Press Release   -

From Oxygen to Hydrogen: Industrial Gases Market Surges as Clean Energy and Electronics Boom Reshape Global Demand

According to analysts at Vantage Market Research, the Global Industrial Gases Market size is worth USD 105.82 Billion in 2024 and is projected to reach USD 365.65 Billion by 2035, growing at a CAGR (Compound Annual Growth Rate) of 11.95% from 2025 to 2035. The industrial gases sector is increasingly central to modern industrialization, underpinning critical processes across manufacturing, energy, chemicals, electronics, and healthcare. As global decarbonization initiatives gain traction, the industry is also evolving through the integration of hydrogen, carbon capture, and advanced gas-handling technologies.

Key Takeaways

1. The global industrial gases market is estimated at USD 105.82 billion in 2024, with a projected increase to USD 365.65 billion by 2035, reflecting a CAGR of 11.95% (2025–2035).
2. Asia Pacific leads in revenue share, while North America is seen as the fastest-growing region in the forecast window.
3. The industry exhibits moderate to high concentration: global leaders maintain scale advantages, yet regional and specialty gas players hold important niche positions.
4. Key drivers include the push for green hydrogen, expansion of semiconductor fabrication, and growth in healthcare and chemical sectors.
5. Major recent development: Air Liquide, in collaboration with TotalEnergies, committed over €1 billion to large electrolyzer-based hydrogen projects in Europe.

Future Investments by Key Players

1. Air Liquide – Investing in low-carbon hydrogen and carbon capture projects across Europe and Asia by 2030 to strengthen sustainable industrial gas production.
2. Linde plc – Expanding green hydrogen and air separation units in the U.S. and Middle East to meet rising industrial and energy demands by 2035.
3. Air Products & Chemicals, Inc. – Allocating multi-billion-dollar funds toward hydrogen infrastructure and carbon-free energy projects in the U.S. and Saudi Arabia.
4. Messer Group GmbH – Enhancing production capacity through advanced gas plants and digitalization of gas distribution networks in Europe by 2028.
5. Taiyo Nippon Sanso Corporation – Increasing R&D investments in hydrogen energy and semiconductor gas applications for sustainable industrial development in Japan.

Key Market Trends & Insights

Industrial gases are central to accelerating trends such as electrification, clean energy transitions, and advanced manufacturing. The hydrogen economy is evolving rapidly, and gases like oxygen, nitrogen, and argon serve essential roles in high-purity processes. On-site generation is increasingly favored to reduce logistics cost and improve responsiveness, while modular and decentralized production (micro-ASUs) are gaining traction. Meanwhile, supply chain resilience, regulatory compliance, and sustainability mandates are shaping investment decisions across the sector.

Market Size & Forecast

According to Vantage Market Research, the global industrial gases market stood at USD 105.82 billion in 2024, and is forecast to reach USD 365.65 billion by 2035, growing at a CAGR of 11.95% between 2025 and 2035. This aggressive growth projection reflects strong demand pull from electrification, hydrogen, and advanced industrial applications.

The industrial gases market is dominated by a handful of large global players such as Air Liquide, Linde, Air Products who capitalise on scale, deep infrastructure, and long-term contracts. Nevertheless, regional and specialty gas producers maintain footholds in niche geographies and high-purity segments. Barriers to entry are high due to capital intensity, safety regulation, and the importance of distribution logistics. Innovation in modular plants, digital service, and sustainable gas production are becoming differentiators.

Analyst’s Perspective & 2026 Strategic Goals for Leading Players

From an independent analyst vantage, the Vantage projection with exceptionally high CAGR must be viewed as aggressive it likely assumes broad adoption of hydrogen and modular ASU deployment beyond conservative baselines. That said, the path ahead is favorable: companies with agility in hydrogen, digital service, and distributed gas production stand to win.

