As per MRFR analysis, the China Industrial Gases Market Size was estimated at 59.4 (USD Million) in 2023.The China Industrial Gases Market Industry is expected to grow from 63(USD Million) in 2024 to 403 (USD Million) by 2035. The China Industrial Gases Market CAGR (growth rate) is expected to be around 18.378% during the forecast period (2025 - 2035).
The China Industrial Gases Market is changing considerably owing to the accelerated pace of industrial and urban development in the area. Industrial gas consumption in China’s manufacturing, healthcare, electronics and energy sectors are growing, along with the value of these gases in the China economy. The steel, welding and chemical industries, for example, use large amounts of oxygen, nitrogen, and argon. Also, government policies related to carbon emission reductions and energy efficiency improvements require industries to implement cleaner technologies which heightens the need for industrial gases.
The gaps that require filling in the industrial gases market are associated with new applications inventions and increasing the growth in production volume. There is a higher volume of specialty gases for the manufacture and research of electronics as China shifts focus on high technology industries. There is also more industrial gas needed for hydrogen production and storage due to the increase in funding for renewable energy projects, constituting new opportunities for the market. In some cases, in recent years, there is a move to incorporate sustainable practices and technologies into industrial gases. There is an increase in investment by Chinese firms in advanced production equipment that use eco-friendly processes and materials.
An emphasis on smart manufacturing and automation is also changing the industry by improving the efficiency of the operations and utilization of resources. In general, the development of China’s Industrial Gases Market is associated with the country’s economic and ecological goals enabling innovation and development in the years to come.
Rapid Industrialization and Urbanization in China
The China Industrial Gases Market Industry is witnessing substantial growth due to rapid industrialization and urbanization throughout the country. According to the National Bureau of Statistics of China, the urbanization rate in China has increased from about 36% in 2000 to over 61% in 2020. This significant growth in urban population creates a pressing demand for industrial gases in various sectors, including manufacturing, chemical industries, and healthcare.Established organizations such as Air Products and Linde have continuously expanded their operations in China to cater to this demand, providing gases essential for welding, metal fabrication, and food processing among other applications. The growing number of industrial facilities, as driven by government initiatives like 'Made in China 2025', has further solidified the need for efficient gas supply, boosting the overall market for industrial gases.The increase in demand can be quantified with the expansion of such facilities anticipated to contribute to an estimated increase in demand for industrial gases by 20% over the next decade.
Technological Advancements in Gas Production and Distribution
Technological advancements in gas production and distribution significantly propel the growth of the China Industrial Gases Market Industry. Innovative production techniques, particularly those that optimize separation processes and enhance the efficiency of gas delivery systems, have been developed within China. For instance, CRYOGENIC PROCESSING techniques enhance the production efficiency of oxygen and nitrogen that are critical for a variety of industrial applications.Research and Development (R&D) advancements by companies such as Air Liquide and Praxair are indicative of a trend towards more efficient and cost-effective gas solutions. This is bolstered by the rising focus on sustainable practices and energy efficiency, aligning with government policies that advocate for cleaner industrial technologies, thus driving market growth.
Growth of Healthcare Sector and Demand for Medical Gases
The healthcare sector's expansion in China leads to a growing demand for medical gases, which is a crucial driver of the China Industrial Gases Market Industry. The aging population in China, projected to reach 487 million people aged 60 and above by 2050, intensifies the need for medical oxygen and other specialty gases used in hospitals and clinics. According to reports from the Ministry of Health, the number of hospital admissions in China has increased significantly, fostering an urgent requirement for medical gases in various applications such as surgeries and emergency care.Companies like Messer Group and Linde are increasing their distribution channels to meet this escalating demand, further indicating that the medical gases segment is one of the key growth areas within the industrial gases market.
