US Industrial Gases Market Report: Trends, Growth and Forecast (2026-2032)
By Gas Type (Nitrogen Gas, Oxygen Gas, Carbon Dioxide Gas, Argon Gas, Helium Gas, Hydrogen Gas, Other), By Supply Mode (Cylinders, Bulk, On-Site Production, Captive, Other), By Application (Combustion and Process Oxygen, Welding and Metal Fabrication, Inerting Blanketing and Heat Treating, Cryogenics and liquefaction, Chemical Synthesis and Hydrogenation, Purging and Purifications, Analytical and Calibration), By End User Industry (General Manufacturing, Food, Metallurgy, Chemicals, Healthcare, Electronics, Refining & Energy, Glass, Pulp & Paper, Others)
- Energy & Power
- Feb 2026
- VI0870
- 125
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US Industrial Gases Market Statistics and Insights, 2026
- Market Size Statistics
- Industrial gases in US is estimated at USD 24.87 billion in 2025.
- The market size is expected to grow to USD 38 billion by 2032.
- Market to register a cagr of around 6.24% during 2026-32.
- Gas Type Shares
- Nitrogen gas grabbed market share of 35%.
- Competition
- More than 10 companies are actively engaged in producing industrial gases in US.
- Top 5 companies acquired around 80% of the market share.
- Air Products and Chemicals; Messer Group; Universal Industrial Gases (UIG); Linde; Air Liquide etc., are few of the top companies.
- Supply Mode
- Cylinders grabbed 40% of the market.
US Industrial Gases Market Outlook
The US industrial gases market is expected to grow steadily with an increasing demand from the manufacturing, healthcare, semiconductor, and emerging sectors of clean energy. The production index growing to 101.79 in November 2025 indicates a positive growth trajectory. The US industrial gases market has been valued at approximately $24.87 billion in the year 2025. It can be expected to grow to nearly $38 billion by the end of 2032, with a CAGR of around 6.24% between 2026 and 2032.
Demand is supported by the large-scale investments being made in semiconductors, the needs in the area of breathing healthcare, and the stable manufacturing production. The production of semiconductors, which is dependent on ultra-high purity gases, continues to increase production capacity. Oxygen consumption in the medical sector, which is driven by the continuous prevalence of breathing diseases and the aging population, continues to remain high. Increases in manufacturing production, driven by export and stable manufacturing production, continue to drive overall gas demand.
The biggest concern for the sectors, however, is the labor shortages that pose operational pressures, especially in the manufacturing plants and logistics networks. With thousands of positions in the industries lying empty, the timelines for production and delivery are being delayed, thereby impacting the reliability of the supply chain. However, the growing pace of clean hydrogen projects and government incentives is completely changing the gas demand scenario in the future.
From the perspective of market structure, the product leader is nitrogen with a market share of 35% because of its adaptability as applied in the production of electronic, food, chemical, and pharmaceutical industries. The demand for cylinders as the supply mode option accounts for the market leader with a share of 40%, as they are essential to meet the end-users' needs without the need for large equipment.
US Industrial Gases Market Growth DriverStrengthening Industrial Foundations and Manufacturing Momentum
The increase in manufacturing activity is further encouraging market demand for the US industrial gases market, driven by steady production and incremental semiconductor investments. The Federal reserve’s industrial production index increased to 101.79 in November 2025, which marks steady production activity in all the facilities relying on nitrogen, oxygen, and specialty gases. The semiconductor production activity is one of the primary drivers, as this market is set to grow to $697 billion in 2025, allocating $185 billion for the augmentation of semiconductor production facilities, which requires increased use of ultra-high-purity gases.
Semi-conductor exports of 70.1 billion in 2024 further make way for the stable supply chain within the country, supporting consumption patterns of industrial gases across various sectors. Industrial production increased by 0.9% in August 2025, further supporting consumption patterns across the industrial sectors, while analysis by McKinsey, hinting that the industry may touch 140 billion by 2030, further supporting increased consumption of purity gases.
US Industrial Gases Market ChallengeWorkforce Limitations and Distribution Network Constraints
The scenario regarding a shortage of workers in the manufacturing sector remains a challenge in creating consistency in manufacturing and further impacts the capacity of the US industrial gases market in meeting increasing demands. In 2024, there has been a loss of 87,000 jobs in manufacturing; however, 415,000 jobs in manufacturing were left unfilled in June 2025. The requirement in this sector would be 3.8 million workers from 2025 through 2033; however, there would be a potential gap of 1.9 million jobs going unfilled.
