The market is driven by industries such as manufacturing, healthcare, food and beverages, electronics, and chemicals. The growth of the market also depends on several factors, including the increasing requirements for oil and gas extraction and refining, rapid surface chilling technology, and industrial growth in emerging countries.

The oil and gas and petrochemical industries are growing at a rapid pace and are one of the key end-users of industrial gases. The use of carbon dioxide is increasing considerably in the oil and gas industry.

An increase in the use of nitrogen and carbon dioxide in oil recovery projects and a high requirement for low-sulfur diesel and gasoline, wherein these gases are used for sulfur separation, will foster market growth. The growth in fuel oil and gas demand has led to a simultaneous increase in the global refinery capacity due to the addition of new refineries and the expansion of the existing refinery complexes.

Innovations in storage design and packaging are the primary trend in the market. Due to the explosive, high flammability, and hazardous nature of industrial gases, utmost care is taken during handling, storing, and transport. Most companies are engaged in manufacturing effective storage facilities in their facilities or outsourcing them from other specialized companies engaged in the business of storage systems.

Criticalities in gas distribution and gas handling systems are the major challenges impeding the market. They play a crucial role in the manufacturing, processing, and packaging sectors. Distribution systems for industrial gases catering to the food and beverage and healthcare sectors must meet exacting standards.

The market share growth of the hydrogen segment will be significant during the forecast period.

APAC is estimated to contribute 41% to the growth of the global market during the forecast period. The demand for these gases is high in APAC due to the rapid expansion of infrastructure, which requires industrial gases to produce large volumes of steel. Also, the increasing need for alternate sources of energy is fueling the expansion of gasification plants and gas-to-liquids, coal-to-liquids, and coal-to-chemical plants. This will propel the demand for a large amount of oxygen. Regulations pertaining to fuel emissions have created the demand for cleaner fuels in the transportation sector, which in turn, will boost the need for hydrogen. With the rapidly depleting fossil fuel sources, the use of hydrogen as an energy source will gain traction in the coming years. The use of nitrogen for food preservation will also boost the growth of the market.

Source: Industrial Gases Market by Type, End-user, and Geography - Forecast and Analysis 2023-2027