Industrial Oxygen Market

Industrial Oxygen Market Outlook from 2023 to 2033

The industrial oxygen market size is projected to be worth USD 71,211.7 million in 2023. The market is likely to reach USD 152,323.1 million by 2033. The market is further expected to surge at a CAGR of 7.9% during the forecast period 2023 to 2033.

Attributes	Key Insights
Industrial Oxygen Market Estimated Size in 2023	USD 71,211.7 million
Projected Market Value in 2033	USD 152,323.1 million
Value-based CAGR from 2023 to 2033	7.9%

Key Market Trends and Highlights

• Oxygen is used in various chemical processes, including combustion, oxidation, and wastewater treatment. The growth of the chemical and petrochemical industries contributes to increased demand for industrial oxygen.
• Advancements in oxygen production and delivery technologies, including air separation units and on site gas generation systems, can improve the efficiency and cost effectiveness of oxygen supply, attracting more industrial users.
• Oxygen can be used in enhanced oil recovery and gasification processes, which have the potential to drive the growth of the industrial oxygen market, especially as the energy sector explores cleaner and more efficient methods.
• Oxygen is a crucial component in hydrogen production through electrolysis and other methods, as interest in hydrogen as a clean energy carrier grows. The development of the hydrogen economy is anticipated to drive demand for industrial oxygen.

2018 to 2022 Historical Analysis vs. 2023 to 2033 Market Forecast Projections

The scope for industrial oxygen rose at a 6.9% CAGR between 2018 and 2022. The global market for industrial oxygen is anticipated to grow at a moderate CAGR of 7.9% over the forecast period 2023 to 2033.

Report Attributes	Details
Market Value in 2018	USD 48,182.7 million
Market Value in 2022	USD 65,301.1 million
CAGR from 2018 to 2022	6.9%

The industrial oxygen market experienced steady growth during the historical period from 2018 to 2022. Key trends during this period included increasing industrialization, the expansion of healthcare and pharmaceutical sectors, and the growing emphasis on environmental compliance. The market benefited from the demand for oxygen in steel production, chemical manufacturing, healthcare applications, and energy related processes.

The surge in respiratory issues led to a heightened demand for medical oxygen. Hospitals, clinics, and healthcare facilities across the globe faced oxygen supply challenges, emphasizing the importance of oxygen infrastructure and supply chain resilience.

Innovations in oxygen production, storage, and delivery technologies improved efficiency, safety, and cost effectiveness. The advancements enhanced the attractiveness of industrial oxygen across various applications.

The forecast period from 2023 to 2033 is expected to see further industrialization and urbanization, particularly in emerging economies. The trend is expected to fuel the demand for industrial oxygen in construction, manufacturing, and infrastructure development.

The role of oxygen in gasification, oxy fuel combustion, and CCU processes is anticipated to become increasingly significant, as the world transitions to cleaner and more sustainable energy sources. Oxygen will be integral to carbon reduction and renewable energy production.

Emerging technologies, including advanced materials and biomedical research, will require oxygen for various applications. The fields will experience growth and drive demand for industrial oxygen. The market is expected to benefit from export opportunities and collaborative partnerships between oxygen suppliers and end user industries.

Industrial Oxygen Market Key Drivers

• Industrial oxygen has become crucial for hydrogen purification and for fuel cell applications, with the increasing interest in hydrogen as a clean energy carrier, which can lead to greater demand for oxygen in the future.
• Oxygen is used in various processes within the food and beverage industry, including modified atmosphere packaging and wastewater treatment. The demand for these products can increase, as the global population grows and consumer preferences evolve.
• Industrial oxygen is used in the aerospace industry for rocket propulsion and life support systems. There may be opportunities for growth in the demand for oxygen, with increasing commercial space exploration activities.
• Oxygen is used in wastewater treatment to promote the growth of beneficial microorganisms and enhance the treatment process. The demand for effective wastewater treatment is expected to increase, as environmental regulations become stricter.

Challenges in the Industrial Oxygen Market

• Fluctuations in energy prices, especially natural gas, which is a key feedstock for industrial oxygen production, can impact the cost of oxygen production. High energy costs can reduce the profitability of oxygen suppliers and deter potential customers.
• While environmental regulations can drive the demand for oxygen in pollution control and emissions reduction, they can also impose significant compliance costs on industrial facilities. The need to invest in emissions reduction technologies and comply with stricter regulations may be a financial burden for some industries.
• The industrial gas market is highly competitive, with several major players dominating the industry. Competitive pressures can lead to pricing challenges and reduce profit margins for companies operating in the sector.
• While there is a growing emphasis on sustainable and green technologies, the adoption of these technologies in the industrial oxygen market can be slow due to high initial capital costs and the need for significant infrastructure changes.

