Asia Pacific Industrial Gases Market

Asia Pacific Industrial Gases Market Size

The Asia Pacific industrial gases market size was calculated to be USD 25.39 billion in 2024 and is anticipated to be worth USD 43.01 billion by 2033, from USD 26.93 billion in 2025, growing at a CAGR of 6.03% during the forecast period.

MARKET DRIVERS

Expanding Steel and Metal Fabrication Industries

A significant driver of the Asia Pacific industrial gases market is the robust growth of steel and metal fabrication industries, which rely heavily on gases like oxygen, nitrogen, and argon. According to the World Steel Association, China produced over 1 billion tons of crude steel in 2022, accounting for 55% of global output. This production requires vast quantities of industrial gases, with oxygen alone contributing to a major portion of the total gas consumption in steelmaking. Similarly, India’s steel sector, projected to grow at 9% annually through 2030, as per the Ministry of Steel, further amplifies demand. Industrial gases are essential for processes like oxy-fuel cutting, laser welding, and inert gas shielding, making them indispensable in both traditional and advanced manufacturing. Like, the rise of specialty metals, such as titanium and aluminum alloys, has increased the need for high-purity gases, driving innovation and adoption across the region.

Rising Demand in Healthcare Applications

Another critical driver is the growing demand for industrial gases in healthcare applications, particularly medical oxygen and nitrogen. In Japan, hospitals and clinics rely extensively on liquid oxygen systems, with usage growing. Similarly, India’s National Health Mission has mandated the installation of oxygen plants in rural healthcare facilities, boosting demand significantly. Beyond oxygen, nitrogen is used for cryopreservation and inerting applications in pharmaceutical manufacturing, as stated by the Pharmaceutical Export Promotion Council of India. The aging population and rising prevalence of chronic diseases further amplify the need for reliable gas supply systems.

MARKET RESTRAINTS

High Transportation and Storage Costs

A significant restraint impacting the Asia Pacific industrial gases market is the high cost associated with transportation and storage, primarily due to the gases’ physical properties and safety requirements. According to the International Maritime Organization, incidents involving industrial gas transportation have risen by notably over the past five years, underscoring logistical challenges. Cryogenic gases like liquid nitrogen and oxygen require specialized containers and handling procedures, increasing operational expenses. In countries like Indonesia and the Philippines, inadequate infrastructure and lack of trained personnel exacerbate these issues, as stated by the ASEAN Federation of Chemical Industries. Additionally, the perishable nature of certain gases necessitates efficient supply chain management, which many small-scale manufacturers struggle to achieve.

Stringent Environmental Regulations

Another critical restraint is the implementation of stringent environmental regulations aimed at minimizing industrial emissions and promoting sustainability. While these measures are essential for reducing carbon footprints, they impose additional compliance costs on manufacturers. According to the Ministry of Ecology and Environment of China, industrial gas plants must adhere to strict emission standards, requiring upgrades worth 5−10 million per facility. Smaller players often struggle to afford such investments, leading to consolidation or closures. Moreover, regulatory restrictions on the use of certain gases, such as sulfur hexafluoride (SF6), due to their high global warming potential, limit market opportunities. For example, Australia’s Clean Energy Regulator mandates the phase-out of SF6 in electrical applications, forcing manufacturers to seek alternative solutions. These regulatory hurdles constrain operational flexibility and pose significant challenges to achieving sustained growth in the region.

MARKET OPPORTUNITIES

Emerging Role in Renewable Energy Solutions

A transformative opportunity for the Asia Pacific industrial gases market lies in its integration into renewable energy solutions, particularly hydrogen fuel cells and carbon capture technologies. According to the International Renewable Energy Agency, hydrogen production capacity in the region is expected to grow by 50% through 2030, driven by government initiatives like Japan’s Hydrogen Basic Strategy. Industrial gases play a pivotal role in producing green hydrogen through electrolysis, with companies like Panasonic and Toshiba pioneering large-scale projects. Similarly, carbon capture and storage (CCS) systems rely on gases like nitrogen and carbon dioxide to enhance efficiency. The push for net-zero emissions has amplified investments in these technologies, creating new revenue streams. Also, the adoption of hydrogen-powered vehicles in South Korea and China is driving demand for high-purity gases is positioning this sector as a catalyst for market expansion.

