distribution efficiency.

By 2035, the industrial gases market is expected to achieve robust growth and innovation.

Market Segmentation

Canada Industrial Gases Market Type Outlook

  • Hydrogen
  • Oxygen
  • Nitrogen
  • Carbon-dioxide
  • Others

Canada Industrial Gases Market End User Outlook

  • Industry
  • Transportation
  • Agriculture
  • Energy
  • Others

Report Scope

MARKET SIZE 2024 131.77(USD Million)
MARKET SIZE 2025 140.44(USD Million)
MARKET SIZE 2035 265.67(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR) 6.58% (2025 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Million
Key Companies Profiled ["Air Products and Chemicals (US)", "Linde (DE)", "Praxair (US)", "Air Liquide (FR)", "Messer Group (DE)", "Taiyo Nippon Sanso Corporation (JP)", "Matheson Tri-Gas (US)", "Nippon Gases (JP)"]
Segments Covered Type, End User
Key Market Opportunities Adoption of sustainable practices in industrial gases production enhances market growth potential.
Key Market Dynamics Growing demand for sustainable industrial gases driven by regulatory pressures and technological advancements in Canada.
Countries Covered Canada
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FAQs

What is the expected market size of the Canada Industrial Gases Market in 2024?

The Canada Industrial Gases Market is expected to be valued at 110.25 million USD in 2024.

What is the projected market value for the Canada Industrial Gases Market in 2035?

By 2035, the market is anticipated to reach a valuation of 220.5 million USD.

What is the expected CAGR for the Canada Industrial Gases Market from 2025 to 2035?

The market is expected to grow at a CAGR of 6.504% during the forecast period from 2025 to 2035.

Who are the major players in the Canada Industrial Gases Market?

Key players in the market include Linde, Messer Group, VitalAire, Air Liquide, and Praxair among others.

What is the market size for Hydrogen in the Canada Industrial Gases Market in 2024?

The market size for Hydrogen is valued at 25.0 million USD in 2024.

How much is the Oxygen segment expected to contribute to the market in 2035?

By 2035, the Oxygen segment is projected to contribute 60.0 million USD to the market.

What is the current market size for Nitrogen in 2024?

In 2024, the Nitrogen segment of the market is valued at 20.25 million USD.

What are the expected challenges faced by the Canada Industrial Gases Market?

Challenges in the market may include fluctuating raw material costs and environmental regulations.

How much revenue is expected from the Carbon-dioxide segment in 2035?

The Carbon-dioxide segment is expected to generate 30.0 million USD in revenue by 2035.

What applications drive the growth of the Canada Industrial Gases Market?

Applications in healthcare, manufacturing, and food processing are significant growth drivers for the market.

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