The challenges in distribution further add to the intensification of these constraints, including a need for about 60,800 commercial drivers who are qualified in the transport of hazardous materials. Certification in the transport of industrial gas distributions is required according to Department of Transportation requirements. A major concern has been identified among 68% of the manufacturers who are focusing on onshoring due to uncertainties about the reliability of suppliers.
US Industrial Gases Market TrendAccelerating Clean Hydrogen Development and Technology Shifts
Clean hydrogen production technology has made fast strides, and this has disrupted industrial gas market dynamics because of government support, which has driven investment in electrolytic and low-carbon production methods to historical levels." The final investment in capacity for clean hydrogen production has grown from 716 kilotons per year in 2020 to 4,600,000 metric tons per year in 2030 as of 2024, which represents faster project maturity. Total capacity pledges through 2030 stand at 48 million metric tons per year, with only 30% of capacity expected to ultimately be realized, indicating emerging opportunity and competition in this new industry space and support for adoption with federal government cost reduction targets of $2 per kilogram of hydrogen by 2026 and $1 per kilogram of hydrogen by 2031.
The tax credit of as much as $3 per kilogram of Clean Hydrogen Production for 10 years under the Inflation Reduction Act accelerates the pace of investments, thanks to the seven Regional Hydrogen Hubs proposed by the DOE, aiming to coordinate the growing production momentum with the need for hydrogen in end-use sectors. Also, the fact that the annual hydrogen production in the United States now stands at 10 million metric tons makes the industry pick up cleaner production methods, thereby influencing the supply patterns for the growing needs of specialty gas.
US Industrial Gases Market OpportunityHealthcare Oxygen and Respiratory Support Growth
The persistent prevalence of respiratory diseases and changes in the demographic pattern increase the demand for oxygen in the health care sector by continuing to establish a firm demand pattern within the US industrial gases market in 2025. The respiratory disease increases every season as hospitalizations of COVID-19 cases from October to November in 2024 are estimated to range from 64,000 to 110,000 and RSV cases to range from 17,000 to 34,000. COPD remains a major problem as it prevails among 10.1% of adults aged 45+, contributing to 1.8 million acute care hospitalizations within the US in 2021, with the estimated hospitalization rate of states differing greatly from 97 to 200 cases per 1,000 insured.
Readmissions for COPD at 20.4% within 30 days, with 86.4% for the total number of hospitalizations within the Medicare program, stimulates the yearly demand cycle for the usage of oxygen. Utilization and expansion within the home healthcare industry, coupled with the continued usage of respirators, increase the calls for storage containers for the above products. The aging population, coupled with the continued utilization within the healthcare environment, stimulates the demand for the above products. Thus, the demand within the healthcare environment provides a recession-resistant market for industrial gas firms.
US Industrial Gases Market Segmentation Analysis
By Gas Type
- Nitrogen Gas
- Oxygen Gas
- Carbon Dioxide Gas
- Argon Gas
- Helium Gas
- Hydrogen Gas
- Other
Nitrogen maintains the highest share at 35% within the US industrial gases market, reflecting its versatility and critical role across manufacturing, electronics, chemicals, pharmaceuticals, and food processing. Its inert properties support oxidation prevention, contamination control, and quality preservation, making it essential for applications such as purging, inerting, blanketing, and protective packaging. Semiconductor fabrication relies heavily on ultra-high-purity nitrogen to maintain controlled production environments, supporting soldering and reflow processes that require consistent atmospheric purity. Food and beverage companies use nitrogen extensively for modified-atmosphere packaging to improve shelf life and safety standards.
Nitrogen uptake continues rising across advanced applications such as 3D printing, laser cutting, and pharmaceutical ingredient protection. Its stability and non-reactive characteristics reduce fire and explosion risks, strengthening its role in chemical storage and transport. Expanding pharmaceutical and specialty manufacturing further increases dependence on nitrogen to safeguard sensitive compounds and ensure production integrity. With adoption spreading across traditional and emerging industrial activities, nitrogen’s commanding market share is reinforced by its reliability, cost efficiency, and indispensable function within critical industrial and precision manufacturing processes.
