PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1933207
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1933207
The global industrial gases market is witnessing steady expansion, driven by rising demand across manufacturing, healthcare, energy, and electronics industries. According to Fortune Business Insights, the industrial gases market was valued at USD 115.47 billion in 2025. The market is projected to grow from USD 122.01 billion in 2026 to USD 193.72 billion by 2034, registering a compound annual growth rate (CAGR) of 5.95% from 2026 to 2034. Asia Pacific dominated the global market with a share of 36.97% in 2025, supported by rapid industrialization and infrastructure development.
Industrial gases such as oxygen, nitrogen, hydrogen, carbon dioxide, argon, and specialty gases are essential inputs across a wide range of applications including metal fabrication, chemical processing, healthcare services, food preservation, electronics manufacturing, and clean energy solutions. The growing demand for high-purity gases, particularly from electronics, semiconductors, and healthcare sectors, continues to strengthen market fundamentals.
Market Drivers
One of the primary drivers of market growth is the rising demand for hydrogen as a clean fuel. Hydrogen is gaining global attention due to its ability to deliver high energy output without direct carbon emissions. Governments and private players are investing heavily in hydrogen fuel cell technology, transportation applications, and green hydrogen production. In 2025, several countries, including India, initiated hydrogen pilot projects to reduce carbon emissions, further accelerating demand for industrial hydrogen.
Another major growth driver is the expanding use of industrial gases in healthcare. Oxygen remains critical for respiratory therapy, intensive care, and surgical procedures, while nitrogen is widely used in pharmaceutical manufacturing and cryopreservation. Specialty gases such as helium, nitrous oxide, and carbon dioxide support medical imaging, anesthesia, and minimally invasive surgeries. The growing aging population and increased healthcare spending globally continue to boost demand for medical gases.
Market Restraints
Despite positive growth trends, the industrial gases market faces challenges related to stringent regulations governing gas manufacturing, storage, and distribution. High purity requirements and strict compliance standards enforced by regulatory bodies increase operational costs and create barriers for new market entrants. Additionally, safety risks associated with high-pressure and cryogenic gases necessitate continuous investment in compliance and risk management systems.
Market Opportunities
The increasing adoption of sustainable and green technologies, particularly carbon capture and storage (CCS), presents significant growth opportunities. Industrial gas companies play a vital role in CCS by supplying and purifying carbon dioxide for capture and long-term storage. As industries seek to reduce emissions from power plants, cement, and steel manufacturing, demand for CCS-related gas solutions is expected to grow steadily, creating new revenue streams for market players.
Market Trends
A key trend shaping the market is the shift toward decarbonization and green ammonia production. Traditional ammonia production is carbon-intensive, prompting companies to invest in green hydrogen-based ammonia facilities. This transition supports low-emission fertilizer production and aligns with global sustainability goals. Investments in electrolyzers and renewable energy-powered hydrogen production are expected to reinforce this trend throughout the forecast period.
By gas type, oxygen dominated the market, accounting for 29.80% of the global share in 2026, driven largely by demand from steel and metallurgy industries. By application, the cryogenic segment led the market with a share of 22.84% in 2026, supported by its use in aerospace, space exploration, and energy storage applications. By end-user, the healthcare segment held a leading share of 21.98% in 2026, reflecting the rising importance of medical gases in patient care and diagnostics.
Asia Pacific remains the leading region due to strong growth in China, India, and Japan. North America continues to benefit from advanced manufacturing and healthcare infrastructure, with the U.S. market projected to reach USD 28.4 billion by 2026. Europe is experiencing growth driven by hydrogen adoption and environmental regulations, while Latin America and the Middle East & Africa are expanding due to rising food processing and petrochemical activities.
Conclusion
In conclusion, the global industrial gases market is positioned for sustained growth from 2025 to 2034, supported by expanding industrial activity, rising healthcare demand, and accelerating investments in hydrogen and low-carbon technologies. While regulatory challenges and safety requirements persist, continuous innovation and the transition toward sustainable gas solutions are strengthening the market outlook. With the market expected to reach USD 193.72 billion by 2034, industrial gases will remain a critical enabler of global industrial, medical, and energy ecosystems.
Segmentation By Gas Type
By Application
By End User
By Region