As per MRFR analysis, the South Korea Industrial Gases Market Size was estimated at 19.8 (USD Million) in 2023.The South Korea Industrial Gases Market Industry is expected to grow from 21(USD Million) in 2024 to 42 (USD Million) by 2035. The South Korea Industrial Gases Market CAGR (growth rate) is expected to be around 6.504% during the forecast period (2025 - 2035).
The South Korea Industrial Gases Market is growing rapidly due to a variety of reasons. Some of the more impactful reasons include the growth in the food and beverage industries, and electronics, and healthcare sectors. The government has adopted policies that encourage entrepreneurs which has in turn increased the use of industrial gases that are used to aid productions including industrial fuel. Furthermore, a focus on sustainability and cutting down carbon emissions is forcing industries to shift towards cleaner technologies. This shift showcases the increased focus on hydrogen and nitrogen gases that are useful in energy transitions in several industries.
A wide variety of possibilities may be found in South Korea, more so, in the area of healthcare and medical gases. As the medical market is expanding alongside an increasing number of healthcare facilities available, the consumption of oxygen, nitrous oxide, and other medical gases is rising. In addition, the shift to renewable energy sources is giving new opportunities for industrial gas firms to develop and provide gases required in new technology fields like hydrogen energy storage and fuel cells. There has also been a notable change in the focus of Industrial processes in recent times to increase Automation and Digitization which tends to improve efficiency. Gas management systems are incorporating modern technologies such as IoT and AI which allow for better control and optimization of gas consumption and provide more accurate monitoring of the gas usage.
This is in accordance with Korea's goal of becoming a world leader in smart manufacturing. Regardless, the South Korean industrial gas market is responding quickly to the growing industrial requirements while adopting new technologies towards environmentally responsible expansion.
Growth in the Manufacturing Sector
The growth of the manufacturing sector in South Korea is a significant driver for the South Korea Industrial Gases Market Industry. The manufacturing sector contributed approximately 27% to the GDP in recent years, with a notable increase in demand for industrial gases like oxygen, nitrogen, and argon, essential in processes such as welding, metal cutting, and chemical production.
Organizations such as the Korea Institute for Industrial Economics & Trade have reported a steady increase in manufacturing output, which is projected to grow at a rate of 3.5% annually over the next decade.This consistent growth leads to heightened demand for industrial gases, thereby bolstering the market's expansion. Additionally, the government's incentive programs aimed at enhancing manufacturing capabilities further promote the usage of advanced industrial gases, making the South Korea Industrial Gases Market Industry a crucial component of the nation’s economic landscape.
Increasing Adoption of Green Technologies
As South Korea focuses on reducing carbon footprints and promoting green technologies, the demand for industrial gases is witnessing a surge. The government's Green New Deal initiative aims to invest significantly in eco-friendly infrastructure, which includes the adoption of hydrogen as an energy source.
The Ministry of Trade, Industry, and Energy has stated plans to produce hydrogen using industrial gases, targeting production of around 6.2 million tons per year by 2040.This shift towards sustainable energy solutions drives the South Korea Industrial Gases Market Industry, as industries increasingly rely on cleaner gases to meet environmental regulations and consumer preferences.
Technological Advancements in Gas Production and Application
Technological advancements in the production and application of industrial gases are propelling the South Korea Industrial Gases Market Industry forward. Innovations such as improved gas separation technologies and efficient storage solutions have increased the purity and availability of industrial gases.
Major companies in the region, including Air Products and Linde Korea, are investing heavily in Research and Development to enhance product offerings and operational efficiency.The Korean government supports these advancements by providing grants and funding for initiatives aimed at innovative gas technology development, which is expected to enhance overall market growth.
Industrial Gases Market Type Insights
The South Korea Industrial Gases Market is comprehensively segmented by Type, encompassing a diverse range of gases including Hydrogen, Oxygen, Nitrogen, Carbon Dioxide, and Others. The Hydrogen sector continues to gain prominence, driven by its expanding use in fuel cells and renewable energy applications, reflecting the country's commitment to hydrogen as a clean energy source.
Similarly, Oxygen plays a pivotal role in various industries such as healthcare, metal production, and water treatment, highlighting its multifaceted importance to South Korea's industrial landscape.Nitrogen is another critical element widely utilized in food preservation and manufacturing processes, showcasing its integral role in ensuring product longevity and safety for consumers. As for Carbon Dioxide, its applications extend from carbonation in beverages to enhanced oil recovery, indicating the broad versatility of this gas within different sectors.
The Others category encompasses a variety of specialty gases tailored for niche applications, marking the diversity in demand across industries. The segmentation of the South Korea Industrial Gases Market reflects ongoing trends toward sustainability and innovation, with significant investments reportedly being directed towards the development of advanced gas technologies and environmental applications.A growing awareness of greenhouse gas emissions among industries has spurred initiatives for more efficient gas utilization, presenting notable opportunities for future market growth and technology integration. Overall, the Type segmentation underscores the essential role these gases play in supporting South Korea's industrial efforts and sustainability goals, contributing to a robust market dynamic.
Industrial Gases Market End User Insights
The South Korea Industrial Gases Market shows diverse engagement across various end user categories like Industry, Transportation, Agriculture, Energy, and others, all evolving according to specific regional needs and technological advancements. The industrial sector has been a major driver, leveraging gases for processes in manufacturing, food preservation, and health care, underscoring its vital role in the economy. In the transportation segment, there is a growing emphasis on cleaner alternatives, leading to an increased demand for industrial gases that support fuel efficiency and emissions reduction.Agriculture benefits through enhanced productivity and crop viability, supported by gases used in various farming techniques.
