India Industrial Gases Market

India Industrial Gases Market Size and Share:

The India industrial gases market size was valued at USD 3.56 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 6.82 Billion by 2033, exhibiting a CAGR of 7.12% from 2025-2033. East India is currently dominating the market owing to the increasing demand from the steel and refining industries, and growing government investment in research and development. Growing infrastructure projects, industrial production, and technological advancements further drive the consumption of gases such as oxygen, nitrogen, and hydrogen for various applications. With industries becoming modernized and production being localized, high-performance gas solutions remain in greater demand, further driving the overall India industrial gases market share.

India's shift to clean energy and decarbonization is primarily propelling industrial gas demand. As the country transitions to net-zero emissions targets, hydrogen, carbon dioxide (for capture and storage), and oxygen among others are becoming increasingly vital to make low-carbon technologies possible. As per the reports, in June 2025, Indian Oil completed pricing on its 10,000-tonne-per-year green hydrogen facility in Panipat, enhancing the India industrial gases market by substituting fossil-derived hydrogen and strengthening Net Zero ambitions to 2027.Moreover, production of green hydrogen, for instance, requires consistent supply of industrial gases and advanced delivery systems. Similarly, businesses which use carbon capture, utilization, and storage (CCUS) technologies rely on industrial gases in order to enable such emission-reducing technologies. The greater emphasis on energy efficiency and cleaner fuels in industries such as power generation, cement, and heavy manufacturing is also boosting the demand for reliable gas applications. Government-sponsored sustainability programs and stricter environment regulations are encouraging industries to move away from conventional fuel systems to gas-based systems. Industrial gases stand ready to be the key enablers of India's long-term energy and climate policy, fueling the country's overall decarbonization ambition, with increased investments in clean transport options, renewable energy, and biofuels.

India's developing pharmaceutical and healthcare sectors are continuously pushing the demand for medical and industrial gases. According to the sources, in July 2024, Air Liquide India commissioned a ₹350 crore air separation unit in Mathura, enhancing the India industrial gases market with daily productions of oxygen, nitrogen, and argon for local supply. Furthermore, surgical operations, intensive care units, sterilizations, and pharmaceutical manufacturing processes require medical oxygen, nitrous oxide, and nitrogen. The nationwide upgradation of healthcare centers—especially in rural and semi-urban areas—has led to a boom in on-site oxygen production plants and cryogenic storage plants. The pharmaceutical industry depends significantly on high-purity gases for synthesis, chromatography, lyophilization, and packaging, where precision and contamination control are key. Moreover, biotechnology laboratories, vaccine production units, and diagnostic centers need constant gas flow to sustain cell culture, preservation, and analytical work. With India emerging as a world pharmaceutical production and export hub, the demand for process-critical gases keeps rising. The rise in chronic diseases, heightened medical awareness, and the drift towards digital health also gives a fillip to the requirement for cutting-edge medical infrastructure in which industrial gases play a vital role in ensuring safety, quality, and operational efficiency.

India Industrial Gases Market Trends:

Industrial Expansion Boosts Demand for Gases

India's powerful refining and steel production industries are the key drivers of the growth of its industrial gases industry. Such heavy industries entail round-the-clock and extensive consumption of gases like oxygen, nitrogen, hydrogen, and argon in processes like smelting, welding, purging, and cooling. Industrial production in the country rose by 5.0% month-on-month in January 2025, compared to 3.5% in the previous month, indicating strong industrial momentum. The increase in infrastructure construction, rising urbanization, and energy developments continue to drive gas usage across industries. Steel mills use oxygen and argon for cutting and refining, while hydrogen plays a critical role in petroleum refining. Additionally, higher use of on-site gas generation systems enables companies to ensure supply and reduce transportation expenses. As India heightens its interest in local manufacturing through efforts such as 'Make in India,' the need for industrial gases is anticipated to continue growing steadily, further entrenching the position of these industries in catalyzing long-term market growth.

