Exponential growth in industrial gases market driven by renewable energy

The industrial gases market is booming with an impressive growth forecast of $74.94 billion in 2024 to $158.19 billion by 2034. This growth, estimated at a compound annual growth rate (CAGR) of 7.80%, is largely due to the increased use of industrial gases in the photovoltaic sector.
Industrial gases such as nitrogen, oxygen and argon are essential in the production of semiconductors, photovoltaic cells and LEDs. These components are key to solar panels, which are becoming increasingly popular as a renewable energy source. By reducing production costs and increasing production efficiency, these gases play a key role in the expansion of solar energy.

Hydrogen: a pillar of the energy industry

Hydrogen, in particular, has become a central pillar of the energy industry. Used in fuel cells and as an alternative fuel, hydrogen offers significant benefits in reducing carbon dioxide emissions and diversifying energy sources. In the Asia-Pacific region, demand for hydrogen has grown rapidly, leading to significant growth in the industrial gas market.
Companies are investing heavily in hydrogen production and distribution infrastructure. For example, in February 2022, Linde signed a long-term agreement with BASF to supply steam and hydrogen, doubling its production capacity at the Chalampé chemical park in France. These infrastructure investments are essential to meet the growing demand for hydrogen and other industrial gases.

Investments and innovations in industrial gases

To meet this growing demand, industrial gas companies are increasing their investment in research and development. These efforts are aimed at optimizing production processes and developing new applications for industrial gases in the energy sector. Technological innovations reduce costs and improve efficiency, making companies more competitive in the global market.
In January 2022, Air Liquide invested around €40 million in a gas separation unit in India, specializing in industrial and commercial activities. This type of investment shows the company’s commitment to meeting the growing demand for industrial gases, while supporting innovation and growth in the energy sector.

Future Market Perspectives

The growth forecast for the industrial gases market is promising, supported by solid demand in the energy sector. The US, Germany, Spain, China, and India are showing compound annual growth rates (CAGR) of 4.30%, 3.60%, 5.80%, 8.70%, and 11.60%, respectively, during the forecast period.
Diversification of industrial gas applications, especially in energy storage and clean fuel technologies, should continue to drive demand. Advances in green hydrogen production and initiatives to increase energy efficiency will also play a key role in future market growth.

Latest events and key initiatives

Recent events illustrate the dynamics taking place in the sector. For example, Air Products Inc. opened a new cryogenic nitrogen plant in Malaysia in 2021 to support its operations and meet growing demand for industrial gases in the Asia-Pacific region. Such initiatives demonstrate how companies are positioning themselves to capture new market opportunities and meet global energy demands.
Overall, the industrial gas market is currently undergoing a major transformation, with rapid expansion supported by growing demand for photovoltaic energy and hydrogen. Investment in infrastructure and technological innovation will continue to play a key role in meeting this growing demand and strengthening companies’ position in the global market.
Companies operating in this sector must remain agile and invest in R&D to capitalize on new opportunities and remain competitive. With growing demand and ongoing innovation, the industrial gases market is well positioned for significant, sustainable growth in the coming years.