Growth in Electronics Manufacturing

Another significant opportunity arises from the booming electronics manufacturing sector, which relies on industrial gases for semiconductor fabrication and display technologies. According to the Semiconductor Industry Association, the Asia Pacific region accounts for the significant majority of global semiconductor production, with South Korea and Taiwan leading the charge. High-purity nitrogen and argon are essential for wafer cleaning and etching processes, ensuring precision and quality. In Japan, manufacturers like Sony and Hitachi source specialized gases for OLED and LCD screens, driving demand by 18% annually, as per the Japan Electronics and Information Technology Industries Association. In addition, government incentives for domestic chip production, such as subsidies in China, have further amplified consumption. The ongoing digital transformation and rise of IoT devices present immense growth potential, making electronics manufacturing a lucrative avenue for industrial gas suppliers.

MARKET CHALLENGES

Supply Chain Vulnerabilities

A pressing challenge in the Asia Pacific industrial gases market is the vulnerability of supply chains to disruptions, which hampers the availability of raw materials and finished products. According to DHL’s Global Trade Barometer, shipping costs in the region surged during the pandemic, impacting gas manufacturers reliant on just-in-time delivery systems. Natural disasters, such as typhoons and earthquakes, further compound these issues, disrupting production schedules. Additionally, geopolitical tensions, such as trade restrictions between China and Australia, have strained cross-border supply chains. These logistical challenges not only increase operational costs but also hinder the market’s ability to meet growing demand efficiently.

Intense Market Competition and Price Wars

Another significant challenge is the intense competition among market players, often leading to price wars that erode profitability. Like, a notable number of companies in the region operate on slim margins due to aggressive pricing strategies. For instance, in China, where the market is saturated with small-scale manufacturers, average selling prices dropped in 2022. This trend is exacerbated by the influx of low-cost imports from neighboring countries like Vietnam and Malaysia, further pressuring domestic players. Additionally, the lack of product differentiation compels companies to compete solely on price, stifling innovation and investment in advanced technologies.

REPORT COVERAGE

SEGMENTAL ANALYSIS

By Type Insights

The oxygen segment managed the Asia Pacific industrial gases market with a 35.1% share in 2024. It is driven by its critical applications in metallurgy, healthcare, and energy sectors. According to the World Steel Association, oxygen is indispensable for steel production, with China alone consuming substantial tons annually for processes like basic oxygen furnaces. The gas enhances combustion efficiency and reduces impurities, making it essential for producing high-quality steel. Beyond industrial and medical uses, oxygen plays a pivotal role in wastewater treatment and chemical synthesis.

On the other hand, the hydrogen segment is moving ahead quickly in this market, predicted to expand at a CAGR of 10.8%. This development is associated to its emerging role in renewable energy solutions, particularly hydrogen fuel cells and carbon capture technologies. Japan’s Hydrogen Basic Strategy aims to achieve a hydrogen-based society by 2050, driving investments in green hydrogen production through electrolysis. Similarly, South Korea’s push for hydrogen-powered vehicles has increased demand for high-purity hydrogen, with the government targeting 6.2 million hydrogen cars by 2040, as outlined in the Hydrogen Economy Roadmap. Alos, industries like refining and ammonia production rely on hydrogen for desulfurization and synthesis processes. The global shift toward net-zero emissions has amplified adoption, positioning hydrogen as a transformative force in reshaping the industrial gases market

By End-Use Insights

The metallurgy industry held the largest share of 28.6% in the Asia Pacific industrial gases market. It is basically due to its extensive use of gases like oxygen, nitrogen, and argon. According to the Confederation of Indian Industry, India’s steel sector consumes approximately 1.5 million tons of industrial gases annually, growing at 9% annually through 2030. Oxygen is critical for processes like oxy-fuel cutting and basic oxygen furnaces, while argon is used for inert gas shielding in welding. Similarly, China’s dominance in global steel production, accounting for a major share of output, amplifies demand. Beyond steel, aluminum and titanium production increasingly rely on high-purity gases for advanced fabrication techniques. The ongoing infrastructure development across the region further fuels consumption, strengthening metallurgy as the largest end-use segment in the industrial gases market.

