Global Compressed Gas Market Size, Trend & Opportunity Analysis Report, by Source (Refinery, Associated Gas, Non-Associated Gas), Application (Chemical), and Forecast, 2024–2035

Market Definition and Introduction

The global compressed gas market was valued at USD 178.61 billion in 2024 and is anticipated to reach USD 621.30 billion by 2035, expanding at a CAGR of 12.00% during the forecast period (2024–2035). Today's compressed gases have evolved beyond the traditional energy and industrial fields into avant-garde chemical synthesis, medical applications, and advanced manufacturing processes. As chemical producers require high-purity gases for synthesis with processing applications and feedstocks, demand is rapidly increasing, and the integration of industrial gas systems for pharmaceuticals, electronics, and energy transition projects broadens the demand base. This is spurred by regulatory motivation for cleaner production methods, which has catalysed innovation in carbon capture, gas liquefaction, and energy-efficient compression technologies.

Environmental pressures and changing policies for energy are increasingly forcing gas producers to come up with new solutions that can give both the technical accuracy and sustainability required in this generation of new processes. Compressed gases play a crucial role in refining processes, the production of hydrogen fuel, and the supply chain for ammonia and methanol plants. On the other hand, improvements in gas management infrastructure, such as cryogenic storage and high-pressure delivery systems, complement the efficiencies in large-scale industry operations. This dynamic is therefore becoming highly competitive but yet very rich in opportunity.

On the supply side, leading manufacturers are heavily investing in capacity expansion and coverage with integrated distribution networks. Diversifying sources of supply for feed gases has made them less susceptible to price volatility and geopolitical risks, while also sourcing renewable gas alternatives like green hydrogen and bio-based methane. These factors augment compressed gas as a backbone to both mature industrial economies and rapidly growing regions of industrialisation, offering strategic leverage for global trade and competition in manufacturing.

Recent Developments in the Industry

Linde plc extends hydrogen infrastructure to support clean energy applications.

Linde plc announced, in January 2025, large-scale investments in hydrogen production and refuelling infrastructure in North America and Europe to promote industrial decarbonization targets and mobility applications with high-purity compressed hydrogen to the energy and transportation sectors.

Air Liquide secured partnerships with semiconductor companies for ultra-high-purity gas solutions.

In September 2024, Asian semiconductor leaders signed a long-term contractual agreement with Air Liquide for the supply of ultra-high-purity nitrogen and speciality gases to carry forward supply chain stability in advanced chip processing.

Chart Industries introduced next-gen cryogenic storage systems for LNG applications.

In April 2024, Chart Industries rolled out a range of high-capacity cryogenic tanks suited for optimising liquefied natural gas (LNG) storage and transportation. These systems are expected to result in lower boil-off rates and attributable operational safety.

Praxair Technology Inc. innovates CO₂ compression systems with carbon-capture readiness.

In June 2024, Praxair Technology Inc. unwrapped next-generation CO₂ compressors with carbon capture and storage (CCS) readiness, thereby allowing chemical and power plants to reduce emissions and do so while increasing their operational efficiency.

Iwatani Corporation quickens hydrogen fuel network in Japan.

In February 2024, Iwatani Corporation announced 15 new hydrogen refuelling stations in prominent Japanese cities, marking a significant advancement in the country's hydrogen mobility strategy.

Market Dynamics

Still expanding, the industrial chemical sector fuels worldwide acceptance of compressed gases.

Gases are central to the chemical industries as feed gases, process gases, and utilities throughout the entire life cycle of petrochemicals, fertilisers, and speciality chemical plants. Rising growth in the production of methanol, ammonia, and hydrogen may keep the demand high for nitrogen, oxygen, hydrogen, and especially for synthesis gas. The urgency created due to energy transition across the globe concerning green ammonia is further fueling the use of compressed gases in chemical value chains.

Clean-energy initiatives boosting hydrogen and CO2-capture markets

Targeting net-zero emissions, hydrogen production, and CO2 sequestration have emerged as primary growth arenas for compressed gases. Investment in infrastructure is buoyed by hydrogen's role as an industrial fuel and transportation energy source, while regulatory and financial support for carbon dioxide compression to storage and utilisation creates a wealth of new market opportunities.

High-purity requirements in electronics and the medical industries are raising product standards.

