India Industrial Gases Market Size, Share, Growth, and Forecast 2025-2033

Market Overview:

According to IMARC Group's latest research publication, "India Industrial Gases Market Size, Share, Trends and Forecast by Type, Application, Supply Mode, and Region, 2025-2033", the India industrial gases market size reached USD 3.56 Billion in 2024. Looking forward, the market is expected to reach USD 6.82 Billion by 2033, exhibiting a growth rate (CAGR) of 7.12% during 2025-2033.

This detailed analysis primarily encompasses industry size, business trends, market share, key growth factors, and regional forecasts. The report offers a comprehensive overview and integrates research findings, market assessments, and data from different sources. It also includes pivotal market dynamics like drivers and challenges, while also highlighting growth opportunities, financial insights, technological improvements, emerging trends, and innovations. Besides this, the report provides regional market evaluation, along with a competitive landscape analysis.

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Our report includes:
● Market Dynamics
● Market Trends and Market Outlook
● Competitive Analysis
● Industry Segmentation
● Strategic Recommendations

Growth Factors in the India Industrial Gases Market

● Clean Energy Transition Driving Unprecedented Demand

India's ambitious push toward decarbonization is reshaping the industrial gases landscape in ways that weren't imaginable just a few years ago. The country's commitment to net-zero emissions has positioned industrial gases-particularly hydrogen, oxygen, and carbon dioxide-as essential enablers of low-carbon technologies. What's really exciting here is the scale of transformation happening. Take green hydrogen production, for instance. Indian Oil's recent completion of pricing on its 10,000-tonne-per-year green hydrogen facility in Panipat represents a tangible step toward substituting fossil-derived hydrogen and strengthening the country's Net Zero ambitions. This isn't just one facility-it's indicative of a broader trend where major energy companies are investing heavily in clean fuel infrastructure.

The production of green hydrogen requires consistent supplies of industrial gases and sophisticated delivery systems to maintain the purity and pressure specifications that make the technology viable. Carbon capture, utilization, and storage (CCUS) technologies are another major consumption driver. Industries implementing CCUS solutions depend on industrial gases to enable emission-reducing processes that allow them to continue operations while meeting increasingly strict environmental regulations. Power generation plants, cement manufacturers, and heavy industries are all looking at gas-based systems as cleaner alternatives to conventional fuels. Government-sponsored sustainability programs are accelerating this shift, creating a supportive environment where companies feel confident making long-term investments in gas infrastructure. What makes this particularly sustainable is that these aren't temporary trends-they're fundamental shifts in how India produces and consumes energy. The emphasis on energy efficiency across sectors from power generation to manufacturing is creating sustained, growing demand for reliable gas supply and application systems.

● Healthcare and Pharmaceutical Sectors Creating Sustained Growth

The expansion of India's healthcare and pharmaceutical industries is generating substantial demand for both medical and industrial gases, and the numbers tell a compelling story. Air Liquide India's commissioning of a ₹350 crore air separation unit in Mathura in July 2024 highlights the confidence major players have in this market. This facility produces oxygen, nitrogen, and argon for local supply, addressing the critical need for reliable gas availability that became so apparent during recent healthcare challenges. Hospitals across the country-from metropolitan medical centers to rural health facilities-require continuous supplies of medical oxygen for surgical operations, intensive care units, and emergency services. The nationwide upgrade of healthcare infrastructure, especially in semi-urban and rural areas, has led to a boom in on-site oxygen production plants and cryogenic storage facilities.

What's particularly interesting is how medical gas requirements have become more sophisticated. It's not just about having oxygen available; healthcare facilities need gases delivered at specific purities, pressures, and flow rates, with backup systems and monitoring capabilities that ensure uninterrupted supply. The pharmaceutical industry adds another dimension to this demand. Drug synthesis, chromatography processes, lyophilization, and packaging operations all require high-purity gases where even minor contamination can compromise entire production batches. Biotechnology laboratories, vaccine production facilities, and diagnostic centers depend on constant gas flow for cell culture maintenance, sample preservation, and analytical work. With India positioning itself as a global pharmaceutical manufacturing and export hub, the demand for process-critical gases continues climbing. The rise in chronic diseases, improved medical awareness, and the shift toward advanced medical infrastructure all reinforce the need for industrial gases that ensure safety, quality, and operational efficiency across healthcare settings.