Here are potential 2026 goals for leading companies:

1. Air Liquide: Achieve the 460 basis point margin improvement target by 2026 (from 2022 baseline).
2. Air Liquide / TotalEnergies: Bring first electrolyzer capacity online by 2027, but initiate commercial hydrogen corridors by 2026.
3. Linde plc: Ramp up CO₂ liquefaction capacity (e.g. Freeport expansion) and secure multi-year CO₂ offtake contracts by late 2026.
4. Messer SE: Commission initial green hydrogen or decarbonized ASU projects in Europe by 2026, scaling modular hydrogen capacity.
5. Regional players (e.g. Bhoruka, Ellenbarrie in India): Expand in-country supply chains for hydrogen, oxygen, and specialty gases aligned with national decarbonization.

Type Insights

The Industrial Gases Market is segmented by type into Oxygen, Nitrogen, Hydrogen, Carbon Dioxide, Acetylene, and Inert & Specialty Gases. Oxygen dominates due to extensive use in steelmaking, chemical oxidation, and healthcare. Hydrogen is the fastest-growing type, driven by global clean energy initiatives and hydrogen fuel adoption. Nitrogen and inert gases continue to play vital roles in electronics, metallurgy, and preservation processes, ensuring product purity and operational safety across industries.

Application Insights

Based on application, the market covers Manufacturing, Chemical Processing, Electronics, Healthcare, Energy, Metallurgy, and Food & Beverage sectors. The manufacturing and chemical segments hold the largest share, using gases for cutting, welding, and synthesis processes. The electronics application is rapidly expanding due to rising semiconductor fabrication. Healthcare continues to generate steady oxygen and nitrogen demand, while food & beverage applications leverage CO₂ and nitrogen for packaging, carbonation, and preservation efficiency.

Distribution Insights

By distribution, the market is divided into On-site, Bulk (Merchant), and Packaged/Cylinder supply modes. On-site generation is gaining traction among large industrial consumers seeking continuous gas supply with reduced logistics costs. Bulk or merchant distribution supports medium-volume users across chemicals and metallurgy industries. Packaged or cylinder distribution remains crucial for smaller facilities and healthcare applications, offering flexibility and portability. Growing digital monitoring and delivery optimization enhance reliability across all distribution models.

Regional Insights

North America Industrial Gases Market Insights

North America’s industrial gases market is expanding due to robust demand from healthcare, refining, and electronics manufacturing. The U.S. is witnessing major investments in hydrogen infrastructure, carbon capture, and semiconductor fabs, driving on-site gas generation projects. Companies like Air Liquide and Linde are strengthening their production bases through advanced distribution networks and sustainability commitments. The region’s focus on decarbonization, coupled with technological modernization, positions it as one of the fastest-growing global markets.

Europe Industrial Gases Market Insights

Europe’s industrial gases market is propelled by stringent environmental policies, the shift toward green hydrogen, and the electrification of industrial processes. The region hosts major players like Linde and Air Liquide, heavily investing in renewable energy-based gas production. Rising healthcare oxygen demand and circular economy initiatives are fostering innovation in gas recovery systems. Germany, France, and the U.K. dominate regional revenues, with increased focus on clean energy corridors and cross-border gas infrastructure integration.

Asia Pacific Industrial Gases Market Insights

Asia Pacific holds the largest market share, driven by strong industrialization, rapid manufacturing growth, and expanding semiconductor and energy sectors in China, India, Japan, and South Korea. Massive infrastructure projects, healthcare expansion, and government support for clean energy accelerate market growth. Global gas companies are expanding regional capacity through joint ventures and on-site production. The push for self-reliant hydrogen ecosystems and smart industrial clusters continues to strengthen Asia Pacific’s global leadership.

Latin America Industrial Gases Market Insights

Latin America’s industrial gases market is experiencing steady growth, led by demand from mining, metals, food processing, and oil refining sectors. Brazil and Mexico dominate the market with expanding petrochemical and healthcare infrastructure. However, logistical challenges and economic fluctuations affect pricing and distribution networks. Increased adoption of on-site and bulk supply systems, alongside regional partnerships with global gas firms, is improving supply reliability and operational efficiency across the region.

Middle East & Africa Industrial Gases Market Insights

The Middle East & Africa market is advancing through rising investments in hydrogen and petrochemical projects. The Gulf Cooperation Council (GCC) countries are driving initiatives to develop large-scale hydrogen hubs and sustainable industrial gas plants. Demand from oil & gas processing, metal fabrication, and healthcare sectors supports consistent growth. Africa, particularly South Africa and Egypt, is enhancing oxygen and nitrogen supply infrastructure. Strategic collaborations with global players are fostering market modernization.

