India Industrial Gases Market — Market Insights & Forecast 2030

Market Size (2024): USD 3.06 Billion
Market Size (2030): USD 4.04 Billion
CAGR (2025-2030): 4.92%
Fastest Growing Segment: Hydrogen
Largest Market: West India

Market Overview

According to the TechSci Research report, the India Industrial Gases Market was valued at USD 3.06 Billion in 2024 and is projected to reach USD 4.04 Billion by 2030, registering a 4.92% CAGR during the forecast period.

Industrial gases such as oxygen, nitrogen, argon, carbon dioxide, and hydrogen are essential across manufacturing, healthcare, automotive, steel, cement, chemicals, pharmaceuticals, and energy applications. These gases are supplied through compressed gas, liquid, and other delivery formats depending on application requirements.

The India Industrial Gases Market Size is supported by manufacturing expansion, infrastructure development, healthcare investment, and increasing adoption of clean-energy technologies. Government initiatives such as Make in India are encouraging industrial development and supporting demand for gases across multiple end-use sectors.

The market is also undergoing technological transformation through green hydrogen, carbon capture and storage, gas recycling, pressure swing adsorption (PSA), cryogenic distillation, digital monitoring, smart sensors, and IoT-enabled gas management systems.

Industrial expansion, healthcare infrastructure development, and the transition toward clean energy are creating significant opportunities for industrial gas producers and suppliers in India.

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Key Market Drivers

𝐃𝐫𝐢𝐯𝐞𝐫 𝟏: Growth of the Healthcare Sector

The expansion of India's healthcare infrastructure is increasing demand for medical oxygen, nitrogen, medical air, and carbon dioxide.

Oxygen is extensively used in hospitals for respiratory care, surgeries, emergency treatment, and chronic respiratory conditions. Medical air and nitrogen support medical equipment and preservation applications, while carbon dioxide is used in procedures such as laparoscopic surgeries.

According to the Economic Survey 2022-23, India's public healthcare spending reached 2.1% of GDP in FY23, compared with 1.6% in FY21.

Government healthcare programs, including Ayushman Bharat, are also supporting infrastructure development and improving access to healthcare services.

The expansion of hospitals, clinics, diagnostic centers, and specialized healthcare facilities across urban and rural areas is expected to sustain demand for reliable medical gas supply systems.

𝐃𝐫𝐢𝐯𝐞𝐫 𝟐: Rising Focus on Clean Energy

The transition toward clean energy is increasing demand for industrial gases used in hydrogen production, carbon capture, renewable energy technologies, and sustainable industrial processes.

Hydrogen is emerging as an important clean-energy source for fuel cells, energy storage, and industrial applications. India's National Green Hydrogen Mission, launched in January 2023, has a funding allocation of USD 2.36 Billion through FY 2029-30.

The Strategic Interventions for Green Hydrogen Transition (SIGHT) program is supporting domestic electrolyser manufacturing and green hydrogen production.

In 2023, INOX Air Products secured a 20-year contract with First Solar to design, engineer, install, and operate a cryogenic nitrogen generator at First Solar's manufacturing facility in Pillaipakkam, Tamil Nadu.

The increasing focus on carbon capture and storage is also creating opportunities for industrial gases and related technologies.

𝐃𝐫𝐢𝐯𝐞𝐫 𝟑: Expansion of Manufacturing and Industrial Activities

Growth in manufacturing, steel, chemicals, cement, automotive, and other industrial sectors is increasing the consumption of oxygen, nitrogen, argon, hydrogen, and other industrial gases.

Industrial gases are required for metal processing, welding, cutting, chemical processing, heat treatment, food processing, and manufacturing operations.

The expansion of manufacturing infrastructure and increasing domestic investment are creating additional demand for reliable gas production and distribution networks.

Growing investments in clean-energy projects are further broadening industrial gas applications, particularly in hydrogen and renewable-energy manufacturing.

Key Market Challenges

𝐂𝐡𝐚𝐥𝐥𝐞𝐧𝐠𝐞 𝟏: Price Volatility

Price fluctuations in raw materials and energy inputs can affect production costs and profitability across the industrial gases industry.

Natural gas and other inputs used in gas production can experience significant price movements. For example, in July 2024, the government increased the natural gas price to USD 8.51 per mmBtu for August, compared with USD 8.24 in July.

Such fluctuations make it difficult for manufacturers to maintain stable pricing and profit margins. Companies may need to absorb higher production costs or pass them on to customers, potentially affecting competitiveness.

Price volatility can also complicate long-term contracts, capital investment decisions, demand forecasting, and supply agreements.

𝐂𝐡𝐚𝐥𝐥𝐞𝐧𝐠𝐞 𝟐: Infrastructure Constraints

Infrastructure limitations can affect the production, storage, transportation, and distribution of industrial gases.