● Industrial Expansion Fueling Core Market Growth

India's refining and steel production industries are absolute powerhouses when it comes to industrial gas consumption, and recent production data underscores just how strong this foundation is. Industrial production grew by 5.0% month-on-month in January 2025, compared to 3.5% the previous month-demonstrating robust industrial momentum that directly translates to gas demand. These heavy industries operate around the clock and consume massive quantities of oxygen, nitrogen, hydrogen, and argon for processes like smelting, welding, purging, and cooling. Steel mills, for example, use oxygen and argon extensively for cutting and refining operations, where the quality and consistency of gas supply directly impacts production efficiency and final product quality. Hydrogen plays an equally critical role in petroleum refining, where it's essential for hydrocracking and hydrotreating processes that convert heavy crude fractions into valuable products like diesel and gasoline.

Infrastructure development and urbanization are creating multiplier effects throughout the economy. Every new highway, bridge, housing project, or commercial building requires steel, which in turn drives oxygen and argon consumption. Energy sector developments-from power plants to renewable installations-require various industrial gases for construction, commissioning, and ongoing operations. What's transforming the supply dynamic is the growing adoption of on-site gas generation systems. Companies are increasingly investing in their own production facilities to ensure supply security and reduce transportation costs. This shift is particularly significant for large industrial consumers who can justify the capital investment in exchange for long-term cost savings and operational reliability. The 'Make in India' initiative is amplifying these trends by encouraging domestic manufacturing across sectors, each bringing its own gas requirements. As local production increases, so does the need for industrial gases that enable modern manufacturing processes.

● Research and Development Investment Expanding Specialty Gas Applications

India's research and development landscape is experiencing remarkable growth, and the impact on industrial gas demand is substantial. According to the Department of Science & Technology, Gross Expenditure on R&D (GERD) more than doubled from approximately INR 60,196.75 crores in 2010-11 to INR 127,380.96 crores in 2020-21. This massive investment is driving innovation across pharmaceuticals, chemicals, electronics, and renewable energy-all sectors that depend heavily on specialty gases for their operations. The nature of R&D work demands gases with exceptional purity levels and precise specifications. Hydrogen is crucial for clean fuel research, where scientists are exploring everything from fuel cell technologies to combustion characteristics of hydrogen-enriched fuels. Electronics manufacturing requires ultra-pure nitrogen and argon for creating controlled atmospheres during semiconductor fabrication and component assembly, where even trace contaminants can cause defects in sensitive electronic components.

What makes this trend particularly significant for gas suppliers is that R&D facilities often require smaller volumes than industrial production but demand higher purity grades and more specialized gas mixtures. This creates opportunities for value-added products and services that command premium pricing. Government-supported innovation parks and collaborative industrial clusters are emerging across the country, stimulating local production of specialty gases and reducing dependence on imports. These facilities often house multiple research teams and startups, creating concentrated demand nodes that justify investment in local gas production and distribution infrastructure. The push toward technology integration across industries means that as R&D activity intensifies, the requirements for high-purity gases used in experimental and precision-based applications continue expanding. Companies serving this segment need technical expertise and customer service capabilities that go beyond simple gas delivery.

Key Trends in the India Industrial Gases Market

● Nitrogen Dominates Type Segmentation with Versatile Applications

Nitrogen has established itself as the leading gas type in India's industrial gases market, capturing approximately 32.0% of total market share in 2024. This dominant position reflects nitrogen's remarkable versatility across diverse industrial applications. The gas's inert properties make it invaluable for creating controlled atmospheres, preventing oxidation, and supporting blanketing and purging operations in chemical processing, pharmaceutical manufacturing, food packaging, and electronics production. Chemical plants use nitrogen to maintain inert environments during reactions and storage, preventing unwanted oxidation or combustion. In pharmaceutical facilities, nitrogen provides the clean, dry environment necessary for drug formulation and packaging. The food processing industry relies heavily on nitrogen for modified atmosphere packaging, which extends shelf life by displacing oxygen that would otherwise cause spoilage.