Semiconductor manufacturing and clinical applications require ultra-high-purity gases: nitrogen, argon, helium, and oxygen. The increasing sophistication in electronics and the biotechnology manufacturing boom create pressure on producers to commit to advanced purification and distribution systems that meet strict quality thresholds.

Feedstock price volatility and geopolitical supply risks deny the basis for a stable market.

The dynamics of the production of compressed gases are heavily dependent on the availability and pricing of feed gases obtained from refinery sources, associated gas, and, subsequently, non-associated gas sources. Disruption in natural gas supply chains, due to fluctuations in oil prices and geopolitical tensions, can significantly exert pressure on the production economy and consequently veer towards diversified sourcing or renewable alternatives.

Attractive Opportunities in the Market

Green Hydrogen Expansion – Rapid scaling of electrolyser projects to produce renewable, low-emission hydrogen.
CO₂ Utilization Growth – Advancing carbon capture-to-chemicals technologies creates new end-use markets.
Asia-Pacific Industrial Surge – Manufacturing growth drives demand for nitrogen, oxygen, and industrial gases.
Digital Industry Integration – Automation and IoT in gas distribution, improving safety and operational control.
Medical Gas Innovation – Rising healthcare investments fueling demand for oxygen, nitrous oxide, and speciality gases.
Energy Storage Solutions – Hydrogen and compressed air storage systems are gaining traction in grid balancing.
Cryogenic Technology Advances – Next-generation storage and transport solutions boosting LNG and hydrogen trade.
Eco-Certifications Adoption – Gases certified for low carbon footprint are gaining preference in industrial tenders.
Refinery Upgrades – New gas recovery and purification systems enhancing refinery profitability and sustainability.
M&A Consolidation – Strategic acquisitions strengthening distribution networks and technology portfolios.

Report Segmentation

By Source: Refinery, Associated Gas, Non-Associated Gas

By Application: Chemical

By Region: North America (U.S., Canada, Mexico), Europe (UK, Germany, France, Spain, Italy, Spain, Rest of Europe), Asia-Pacific (China, India, Japan, Australia, South Korea, Rest of Asia-Pacific), LAMEA (Brazil, Argentina, UAE, Saudi Arabia (KSA), Africa Rest of Latin America)

Key Market Players

Linde plc, Air Liquide, Air Products and Chemicals, Praxair Technology Inc., Messer Group, Chart Industries, Iwatani Corporation, Gulf Cryo, Taiyo Nippon Sanso Corporation, and Matheson Tri-Gas Inc.

Report Aspects

Base Year: 2024
Historic Years: 2022, 2023, 2024
Forecast Period: 2024-2035
Report Pages: 293

Dominating Segments

Refinery-sourced gases are still leaders in global compressed gas production.

Refineries still remain a major source of industrial gases such as hydrogen, nitrogen, and oxygen, where the recovery of gases is closely linked to refining activities. These gases are useful in desulfurization, hydrocracking, and hydrogenation, to mention a few. Thus, in several regions, due to economic considerations of capturing and purifying these refinery off-gases, they have become indispensable, although the push toward renewable gas production is gaining momentum.

Chemical applications dominate demand, driven by synthesis and feedstock needs.

The chemical sector is the largest single consumer of compressed gases, particularly those of hydrogen, nitrogen, and synthesis gas. These gases are integral to ammonia and methanol production, polymer manufacture, and the synthesis of speciality chemicals. Chemical plants are still the backbone of compressed gas revenue generation with rapidly increasing global demand for fertilisers and petrochemicals.

The associated gas segment is rising with expanded oil and gas production activities.

Since the recovery of associated gas during crude oil extraction has begun to gain much prominence due to upstream oilfield development and flare gas recovery initiatives, it has thus slowly begun to gain much prominence. Environmental regulations directed at limiting flaring are now forcing operators to invest in compression and purification facilities, thus converting the previously wasted gas into a useful industrial input.

Key Takeaways

Chemical Sector Strength – Chemical manufacturing remains the largest consumer of compressed gases globally.
Hydrogen Momentum – Energy transition policies propel hydrogen infrastructure growth and industrial adoption.
Refinery Leadership – Refinery integration offers cost-efficient, large-scale gas production capabilities.
Asia-Pacific Growth – Rapid industrialisation fuels the largest market share increase by 2035.
Medical Gas Uptake – Healthcare expansion stimulates oxygen and speciality medical gas demand.
CO₂ Capture Potential – Climate policies drive adoption of carbon capture-ready compression systems.
Technological Innovation – Cryogenic and digital gas delivery systems improve efficiency and safety.
Feedstock Diversification – Geopolitical risks prompt sourcing expansion into renewable and non-associated gas.
M&A Activity – Consolidation strengthens supply chains and innovation capabilities.
Regulatory Push – Low-emission gas certifications influence procurement in government and industrial tenders.

