Oxygen Market - Growth, Trends, and Forecasts (2023 - 2028)

The Global Oxygen Market is projected to register a CAGR of over 6% during the forecast period (2022-2027).

The demand for medical oxygen increased significantly during the COVID-19 pandemic as it was essential for treating severe cases of COVID-19. The oxygen production in various countries was increased to meet the increasing demand from hospitals. In Low and Middle-Income Countries, it was estimated that more than half a million people would require 1.1 million oxygen cylinders per day in 2021. Furthermore, the demand is likely to be strong in the medical industry owing to emerging cases of COVID globally.

Key Highlights

• Over the short term, the increasing demand for oxygen from the medical and healthcare industry and the growing demand for oxygen from the metals and mining industry are some driving factors stimulating the market demand.
• High costs for manufacturing oxygen and alternative fuel gases used for welding and cutting applications hinder the market's growth.
• The growing usage of oxygen for cosmetics applications will likely provide opportunities to the market studied.
• The Asia-Pacific region is expected to dominate the market and will also witness the highest CAGR during the forecast period.

Oxygen Market Trends

Increasing Demand From Healthcare Industry

• Oxygen is used in healthcare facilities to treat respiratory illnesses such as COVID-19 and pneumonia. It is also essential for surgery and trauma.
• In healthcare units, oxygen is used in primary health care, general wards, emergency transport, delivery rooms, operating theatres, ICUs, specialized hospitals, and outpatient units.
• The demand for oxygen from healthcare facilities is expected to grow shortly because of the emerging cases of COVID. As of June 6th, 2022, the United States had around 743 thousand active COVID cases, China had around 501 thousand COVID cases, and India had around 45 thousand COVID cases. The growing COVID cases are expected to result in more hospitalization and increase the oxygen demand.
• The daily cases of COVID are growing in Russia, Japan, Australia, Mexico, and North Korea. On June 16th, 2022, Russia added more than 3,000 cases, while South Korea added around 8,000 cases. More than 16,000 new cases were reported in Japan, and more than 32,000 cases were added in Australia.
• Owing to all these factors, the oxygen market will likely grow globally during the forecast period.

Asia-Pacific Region to Dominate the Market

• The Asia-Pacific region is expected to dominate the market. In the region, China is the largest economy in terms of GDP. China and India are among the fastest emerging economies in the world.
• In 2021, Asia and Oceania produced 1.38 billion metric tons of crude steel, an increase of 0.6% compared to 2020. China is the world's largest producer of steel. The crude steel production in China was 1032.8 million metric tons in 2021, slightly less than the previous year but significantly higher than the previous years. The construction sector is the key factor driving the demand growth for steel in the country, which accounts for almost two-thirds of the country's steel consumption.
• Factors like the rise in iron and steel prices in recent years and the recent reform initiatives taken by the Chinese government are supporting the growth of the domestic iron and steel industry.
• In India, to meet the growing demand for oxygen from hospitals during the COVID pandemic, the central government of India funded 1,222 pressure swing adsorption plants through the PM cares fund that could produce 1,750 metric tons of captive oxygen daily. Further, many new plants have been set up in various states through public sector undertakings and corporate sponsorships.
• Due to all such factors, the market for oxygen in the region is expected to have a steady growth during the forecast period.

Oxygen Market Competitor Analysis

The oxygen market is partially fragmented in nature. Some of the major players in the market include Air Products Inc., Linde plc, Air Liquide, Yingde Gases Group, and Messer North America Inc, among others (not in any particular order).

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