PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1803424
PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1803424
The global medical gases and equipment market was valued at USD 18.1 billion in 2024 and is expected to reach USD 31.2 billion by 2032, growing at a compound annual growth rate (CAGR) of 7.2% from 2025 to 2032. This growth is primarily driven by the rising incidence of chronic diseases, an increase in the home healthcare sector, and technological advancements in medical equipment. The growing prevalence of respiratory diseases, exacerbated by factors such as tobacco smoking and pollution, along with a rising number of preterm births, is further propelling market expansion.
Governments and public organizations are actively supporting the adoption of medical gases and equipment, with regulatory updates such as the U.S. FDA's new guidelines on oxygen supply labeling aiming to reduce the risk of gas contamination. These initiatives, along with the increasing focus on energy-efficient and cost-effective healthcare solutions, are expected to further drive demand for medical gases and equipment in the coming years.
Key Insights
Healthcare Sector Growth: Rising healthcare expenditures globally, coupled with the aging population, are significant drivers for the market. The elderly are more susceptible to chronic diseases, increasing the need for advanced medical gases and equipment. The demand for oxygen, especially for respiratory and cardiovascular diseases, continues to surge, with oxygen being a vital element in treatments for conditions like COPD and cardiac arrest.
Respiratory Disease Prevalence: Diseases like asthma and chronic obstructive pulmonary disease (COPD) are rising due to environmental pollution and smoking, which is driving the need for medical gases such as oxygen and medical air. According to the WHO, asthma affects over 260 million people globally, creating substantial demand for treatments that rely on medical gases.
Emerging Economies: Countries like China and India offer significant market opportunities, driven by improving healthcare infrastructure and growing incomes. The increasing demand for medical gases and equipment in these regions is further fueled by rising urbanization and healthcare investments.
Technological Advancements: The growing use of advanced gas handling equipment, such as oxygen concentrators and cryogenic products, is enhancing the functionality of medical gases in healthcare settings. These innovations, combined with lightweight and portable cylinders for home healthcare, are making it easier to provide long-term care at home.
Medical Gas Equipment Demand: Equipment for the delivery of medical gases, including cylinders, valves, manifolds, and compressors, is growing at a faster pace than gases themselves. The increase in healthcare facilities, especially hospitals, diagnostic centers, and home healthcare services, is driving demand for these equipment.
Form of Delivery: High-pressure cylinders, which make up 55% of the market share, remain the preferred delivery method for medical gases due to their ease of use and safety. However, bulk delivery systems are emerging as the fastest-growing category due to the increasing need for large-scale gas supply in hospitals and long-term care facilities.
Therapeutic Applications: The therapeutic category holds the largest market share, driven by the increasing use of gases like oxygen, carbon dioxide, and helium in treating respiratory diseases, cardiovascular diseases, and during surgeries. The growing popularity of minimally invasive procedures like laparoscopy and endoscopy is further boosting demand for gases like carbon dioxide for insufflation.
Diagnostics and Research: The diagnostics segment, with a projected CAGR of 8.5%, is rapidly growing as medical gases such as liquid helium are used for cooling superconductive coils in MRI machines and calibrating instruments used for anesthetics.
End-User Insights: Hospitals accounted for the largest revenue share in 2024, utilizing medical gases and equipment in emergency rooms, surgical rooms, and intensive care units. However, the home healthcare sector is expected to grow at the highest CAGR, driven by the increasing trend of at-home care and portable oxygen devices for respiratory patients.
Regional Trends: North America led the market with a 40% share in 2024, driven by the high prevalence of respiratory diseases and extensive healthcare facilities. However, Asia-Pacific is expected to grow at the highest rate, fueled by an aging population, increasing respiratory disease cases, and rapid urbanization in countries like China, India, and Japan.
Market Fragmentation: The market is fragmented, with different players involved in supplying gases and equipment. Companies like Air Products and Chemicals, Linde, and Flexicare dominate the sector, while newer entrants are focusing on meeting the growing demand for medical gases during the COVID-19 pandemic.