Electronics manufacturers use nitrogen during soldering and component assembly to prevent oxidation that could compromise connection integrity. What's particularly driving nitrogen's growth is the advancement in on-site generation technology. Companies can now install nitrogen generators that produce the gas on-demand, eliminating the need for delivered supplies and reducing costs significantly. This technological shift has made nitrogen more accessible and cost-effective for medium-sized operations that previously couldn't justify the logistics of cylinder deliveries. Environmental considerations also favor nitrogen adoption-it's non-toxic, non-flammable, and doesn't contribute to greenhouse gas emissions, making it an environmentally responsible choice that helps companies meet sustainability goals. The combination of broad application versatility, improving generation technology, and environmental benefits positions nitrogen as a cornerstone of India's industrial gas consumption.

● Manufacturing Sector Commands Largest Application Share

The manufacturing sector has emerged as the dominant application segment in India's industrial gases market, accounting for approximately 45.8% of market share in 2024. This leadership position stems from manufacturing's intensive use of gases across numerous processes and sub-sectors. Automotive manufacturing requires gases for welding vehicle frames and components, heat treating parts to achieve specific metallurgical properties, and creating protective atmospheres during painting and coating operations. Steel production consumes enormous quantities of oxygen for blast furnaces and argon for refining processes that remove impurities. Electronics manufacturing depends on nitrogen and specialty gas mixtures for soldering, cleaning, and creating ultra-clean production environments. The expansion of manufacturing capacity across India is creating sustained demand growth.

Automation and precision manufacturing techniques are raising quality requirements, which translates to demand for higher-purity gases and more sophisticated delivery systems. When manufacturers invest in robotic welding systems or advanced heat treatment equipment, they simultaneously need gas supply infrastructure that can deliver consistent purity and pressure to ensure process reliability. Government initiatives aimed at boosting industrial production-from production-linked incentive schemes to infrastructure development programs-are accelerating manufacturing expansion and, consequently, gas consumption. The trend toward on-site generation and specialized gas blends is particularly strong in manufacturing, where downtime due to gas supply interruptions can be extremely costly. Manufacturers are increasingly willing to invest in dedicated gas systems that give them control over supply reliability and quality. As manufacturing continues to modernize and diversify across sectors from textiles to precision machinery, its position as the largest application segment looks set to strengthen further.

● Packaged Gases Lead Supply Mode Preferences

Packaged gases have established themselves as the preferred supply mode in India's industrial gases market, capturing 55.3% of market share in 2024. This dominance reflects the practical realities of industrial gas distribution across a diverse and geographically dispersed customer base. Packaged gases-delivered in cylinders and tanks-offer unmatched flexibility and convenience, particularly for small and medium-sized enterprises that need gases in manageable quantities without the capital investment required for bulk storage or on-site generation. The packaged delivery model works beautifully for businesses with variable or moderate gas consumption. A small fabrication shop might need a few cylinders of oxygen and acetylene for welding operations, while a regional hospital requires medical oxygen cylinders as backup to their bulk supply. Food processors might use packaged carbon dioxide for carbonation or modified atmosphere packaging. Chemical laboratories need various specialty gases in cylinder form for analytical work.

The beauty of packaged gases is that customers pay only for what they need, avoid storage infrastructure costs, and can easily adjust their supply based on demand fluctuations. The proliferation of small and medium enterprises across India has naturally driven packaged gas demand. As industrial clusters and manufacturing zones develop in tier-2 and tier-3 cities, they create networks of small-scale consumers who collectively represent substantial gas demand but individually need packaged supplies. Gas suppliers typically bundle valuable services with packaged gas delivery-cylinder management programs, safety training, on-site delivery, and technical support-which strengthen customer relationships and add value beyond the gas itself. While bulk supply systems are growing in large industrial facilities, and on-site generation is expanding among major consumers, packaged gases remain essential for decentralized operations, smaller-scale users, and situations requiring supply flexibility. This ensures packaged delivery will continue playing a central role in the market structure.