Poor road connectivity, limited rail infrastructure, inadequate warehousing, and supply-chain disruptions can delay deliveries and increase transportation costs.

Industrial gases also require specialized storage and handling infrastructure to ensure safety and regulatory compliance. Limited access to advanced facilities in remote and underserved regions can affect supply reliability.

Upgrading production technologies and developing new storage and transportation infrastructure require significant capital investment, creating additional challenges for market participants.

Key Market Trends

𝐓𝐫𝐞𝐧𝐝 𝟏: Shift Toward Circular Economy

The Indian industrial gases industry is increasingly focusing on gas recycling, carbon capture, resource efficiency, and closed-loop systems.

Companies are developing technologies to capture, purify, recycle, and reuse gases such as carbon dioxide, helping reduce waste and improve resource utilization.

In 2024, Oil India launched a carbon capture and storage project with government backing. The project focuses on capturing CO₂ emissions from a natural gas field in Rajasthan and storing them in nearby dry wells.

𝐓𝐫𝐞𝐧𝐝 𝟐: Growth of Gas Recycling Technologies

Gas recycling technologies are gaining importance in applications where high-purity gases are consumed in large quantities.

In 2023, clean-tech company GR2L secured a USD 4.9 Million order to provide its ArgonØ recycling technology to Mundra Solar for a 2 GW solar facility in India.

The technology can recycle up to 95% of argon used in silicon wafer fabrication for solar panels.

𝐓𝐫𝐞𝐧𝐝 𝟑: Digitalization and Smart Gas Management

Industrial gas companies are increasingly adopting digital monitoring, smart sensors, IoT, remote management, and automated control systems.

These technologies can improve operational efficiency, enhance safety monitoring, support predictive maintenance, and enable more effective management of gas production and distribution systems.

Hydrogen development, gas recycling, carbon capture, digitalization, and resource efficiency are increasingly shaping the future of India's industrial gases industry.

Segmental Insights

Product Type Insights

Hydrogen is projected to be the fastest-growing product segment in the India Industrial Gases Market during the forecast period.

India's focus on hydrogen as a clean-energy source is supported by the National Green Hydrogen Mission and government incentives aimed at increasing domestic hydrogen production.

In July 2024, the Ministry of New and Renewable Energy introduced guidelines for the second phase of the SIGHT Programme Component II, focused on incentivizing green hydrogen production.

The program aims to expand India's green hydrogen production capacity to 450,000 tonnes per annum, including 40,000 TPA through biomass-based pathways.

Hydrogen demand is also expanding across fuel cells, power generation, industrial applications, and clean-energy projects.

In April 2024, Ohmium International partnered with Tata Projects to advance green hydrogen projects in India, with Ohmium supplying PEM electrolyzers and Tata Projects handling EPC activities.

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Mode of Distribution Insights

Bulk & Cylinder emerged as the dominant distribution mode in the Indian Industrial Gases Market in 2024.

Large industries such as steel, cement, chemicals, petrochemicals, and manufacturing require substantial quantities of oxygen, nitrogen, hydrogen, and other gases, making bulk distribution suitable for high-volume consumption.

Cylinders provide flexibility for smaller facilities, workshops, healthcare facilities, and applications with varying demand levels.

The combination of bulk and cylinder distribution enables suppliers to serve both large industrial customers and smaller end users.

Confidence Petroleum invested approximately Rs 350 crore in its Nagpur plant, with plans to initially produce 100,000 Type 4 cylinders and subsequently increase capacity to 300,000 units.

Regional Insights

West India

West India dominated the India Industrial Gases Market in 2024.

Gujarat and Maharashtra are major industrial centers with significant activity across petrochemicals, steel, automotive, pharmaceuticals, chemicals, and manufacturing.

In 2023, INOX Air Products announced plans to construct its sixth Air Separation Unit (ASU) at the Hazira plant of AM/NS India in Gujarat. The facility is designed for daily production of approximately 1,000 tonnes of oxygen and nitrogen.

The region also benefits from major ports such as Mumbai and Kandla, supporting industrial supply chains and the movement of gases and related products.

In June 2024, Essar Group announced plans to invest USD 3.58 Billion over four years to establish a green hydrogen plant in Jamnagar, Gujarat.

Additionally, NTPC Green Energy Limited formalized an agreement with the Government of Maharashtra to develop green hydrogen and derivatives with a targeted capacity of up to 1 million tonnes per annum.

The combination of industrial concentration, infrastructure, logistics, and clean-energy investment is expected to support West India's leading position.