By Supply Mode
- Cylinders
- Bulk
- On-Site Production
- Captive
- Other
Cylinders account for 40% of the US industrial gases market supply mode, underscoring their role as the most widely utilized supply mode for end users requiring flexible and dependable gas access. Cylinders serve manufacturing plants, healthcare networks, welding operations, and remote facilities that lack on-site generation or bulk storage systems. Their portability and broad availability make them essential for medical oxygen delivery, specialty gas applications, and small to mid-scale industrial operations. Established production infrastructure and nationwide distribution networks further strengthen their reliability and adoption.
As advanced manufacturing and semiconductor activities expand, cylinder demand remains steady due to their suitability for diverse production scales and their ability to provide rapid replenishment. Key sectors including automotive, aerospace, food processing, and electronics continue to rely on cylinders for consistent access to nitrogen, oxygen, argon, and specialty gases. Their cost-effective deployment and compliance with stringent safety standards reinforce their position as the dominant supply mode, ensuring long-term relevance across varied industrial and healthcare settings.
List of Companies Covered in US Industrial Gases Market
The companies listed below are highly influential in the US industrial gases market, with a significant market share and a strong impact on industry developments.
- Air Products and Chemicals
- Messer Group
- Universal Industrial Gases (UIG)
- Linde
- Air Liquide
- Taiyo Nippon Sanso Corporation
- Iwatani Corporation
- Matheson Tri-Gas
- nexAir LLC
Market News & Updates
- Linde, 2025:
In July 2025, Linde announced more than $400 million in new investments to support the growing U.S. commercial space industry. The company is building a new air separation unit (ASU) in Brownsville, Texas, which is planned to start operating in Q1 2026. It is also expanding its industrial gas facility in Mims, Florida, with operations expected in Q1 2027. Both projects will supply liquid oxygen, nitrogen, and argon to rocket launch sites and nearby customers, strengthening Linde’s role as an important supplier for commercial space operations.
- Air Products, 2025:
Air Products reported a full-year 2025 operating loss of $877 million after its “Back to Basics” strategy, which involved a $3.7 billion pre-tax charge for portfolio changes and asset write-downs. The company is now redirecting investment toward core industrial gas operations. Starting in 2026, it plans to spend about $1 billion each year to build new ASUs in Conyers, Georgia, and Reidsville, North Carolina, replacing older units with more efficient systems.
Frequently Asked Questions
Related Report
1. Market Segmentation
1.1. Research Scope
1.2. Research Methodology
1.3. Definitions and Assumptions
2. Executive Summary
3. US Industrial Gases Market Policies, Regulations, and Standards
4. US Industrial Gases Market Dynamics
4.1. Growth Factors
4.2. Challenges
4.3. Trends
4.4. Opportunities
5. US Industrial Gases Market Statistics, 2022-2032F
5.1. Market Size & Growth Outlook
5.1.1.By Revenues in USD Million
5.1.2.By Quantity Sold in Tons
5.2. Market Segmentation & Growth Outlook
5.2.1.By Gas Type
5.2.1.1. Nitrogen Gas- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
5.2.1.2. Oxygen Gas- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
5.2.1.3. Carbon Dioxide Gas- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
5.2.1.4. Argon Gas- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
5.2.1.5. Helium Gas- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
5.2.1.6. Hydrogen Gas- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
5.2.1.7. Other- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
5.2.2.By Supply Mode
5.2.2.1. Cylinders- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
5.2.2.2. Bulk- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
5.2.2.3. On-Site Production- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
5.2.2.4. Captive- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
5.2.2.5. Other- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
5.2.3.By Application
5.2.3.1. Combustion and Process Oxygen- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
5.2.3.2. Welding and Metal Fabrication- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
5.2.3.3. Inerting Blanketing and Heat Treating- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
5.2.3.4. Cryogenics and liquefaction- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
5.2.3.5. Chemical Synthesis and Hydrogenation- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
5.2.3.6. Purging and Purifications- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
5.2.3.7. Analytical and Calibration- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
5.2.4.By End User Industry
5.2.4.1. General Manufacturing- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
5.2.4.2. Food- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
5.2.4.3. Metallurgy- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
5.2.4.4. Chemicals- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
5.2.4.5. Healthcare- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
5.2.4.6. Electronics- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
5.2.4.7. Refining & Energy- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
5.2.4.8. Glass- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
5.2.4.9. Pulp & Paper- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