The electronics industry is the fastest-growing end-use segment, with a projected CAGR of 12.3%. This is driven by the region’s leadership in semiconductor manufacturing, with South Korea and Taiwan accounting for substantial portion of global production. High-purity nitrogen and argon are essential for wafer cleaning and etching processes, ensuring precision and quality. In Japan, manufacturers like Sony and Hitachi source specialized gases for OLED and LCD screens, driving demand by 18% annually, as per the Japan Electronics and Information Technology Industries Association. Apart from these, government incentives for domestic chip production such as subsidies in China have further amplified consumption. The rise of IoT devices, 5G technology, and electric vehicles has created immense growth potential, positioning electronics as a key driver of innovation and expansion in the industrial gases market

REGIONAL ANALYSIS

China commands a 45.5% share of the Asia Pacific industrial gas market and is supported by its robust industrial base and rapid urbanization. The government’s focus on sustainable manufacturing has increased the adoption of gases in renewable energy projects, particularly hydrogen fuel cells. Additionally, China’s substantial rise in semiconductor manufacturing has amplified the demand for high-purity gases, as stated by the Ministry of Science and Technology. With ongoing infrastructure development and technological advancements, China remains the epicenter of the regional market.

India India is a significant growth area within the Asia-Pacific market. It is propelled by its growing industrial landscape and government-led initiatives. According to the Confederation of Indian Industry, the demand for industrial gases in India has surged rapidly, driven by its use in steel production and healthcare. The government’s “Make in India” campaign has encouraged domestic production, reducing reliance on imports. Furthermore, the healthcare sector’s adoption of medical oxygen has grown. With rising urbanization and industrialization, India presents immense growth potential in the industrial gases market.

Japan is seeing notable expansion in the market, described by its focus on high-tech applications and sustainability. As per the Japan Electronics and Information Technology Industries Association, the electronics sector consumes 30% of the country’s industrial gases, with demand growing at 18% annually. Japanese manufacturers like Sony and Toshiba rely on high-purity gases for semiconductor fabrication. Apart from these, the government’s emphasis on green chemistry has increased its use in renewable energy solutions, positioning Japan as a leader in innovation and eco-friendly practices.

South Korea is experiencing robust growth which is driven by its advanced electronics and semiconductor industries. According to the Korean Society of Semiconductor Engineers, the semiconductor sector accounts for a significant portion of industrial gas consumption, with demand growing notably. Companies like Samsung and SK Hynix source high-purity gases for wafer-cleaning processes. Besides, the country’s focus on sustainable practices has increased its use in renewable energy applications.

Australia is projected to see moderate growth in the Asia Pacific industrial gas market and is characterized by its emphasis on healthcare and environmental applications. Like, the healthcare sector’s adoption of medical oxygen has grown. The country’s strict environmental regulations promote its use in wastewater treatment and carbon capture systems. Additionally, the food processing industry’s reliance on gases like nitrogen for packaging compliance has further boosted demand.

LEADING PLAYERS IN THE ASIA PACIFIC INDUSTRIAL GASES MARKET

Linde plc

Linde plc is a global leader in the industrial gases market, with a significant presence in the Asia Pacific region. The company’s focus on innovation and sustainability has positioned it as a preferred supplier for industries like electronics, healthcare, and metallurgy. Linde emphasizes eco-friendly solutions, offering gases tailored to meet stringent environmental regulations. Its commitment to research and development ensures cutting-edge products that cater to emerging applications, such as hydrogen fuel cells and carbon capture technologies.

Air Products and Chemicals, Inc.

Air Products and Chemicals specializes in high-purity industrial gases, particularly for electronics and renewable energy applications. The company leverages its expertise in advanced manufacturing processes to deliver premium-quality products. Air Products’ strategic focus on Asia Pacific includes investments in hydrogen production facilities and partnerships with local manufacturers to meet growing demand. Its emphasis on sustainability aligns with regional environmental goals, enabling it to capture a significant market share.

Air Liquide

Air Liquide is renowned for its diverse portfolio of industrial gases, catering to sectors like healthcare, food processing, and metallurgy. The company’s dedication to green chemistry drives its development of eco-friendly products that comply with stringent regulations. Air Liquide collaborates with governments and private entities to promote sustainable practices, particularly in emerging markets like India and Southeast Asia. Its adaptability to regional needs and focus on innovation enable it to maintain a competitive edge.