Government R&D Funding Fosters Innovation in Gas Applications

India's continuously growing research and development (R&D) investment is driving innovation in industry sectors that heavily depend on industrial gases. The Department of Science & Technology (DST) states that Gross Expenditure on R&D (GERD) increased over two-fold, from about INR 60,196.75 crores in 2010–11 to INR 127,380.96 crores in 2020–21. This expenditure encourages cutting-edge technologies in pharma, chemicals, electronics, and renewable energy sectors, where specialty gases are a must. For instance, hydrogen is critical for research and development (R&D) on clean fuel, whereas electronics production relies on ultra-pure nitrogen and argon. As R&D activity increases, the need for high-purity gases utilized in experiment and precision-based settings amplifies. The trend towards government-supported innovation parks and cooperative industrial parks is stimulating local production of specialty gases, minimizing the need for imports. These trends not only increase supply resilience but also open up opportunities for gas value-added applications. As technology integration intensifies, investments in R&D will continue to drive gas demand and industrial advancement.

Industrial Production Trends Underpin Long-Term Market Outlook

The steady growth in India's industrial output supports long-term growth in the industrial gases market. At January 2025, a 5.0% year-on-year growth demonstrates persistent activity in the core sectors of manufacturing, construction, chemicals, and energy. These sectors use a vast array of gases to perform activities like cutting, welding, heat treatment, and environmental control. The growth of industries such as automotive production, oil refining, and infrastructure ignites consistent demand for carbon dioxide, nitrogen, and oxygen. India's emphasis on energy security and green technologies is also propelling growing usage of hydrogen and other substitute gases. Industrial parks and intelligent manufacturing clusters are implementing gas distribution networks into their infrastructure for efficiency and safety. Organizations are also embracing automated monitoring and digitalization of gas supply chains, further increasing accuracy and dependability. These developments, combined with boosting production statistics, indicate that the industrial gases industry will further grow in tandem with India's industrial economy.

India Industrial Gases Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the India industrial gases market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on type, application, and supply mode.

Analysis by Type:

• Nitrogen
• Oxygen
• Carbon Dioxide
• Argon
• Hydrogen
• Others

Nitrogen plays a large role in the India industrial gases market, with a total of about 32.0% of the market share in 2024. Its multifaceted application in various industries like chemicals, pharmaceuticals, food processing, and electronics is responsible for the stronghold. Nitrogen's inert nature makes it crucial for the application of creating controlled atmospheres, avoiding oxidation, and supporting blanketing and purging operations. Development in the food packaging and pharmaceutical industries further stimulated nitrogen demand, with increased application in product quality and shelf-life maintenance. Development in on-site nitrogen generation technology has enhanced availability and cost-effectiveness, and it is therefore the choice for most industrial consumers. The use of nitrogen also finds favor with environmental laws due to it being non-toxic and clean gas, further stimulating adoption in emerging industries. These elements cumulatively place nitrogen as one of the main drivers in India's growing industrial gases industry with a 32.0% share in 2024.

Analysis by Application:

• Manufacturing
• Metallurgy
• Energy
• Chemicals
• Healthcare
• Others

The manufacturing industry drives the India industrial gases industry with a 45.8% share in 2024. This is mainly because manufacturing uses gases like oxygen, nitrogen, and argon extensively for operations like welding, cutting, heat treatment, and chemical synthesis. Expansion of sectors such as automotive, steel, and electronics manufacturing increases demand. Rising automation and precision manufacturing methods necessitate stable supply of high-purity gases, boosting quality and efficiency. Expansion of infrastructure and government policies to increase industrial production further fuels consumption. Special gas blends and on-site generation systems are becoming more mainstream to serve manufacturing purposes, minimizing downtime and logistical limitations. As manufacturing goes on to get modernized and diversified, its position as the biggest application segment will consolidate, propelling tremendous growth in the India industrial gases market.

Analysis by Supply Mode:

• Packaged
• Bulk
• On-Site

Packaged gases is the most significant supply form in India's industrial gases market, with a 55.3% share in 2024. Packaged gases provide convenience and flexibility, particularly for medium- and small-sized companies needing gases in smaller quantities and on-demand. Packaged gases are delivered in tanks and cylinders and allow for easy shipment and storage for various uses in manufacturing, healthcare, food processing, and chemicals. The increasing numbers of SMEs and spreading industrial clusters have led to greater dependence on packaged gases for their availability and economic viability. In addition, packaged gas suppliers usually extend value-added services such as cylinder management, safety awareness, and on-site delivery, fortifying customer ties. While bulk supply accelerates in heavy industries, packaged gases continue to be important for decentralized and smaller-scale operations. These contribute to the domination of the packaged supply mode in the India industrial gases market.