Country-wise Insights

The below table showcases revenues in terms of the top 5 leading countries, spearheaded by China and India. The countries are expected to lead the market through 2033.

Countries	Forecast CAGRs from 2023 to 2033
The United States	7.9%
The United Kingdom	6.9%
India	8.9%
China	9.0%
Japan	7.7%

Steel and Metal Production Driving the Market in the United States

The industrial oxygen market in the United States expected to expand at a CAGR of 7.9% through 2033. Oxygen is a critical component of healthcare and medical applications. The United States has a substantial healthcare industry, and the growing aging population, advancements in medical treatments, and the need for emergency care contribute to the demand for medical oxygen.

The steel industry in the country remains a significant consumer of industrial oxygen. Oxygen is used in basic oxygen furnace and electric arc furnace steelmaking processes. The demand for steel in construction and infrastructure projects contributes to oxygen consumption.

Automotive Industry to Accelerate Market Growth in Japan

The industrial oxygen market in Japan is anticipated to expand at a CAGR of 7.7% through 2033. Japan is a major hub for the automotive industry, with several leading automobile manufacturers. Oxygen is used in welding, cutting, and metalworking applications within the automotive sector.

The chemical manufacturing sector in Japan is well established, and oxygen is an essential component in chemical reactions and synthesis processes. The expansion of the chemical industry contributes to oxygen demand.

Stringent environmental regulations in Japan drive the adoption of emissions control technologies, such as selective catalytic reduction systems, which use industrial oxygen for air pollution control.

Manufacturing and Industrialization Fueling the Market in India

The industrial oxygen market in India is poised to expand at a CAGR of 8.9% through 2033. India is experiencing rapid industrialization and has a diverse manufacturing sector. Industrial oxygen is crucial for various processes in industries like steel, chemicals, and healthcare. Ongoing infrastructure development and urbanization in India require substantial steel and concrete production, which relies on oxygen for various processes. The trend fuels oxygen consumption.

Oxygen is used in the food and beverage industry for modified atmosphere packaging and food processing applications. The demand for safe and fresh food products in India drives the need for industrial oxygen.

Energy and Power Generation Spearhead the Market in China

Industrial oxygen trends in China are taking a turn for the better. A 9.0% CAGR is forecast for the country from 2023 to 2033. Oxygen is used in energy and power generation applications, including gasification, oxygen enrichment, and oxy fuel combustion. The demand for industrial oxygen in the energy sector is likely to rise, as China explores cleaner and more efficient energy solutions.

The aerospace and aviation industries are expanding in China. Oxygen is used in aviation applications, including life support systems and propulsion. The growth of these industries boosts oxygen demand. Oxygen is essential in wastewater treatment processes to promote the growth of beneficial microorganisms that break down organic matter and pollutants. The demand for industrial oxygen in wastewater treatment increases, as China addresses environmental concerns.

Technological Advancements Driving the Sales in the United Kingdom

The industrial oxygen market in the United Kingdom is anticipated to expand at a CAGR of 6.9% through 2033. Continuous innovations in oxygen production, storage, and delivery technologies enhance efficiency and safety, making industrial oxygen a more attractive option for various industries. Industries in the country are focused on energy efficiency and reducing carbon emissions. Oxygen is used to optimize combustion processes and reduce energy consumption, aligning with sustainability goals.

Oxygen is used in pharmaceutical manufacturing and biotechnology research for fermentation and cell culture applications. The growth of the pharmaceutical and biotech industries in the United Kingdom drives the demand for industrial oxygen.

Category-wise Insights

The below table highlights how liquefied oxygen segment is projected to lead the market in terms of product, and is expected to account for a share of 55.6% in 2023.

Based on end use, the medical and healthcare segment is expected to account for a share of 26.4% in 2023.

Category	Shares in 2023
Liquefied Oxygen	55.6%
Medical and Healthcare	26.4%

Liquefied Oxygen Segment Claims High Demand for Industrial Oxygen

Based on product, the liquefied oxygen segment is expected to continue dominating the industrial oxygen market. The segment is expected to account for a share of 55.6% in 2023.

Liquefied oxygen is a highly efficient form for storage and transport. It takes up less space compared to gaseous oxygen, making it easier and more cost effective to store and transport in bulk quantities. The efficiency can lead to cost savings for industrial users.