5.2.4.10. Others- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
5.2.5.By Competitors
5.2.5.1. Competition Characteristics
5.2.5.2. Market Share & Analysis
6. US Nitrogen Gas Market Statistics, 2022-2032
6.1. Market Size & Growth Outlook
6.1.1.By Revenues in USD Million
6.1.2.By Quantity Sold in Tons
6.2. Market Segmentation & Growth Outlook
6.2.1.By Supply Mode- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
6.2.2.By Application- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
6.2.3.By End User Industry- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
7. US Oxygen Gas Market Statistics, 2022-2032
7.1. Market Size & Growth Outlook
7.1.1.By Revenues in USD Million
7.1.2.By Quantity Sold in Tons
7.2. Market Segmentation & Growth Outlook
7.2.1.By Supply Mode- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
7.2.2.By Application- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
7.2.3.By End User Industry- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
8. US Carbon Dioxide Gas Market Statistics, 2022-2032
8.1. Market Size & Growth Outlook
8.1.1.By Revenues in USD Million
8.1.2.By Quantity Sold in Tons
8.2. Market Segmentation & Growth Outlook
8.2.1.By Supply Mode- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
8.2.2.By Application- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
8.2.3.By End User Industry- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
9. US Argon Gas Market Statistics, 2022-2032
9.1. Market Size & Growth Outlook
9.1.1.By Revenues in USD Million
9.1.2.By Quantity Sold in Tons
9.2. Market Segmentation & Growth Outlook
9.2.1.By Supply Mode- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
9.2.2.By Application- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
9.2.3.By End User Industry- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
10. US Helium Gas Market Statistics, 2022-2032
10.1. Market Size & Growth Outlook
10.1.1. By Revenues in USD Million
10.1.2. By Quantity Sold in Tons
10.2. Market Segmentation & Growth Outlook
10.2.1. By Supply Mode- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
10.2.2. By Application- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
10.2.3. By End User Industry- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
11. US Hydrogen Gas Market Statistics, 2022-2032
11.1. Market Size & Growth Outlook
11.1.1. By Revenues in USD Million
11.1.2. By Quantity Sold in Tons
11.2. Market Segmentation & Growth Outlook
11.2.1. By Supply Mode- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
11.2.2. By Application- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
11.2.3. By End User Industry- Market Insights and Forecast 2022-2032, USD Million & Quantity in Tons
12. Competitive Outlook
12.1. Company Profiles
12.1.1. Linde
12.1.1.1. Business Description
12.1.1.2. Product Portfolio
12.1.1.3. Collaborations & Alliances
12.1.1.4. Recent Developments
12.1.1.5. Financial Details
12.1.1.6. Others
12.1.2. Air Liquide
12.1.2.1. Business Description
12.1.2.2. Product Portfolio
12.1.2.3. Collaborations & Alliances
12.1.2.4. Recent Developments
12.1.2.5. Financial Details
12.1.2.6. Others
12.1.3. Air Products and Chemicals
12.1.3.1. Business Description
12.1.3.2. Product Portfolio
12.1.3.3. Collaborations & Alliances
12.1.3.4. Recent Developments
12.1.3.5. Financial Details
12.1.3.6. Others
12.1.4. Messer Group
12.1.4.1. Business Description
12.1.4.2. Product Portfolio
12.1.4.3. Collaborations & Alliances
12.1.4.4. Recent Developments
12.1.4.5. Financial Details
12.1.4.6. Others
12.1.5. Matheson Tri-Gas
12.1.5.1. Business Description
12.1.5.2. Product Portfolio
12.1.5.3. Collaborations & Alliances
12.1.5.4. Recent Developments
12.1.5.5. Financial Details
12.1.5.6. Others
12.1.6. Taiyo Nippon Sanso Corporation
12.1.6.1. Business Description
12.1.6.2. Product Portfolio
12.1.6.3. Collaborations & Alliances
12.1.6.4. Recent Developments
12.1.6.5. Financial Details
12.1.6.6. Others
12.1.7. Iwatani Corporation
12.1.7.1. Business Description
12.1.7.2. Product Portfolio
12.1.7.3. Collaborations & Alliances
12.1.7.4. Recent Developments
12.1.7.5. Financial Details
12.1.7.6. Others
12.1.8. Universal Industrial Gases (UIG)
12.1.8.1. Business Description
12.1.8.2. Product Portfolio
12.1.8.3. Collaborations & Alliances
12.1.8.4. Recent Developments
12.1.8.5. Financial Details
12.1.8.6. Others
12.1.9. nexAir LLC
12.1.9.1. Business Description
12.1.9.2. Product Portfolio
12.1.9.3. Collaborations & Alliances
12.1.9.4. Recent Developments
12.1.9.5. Financial Details
12.1.9.6. Others
13. Disclaimer
| Segment | Sub-Segment |
|---|---|
| By Gas Type |
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| By Supply Mode |
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| By Application |
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| By End User Industry |
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Research Methodology
This study followed a structured approach comprising four key phases to assess the size and scope of the electro-oxidation market. The process began with thorough secondary research to collect data on the target market, related markets, and broader industry context. These findings, along with preliminary assumptions and estimates, were then validated through extensive primary research involving industry experts from across the value chain. To calculate the overall market size, both top-down and bottom-up methodologies were employed. Finally, market segmentation and data triangulation techniques were applied to refine and validate segment-level estimations.