Industrial Gases Market Type Insights
The China Industrial Gases Market is a rapidly evolving industry that consists of various gases utilized in different sectors, reflecting a diverse market segmentation. The Type segment includes pivotal categories such as Hydrogen, Oxygen, Nitrogen, Carbon-dioxide, and Others, each contributing uniquely to the growth of the market. Hydrogen has established its significance due to its applications in clean energy, particularly in fuel cells and as a feedstock in chemical processes. The increasing focus on hydrogen fuel as a sustainable energy source aligns with China's commitment to reducing carbon emissions, thus driving market demand.Oxygen, on the other hand, plays a fundamental role in various sectors, including healthcare, metallurgy, and water treatment, making it an essential gas in industrial applications. Its importance in supporting combustion processes powers industries such as steel manufacturing and glass production, thereby acting as a backbone for the economic growth of the region.
Nitrogen, known for its inert properties, is widely used in food preservation, electronics manufacturing, and as an industrial gas to prevent oxidation. This wide range of applications ensures that Nitrogen maintains a robust position in the market.Carbon-dioxide is likewise significant, particularly in the food and beverage industry where it is widely utilized for carbonating drinks and in refrigeration systems. Its usage in agricultural applications for enhanced plant growth through controlled environment farming presents a promising opportunity, especially in light of China's immense agricultural sector.
The categorization of Others encapsulates various niche gases that, while not dominant, are nonetheless critical for specialized applications across different industries. Overall, the Type segment of the China Industrial Gases Market showcases a diverse range of gases, each with distinct applications and growth potentials that align with ongoing industrial trends. Sustainable practices, regulatory frameworks promoting green gas usage, and technological advancements are projected to stimulate growth within each category. The increasing industrialization and urbanization in China further enhance the importance of this market segment, ensuring that each type of industrial gas provides vital support to the nation’s scope of economic activities and environmental objectives. As a result, the market segmentation by Type will likely continue to adapt and expand to meet emerging demands in various industries across China.
Industrial Gases Market End User Insights
The End User segment in the China Industrial Gases Market plays a pivotal role in driving the overall industry growth and development across various sectors. This segment encompasses diverse applications, including Industry, Transportation, Agriculture, Energy, and Others, each contributing uniquely to market dynamics. The industrial sector is a significant consumer of industrial gases, as they are essential for processes such as welding, cutting, and chemical production. Meanwhile, the transportation sector utilizes gases for vehicle fuels and maintenance, which aids in improving energy efficiency.Agriculture increasingly relies on industrial gases for applications in crop preservation and fertilization methods. Energy production is notably influenced by the use of gases in power plants, where they enhance efficiency and reduce emissions. Other sectors also contribute to the China Industrial Gases Market, indicating a broad applicability and demand. The robust growth in these sub-segments reflects the ongoing transformations in industrial processes, technological advancements, and sustainability goals, making the China industrial gases market a crucial component of the nation's economic and industrial framework.With such diverse applications, the End User segment remains integral to understanding market segmentation and dynamics.
The China Industrial Gases Market is characterized by rapid growth and innovation, driven by increasing industrialization and the demand for high-quality industrial gases across various sectors. A multitude of global and local players competes in this vibrant market, each striving to capture market share through technological advancements and strategic collaborations. The competitive landscape showcases a blend of established multinational corporations and nimble domestic companies, fueling innovation and efficiency. Companies are focusing on expanding production capabilities and enhancing distribution networks to meet the rising demand for gases such as oxygen, nitrogen, argon, and specialty gases used in manufacturing, healthcare, and energy sectors.
The emphasis on sustainability and eco-friendly gas production methods further intensifies the competition, as market players aim to differentiate their offerings and strengthen their market positions in a landscape marked by evolving regulatory standards and environmental concerns.Linde has established a significant presence in the China Industrial Gases Market through its comprehensive portfolio of products and services designed to meet the diverse needs of its customers.