The chemical and petrochemical industries use liquefied oxygen for a range of processes, including oxidation reactions, chemical synthesis, and wastewater treatment. The demand for liquefied oxygen remains strong, as these industries continue to expand.

Liquefied oxygen is utilized in enhanced oil recovery processes to increase the efficiency of oil extraction. The exploration of enhanced recovery methods and the demand for greater oil production of the energy sector are driving the use of liquefied oxygen.

Medical and Healthcare Segment to Hold High Demand for Industrial Oxygen

In terms of end use, the medical and healthcare segment is expected to continue dominating the industrial oxygen market. The segment is expected to account for a share of 26.4% in 2023.

Oxygen is a primary component in respiratory therapy for patients with conditions like chronic obstructive pulmonary disease, asthma, and respiratory distress. The aging population and the prevalence of respiratory diseases are driving the demand for oxygen therapy.

Oxygen is crucial in emergency medicine and critical care settings for patients experiencing acute conditions, trauma, cardiac events, or respiratory failure. The need for immediate oxygen supply in emergencies fuels demand in healthcare facilities.

Oxygen is used in surgical procedures, as well as for anesthesia induction and maintenance. There is a growing requirement for oxygen in operating rooms and anesthesia, as surgical volumes increase. The growth in surgical procedures and hospital admissions due to various medical conditions contributes to the demand for medical oxygen, as it is vital for patient care before, during, and after surgeries.

Competitive Landscape

The key strategies chosen by large companies include several growth strategies such as technology development, expansion as well and mergers and acquisitions to surge market share, reach and revenue.

• In 2023, Air Products and Chemicals Inc. announced a partnership with ExxonMobil to develop and deploy carbon capture and storage technology at ExxonMobil's Baytown, Texas, refining and chemical complex.
• In 2023, Praxair Inc. announced plans to invest USD 300 million to expand its oxygen production capacity in the United States. The investment will be used to build new air separation units and to expand existing ASUs.
• In 2022, Air Liquide announced plans to invest €2 billion to develop and deploy CCS technology at its refinery in Antwerp, Belgium. The project will capture and store up to 1.3 million tons of carbon dioxide per year.
• In 2022, Air Products and Chemicals Inc. announced plans to build a new ASU in China with a capacity of 2,500 tons per day. The ASU will supply oxygen to a new petrochemical complex in China.

Report Scope

Attribute	Details
Estimated Market Size in 2023	USD 71,211.7 million
Projected Market Valuation in 2033	USD 152,323.1 million
Value-based CAGR 2023 to 2033	7.9%
Forecast Period	2023 to 2033
Historical Data Available for	2018 to 2022
Market Analysis	Value in USD million
Key Regions Covered	North America; Latin America; Western Europe; Eastern Europe; South Asia and Pacific; East Asia; The Middle East & Africa
Key Market Segments Covered	By Type, By Component, By Region
Key Countries Profiled	The United States, Canada, Brazil, Mexico, Germany, France, France, Spain, Italy, Russia, Poland, Czech Republic, Romania, India, Bangladesh, Australia, New Zealand, China, Japan, South Korea, GCC countries, South Africa, Israel
Key Companies Profiled	Matheson Tri-Gas Inc; Air Products and Chemicals, Inc.; Noble Gas Solutions; Air Liquide; LINDE plc; Gulf Cryo; SOL Spa; Messer Group GmbH; Showa Denko K.K.; Air Water Inc.; Ellenbarrie Industrial Gases Ltd.

Segmentation Analysis of the Industrial Oxygen Market

By Product Type:

• Compressed Oxygen Gas
• Liquefied Oxygen

By End Use:

• Automotive & Aerospace
• Chemical Processing
• Energy

By Region:

• North America
• Latin America
• Western Europe
• Eastern Europe
• South Asia & Pacific
• East Asia
• The Middle East & Africa

Frequently Asked Questions

What is the expected worth of the Industrial Oxygen market in 2023?

The market is expected to reach USD 71,211.7 million in 2023.

What is the expected CAGR for the Industrial Oxygen market until 2033?

The market is set to expand by a CAGR of 7.9% by 2033.

How much valuation is projected for the Industrial Oxygen market in 2033?

The market is forecast to reach USD 152,323.1 million by 2033.

Which country is likely to be at the pinnacle of the Industrial Oxygen market?

China is to be the top performing market, with a CAGR of 9.0% through 2033.

Which is the leading product in the Industrial Oxygen domain?

Liquefied oxygen segment is preferred, and is expected to account for a share of 55.6% in 2023.