Regional Insights

To keep pace with the changing trends, the compressed gas market in North America is clean energy and industrial advanced.

North America is profited by a mature industrial base, the innovation strength of the energy sector, and an increasing number of projects in clean hydrogen schemes. In addition to driving increasing purity-high speciality gases, investments are robust in LNG infrastructure, along with carbon capture plants and semiconductor manufacturing. Such expansion is further driven by regulatory incentives for decarbonization and energy security within the country.

Europe holds firm in green gas advances through a convergence of policies and technologies.

In terms of hydrogen produced renewably and carbon neutrality in industrial gas, Europe is at the forefront with the initiatives of the EU Green Deal and REPowerEU. Moreover, improved infrastructure for CO₂ capture and LNG terminals and hydrogen pipelines in Germany, France, and the Netherlands points to the region as a leader. Companies are also making it a point to integrate principles of the circular economy into the production and distribution of gas.

Asia-Pacific, riding on the back of industrial expansion, becomes the fastest emerging market.

Asia-Pacific is fast-growing due to rapid industrialisation; China, India, and South Korea are in an industrial strength race. The boom in chemical manufacturing, electronics, and infrastructure projects within the region directly increases the requirement for nitrogen, oxygen, and hydrogen. Future development will see Asia-Pacific positioned as a forthcoming leader in adopting green gases, backed by the government with investments focused on clean fuel technologies and LNG import terminals.

LAMEA's Energy Resources Enhance and Expand the Industrial Gas Capacities

The growth of LAMEA is largely attributed to the high economies rich with oil and natural gas, such as Saudi Arabia, the UAE, and Brazil. As a result, the consumption of compressed gases is increasing due to various investments in refining, expansion in petrochemical, and gas-to-chemicals projects. The types of strategic infrastructure developments include LNG export facilities and hydrogen pilot projects, which have increased the footprint of the market, especially in the Middle East.

Core Strategic Questions Answered in This Report

Q. What is the expected growth trajectory of the compressed gas market from 2024 to 2035?

The global compressed gas market is projected to grow from USD 178.61 billion in 2024 to USD 621.30 billion by 2035, registering a CAGR of 12.00%. Growth will be driven by chemical sector expansion, energy transition projects, and rising demand for high-purity gases across multiple industries.

Q. Which key factors are fuelling the growth of the compressed gas market?

Key drivers include expanding chemical manufacturing, increasing hydrogen production, decarbonization policies, medical gas demand, LNG infrastructure development, and high-purity requirements in advanced manufacturing sectors.

Q. What are the primary challenges hindering the growth of the compressed gas market?

Challenges involve feedstock price volatility, geopolitical supply risks, high infrastructure investment needs, stringent regulatory compliance, and the complexity of scaling renewable gas production to meet industrial demand.

Q. Which regions currently lead the compressed gas market in terms of market share?

North America currently leads the market due to its industrial infrastructure and energy innovation, while Asia-Pacific is rapidly gaining share through industrial expansion and clean fuel adoption.

Q. What emerging opportunities are anticipated in the compressed gas market?

Opportunities include scaling green hydrogen, expanding CO₂ utilisation, integrating digital monitoring in gas systems, expanding medical gas supply chains, and developing cryogenic technologies for energy storage and transport.

Key Benefits for Stakeholders

The report offers a quantitative assessment of market segments, emerging trends, projections, and market dynamics for the period 2024 to 2035.
The report presents comprehensive market research, including insights into key growth drivers, challenges, and potential opportunities.
Porter's Five Forces analysis evaluates the influence of buyers and suppliers, helping stakeholders make strategic, profit-driven decisions and strengthen their supplier-buyer relationships.
A detailed examination of market segmentation helps identify existing and emerging opportunities.
Key countries within each region are analysed based on their revenue contributions to the overall market.
The positioning of market players enables effective benchmarking and provides clarity on their current standing within the industry.
The report covers regional and global market trends, major players, key segments, application areas, and strategies for market expansion. Show more