The global industrial gas market size was estimated to be 950,000 kilotons in 2020, and is projected to register a compound annual growth rate (CAGR) of over 4% during the forecast period (2021-2026). The market was negatively impacted by COVID-19 in 2020, with the pandemic situation leading to a decrease in the consumption of carbonated soft drinks and soda water, which require carbon dioxide. The temporary halt in construction works during the lockdown also led to a decrease in the consumption of industrial gases like argon and hydrogen, which are used for welding purposes while construction.

However, the demand for oxygen for resuscitation and inhalation therapy increased from the medical industry during the pandemic situation, thus stimulating the market?s growth. Over the short term, the growing need for alternate energy sources and increasing demand from the healthcare sector are expected to drive the growth of the industrial gas market. Environmental regulations and safety issues are projected to further drive the market?s growth. The industrial growth in Asia-Pacific and Africa is likely to create opportunities for the market in the coming years.

The Asia-Pacific region is expected to dominate the market and is also likely to witness the highest CAGR during the forecast period. China accounted for a major chunk of the consumption in the region, while India is expected to witness the fastest growth in the region. Industrial gases are used in the transportation sector, including tire manufacturing using pressurized nitrogen, high-pressure argon for airbags, and carbon dioxide and nitrogen for precise and secure welding. The growing demand for iron and steel from various industries and the upcoming steel ventures, coupled with the government initiatives to boost the manufacturing sector, are expected to boost the usage of mechanical gas creation units to address the mass prerequisites for modern gasses.

The global medical technology industry had a revenue of USD 429.8 billion in 2019, with a growth rate of 6.3% compared to the previous year, stimulating the demand for the industrial gas market. The Indian healthcare market is expected to reach about USD 372 billion by 2022, considering the rising per capita income, increasing health awareness, and others, which stimulates the demand for medical gases.

The industrial gas market is consolidated in nature, with major players including Air Liquide, Air Products Inc., Linde PLC, Messer Group GmbH, and BASF SE, among others. Overall, the industrial gas market is likely to grow globally during the forecast period, driven by the growing need for alternate energy sources, increasing demand from the healthcare sector, and environmental regulations and safety issues.