Recent Developments

𝐃𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭 𝟏: Air Liquide Expands Production in Uttar Pradesh

In July 2024, Air Liquide India announced the establishment of a USD 41.80 Million manufacturing unit in Mathura, Uttar Pradesh.

The air separation unit will produce more than 300 tonnes per day of liquid and medical oxygen, 45 tonnes of liquid nitrogen, and 12 tonnes of liquid argon.

𝐃𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭 𝟐: Green Hydrogen Plant for Glassmaking

In June 2024, Air Products and INOX Group announced plans to launch India's first green hydrogen plant for glassmaking.

INOX Air Products secured a 20-year offtake agreement with Asahi's Indian subsidiary to supply hydrogen for a new float glass facility in Rajasthan.

𝐃𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭 𝟑: INOX India Receives Cryogenic Storage Patent

In April 2024, INOX India received a patent from the Government of India's Patents Office for an innovative method of suspending inner vessels within Dewar-type containers used to store cryogenic fluids such as liquid nitrogen, oxygen, and argon.

𝐃𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭 𝟒: Linde Expands SAIL Supply Agreement

In January 2024, Linde expanded its long-term supply agreement with Steel Authority of India Limited (SAIL).

Linde plans to invest approximately USD 60 Million to build and operate an additional 1,000 tonnes-per-day Air Separation Unit at SAIL's Rourkela plant.

The facility is expected to support SAIL's expansion and serve both existing and new merchant customers.

Competitive Landscape

The India Industrial Gases Market Report covers a competitive environment comprising global industrial gas companies, domestic gas producers, specialty gas suppliers, and integrated industrial solution providers.

Market participants are focusing on production capacity expansion, green hydrogen, clean-energy technologies, gas recycling, strategic supply agreements, infrastructure development, digitalization, and regional distribution networks.

Companies are also investing in advanced production and storage technologies to improve efficiency, safety, reliability, and sustainability.

Market Development

The India Industrial Gases Market Development is increasingly centered on hydrogen, healthcare gases, clean energy, carbon capture, gas recycling, and advanced distribution infrastructure.

The expansion of manufacturing, steel, chemicals, pharmaceuticals, healthcare, and renewable-energy industries is creating new applications for industrial gases.

At the same time, companies are strengthening local production capabilities and establishing long-term supply agreements to improve reliability and serve India's expanding industrial base.

Market Opportunity

The combination of industrialization, healthcare expansion, clean-energy investments, hydrogen development, and infrastructure modernization is creating significant opportunities for industrial gas producers.

The Hydrogen segment offers strong growth potential, while oxygen, nitrogen, argon, carbon dioxide, and specialty gases provide additional opportunities across healthcare, manufacturing, steel, chemicals, food processing, electronics, and energy applications.

The development of green hydrogen and carbon capture technologies is also expected to open new application areas and encourage investments in advanced gas production infrastructure.

Key Market Players

Linde plc | Taiyo Nippon Sanso India Pvt Ltd. | INOX Air Products Private Limited | Bhuruka Gases Limited | Bombay Oxygen Investments Ltd. | Ellenbarrie Industrial Gases Ltd. | Air Liquide India | Goyal MG Gases Pvt. Ltd. | SICGIL India Limited

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Future Outlook

The India Industrial Gases Market Outlook remains positive through 2030, supported by industrial expansion, healthcare infrastructure development, clean-energy investments, and technological advancements.

The Hydrogen segment is expected to maintain strong growth momentum as India advances its green hydrogen ambitions. Demand for oxygen, nitrogen, argon, carbon dioxide, and specialty gases is also expected to increase across manufacturing, healthcare, steel, chemicals, and energy applications.

India's transition toward cleaner energy, advanced manufacturing, and modern healthcare infrastructure is expected to strengthen the long-term growth potential of the industrial gases industry.

Frequently Asked Questions

1. What is the India Industrial Gases Market size?

The India Industrial Gases Market Size is projected to increase from USD 3.06 Billion in 2024 to USD 4.04 Billion by 2030.

2. What is the India Industrial Gases Market CAGR?

The India Industrial Gases Market CAGR is projected at 4.92% during 2025-2030.

3. Which is the fastest-growing segment in the India Industrial Gases Market?

Hydrogen is projected to be the fastest-growing product segment, supported by India's clean-energy strategy, green hydrogen investments, and government initiatives.

4. Which region dominates the India Industrial Gases Market?

West India is the largest regional market, supported by its strong industrial base, manufacturing infrastructure, logistics network, and investments in hydrogen and clean-energy projects.

5. What are the major types of industrial gases?

Major industrial gases include oxygen, nitrogen, argon, carbon dioxide, and hydrogen, which are used across healthcare, manufacturing, steel, chemicals, automotive, energy, and other industrial applications.

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