Almost all industries, whether it’s manufacturing, construction, or healthcare, rely on a steady supply of high-quality gas. 

These industrial gases, such as oxygen, nitrogen, helium, or carbon dioxide, are used in various processes, such as combustion, metal fabrication, electronics manufacturing, and even fuel extraction.  

It’s no wonder that industrial gases command such a high market share. In 2022, the global market was valued at $99.99 billion and is expected to grow at a compound annual growth rate of 7.42% from 2023 to 2030.

What are the key trends that make up this growth? Let’s take a closer look. 

Industrial Gas Trends & Drivers

Trends by Industry 

One of the primary reasons for the growth of the industrial gas market is its applications in the food and beverage industry. 

Gases are used for several processes in this sector — from freezing fresh food to developing carbonated beverages. Industrial gases also find a role in the packaging and preservation of food products, as they can help reduce microbial growth, prevent spoilage, keep goods fresh, and create an inert environment. 

Ever-evolving customer preferences, including lifestyle changes and schedules, are a major growth-inducing factor in this industry. 

A second industry that sees various applications of industrial gases is manufacturing. Gases are a crucial part of several processes related to the manufacture of electronics, automobiles, and metal fabrication — all of which have been booming in recent years.

Some inert gases find applications in welding, while others, like neon, are instrumental in developing microchips. Certain gases — Hydrogen, for example — are even used to manufacture chemicals like ammonia and methanol.

The healthcare industry, too, has seen tremendous growth, with governments investing big in medical institutions and pharmaceutical companies, especially following the coronavirus pandemic. In this sector, gases like nitrogen, carbon dioxide, and oxygen are in high demand. 

Trends by Type 

So, which gases contribute most to the growth of the industrial gas market? 

As per a report from 2022, Nitrogen is the dominant gas, representing the largest market segment. It’s easy to see why — this non-flammable and non-toxic gas is cost-effective, safe, and freely available.

Nitrogen’s applications are found across industries for its exceptional ability to prevent oxidation, corrosion, and spoilage while ensuring the safety of workers. 

Oxygen, too, accounts for a high share of the revenue, with applications in almost every industry — healthcare, manufacturing, and chemicals, to name just a few. 

What’s holding the industry back?  

While there has been immense growth in the overall market and demand for specific gases, some reports suggest that one major factor is expected to slow down the industry’s growth over the next ten years. 

According to a Fortune report, this will be the stringent laws and regulations imposed on the manufacturing, transportation, and storage of industrial gases. 

Stay Informed with nexAir 

The industrial gas market is always subject to fluctuations, depending on various driving and restraining factors. The one constant, in this case, is nexAir.

With over 80 years of experience as the leading supplier of industrial gas and welding supplies across the Southeast, nexAir has made a reputation for itself — not just for its high-quality industrial gases but also because of our KnowHow.

As the industrial gas market continues to grow, nexAir will continue to be at the forefront, using our expertise to help our clients Forge Forward into the future.