● East India Emerging as Dynamic Growth Region

East India is establishing itself as a vibrant and rapidly evolving region within the India industrial gases market, driven by expanding industrial activities and ambitious infrastructure development. The region hosts diverse industries including steel manufacturing, power generation, chemicals, and various manufacturing sectors-all substantial consumers of industrial gases like oxygen, nitrogen, and argon for essential production processes. The industrial profile of East India makes it particularly gas-intensive. Steel production in this region requires massive oxygen quantities for blast furnaces and basic oxygen furnaces, while argon is used in refining operations. Power generation facilities use gases for various applications from combustion optimization to emission control systems. Chemical plants throughout the region depend on industrial gases as feedstock and for process control. Urbanization trends are creating multiplier effects as growing cities drive construction activity, which increases steel demand, which in turn drives gas consumption.

Industrial parks and special economic zones are attracting manufacturing investments that bring their own gas requirements. The healthcare infrastructure expansion deserves special mention-as medical facilities improve and expand across East India, they're creating growing demand for medical oxygen, nitrous oxide, and other gases essential for patient care. Food processing facilities are proliferating as well, using carbon dioxide and nitrogen for preservation and packaging applications. Regional governments are actively promoting industrialization through policy incentives and infrastructure investments, which is stimulating local gas production capacity and improving distribution networks. The logistics infrastructure improvements-better roads, expanded rail networks, and port facilities-make gas distribution more efficient and cost-effective. While East India may not yet match the market share of established industrial regions, the combination of ongoing industrialization, infrastructure development, and improving supply chain capabilities positions it for strong growth in the coming years.

● Technology and Sustainability Reshaping Competitive Dynamics

The competitive landscape in India's industrial gases market is being transformed by technological innovation and sustainability initiatives that are changing how companies produce, distribute, and sell their products. Major players are investing heavily in advanced cryogenic air separation plants that improve efficiency and reduce production costs, allowing them to offer more competitive pricing while maintaining healthy margins. On-site gas generation systems represent another significant investment area-these installations allow large industrial consumers to produce gases at their facilities, ensuring supply security and eliminating transportation costs. For gas suppliers, selling and maintaining on-site systems creates new revenue streams and deepens customer relationships through long-term service contracts. Strategic partnerships between gas suppliers and major industrial consumers are becoming increasingly sophisticated. Rather than simple supply relationships, these partnerships often involve collaborative process optimization where gas suppliers bring technical expertise to help customers improve their manufacturing efficiency, reduce waste, or enhance product quality through better gas management. This consultative approach creates competitive differentiation beyond price and helps lock in customer loyalty. Regional expansion strategies are evolving beyond traditional metropolitan markets.

Companies are establishing production facilities and distribution hubs in emerging industrial centers across tier-2 and tier-3 cities, improving response times and enabling closer customer engagement. Digital transformation is another major trend-companies are implementing remote monitoring systems, predictive maintenance capabilities, and digital ordering platforms that improve operational efficiency and customer experience. Sustainability initiatives are increasingly important competitive factors. Gas producers are exploring renewable energy sources for their production facilities, implementing processes to reduce emissions, and helping customers use gases more efficiently to meet their own environmental goals. These forward-looking investments in technology, infrastructure, and customer-centric capabilities are defining success in the evolving industrial gases market.

Leading Companies Operating in the India Industrial Gases Market:

● Air Liquide India Holding Pvt. Ltd.
● Air Products and Chemicals Inc.
● Bhuruka Gases Limited
● Buzwair Industrial Gases Factories
● INOX Air Products Ltd.
● Linde India Limited
● Matheson Tri-Gas Inc.
● Messer Group GmbH
● National Oxygen Limited
● Praxair India Private Limited
● Sicgil India Limited
● Southern Gas Limited
● Taiyo Nippon Sanso Corporation

India Industrial Gases Market Report Segmentation:
Breakup by Type:
● Nitrogen
● Oxygen
● Carbon Dioxide
● Argon
● Hydrogen
● Others

Breakup by Application:
● Manufacturing
● Metallurgy
● Energy
● Chemicals
● Healthcare
● Others

Breakup by Supply Mode:
● Packaged
● Bulk
● On-Site

Regional Insights:
● North India
● West and Central India
● South India
● East India

Research Methodology:

The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.

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This release was published on openPR.