The company's strengths lie in its strong distribution network, advanced technologies for gas production, and a commitment to innovation in the applications of industrial gases. Linde has been proactive in expanding its operations in China, leveraging its global expertise to provide high-quality gas solutions that cater to various end-user industries, including metals, chemicals, and healthcare. The focus on tailored solutions for clients has enabled Linde to maintain a competitive edge, allowing the company to build long-lasting relationships with customers and partners alike. Furthermore, Linde's investment in research and development helps ensure that it stays at the forefront of emerging technologies and trends within the industrial gases sector.Messer Group, another prominent player in the China Industrial Gases Market, has successfully carved out its niche by offering a wide array of industrial gases, including oxygen, nitrogen, and argon, as well as specialist gases for various applications such as welding, food preservation, and medical use.
Messer Group's strengths in China stem from its robust production and distribution capabilities, further enhanced by strategic partnerships and local market insights. The company is known for its commitment to sustainability and efficiency, frequently adapting its processes and offerings to align with the evolving industrial landscape in China. Recent mergers and acquisitions have allowed Messer Group to bolster its market presence and expand its product portfolio, positioning itself as a competitive force in the region. The company’s strategic focus on customer-centric solutions and innovative services enables it to meet the diverse needs of industries while contributing positively to the market dynamics within the industrial gases sector in China.
Recent developments in the China Industrial Gases Market have been marked by a focus on technological advancements and sustainability efforts among key players. Linde and Air Products and Chemicals have been investing in innovative solutions to enhance efficiency in gas production and distribution. In August 2023, Air Liquide expanded its operations in Jiangsu province to strengthen its presence in the growing market for industrial gases. Additionally, in July 2023, Messer Group announced a significant partnership with Hangzhou Hangyang to develop new applications for industrial gases, emphasizing their commitment to innovation and market expansion.In terms of market valuation, leading companies like Yingde Gases and Taiyo Nippon Sanso Corporation reported growth driven by increasing demand from various sectors such as manufacturing and healthcare. Over the past couple of years, the market has also seen notable mergers; for instance, in March 2022, BASF acquired a stake in a nitrogen technology development initiative aimed at enhancing productivity. These actions reflect ongoing consolidation and strategic partnerships within the sector, highlighting the robust growth trajectory of the industrial gases market in China.
Industrial Gases Market Type Outlook
Industrial Gases Market End User Outlook
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 59.4(USD Million) |
| MARKET SIZE 2024 | 63.0(USD Million) |
| MARKET SIZE 2035 | 403.0(USD Million) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 18.378% (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 | Linde, Messer Group, BASF, Taiyo Nippon Sanso Corporation, Yingde Gases, China National Chemical Corporation, Air Liquide, Hangzhou Hangyang, Nanjing Yangzi Nitrogen Fertilizer, Asia Gases, Praxair, Shanghai Huayu Group, Jianfeng Beidahuang, Air Products and Chemicals, Shaanxi Longfu Industrial Gas |
| SEGMENTS COVERED | Type, End User |
| KEY MARKET OPPORTUNITIES | Rapid industrialization driving demand, Increasing focus on environmental sustainability, Expansion of healthcare sector usage, Growth in food and beverage industries, Development of advanced technologies and automation |
| KEY MARKET DYNAMICS | growing industrialization, expanding healthcare sector, increasing demand for clean energy, rising environmental regulations, technological advancements in gas production |
| COUNTRIES COVERED | China |
Frequently Asked Questions (FAQ) :
The projected market size of the China Industrial Gases Market in 2024 is expected to reach 63.0 USD Million.
By 2035, the China Industrial Gases Market is expected to be valued at 403.0 USD Million.
The expected CAGR for the China Industrial Gases Market from 2025 to 2035 is 18.378%.
The Hydrogen segment is forecasted to grow from 20.0 USD Million in 2024 to 127.0 USD Million by 2035.
Major players include Linde, Messer Group, BASF, and Air Liquide, among others.
The market size for Oxygen in 2024 is valued at 15.0 USD Million, with significant growth expected.
The Nitrogen segment is expected to reach a market size of 60.0 USD Million by 2035.
The Carbon-dioxide segment is projected to be valued at 50.0 USD Million in 2035.
Growing demand in various industries fuels significant opportunities for expansion in the market.
Each segment shows distinct growth trajectories, particularly with Hydrogen leading in value growth.
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