TOP STRATEGIES USED BY KEY MARKET PARTICIPANTS

Expansion of Production Facilities

Key players in the Asia Pacific industrial gases market are aggressively expanding their production capacities to meet rising demand. Companies like Linde and Air Products have invested in state-of-the-art facilities to enhance output and ensure timely delivery. These expansions are strategically located near industrial hubs to minimize logistical challenges and improve supply chain efficiency. This strategy not only boosts their operational flexibility but also strengthens their competitive positioning in the region.

Focus on Sustainability and Eco-Friendly Solutions

Sustainability is a cornerstone of growth for leading players like Air Liquide and Linde. These companies prioritize the development of environmentally friendly industrial gas solutions, aligning with regional and global environmental goals. Additionally, their investments in renewable energy projects position them as pioneers in sustainable innovation. This focus on sustainability enhances their brand reputation and fosters long-term customer loyalty.

Strategic Collaborations and Partnerships

Collaborations with local manufacturers, governments, and industry stakeholders are critical for success in the Asia Pacific market. For instance, Air Products partners with steel manufacturers in India to promote advanced metallurgical processes, while Linde collaborates with semiconductor giants in South Korea to supply high-purity gases. These alliances enable companies to leverage shared expertise, access new markets, and tailor solutions to regional needs.

KEY MARKET PLAYERS AND COMPETITION OVERVIEW

Major Players in the Asia Pacific industrial gases market include Air Liquide, Linde plc, Taiyo Nippon Sanso Corporation, Air Products and Chemicals Inc., Iwatani Corporation, Mitsui Chemicals, Showa Denko K.K., Yingde Gases Group, Hangzhou Hangyang Co. Ltd., Fujian Yongjing Technology Co. Ltd.

The Asia Pacific industrial gas market is characterized by intense competition, driven by the presence of global giants like Linde, Air Products, and Air Liquide, alongside regional players. Established companies dominate through their extensive production capabilities, technological expertise, and strong distribution networks. These leaders focus on innovation, sustainability, and strategic collaborations to maintain their competitive edge. Meanwhile, smaller regional players often adopt cost-effective strategies to capture niche markets, particularly in emerging economies like India and Vietnam. This dynamic environment fosters healthy competition, encouraging continuous improvement and adaptation to changing market demands. Additionally, the rise of specialty applications, such as electronics and healthcare, has created new avenues for differentiation, prompting companies to invest in research and development. Regulatory pressures and environmental concerns further shape the competitive landscape, compelling players to adopt sustainable practices.

RECENT HAPPENINGS IN THE MARKET

• In January 2024, Linde plc expanded its hydrogen production facility in South Korea to meet rising demand from the electronics and automotive sectors. This move aimed to strengthen its foothold in renewable energy solutions.
• In March 2024, Air Products and Chemicals launched a new line of high-purity nitrogen tailored for semiconductor applications in Taiwan. This initiative targeted the growing electronics manufacturing industry in the region.
• In May 2024, Air Liquide partnered with an Indian steel manufacturer to supply oxygen for advanced metallurgical processes. This collaboration aligned with India’s push for sustainable industrial practices.
• In July 2024, Taiyo Nippon Sanso Corporation invested in R&D for carbon capture technologies in Japan. This action positioned the company as a leader in environmental sustainability solutions.
• In September 2024, Messer Group introduced a portable medical oxygen system for remote healthcare facilities in Indonesia. This product catered to the rising demand for reliable healthcare solutions in underserved areas.

MARKET SEGMENTATION

This research report on the Asia Pacific industrial gases market has been segmented and sub-segmented based on type, end use, and region.

By Type

• Oxygen
• Nitrogen
• Hydrogen
• Carbon Dioxide
• Acetylene
• Inert Gases

By End Use

• Chemicals
• Electronics
• Food & Beverages
• Healthcare
• Manufacturing
• Metallurgy
• Refining

By Region

• India
• China
• Japan
• South Korea
• Australia
• New Zealand
• Thailand
• Malaysia
• Vietnam
• Philippines
• Indonesia
• Singapore
• Rest of Asia-Pacific