The energy sector is similarly significant, focusing on innovative gas solutions for energy generation and management. Moreover, other sectors contribute to the overall market dynamics by implementing gases in niche applications, all reflecting South Korea's commitment to advancing its industrial capabilities. As the South Korea Industrial Gases Market data indicates strong growth potential, the positioning of each end user segment will likely continue to evolve, influenced by economic shifts, regulatory frameworks, and evolving consumer needs.
The diversity in usage and application of industrial gases points towards a comprehensive interaction across all sectors, indicating a robust and adaptive market landscape.
The South Korea Industrial Gases Market is a dynamic and rapidly evolving sector characterized by increasing demand from various industries, including manufacturing, healthcare, and energy. This market features intense competition as both domestic and international players strive to enhance their market position and expand their service offerings. Companies are focusing on technological advancements, developing innovative products, and forming strategic alliances to cater to the growing needs of their customers. With the increasing push for sustainability and the reduction of carbon emissions, players in the industrial gases market are also investing in cleaner production methods and sustainable solutions.
Understanding the competitive landscape is crucial for stakeholders as they navigate through the complexities of regulatory environments and market dynamics.Linde stands out in the South Korea Industrial Gases Market due to its strong commitment to innovation and customer-centric solutions. With a robust distribution network and efficient supply chain management, Linde effectively serves a diverse range of industries, delivering gases such as oxygen, nitrogen, and argon that are essential for industrial processes.
The company's strength lies in its extensive expertise and technological knowledge, which enable it to tailor its offerings to meet the specific demands of the local market. Linde is recognized for its high-quality products and services, contributing to its solid presence in South Korea. Its strategic initiatives, such as partnerships and collaborations with key industries, further enhance its competitiveness and ability to maintain a leadership position.BASF, although primarily known for its chemical products, also plays a significant role in the South Korea Industrial Gases Market through its specialized offerings.
The company provides a range of high-value gases used in various applications, including process optimization and material synthesis, catering to sectors such as electronics and automotive. BASF's strengths in South Korea lie in its strong product development capabilities and a focus on sustainability, aligning with the region's environmental goals. The firm has established a strategic footprint in the country, driven by its commitment to research and development, which allows it to innovate continuously and respond to the evolving needs of the market. Mergers and acquisitions have also fortified BASF's position and enabled it to expand its technological resources and service capabilities, contributing to its competitive edge in the industrial gases sector within South Korea.
In recent months, the South Korea Industrial Gases Market has experienced significant developments, notably in the areas of growth and partnerships. Companies like Linde and Air Liquide are expanding their production capabilities to cater to the increasing demand within the semiconductor and electronics sectors, crucial for South Korea's economy.
In June 2023, BASF announced a strategic initiative to enhance its production of specialty gases, reinforcing its presence in the industrial sector. On the mergers and acquisition front, Air Products and SK Materials completed a notable partnership in July 2023 aimed at advancing hydrogen production technologies, reflecting a strong focus on clean energy transitions.
Additionally, the ongoing collaboration between Dongkuk Steel Mill and Kogas is set to modernize industrial gas applications in steel production, an essential aspect of South Korea's industrial landscape. Over the last two years, the market has seen investments surpassing USD 500 million, showcasing the robust growth trajectory in line with domestic and global trends in sustainability and technological innovation. This development not only strengthens the competitive position of these companies but also impacts the broader landscape of the South Korean industrial sector.
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 19.8(USD Million) |
| MARKET SIZE 2024 | 21.0(USD Million) |
| MARKET SIZE 2035 | 42.0(USD Million) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 6.504% (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, BASF, Messer, Kogas, Dongkuk Steel Mill, Air Liquide, N2GAS, SK Materials, Samsung C&T, Hyundai Gas, OCI, Hansol Chemical, Taean Gas, Daesung Industrial Gases, Air Products |
| SEGMENTS COVERED | Type, End User |
| KEY MARKET OPPORTUNITIES | Growing demand in healthcare sector, Expansion in semiconductor manufacturing, Increasing adoption of renewable energies, Rise in food and beverage processing, Enhanced focus on environmental regulations |
| KEY MARKET DYNAMICS | growing demand for renewable energy, increasing industrialization and manufacturing, advancements in gas technologies, rising environmental regulations, expanding healthcare applications |
| COUNTRIES COVERED | South Korea |
Frequently Asked Questions (FAQ) :
The South Korea Industrial Gases Market is expected to be valued at 21.0 million USD in 2024.
By 2035, the South Korea Industrial Gases Market is projected to be valued at 42.0 million USD.
The South Korea Industrial Gases Market is expected to have a CAGR of 6.504 percent from 2025 to 2035.
Hydrogen is expected to have the highest value, at 5.0 million USD in 2024.
The market value of Oxygen is projected to reach 9.0 million USD by 2035.
Major players include Linde, BASF, Messer, Kogas, Dongkuk Steel Mill, and Air Liquide.
The projected market size for Nitrogen is expected to be 7.0 million USD in 2035.
The market value for Carbon-dioxide is expected to grow from 3.0 million USD in 2024 to 6.0 million USD in 2035.
Current global trends are likely to drive growth, innovation, and competitive strategies in the South Korean Industrial Gases Market.
Challenges include fluctuating raw material prices and regulatory compliance impacting market dynamics.
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