Asia Pacific Industrial Gases Market Report and Forecast 2024-2032

Asia Pacific Industrial Gases Market Size

The Asia Pacific industrial gases market, valued at USD 32.45 billion in 2023, is projected to grow at a CAGR of 5.46% during 2024-2032, reaching USD 51.63 billion by 2032.

Asia Pacific Industrial Gases Market Outlook

• According to GOI, India consumes about 5 MMT of Hydrogen annually with 99% utilisation in ammonia manufacturing and petroleum refining.

• According to the IEA, nitrogen use as maritime fuel will reach 203 MT by 2050, and Asia Pacific will fuel this growth.

• According to the WEF, the Japanese Government allocated 2023 JPY 2 trillion in 2022 to support domestic semiconductor production.

Asia Pacific Industrial Gases Market Growth

With increasing investments by governments and FII in electronics, packaging, and beverage manufacturing there is a rapid rise in the production of industrial gases across these sectors. Many industrial gases like oxygen act as a lifeline for industries which involve combustion. Recent advancements in technology and new industry openings across different sectors are boosting the Asia Pacific industrial gases market.

India and China ranked in the top 3 in terms of land area in the Asia-Pacific, with about 50-60% of this land being used for agricultural practices. Fertiliser is one such key element that plays an important role in this agricultural sector. Hydrogen gas acts as an active ingredient in the manufacturing of fertilisers, thus generating demand for industrial gases in the Asia Pacific.

Companies can now benefit from schemes like Make in India and the 2030 hydrogen mission in the Asia Pacific, allowing companies to use incentives for better production capability and price positioning in the market.

DEMAND OF NITROGEN IN ASIA PACIFIC FORECAST (STATED POLICIES SCENARIO) 2020-2050

Key Trends and Developments

Technological innovations and advancements, hydrogen as a green fuel, disinfecting agents, and medical applications are fueling the Asia Pacific industrial gases market.

April 2024

Nippon Sanso Holdings Group successfully demonstrated the production of hydrogen from ammonia for fuel cell vehicles (FCVs) meeting all the quality standards specified by ISO.

February 2024

Matheson's biotechnology team and leading research hospital jointly developed an efficient system for cell storage and handling, providing remote access to a cloud-based system for better monitoring and oversight.

January 2024

Air Products received the Community Care Award and Dual Carbon Contribution Award at the Philanthropy Festival and the 2023 ESG Summit in Beijing.

November 2023

Iwatani Corporation acquired Malaysian refrigerant companies Westech Chemicals and Iso Kimia to expand its presence across the South Asian refrigerant Market.

Technological innovations and advancements

With recent advancements in manufacturing processes, gases like helium, nitrogen and hydrogen are playing a pivotal role in complex processes like photolithography in the manufacturing of semiconductors.

Hydrogen as a green fuel

With an increasing focus on reducing carbon emissions, fuel cells are the most suitable alternative for power generation compared to traditional fossil fuels.

Disinfecting agent

Ozone, with its quick decomposing property and aggressive nature, allows it to act as a disinfecting agent for water, laundry, food, and air.

Medical Gases

With an increasing ageing population in developed countries and rising cases of Chronic obstructive pulmonary disease (COPD), there is a large demand for respiratory therapy which involves oxygen as its major component.

Asia Pacific Industrial Gases Market Trends

As Asia Pacific contains the 3 major fastest economies of the world, there is rapid growth in the number of industries in the manufacturing sector. With an increasing demand for superior processes across these manufacturing companies, there is a significant increase in the use of industrial gases.

Incentive schemes by Governments act as fillers for companies to increase their production capacity and reach net zero emission levels. In Asia Pacific, the industrial gas market is driven by advancements in manufacturing processes and sustainability.

Asia Pacific Industrial Gases Market Segmentation

Asia Pacific Industrial Gases Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Nitrogen

• Oxygen

• Carbon Dioxide

• Argon

• Hydrogen

• Others

Market Breakup by Application

• Manufacturing

• Metallurgy

• Energy

• Healthcare

• Chemicals

• Others

Market Breakup by Supply Mode

• Packaged

• Bulk

• On-Site

Market Breakup by Country

• China

• Japan

• India

• ASEAN

• Australia

• Others

Asia Pacific Industrial Gases Market Share

With recent advancements in manufacturing space, there is a need for specialized gases like argon, carbon dioxide, and nitrogen in industries like semiconductors, food beverages and others boosting the Asia Pacific industrial gases market growth.

Argon and carbon dioxide play an important role in welding applications, as they act as shielding agents due to their inert nature.

Oxygen plays a crucial role in steel manufacturing as it provides better combustion, increasing the efficiency of the overall process.

Nitrogen, due to its inert nature, is best suited for the deposition process for producing high-quality semiconductors. With the increase in demand for carbonated beverages, carbon dioxide finds its application in wine, beer, and soda beverages.

The Asia Pacific industrial gases market growth is propelled by the manufacturing sector, where these gases are crucial for maintaining precise conditions, improving safety, and optimizing production processes across diverse industries.

Industrial gases find their application in cryogenic cooling, purging, and welding applications across various industries.

Governments across countries are looking to further reduce emissions by introducing new regulations. With strict norms, companies have started to look for alternatives, and hydrogen, due to its abundance, is the best alternative available on the market. The rising demand for a sustainable future is attributable to the growth of the industrial gas market in Asia and the Pacific.

The Asia Pacific industrial gases market share is boosted by the advancements in technology and modernising of the traditional distribution channel.

Certain industries require on-time delivery of gases, so they prefer to have onsite production as any delay in delivery of gases can hamper the whole manufacturing process.

Manufacturing industries across different sectors don't have specialised gas production, and they require huge volumes of gases to perform certain production processes. All these factors are promoting the growth of the industrial gas market in Asia and the Pacific.

Leading Players in the Asia Pacific Industrial Gases Market

Market players are driving Asia Pacific industrial gases market growth by offering air-conditioning devices at competitive pricing and offering additional health benefits to their consumers.

Linde plc., founded in 1879, has its headquarters in the United Kingdom and serves customers with its industrial gases across healthcare, petroleum refining, manufacturing, food, beverage carbonation and water treatment industries.

Messer Asia Pacific, Inc., established in 1898, and headquartered in Bad Soden, Germany, supplies various industrial gases including oxygen, nitrogen, argon, carbon dioxide, hydrogen, helium, and shielding gases for industrial applications.

Matheson Tri-Gas was established in 1927 having its headquarters in the United States supplies industrial gases for various industries including medical, chemical, and electronic manufacturers.

Air Products and Chemicals, Inc., established in 1940, is headquartered in the United States. Offering a variety of industrial gas options from generalized gases to on-demand specialized gases

Other Asia Pacific industrial gases market key players are L’AIR LIQUIDE S.A, Iwatani Corporation, and Nippon Sanso Holding Corporation among others.

Asia Pacific Industrial Gases Market Analysis by Country

With rapid economic growth in this region, fuelled by the economic growth of companies like India, China, Japan, and ASEAN nations, there is rapid industrialization in this region, with many companies opening their manufacturing plants across the region. The industrial gas market is expanding at a rapid pace due to its application in these industries.

According to the IEA, Asia Pacific produces 1649.71 MT of carbon dioxide emissions through natural gas. As of 2021, high levels of carbon emissions contribute significantly to rising temperatures in this region. Hydrogen can reduce this emission by reducing the carbon footprint in this region.

Asia Pacific industrial gases market development is supported by strong government policies and investments with a vision to become net zero are creating a strong push for green hydrogen production in this region.

Key Highlights of the Report