Acetylene Market to Reach US$ 11.3 Bn by 2036, Driven by Welding Demand and Chemical Industry Growth

The global acetylene market size was valued at US$ 7.2 billion in 2025 and is projected to reach US$ 11.3 billion by 2036, expanding at a CAGR of 4.2% from 2026 to 2036. The market is witnessing steady growth driven by increasing demand from metal fabrication and welding applications, rising chemical manufacturing activities, expanding infrastructure development, and growing use of acetylene as a feedstock in various industrial processes.

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Market Overview

Acetylene (C2H2) is a colorless, highly flammable gas widely used in industrial applications due to its high flame temperature when combined with oxygen. It is primarily produced through the reaction of calcium carbide with water or by partial combustion of hydrocarbons. Acetylene plays a crucial role in welding and cutting operations, as well as in chemical synthesis for the production of plastics, solvents, and synthetic materials.

The market growth is closely tied to industrial expansion, construction activities, automotive manufacturing, and the chemical sector. Developing economies are increasingly adopting acetylene-based technologies in metalworking and fabrication, contributing to overall demand.

Key Market Drivers

Rising Demand from Welding and Metal Fabrication

Acetylene is widely used in oxy-acetylene welding and cutting due to its ability to produce one of the hottest commercial flames. Growing construction projects, shipbuilding, automotive production, and heavy machinery manufacturing are driving demand for welding gases globally.

Growth in Chemical Industry

Acetylene serves as a key feedstock in the production of various chemicals such as vinyl chloride, acetaldehyde, acetic acid, and synthetic rubber. Expansion of chemical manufacturing facilities, particularly in Asia-Pacific, is supporting steady market growth.

Infrastructure Development and Urbanization

Rapid urbanization and infrastructure expansion across emerging economies are boosting the need for metal cutting and fabrication processes, further increasing acetylene consumption.

Increasing Industrialization in Emerging Economies

Industrial growth in countries such as China, India, Brazil, and Southeast Asian nations is contributing significantly to acetylene demand across manufacturing and processing sectors.

Competitive Landscape

The acetylene market is characterized by the presence of both global industrial gas companies and regional manufacturers. Companies focus on expanding production capacity, ensuring safety compliance, and strengthening distribution networks. Strategic partnerships and long-term supply contracts with industrial clients are common competitive strategies.

Airgas, Inc.
BASF SE
Gulf Cryo
Ilmo Products Company
Linde Plc
Praxair, Inc.
Jinhong Gas Co., Ltd
Iwatani Corporation
Toho Acetylene Co. Ltd.
ECA Gases LLP
Space Cryogases Private Limited
BTP STRUCTURAL (I) PVT. LTD.
Other Prominent Players

Technological advancements in gas handling, storage, and transportation systems are also enhancing operational efficiency and safety standards.

Market Developments

In January 2026, Air Liquide acquired DIG Airgas, which was initially announced in August 2025. With this transaction, Air Liquide fortified its standing in South Korea, a highly advanced and competitive industrial gas market in Asia Pacific.
In 2024, Gulf Cryo commissioned Phase 2 of the air separation unit (ASU) in Abu Dhabi. With this new phase production of liquid oxygen, nitrogen, and argon was tripled which strengthened Gulf Cryo's regional supply base.

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Regional Insights

Asia-Pacific dominates the global acetylene market due to rapid industrialization, strong manufacturing growth, and expanding chemical production capacity. China and India are major contributors to regional demand.

North America holds a substantial market share, supported by advanced manufacturing sectors and infrastructure development projects. The United States remains a key market for welding and industrial gases.

Europe represents a mature market with stable demand from automotive, aerospace, and chemical industries.

Latin America and the Middle East & Africa are emerging markets, benefiting from infrastructure expansion and industrial diversification initiatives.

Market Segmentation

Purity

Up to 98%
>98%

Form

Acetylene Gas
Acetylene Liquid

Production Method

Calcium Carbide
Hydrocarbon Pyrolysis
Others

Application

Chemical Synthesis
Welding, Cutting and Heat Treating
Polyethylene Plastics
Elastic Textile Fiber
Brazing
Perfume
Synthesis of Vitamins
Portable Lighting
Fuel Additive
Others

End-use

Metals
Automotive and Transportation
Pharmaceutical
Plastic
Textile
Personal Care & Cosmetic
Glass
Residential
Others

Challenges and Restraints

Despite steady growth prospects, the market faces certain challenges, including:

High flammability and safety concerns associated with acetylene handling
Environmental regulations impacting carbide production
Competition from alternative welding technologies and substitute gases
Fluctuating raw material prices

However, ongoing improvements in safety systems and industrial demand are expected to sustain long-term market expansion.

Future Outlook

The global acetylene market is expected to maintain stable growth through 2036, supported by expanding infrastructure projects, steady demand from metal fabrication, and continued chemical production growth. While alternative technologies may limit rapid expansion, acetylene's high flame temperature and versatility ensure its continued relevance in industrial applications.

FAQs - Acetylene Market

Q1. What is the projected market size by 2036?
The market is expected to reach US$ 11.3 billion by 2036.

Q2. What is the expected CAGR during the forecast period?
The market is projected to grow at a CAGR of 4.2% from 2026 to 2036.

Q3. What is the primary application of acetylene?
Welding and metal cutting applications represent the primary use of acetylene globally.

Q4. Which region dominates the market?
Asia-Pacific currently holds the largest share due to strong industrial and manufacturing growth.

Q5. What factors are driving market growth?
Industrial expansion, chemical manufacturing growth, and infrastructure development are key drivers.

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