According to TechSci Research report, “India Industrial Gases Market- By Region, Competition, Forecast and Opportunities, 2020-2030F”, the India Industrial Gases Market was valued at USD 3.06 Billion in 2024 and is anticipated to grow with a CAGR of 4.92% through 2030. As technology advances, especially in sectors like electronics and pharmaceuticals, there is an increasing demand for high-purity and ultra-high-purity gases to maintain product quality and performance. Specialized applications, such as semiconductor fabrication and advanced manufacturing, require customized gas mixtures and precise control, boosting the need for specialty gases. In 2023, INOX Air Products announced plans to invest between USD 35.83 and 59.72 million to set up ultra-high-purity facilities and a supply chain for gases critical to semiconductor production in India. Essential gases for chip fabrication include oxygen, nitrogen, argon, helium, nitrous oxide, methane, silane, and ammonia. The growth in electronics and semiconductor industries fuels demand for specialty gases like argon, nitrogen, and hydrogen, which are crucial for cleanroom environments and processes like etching and deposition.
In the pharmaceuticals and biotechnology sectors, gases such as carbon dioxide and nitrogen are needed for cryopreservation and fermentation, further driving the need for specialized gas solutions. Industries are increasingly seeking custom gas mixtures to enhance production processes, improve efficiency, and meet specific needs. This trend is contributing to the growth of the specialty gases segment. As industrial processes become more complex, the demand for specialty gases that support advanced manufacturing techniques continues to rise. The wide range of applications across various sectors, including high-tech industries, healthcare, and environmental technologies, is also increasing the need for specialty gases. Additionally, higher investments in research and development across different fields are driving the demand for specialty gases used in experimental and development processes.
Market Overview and Key Segments
By Product Type
- Oxygen
- Critical for medical applications (respiratory therapies, ICU)
- Essential in metal fabrication (cutting, welding)
- Growing demand from steel and chemical industries
- Nitrogen
- Largest market share (food packaging, electronics)
- Used in pharmaceutical manufacturing
- Applications in oil & gas industry (inerting, purging)
- Hydrogen
- Emerging as clean fuel alternative
- Crucial for petroleum refining
- Growing role in fuel cell technology
- Carbon Dioxide
- Beverage carbonation
- Cold storage applications
- Enhanced oil recovery
By Distribution Mode
- Bulk & Cylinder Supply
- Tonnage/Gaseous Delivery
- Packaged Gases
By Region
- South India (Fastest growing: 6.2% CAGR)
- North India (Steel & manufacturing hub)
- West India (Pharmaceutical & chemical industries)
- East India (Emerging industrial base)
Emerging Market Trends (2024-2030)
1. Digital Transformation in Gas Management
The industry is witnessing rapid adoption of IoT-enabled monitoring systems, AI-driven predictive maintenance, and automated distribution networks. These technologies optimize supply chain efficiency, reduce wastage, and enhance safety compliance.
2. Green Hydrogen Revolution
With India's National Hydrogen Mission targeting 5 million tonnes of green hydrogen production by 2030, major players like Linde India and INOX Air Products are investing heavily in electrolyzer technologies and hydrogen infrastructure.
3. Specialty Gases for High-Tech Industries
The booming semiconductor and electronics manufacturing sector is driving demand for:
- Ultra-high purity gases (99.9999% pure)
- Specialty gas mixtures for chip fabrication
- Advanced calibration gases
4. On-Site Gas Generation Growth
Industries are increasingly adopting:
- PSA nitrogen generators
- Membrane-based oxygen systems
- Cryogenic air separation units
This shift reduces logistics costs and ensures uninterrupted supply for critical applications.
Market Drivers and Opportunities
Key Growth Drivers
- Industrial Expansion: "Make in India" initiative boosting manufacturing
- Healthcare Sector Growth: Rising demand for medical oxygen
- Electronics Manufacturing: India's semiconductor mission creating demand
- Sustainability Push: Clean energy transitions driving hydrogen adoption
- Food Processing Growth: Modified atmosphere packaging applications
Emerging Opportunities
- Carbon Capture Utilization and Storage (CCUS)
- Helium recovery and recycling
- Industrial gas e-commerce platforms
- Gas-as-a-Service business models
10 Key Benefits of the TechSci Research Report
- Comprehensive Market Sizing
Detailed valuation of current market and future projections across all segments. - Granular Segment Analysis
In-depth examination of product types, applications, and regional markets. - Competitive Benchmarking
Comparative analysis of top 10 market players with SWOT assessments. - Emerging Trend Identification
Early detection of technological and business model innovations. - Regulatory Landscape
Complete overview of policies impacting gas production and distribution. - Supply Chain Mapping
Analysis of production, storage, and distribution networks. - Investment Opportunity Analysis
Identification of high-growth segments and white spaces. - Technology Roadmap
Forecast of innovations in production and application technologies. - Strategic Recommendations
Actionable insights for market entry and expansion. - Customized Solutions
Options for tailored research to address specific business needs.
Browse market data Figures spread through 200 Pages and an in-depth TOC on "India Industrial Gases Market”
https://www.techsciresearch.com/report/india-industrial-gases-marke/2596.html
The India Industrial Gases Market is segmented into product type, mode of distribution, regional distribution, and company.
