APAC Industrial Gases Market – By Type , By Storage Method , By Distribution , By Application , By End-User , By Geography – Opportunity Analysis & Industry Forecast, 2024-2030.

APAC Industrial Gases Market Overview

The APAC Industrial Gases Market size is estimated to reach $60.49 billion by 2030, growing at a CAGR of 6.1% during the forecast period 2024-2030. The APAC industrial gases market encompasses the production, distribution, and application of gases like oxygen, nitrogen, hydrogen, and others essential for various industrial processes. It serves diverse sectors such as manufacturing, healthcare, electronics, and chemicals, driving economic growth across the region. There is a notable trend towards adopting greener and sustainable production methods in the industrial gases sector. Companies are increasingly investing in technologies that reduce carbon emissions during gas production and distribution. This includes advancements in cryogenic distillation processes, which are more energy-efficient, and the integration of renewable energy sources like solar and wind power into production facilities. Such initiatives not only align with global climate goals but also cater to the rising demand for environmentally friendly solutions among industries in APAC.

The APAC region is witnessing rapid technological advancements in industrial gas applications. One significant development is the use of gases such as nitrogen and argon in advanced manufacturing techniques like additive manufacturing (3D printing). These gases are crucial for creating controlled atmospheres that enhance the quality and precision of printed components. Moreover, innovations in gas storage and distribution systems, including the use of smart sensors and IoT (Internet of Things) technology, are improving efficiency and safety in gas handling operations across industries.

Market Snapshot: 
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APAC Industrial Gases Market - Report Coverage:

The “APAC Industrial Gases Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the APAC Industrial Gases Market.

• The APAC industrial gases market faced initial disruptions due to lockdowns and reduced industrial activities, impacting demand from sectors like manufacturing and healthcare. However, recovery was driven by increased medical oxygen needs and resuming industrial operations, especially in China and Southeast Asia, bolstering market growth post-2020.
• The Ukraine crisis prompted concerns over energy security and supply chain disruptions in APAC, affecting industrial gas supply, particularly helium and natural gas imports. Geopolitical tensions and potential sanctions impacted market stability, leading to price volatility and strategic shifts in sourcing and production locations within the region to mitigate risks and ensure continuity in supply.

Key Takeaways:

India to Register Highest Growth:

India is anticipated to experience the highest growth of CAGR of 7.7% in the APAC Industrial Gases Market between 2024 and 2030. The demand for industrial gases in India is surging, making it a significant growth area within the Asia-Pacific (APAC) region. This increase is driven by India's rapid industrialization and robust economic development. A major contributor to this rising demand is the manufacturing sector, which includes the automotive, chemicals, pharmaceuticals, and food processing industries. These industries rely on industrial gases for numerous applications such as welding, cutting, cooling, and packaging. According to government projections, the manufacturing sector aims to increase its contribution to the Indian GDP from 17% to 21% in the next six to seven years, targeting a market value of approximately US$1 trillion by 2025-26. The expanding manufacturing base in India, with its focus on enhancing quality and efficiency, has led to a substantial rise in the need for industrial gases. For instance, India's rapidly growing manufacturing sector, encompassing industries such as automotive, pharmaceuticals, and food and beverage, is a significant driver of industrial gas demand. 

Nitrogen Type is Leading the Market:

The Nitrogen segment accounted for the largest share in 2023 and is estimated to reach $21.64 billion by 2030. Nitrogen gas is pivotal in APAC's industrial gases market, serving essential roles in diverse sectors. In the food industry, it preserves freshness and extends shelf life by creating an inert atmosphere that delays spoilage. In steel manufacturing, nitrogen influences hardness and formability, enhancing steel quality and product durability.  Furthermore, the growing Nitrogen plants across the region is anticipated to satisfy the need for nitrogen gas across the region. For instance, in June 2023, in the Bayan Lepas Free Industrial Zone and Batu Kawan Industrial Park in Penang, two nitrogen facilities will be constructed, owned, and run by Air Products, a globally renowned industrial gases firm that has been providing services to Malaysia for almost 50 years These developments are set to meet growing industrial demands, ensuring robust support for various manufacturing processes and maintaining high-quality production standards across Asia-Pacific.

