U.S. Industrial Gases Market (By Product: Nitrogen, Hydrogen, Carbon Dioxide; By Application: Healthcare, Manufacturing) - Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

U.S. Industrial Gases Market Size and Growth 2024 to 2033

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.

What are the Growth Factors of U.S. Industrial Gases Market?

The growth of the U.S. industrial gases market is propelled by 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

What are the Trends in U.S. Industrial Gases Market?

• Rising Demand in Healthcare: The healthcare sector's increasing use of industrial gases, such as oxygen and nitrogen, particularly in medical treatments and surgeries, is driving significant market growth.
• Growth in the Food and Beverage Industry: The food and beverage industry is seeing an increased demand for industrial gases like carbon dioxide for carbonation, refrigeration, and packaging, driven by the need for preservation and extended shelf life.
• Expansion of the Electronics Sector: The electronics industry is rapidly expanding, leading to higher demand for high-purity gases like argon and nitrogen, essential in semiconductor manufacturing and other electronic applications.
• Sustainability Initiatives: There is a growing focus on sustainability, with industrial gas companies investing in cleaner production methods and technologies to reduce carbon emissions and support environmental regulations.

What are the Key Challenges Faced by U.S. Industrial Gases Market?

• Regulatory Compliance: Navigating complex and stringent environmental and safety regulations can be challenging for industrial gas companies, impacting operational costs and requiring continuous updates to compliance practices.
• High Production Costs: The production of industrial gases, particularly specialty gases, often involves significant capital investment and high operational costs, which can affect profitability.
• Supply Chain Disruptions: Global supply chain disruptions, including shortages of raw materials and transportation issues, can impact the timely delivery of industrial gases and affect market stability.
• Environmental Concerns: The industry faces increasing pressure to reduce carbon emissions and adopt sustainable practices, which requires investment in cleaner technologies and processes.

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.

Who are the Top Manufactures in U.S. Industrial Gases Market?

• 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