India Industrial Gases Market Outlook to 2030

India Industrial Gases Market Overview

• The India Industrial Gases Market is valued at approximately INR 30000 Cr, based on a five-year historical analysis. This growth is primarily driven by the increasing demand from sectors such as healthcare, manufacturing, and food processing, alongside rapid industrialization and urbanization in the country. The market is further supported by advancements in on-site gas generation, eco-friendly production techniques, and the rising need for efficient gas supply systems. Key growth drivers include the expansion of steel, refining, and chemical industries, as well as growing demand for high-purity gases in healthcare and electronics applications.
• Key cities such as Mumbai, Delhi, and Bengaluru continue to dominate the market due to their robust industrial base and high demand for industrial gases. These urban centers are hubs for manufacturing, healthcare, and technology, which significantly contribute to the consumption of gases like oxygen, nitrogen, and argon. The presence of major industrial players and advanced infrastructure further enhances their market dominance.
• In 2023, the Indian government implemented the National Clean Air Programme (NCAP), issued by the Ministry of Environment, Forest and Climate Change. NCAP aims to reduce air pollution levels across the country by promoting cleaner technologies and emission reduction in industries. This regulation encourages the adoption of industrial gases for pollution control, energy efficiency, and compliance with emission standards, thereby increasing demand for gases such as oxygen, hydrogen, and carbon dioxide in various applications.

India Industrial Gases Market Segmentation

By Gas Type:The market is segmented into various types of industrial gases, including oxygen, nitrogen, argon, hydrogen, helium, and others. Among these, oxygen and nitrogen remain the most widely used gases across multiple industries, particularly in healthcare, steelmaking, and manufacturing. The demand for specialty gases is rising due to their specific applications in electronics, chemical processing, and research laboratories.

By End-User:The industrial gases market is further segmented by end-user industries, including healthcare, manufacturing, food and beverage, electronics, chemical processing, and others. The healthcare sector is a significant consumer of oxygen and nitrogen, driven by expanding hospital infrastructure and medical research. Manufacturing, especially steel and automotive, utilizes a variety of gases for welding, cutting, and heat treatment. Food and beverage, electronics, and chemical processing industries also contribute to rising demand, reflecting broader industrial expansion and modernization.

India Industrial Gases Market Competitive Landscape

The India Industrial Gases Market is characterized by a dynamic mix of regional and international players. Leading participants such as Linde India Limited, Inox Air Products Limited, Air Water India Private Limited, Air Liquide and Ellenbarrie Industrial Gases Ltd. contribute to innovation, geographic expansion, and service delivery in this space.

India Industrial Gases Market Industry Analysis

Growth Drivers

• Increasing Demand from Manufacturing Sector:The manufacturing sector in India is expected to experience significant growth in the coming years, which will drive increased demand for industrial gases. In future, the sector consumed approximately 1.5 million tons of industrial gases, primarily oxygen and nitrogen. This growth is fueled by the expansion of industries such as automotive, textiles, and food processing, which require gases for various applications, including welding, cutting, and preservation, thereby significantly boosting market growth.
• Expansion of Healthcare and Medical Applications:The healthcare sector in India is expected to grow to INR 3500 Cr in future, increasing the demand for medical gases. In future, the consumption of medical oxygen alone will be around 300,000 tons, primarily due to the rising number of hospitals and healthcare facilities. This growth is further supported by the increasing prevalence of respiratory diseases and the need for advanced medical treatments, creating a robust market for industrial gases in healthcare applications.
• Rising Adoption of Clean Energy Solutions:India aims to achieve 500 GW of renewable energy capacity in future, significantly impacting the industrial gases market. The hydrogen production sector, which is projected to grow to $1.5 billion in future, is a key area of focus. This shift towards clean energy solutions is driving the demand for gases like hydrogen and carbon dioxide, which are essential for energy storage and carbon capture technologies, thus fostering market expansion.

Market Challenges

• High Production and Transportation Costs:The production cost of industrial gases in India is approximately $1,200 per ton, influenced by energy prices and raw material availability. Additionally, transportation costs can add up to 30% to the overall expenses, particularly in remote areas. These high costs pose significant challenges for manufacturers, limiting their ability to compete effectively and impacting overall market growth.
• Stringent Environmental Regulations:The Indian government has implemented strict environmental regulations, including the Air (Prevention and Control of Pollution) Act, which imposes penalties for non-compliance. In future, over 200 industrial units faced fines totaling $5 million for violations. These regulations necessitate significant investments in compliance technologies, which can strain the financial resources of smaller players in the industrial gases market, hindering their growth potential.

India Industrial Gases Market Future Outlook

The India industrial gases market is poised for significant transformation, driven by technological advancements and a shift towards sustainability. The integration of digital technologies, such as IoT and AI, is expected to enhance operational efficiency and safety standards. Furthermore, the increasing focus on renewable energy and clean technologies will likely create new avenues for growth. As industries adapt to these changes, the demand for customized gas solutions tailored to specific applications will also rise, shaping the future landscape of the market.

Market Opportunities

• Growth in Emerging Economies:The industrial gases market in emerging economies, particularly in Southeast Asia, is projected to grow significantly, with an expected increase in demand for gases like nitrogen and argon. This growth presents opportunities for Indian manufacturers to expand their export capabilities and tap into new markets, potentially increasing revenue streams and market share.
• Technological Advancements in Gas Production:Innovations in gas production technologies, such as membrane separation and cryogenic distillation, are expected to enhance efficiency and reduce costs. These advancements can lead to increased production capacity and lower environmental impact, providing a competitive edge for companies that adopt these technologies, thereby creating substantial market opportunities.