Regional Analysis:

• North India
• West and Central India
• South India
• East India

East India is a developing and dynamic area in the India industrial gases market, with good growth opportunities fueled by rising industrial activities and infrastructure development. The area is home to different industries such as steel manufacturing, power generation, chemicals, and manufacturing, which are all dependent on industrial gases like oxygen, nitrogen, and argon for essential processes. Urbanization and rising investments in industrial parks and special economic zones are promoting demand for high-purity gases. Also, the expansion of medical and specialty gases opportunities through healthcare units and food processing plants in East India is opening up new avenues for medical and specialty gases. The regional governments are promoting industrialization actively, which is fueling local gas production capacity and distribution infrastructure. Even as precise market share figures for East India are not available at present, the growing industrial economy and enhanced logistics infrastructure in the region put it on a high growth trajectory within the overall India industrial gases market.

Competitive Landscape:

The market for industrial gases in India is characterized by continued capacity growths and technological innovations to increase efficiency and supply reliability. Firms are investing more in advanced cryogenic air separation plants and on-site gas generators to minimize cost and maximize delivery times. Strategic partnerships with leading industrial industries like steel production, refining, chemicals, and healthcare enable tailored gas solutions designed to meet specialized production needs. Regional coverage is expanding beyond capital cities into growth industrial centers, allowing for improved response time and closer customer interaction. Digital solutions, such as remote monitoring and predictive maintenance, are being implemented within operations in order to provide reliable gas quality and operational availability. Efforts towards sustainability are picking up steam, with participants within the market pursuing greener production practices and investigating alternative sources of energy for gas production. This forward-thinking innovation, infrastructure, and customer focus are propelling competitiveness in the expanding Indian industrial gases market.

The report provides a comprehensive analysis of the competitive landscape in the India industrial gases market with detailed profiles of all major companies.

Latest News and Developments:

• May 2025: Pune Gas launched its LPG & Natural Gas Experience Centre at Kochi, Kerala. The centre features state-of-the-art industrial gas solutions such as the LPGenius system, which aims to make commercial LPG and natural gas usage safer, more efficient, and automated. The Kochi facility is set to serve more than 340,000 non-domestic LPG consumers in South India.
• March 2025: INOX Air Products commissioned its maiden green hydrogen plant at Asahi India Glass Limited's (AIS) Soniyana plant in Chittorgarh, Rajasthan. INOX will supply a maximum of 190 tons of green hydrogen per annum for 20 years under a 20-year contract, out of which 95 tons per annum in the first instance.
• March 2025: Linde India signed a long-term agreement to deliver industrial gases through a pipeline to Asian Paints (Polymers) at its new Dahej site in Gujarat, to facilitate the manufacture of Vinyl Acetate Monomer (VAM) and Vinyl Acetate Ethylene Emulsion (VAE). The company will commission a 245 TPD ASU and 100 TPD Gaseous Oxygen (GOX) plant to establish a regional pipeline cluster.
• October 2024: Linde entered into contracts to de-captivate two air separation units (ASUs) and increase its supply of industrial gases to Tata Steel Limited in Odisha. The two ASUs under construction will be handed over to Linde in 2025. The term agreement covers the supply of oxygen, nitrogen, and argon to aid Tata Steel's expansion capacity as well as cater to local merchant market demand.
• August 2024: Air Liquide opened its sixth plant in India, a new ASU in Kosi Kalan, Mathura, Uttar Pradesh. The INR 250 crore investment plant has a daily output of 50 tons of oxygen, nitrogen, and argon and will serve both industry and medicine.
• April 2024: INOX India Ltd was granted a patent for a novel cryogenic storage system. The patent design hangs inner containers within Dewar-type vessels that store liquid nitrogen, oxygen, and argon. The vacuum-insulated, wall containers improve storage of cryogenic fluids. The technology enhances safety and efficiency in industrial usage.
• January 2024: Linde lengthened its long-term partnership with Steel Authority of India Limited (SAIL). Under the fresh terms, Linde will construct, own, and operate another 1,000 tons per day air separation unit at SAIL's Rourkela steelworks in Odisha, effectively doubling its on-site capacity. The USD 60 million investment is intended to assist in SAIL's growth and upgrading plans.

India Industrial Gases Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India industrial gases market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the India industrial gases market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the industrial gases industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.