Industrial Oxygen Market Size, Trends, Share, Growth, and Opportunity Forecast, 2024 - 2031 Global Industry Analysis By Product Type (Compressed Oxygen Gas, Liquefied Oxygen), By Type (On-Site Type, Bulk Type, Cylinder Type), By Form (Solid, Liquid, and Gaseous), By Application (Steel Production, Welding, Cutting, Mining, and Water Treatment), By Industry (Healthcare, Chemicals, Energy, Automotive, Aerospace, Manufacturing, Agricultural, and Others), and By Geography (North America, Europe, Asia Pacific, South America, and Middle East & Africa)

The Global Industrial Oxygen Market was valued at USD 47.38 Billion in 2023 and is anticipated to reach a value of USD 90.12 Billion by 2031 expanding at a CAGR of 8.4% between 2024 and 2031.

Industrial oxygen is highly concentrated form of oxygen gas used in various industrial applications, such as manufacturing, mining, and wastewater treatment processes. Unlike medical oxygen, which is highly purified and controlled for medical purposes, industrial oxygen is designed for industrial applications and can contain contaminants and impurities from its containers.  The purity levels of industrial oxygen is generally lower than of medical oxygen. Industrial oxygen is extensively used in various industrial processes, including metal cutting and welding, chemical oxidation, mining, wastewater treatment among others. There are various methods to produce industrial oxygen, that is liquid air distillation, pressure swing adsorption, and membrane separation. Based on product type, the market is classified into compressed oxygen gas, liquefied oxygen. The market is influenced by factors such as growing demand in healthcare, rapid industrial growth, increasing demand in metal manufacturing, and rise the demand in chemical sector.

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Industrial Oxygen Market Major Driving Forces

Growing Demand in Healthcare: One of the primary driving factor of the market is healthcare sector. Oxygen is a vital component in scientific applications, and is extensively used for patient care and scientific applications.

Rapid Industrial Growth: The significant industrial growth and the growing need for industrial oxygen is significantly drive market demand. Industries are growing, particularly those in manufacturing, chemicals, and healthcare, creates a greater demand for oxygen for various activities.

Increasing Demand in Metal Manufacturing: Oxygen is extensively used in steelmaking, metal cutting, and welding, which heavily rely on oxygen. The growth in the infrastructure, automotive, and construction sectors drives demand for steel, which in turn drives the demand for oxygen.

Rise the Demand in Chemical Sector: The demand for industrial oxygen is growing as it is widely used in chemical sector as raw material during the chemical reaction. Industrial oxygen is used as an oxidizing agent for the production of several chemicals.

Industrial Oxygen Market Key Opportunities

Technological Advancements: Technological advancements in oxygen production and delivery methods may have an impact on market expansion. The rising trend towards on-site oxygen generation systems, especially in remote areas are gaining traction because of their value-effectiveness and environmental benefits. New developments include the creation of more economical and energy-efficient techniques for producing oxygen can increase market share.

Sustainable Production Methods: The shift closer to sustainable practices and environmental regulations provide opportunities for the adoption of cleaner technology in industries. Companies are increasingly adopting technologies that reduce energy consumption and minimize environmental impact during oxygen production.

Healthcare Infrastructure Development: Ongoing development and expansion of healthcare infrastructure globally offer a significant opportunity for the market growth. Increasing investments in hospitals, clinics, and medical facilities create a growing demand for medical-grade oxygen. Many countries focusing on bolstering their healthcare systems, creates an opportunity for supplying oxygen services.   

Industrial Oxygen Market Key Trends

·         Increasing demand for medical oxygen is one of the major factor influencing the growth of industrial oxygen market

·         Growing adoption of oxygen enrichment technologies in Industries which depend heavily on oxygen to optimize business methods

·         Advancements in oxygen production and delivery technologies to improve the efficiency and cost effectiveness of oxygen supply

·         Growing usage of oxygen from cosmetics applications is a significant factor propelling the growth of the market

·         A shift towards sustainable and eco-friendly production methods to reduce energy consumption and minimize environmental impact during oxygen production

·         Major oxygen manufacturers are implementing IoT (Internet of Things) technology to connect machinery and intelligent devices

·         Growing trend towards using oxygen in wastewater treatment processes to enhance biological activity and improve the efficiency of treatment systems

Region-wise Market Insights

North America accounted for the largest market share at 36.7% in 2023 whereas, Asia Pacific is expected to register the fastest growth, expanding at a CAGR of 8.7% between 2024 and 2031.

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North America dominates the industrial oxygen market due to the presence of large players, growing number of cancer patients, increasing healthcare spending, and robust healthcare sector. In addition, the high adoption of advanced technology, stringent environmental regulations, focus on renewable electricity sources, and well-established oxygen production in the region also contributing to the regional market growth. In Europe, emphasis on stringent environmental regulations, adoption of oxygen in clean energy, increasing demand in healthcare, steelmaking, and chemicals industries drives market growth in this region. In Asia-Pacific, the market is characterized by the rising elderly population, industrial growth, ongoing infrastructure development, increasing healthcare expenditure, surge in manufacturing activities, growing oxygen demand from various industries has created an increasing demand for industrial oxygen. The Middle East and Africa has been witnessing a growing demand for industrial oxygen due to increasing industrialization and infrastructure development whereas, in South America, the market is influenced by economic factors, with ongoing infrastructure development, and increasing industrial activities.

Market Competition Landscape

The global industrial oxygen market is characterized by high degree of competition among a large number of manufacturers. Key players in the industrial oxygen market engage in strategies aimed at gaining a competitive edge. These strategies include product innovation, design differentiation, and the incorporation of sustainable and eco-friendly materials to meet evolving consumer preferences. Established brands leverage their reputation for quality and reliability to maintain market share, while newer entrants focus on disruptive innovations and unique selling propositions.

Key players in the global industrial oxygen market implement various organic and inorganic strategies to strengthen and improve their market positioning. Prominent players in the market include:

·         Linde plc

·         Air Products and Chemicals, Inc.

·         Praxair, Inc.

·         Air Liquide S.A.

·         Messer Group GmbH

·         Nippon Sanso Holdings Corporation

·         SOL Group

·         Taiyo Toyo Sanso Co., Ltd.

·         Novomer Inc.

·         Yingde Gases Group Co., Ltd.

·         Coregas Pty Ltd.

·         Air Water Inc.

·         Reliant Gases Limited

·         Gulf Cryo