Secondary Research
The secondary research phase involved gathering data from a wide range of credible and published sources. This step helped in identifying industry trends, defining market segmentation, and understanding the market landscape and value chain.
Sources consulted during this phase included:
- Company annual reports, investor presentations, and press releases
- Industry white papers and certified publications
- Trade directories and market-recognized databases
- Articles from authoritative authors and reputable journals
- Gold and silver standard websites
Secondary research was critical in mapping out the industry's value chain and monetary flow, identifying key market segments, understanding regional variations, and tracking significant industry developments.
Other key sources:
- Financial disclosures
- Industry associations and trade bodies
- News outlets and business magazines
- Academic journals and research studies
- Paid industry databases
Primary Research
To validate secondary data and gain deeper market insights, primary research was conducted with key stakeholders across both the supply and demand sides of the market.
On the demand side, participants included decision-makers and influencers from end-user industries—such as CIOs, CTOs, and CSOs—who provided first-hand perspectives on market needs, product usage, and future expectations.
On the supply side, interviews were conducted with manufacturers, industry associations, and institutional participants to gather insights into current offerings, product pipelines, and market challenges.
Primary interviews provided critical inputs such as:
- Market size and revenue data
- Product and service breakdowns
- Market forecasts
- Regional and application-specific trends
Stakeholders consulted included:
- Leading OEM and solution providers
- Channel and distribution partners
- End users across various applications
- Independent consultants and industry specialists
Market Size Estimation and Data Triangulation
- Identifying Key Market Participants (Secondary Research)
- Goal: To identify the major players or companies in the target market. This typically involves using publicly available data sources such as industry reports, market research publications, and financial statements of companies.
- Tools: Reports from firms like Gartner, Forrester, Euromonitor, Statista, IBISWorld, and others. Public financial statements, news articles, and press releases from top market players.
- Extracting Earnings of Key Market Participants
- Goal: To estimate the earnings generated from the product or service being analyzed. This step helps in understanding the revenue potential of each market player in a specific geography.
- Methods: Earnings data can be gathered from:
- Publicly available financial reports (for listed companies).
- Interviews and primary data sources from professionals, such as Directors, VPs, SVPs, etc. This is especially useful for understanding more nuanced, internal data that isn't publicly disclosed.
- Annual reports and investor presentations of key players.
- Data Collation and Development of a Relevant Data Model
- Goal: To collate inputs from both primary and secondary sources into a structured, data-driven model for market estimation. This model will incorporate key market KPIs and any independent variables relevant to the market.
- Key KPIs: These could include:
- Market size, growth rate, and demand drivers.
- Industry-specific metrics like market share, average revenue per customer (ARPC), or average deal size.
- External variables, such as economic growth rates, inflation rates, or commodity prices, that could affect the market.
- Data Modeling: Based on this data, the market forecasts are developed for the next 5 years. A combination of trend analysis, scenario modeling, and statistical regression might be used to generate projections.
- Scenario Analysis
- Goal: To test different assumptions and validate how sensitive the market is to changes in key variables (e.g., market demand, regulatory changes, technological disruptions).
- Types of Scenarios:
- Base Case: Based on current assumptions and historical data.
- Best-Case Scenario: Assuming favorable market conditions, regulatory environments, and technological advancements.
- Worst-Case Scenario: Accounting for adverse factors, such as economic downturns, stricter regulations, or unexpected disruptions.
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