Prominent Global Industrial Gas Market Players include:

1. Air Liquide
2. Linde plc
3. Air Products & Chemicals, Inc.
4. Messer SE & Co. KGaA
5. Nippon Sanso Holdings
6. BASF SE
7. Bhoruka Specialty Gases
8. Ellenbarrie Industrial Gases
9. Iwatani Corporation
10. Air Water Inc.
11. SOL Group
12. Gruppo SIAD

These firms invest heavily in capacity expansion, sustainability, and strategic acquisitions to stay competitive.

Recent Developments

1. In 2025 Q1, Air Liquide’s Gas & Services segment revenue rose 7.4%, partly driven by favorable energy & currency effects.
2. In 2025, Air Liquide raised its medium-term operating margin target, extending it through 2026 and increasing the expected margin uplift to +460 basis points from 2022 baseline.
3. In February 2025, Air Liquide and TotalEnergies committed more than €1 billion to joint electrolyzer projects in Europe (200 MW in Rotterdam, 250 MW in Zeeland) to push decarbonization.
4. In 2024, Messer SE & Co. KGaA partnered with the Düren district to create a green hydrogen plant via a new entity HyDN GmbH.

Report Scope

The Industrial Gases Market Report by Vantage Market Research provides an in-depth analysis of global revenue trends, covering the period from 2024 (base year) to 2035 (forecast). It includes detailed segmentation by Type (Oxygen, Nitrogen, Hydrogen, etc.), Application (Manufacturing, Electronics, Healthcare, Energy, etc.), and Distribution (On-site, Bulk, Packaged) across major regions. The study evaluates market size, CAGR, competitive landscape, key developments, and strategic initiatives, offering actionable insights for manufacturers, investors, and policymakers to identify emerging growth opportunities and industry shifts.

Market Dynamics

Driver

The scaling of green hydrogen production is a major growth lever, as global decarbonization efforts drive demand for hydrogen, oxygen, and associated gas infrastructure. Electrolyzer deployment and clean energy investments will expand the addressable market for industrial gases.

Restraint

Strict regulatory compliance and safety standards present a barrier. Industrial gas production, storage, and transport are heavily regulated, increasing operational costs and slowing facility approvals, particularly in regions with evolving safety regimes.

Opportunity

Advanced semiconductor and electronics fabrication require ultra-high purity gases, offering opportunities for premium gas supply contracts and long-term partnerships. The expansion of fabs globally opens a high-value segment.

Challenges

The industry faces high capital intensity and logistics complexity. Gas is expensive to transport over distance, so balancing localized supply and global reach is complex. Volatility in energy costs further pressures margins.

Market Segmentation

1. By Type: Nitrogen, Oxygen, Carbon Dioxide, Hydrogen, Nobel Gas, Others
2. Application: Manufacturing, Chemical Processing, Electronics/Semiconductors, Healthcare, Energy, Metallurgy, Refining, Others
3. By Distribution: On-site, Bulk, Cylinder (Merchant)
4. By Region: North America, Europe, Asia Pacific, Latin America, Middle East & Africa

Frequently Asked Questions

1. What was the market size in 2024, and what is the forecast to 2035?
2. The market size in 2024 is USD 105.82 billion.
3. It is forecast to reach USD 365.65 billion by 2035 (CAGR 11.95%).
4. Which region dominates, and which region grows fastest?
5. Asia Pacific dominates in revenue share.
6. North America is projected as the fastest-growing region in the forecast window (per Vantage).
7. What are the leading gas types?

Oxygen holds the largest share. Hydrogen is the fastest-growing segment.

1. Which applications or end-use industries offer the highest growth?

Electronics / semiconductor applications and the chemicals sector, driven by purity requirements and scale, are high-growth segments.

1. Who are key players and what are their strategies?
2. Key players: Air Liquide, Linde, Air Products, Messer, etc.
3. Strategies: capacity expansion, sustainable projects, acquisitions, long-term contracts, vertical integration.