Based on the Product Type, the Nitrogen emerged as the dominating segment in the Indian market for Industrial Gases in 2024. Nitrogen is utilized across a broad spectrum of industries, including steel, petrochemicals, food and beverage, electronics, and pharmaceuticals. Its wide range of applications, such as creating inert atmospheres, cooling, and blanketing, drives high demand. For instance, in 2023, Israel-based IceCure Medical launched the ProSense cryoablation system in India through distributor NovoMed Incorporation. This system uses liquid nitrogen for effective tumor treatment through freezing, ensuring safety and efficacy. Nitrogen's extensive role in processes like oil and gas extraction, chemical manufacturing, and controlled atmosphere environments reinforces its market dominance. India benefits from a well-established infrastructure for nitrogen production, storage, and distribution, supported by significant investments and a robust supply chain. In 2023, Linde India secured a long-term agreement to supply nitrogen, hydrogen, and compressed dry air to Indian Oil Corporation’s Panipat refinery. The high demand for nitrogen across various applications, including inerting, purging, and refrigeration, along with its cost-effectiveness, solidifies its position as the leading industrial gas in the market.
Based on the region, the South India emerged as the fastest growing region in the Indian Industrial Gases market during the forecast period. States such as Tamil Nadu, Karnataka, and Andhra Pradesh are witnessing rapid industrial growth in sectors like automotive, aerospace, pharmaceuticals, textiles, and chemicals, all of which have high demands for industrial gases. The South region is equipped with a robust infrastructure for the production, storage, and distribution of these gases. Major cities and industrial hubs in the region feature modern facilities and efficient logistics networks that streamline the supply chain. Key ports like Chennai and Visakhapatnam support the import and export of gases, bolstering regional industrial activities. In 2023, INOX Air Products commissioned a new Ultra-High Purity Cryogenic Medical Oxygen and Industrial Gases Plant in SIPCOT Phase II, Hosur, Tamil Nadu, with a manufacturing capacity of 200 tons per day. Additionally, in Hyderabad, Linde’s subsidiary Praxair India commenced commercial production at its new air separation unit (ASU) in 2023, which will produce 250 tonnes of gases per day, including liquid medical oxygen, nitrogen, and argon, serving the healthcare, pharmaceutical, and other industrial sectors in the region. The South's growth is driven by industrial expansion, advanced infrastructure, significant investments, and supportive government policies, making it the fastest-growing region in the Indian industrial gases market.
Major companies operating in India Industrial Gases Market are:
Competitive Landscape Analysis
Major Market Players
- Linde plc
- Market leader with 28% share
- Strong in tonnage gases and hydrogen solutions
- INOX Air Products
- Dominant in medical gases
- Expanding ultra-high purity facilities
- Air Liquide India
- Focus on sustainability solutions
- Strong R&D in specialty gases
- Taiyo Nippon Sanso
- Leading in electronics gases
- Expanding manufacturing footprint
Recent Industry Developments
- 2023: INOX commissioned 200 TPD oxygen plant in Tamil Nadu
- 2024: Linde signed 10-year supply contract with Tata Steel
- 2023: Air Liquide launched India's first green hydrogen cluster
Future Market Outlook (2030 Projections)
Growth Projections
- Overall Market Size: USD 4.3 billion by 2030
- Fastest Growing Segment: Hydrogen (8.1% CAGR)
- Regional Leader: South India (35% market share)
Key Growth Enablers
- Government Policies: PLI schemes for electronics and semiconductors
- Infrastructure Development: New industrial corridors and gas pipelines
- Technological Advancements: AI in gas production optimization
- Sustainability Mandates: Net-zero commitments driving clean gas adoption
Strategic Recommendations for Stakeholders
For Manufacturers
- Invest in modular gas plants for flexible production
- Develop green hydrogen capabilities
- Expand specialty gases portfolio
For Distributors
- Build digital marketplaces for gas trading
- Develop last-mile delivery networks
- Implement smart cylinder tracking systems
For End-Users
- Adopt on-site generation where feasible
- Implement gas recovery systems
- Explore gas mixture optimization
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“The Indian industrial gases market is experiencing swift growth, driven by heightened industrial activity and technological progress. Significant investments in infrastructure and a heightened emphasis on sustainability are key factors behind this expansion. The increasing demand for gases in industries like pharmaceuticals and electronics is encouraging companies to innovate and stay competitive. Additionally, the market is shifting towards automation and digital technologies, which are improving operational efficiency and influencing future development trends”, said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.
“India Industrial Gases Market By Product Type (Oxygen, Nitrogen, Hydrogen, Carbon Dioxide, Argon and Helium), By Mode of Distribution (Bulk & Cylinder, Tonnage/Gaseous, Packaged), By Region, Competition, Forecast and Opportunities, 2020-2030F”, has evaluated the future growth potential of India Industrial Gases Market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in India Industrial Gases Market.
Conclusion
The India Industrial Gases Market presents significant growth opportunities driven by industrial expansion, technological innovation, and sustainability trends. Stakeholders who align their strategies with emerging demands in electronics, healthcare, and clean energy will be well-positioned to capitalize on this expanding market.
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