The U.S. industrial gases market size was estimated at around USD 26.78 billion in 2023 and it is projected to hit around USD 51.47 billion by 2033, growing at a CAGR of 6.75% from 2024 to 2033. The U.S. industrial gases market represents a vital and dynamic sector that plays a pivotal role in supporting various industries' operational processes. Industrial gases are essential for a wide array of applications, ranging from manufacturing and healthcare to energy and electronics. As a key enabler of diverse industrial processes, the market has experienced notable growth and evolution in recent years.

Key Pointers

• By Product, the oxygen segment contributed the largest market share of 38% in 2023.
• By Application, the healthcare applications registered the maximum market share of 27% in 2023.

U.S. Industrial Gases Market Growth

The growth of the U.S. industrial gases market is propelled by several key factors. Firstly, the ongoing trend of industrialization in the United States has significantly increased the demand for industrial gases across diverse sectors. As manufacturing processes evolve and expand, gases like oxygen, nitrogen, and hydrogen play crucial roles in various applications. Additionally, technological advancements contribute to the market's growth, as innovative applications emerge, spanning from cutting-edge medical treatments to precise manufacturing techniques. Furthermore, the dynamics within the energy sector, where industrial gases are integral to processes such as refining and natural gas production, significantly drive market expansion. The healthcare industry also contributes to the surge in demand, relying on medical gases for therapeutic and diagnostic purposes. Overall, the confluence of industrialization, technological progress, and diverse industry dependencies positions the U.S. industrial gases market for sustained and robust growth.

Report Scope of the U.S. Industrial Gases Market

U.S. Industrial Gases Market Dynamics

Drivers

• Industrialization Surge: The continuous wave of industrialization in the United States is a primary driver, escalating the demand for industrial gases. As various manufacturing sectors expand, the need for gases like oxygen and nitrogen intensifies, supporting essential processes.
• Energy Sector Demand: The energy sector's reliance on industrial gases for crucial processes such as refining and natural gas production is a key driver. As the energy landscape undergoes transformations, the demand for these gases remains steadfast.

Restraints

• High Initial Capital Investments: One significant restraint is the high initial capital investments required for the production and distribution of industrial gases. The infrastructure necessary for the manufacturing and storage of these gases involves substantial upfront costs, which can pose a challenge for market entrants and smaller companies.
• Stringent Regulatory Compliance: The industry is subject to stringent regulatory compliance, given the nature of industrial gases and their potential impact on safety and the environment. Adhering to and maintaining compliance with regulatory standards can be a complex and resource-intensive process, adding a layer of challenge for market participants.

Opportunities

• Hydrogen Economy Development: The evolving landscape of the hydrogen economy, driven by a shift towards cleaner energy solutions, provides a significant opportunity for industrial gas producers. Hydrogen's role in energy storage, fuel cells, and other applications positions it as a key driver for market expansion.
• Integration with Digitalization: The integration of digital technologies in industrial processes opens new opportunities for the market. IoT (Internet of Things) applications and data analytics can enhance efficiency in gas production, distribution, and usage, creating avenues for innovative solutions and services.

Product Insights

Oxygen dominated the market with a revenue share of 38% in 2023, owing to its wide range of applications, due to its life-sustaining and oxidizing properties. It plays a critical role in several health applications and medical procedures. Oxygen is used in respiratory treatment and during surgeries. The versatility and essentiality of oxygen make it a vital component in chemical and healthcare industries.

Oxygen is the second-largest constituent of the Earth’s atmosphere, accounting for a share of 20.8% in terms of volume. Although oxygen is used in gaseous form in most applications, it is generally liquefied so that it can be effectively and efficiently transported and stored in large volumes.

Oxygen is used in certain medical devices and apparatuses such as oxygen concentrators and ventilators, which are used for patients with severe respiratory ailments. In addition, it is utilized in certain diagnostic procedures, such as oximetry, to measure the amount of oxygen in the blood of the patients.

Moreover, increasing usage of CO2 in the beverage and medical industries is further anticipated to be a key factor driving the product market. In the food & beverage industry, CO2 is widely used for freezing vegetables, fruits, and meat & poultry products.

The use of CO2 in medical applications is increasingly gaining significance. It is used to minimize invasive surgeries. The surge in research & development investments for the launch of advanced technologies related to enhanced oil recovery (EOR) and carbon capture and storage (CCS) has led to the rising demand for CO2. This, in turn, is anticipated to fuel the growth of the carbon dioxide segment in Las Vegas industrial gases market in the coming years.

Application Insights

Healthcare applications led the market with a revenue share of 27% in 2023. Industrial gases are a vital part of the healthcare sector owing to their role in different applications. In medical applications, oxygen is used in respiratory therapy, anesthesia, and life support systems. This is further driving the industrial gas market in the U.S.

Las Vegas has a few of the major hospitals in the U.S., including the Sunrise Hospital and Medical Center, the University Medical Center, and the Valley Hospital Medical Center, which provides different medical services such as specialized treatments, surgeries, and emergency care. Besides this, there are around 70 other hospitals and medical clinics serving the residents and tourists in the city. Industrial gases are a vital part of the healthcare sector owing to their role in different applications. This is further driving the industrial gases market in Las Vegas.

In medical and pharmaceutical industries, nitrogen is used in numerous applications. Cryopreservation utilizes nitrogen at a large scale to preserve blood, blood components, cells, body fluids, and tissue samples for an extended duration. Moreover, nitrogen is useful for surgical procedures carried out by power gas-operated medical devices. In these devices, nitrogen acts as a coolant for carbon dioxide surgical lasers to reduce the damage to adjacent tissues. Nitrogen is utilized in medical imaging applications as well.

Industrial gases such as carbon dioxide and nitrogen are used in a wide range of applications in the food & beverages industry. They are employed for chilling & freezing and modified atmospheric packaging (MAP) applications, as well as for controlling the temperature of food products during their transportation and storage. These gases are mainly used to maintain the quality of food products and increase their shelf life. In addition, industrial gases are used as indicators to ensure that the required quality of food products is maintained during their processing and storage.

Nitrogen is used at a large scale in the electronics industry, the growth of this industry in the U.S. is expected to drive the demand for nitrogen. Moreover, the rising adoption of advanced technologies in different industries in the region has fueled the demand for semiconductors. This, in turn, surges the consumption of nitrogen used for developing semiconductors in the U.S.

U.S. Industrial Gases Market Key Companies

• Messer North America, Inc.
• Air Products and Chemicals, Inc.
• Linde plc
• Air Liquide
• Matheson Tri-Gas, Inc
• BASF SE
• MESA Specialty Gases & Equipment
• Universal Industrial Gases, Inc.

U.S. Industrial Gases Market Report Segmentations:

By Product

• Nitrogen
• Hydrogen
• Carbon Dioxide
• Oxygen
• Argon
• Acetylene

By Application

• Healthcare
• Manufacturing
• Metallurgy & Glass
• Food & Beverages
• Retail
• Chemicals & Energy
• Others Applications