Cryogenics is to Register the Highest Growth:

The Cryogenics segment is analyzed to grow with the highest CAGR of 7.4% in APAC Industrial Gases from 2023 to 2028. The Cryogenics segment is analyzed to grow with the highest CAGR of 7.4% in APAC Industrial Gases from 2023 to 2028. This growth is driven by the increasing adoption of cryogenic technologies across diverse industries in the region. Moreover, advancements in cryogenic applications such as energy storage, fuel systems, and waste treatment are further propelling demand for specialized cryogenic gases and equipment. The Asia-Pacific region, a powerhouse of manufacturing and industrial activities, is witnessing robust demand for cryogenic gases used in metal treatment, cryogenic machining, and industrial gas liquefaction. According to the Department of Statistics Malaysia, the manufacturing sector in Malaysia expanded by 4.9% in February 2023, building upon a 1.3% growth recorded in January 2023. The cryogenic industry is continuously evolving, with the development of advanced technologies and applications, such as cryogenic energy storage, cryogenic fuel systems, and cryogenic waste treatment. As the region continues to prioritize renewable energy sources and hydrogen-based technologies, the future outlook for cryogenic gases remains promising, supported by ongoing technological innovations and industrial expansion across APAC economies.

Expanding Uses in the Pharmaceutical Sector:

The pharmaceutical industry's burgeoning demand for industrial gases stands as a pivotal driver of accelerating growth in the APAC industrial gas market. These gases, crucial for various pharmaceutical processes such as manufacturing, packaging, and preservation, play an indispensable role in ensuring product quality and efficacy. In pharmaceutical manufacturing, gases like nitrogen, oxygen, and carbon dioxide are utilized for inerting, blanketing, and as raw materials in synthesis. The need for stringent quality standards and regulatory compliance further intensifies this demand, compelling pharmaceutical companies across the Asia-Pacific region to invest in reliable industrial gas suppliers. Moreover, as the pharmaceutical sector continues to expand with advancements in biotechnology and healthcare infrastructure, the demand for industrial gases is poised to rise steadily. This trend underscores the critical role of industrial gases in supporting the growth and innovation within the pharmaceutical industry across APAC.

Growing Need for Industrial Gases in Food & Beverage Industry:

The demand for industrial gases in the food and beverage industry in the Asia-Pacific (APAC) region is experiencing significant growth driven by several key factors. In recent years, there has been a notable shift towards natural and efficient methods of food preservation and quality control due to increasing consumer awareness about nutrition and sustainability. This shift has underscored the importance of industrial gases in enhancing food safety, extending shelf life, and maintaining product quality from production to consumption. For instance, In October 2023, the Panipat refinery in Northern India, owned by Indian Oil Corporation, is to receive industrial gases from Linde under long-term agreements that its Indian entities have signed. Major new on-site facilities for the provision of hydrogen, nitrogen, and compressed dry air to IndianOil will be constructed, owned, and run by Linde's businesses. The multi-billion-dollar expansion of the Panipat refinery from 15 to 25 million metric tons per year would be made possible by the new on-site facilities. Such initiatives, aimed at enhancing production capacities and efficiency in food processing, are expected to further drive the demand for industrial gases across the APAC food and beverage sector.

Limitations on the Hazardous Effects of Industrial Gases on Environment:

Industrial gases like methane and carbon dioxide pose significant environmental risks, primarily through their contributions to pollution and global warming. These gases, among others, are major contributors to greenhouse gas emissions, trapping heat in the Earth's atmosphere and exacerbating climate change. For instance, as per Echo Credit Ltd., Methane remains in the atmosphere for around 12 years and contributes about 16% of greenhouse gas emissions. To mitigate these hazards, stringent emission regulations are crucial. Measures such as carbon capture and storage (CCS), energy efficiency improvements, adoption of renewable energy sources, and advancements in green chemistry are essential. These initiatives aim to reduce industrial emissions and transition towards sustainable practices. Addressing these challenges requires a concerted global effort to enforce emission limits and promote environmentally friendly technologies. By implementing these strategies, we can work towards minimizing the adverse effects of industrial gases on both human health and the environment, ensuring a more sustainable future for generations to come.

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Key Market Players: 

Product launches, approvals, patents and events, acquisitions, partnerships and collaborations are key strategies adopted by players in the APAC Industrial Gases market. The top 10 companies in this industry are listed below:

1. Linde PLC
2. Air Liquide S.A.
3. Taiyo Nippon Sanso Corporation
4. Air Products and Chemicals, Inc.
5. Yingde Gases
6. Iwatani Corporation
7. Air Water Inc.
8. HangYang
9. The Messer Group GmbH
10. BASF SE

Scope of the Report:

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