USA Industrial Gas Market Outlook to 2028

USA Industrial Gas Market Overview

The USA Industrial Gas Market is valued at USD 363 million, supported by strong growth across key sectors such as healthcare, manufacturing, and food processing industries. This robust demand is driven by the increasing use of gases like oxygen, hydrogen, and nitrogen, particularly in the healthcare sector due to the rise in medical emergencies and treatments.

Cities like Houston, Los Angeles, and Chicago dominate the industrial gas market, primarily due to their large industrial base and the presence of major refineries and manufacturing plants. Houston, being a hub for the petrochemical industry, contributes significantly to the demand for industrial gases like nitrogen and hydrogen.

The U.S. government has allocated $2.5 billion for the development of hydrogen energy infrastructure in 2024, aimed at reducing carbon emissions and promoting clean energy alternatives. This initiative will boost the production and demand for industrial gases, particularly hydrogen, as the government seeks to build hydrogen refueling stations and enhance hydrogen storage capabilities.

USA Industrial Gas Market Segmentation

By Gas Type: The market is segmented by gas type into oxygen, nitrogen, hydrogen, carbon dioxide, and argon. Oxygen dominates the market primarily because of its widespread use in the healthcare and steel industries. Hospitals require a continuous supply of oxygen to treat patients with respiratory issues and during surgical procedures.

By Application: The market is also segmented by application into healthcare, food & beverage, chemicals & petrochemicals, manufacturing & metallurgy, and energy. Healthcare continues to lead as a major application segment, largely due to the need for medical gases in hospitals and other health facilities.

USA Industrial Gas Market Competitive Landscape

The market is dominated by a few major players who have established extensive supply chains and production facilities across the country. The market consolidation is led by global giants like Linde Plc, Air Products and Chemicals, and Air Liquide. These companies maintain dominance due to their strong R&D capabilities and their ability to offer innovative gas solutions for industries such as healthcare, food processing, and energy.

Company

Establishment Year

Headquarters

Revenue (2023)

No. of Employees

Market Position

Key Products

Supply Chain

R&D Investments

Linde Plc

1879

Dublin, Ireland

Air Products & Chemicals

1940

Pennsylvania, USA

Air Liquide

1902

Paris, France

Praxair Inc.

1907

Connecticut, USA

Messer Group

1898

Bad Soden, Germany

USA Industrial Gas Market Analysis

Market Growth Drivers

Expansion in the Healthcare Sector: The U.S. healthcare sector continues to expand, driving demand for industrial gases, particularly oxygen and nitrogen, used in medical applications. The sector spending is increasing the consumption of industrial gases used for surgeries, respiratory therapies, and sterilization processes. Additionally, the growing number of hospitals, which is expected to exceed 6,200 by the end of 2024, further accelerates the need for high-purity gases in healthcare settings.

Increased Use in Food and Beverage Industry: Industrial gases play a pivotal role in enhancing food preservation, packaging, and beverage production processes in the U.S. food and beverage sector. Carbon dioxide is extensively used for carbonation, freezing, and preserving beverages, while nitrogen is vital for packaging to maintain freshness. The industry increasingly relies on these gases to meet growing demands for longer shelf life and improved food safety.

Boost in Renewable Energy Projects: Industrial gases are playing a vital role in renewable energy projects, particularly in the hydrogen energy sector. Hydrogen Council's report indicates that committed investments in clean hydrogen are projected to reach$75 billion across 434 projectsin 2024. This investment is expected to drive the demand for industrial gases required in hydrogen fuel cell development and other renewable energy applications.

Market Challenges

Stricter Environmental Regulations: The U.S. government has introduced stricter environmental regulations, including emission control mandates that require companies to invest in cleaner production technologies. The EPAs new guidelines, which aim to reduce emissions of carbon dioxide, sulfur dioxide, and nitrogen oxides, necessitate the installation of advanced filtration systems, adding to the operational costs of industrial gas production.

Supply Chain Disruptions: The U.S. industrial gas market faces disruptions due to global supply chain issues, particularly in the import of specialized equipment required for gas separation and transportation. In 2024, port congestion and transportation bottlenecks led to a 20% reduction in the import of cryogenic tanks and gas compressors, causing production delays. These disruptions hinder companies' ability to meet rising market demand, impacting revenues and limiting growth.

USA Industrial Gas Market Future Outlook

Over the next five years, the USA Industrial Gas industry is expected to witness moderate growth, driven by advancements in technology, expanding healthcare needs, and the transition to cleaner energy sources like hydrogen. With increasing government regulations focusing on reducing carbon emissions, the adoption of hydrogen and carbon capture technologies will likely fuel further demand in the market.

Future Market Opportunities

Growth in Hydrogen Economy: Over the next five years, the U.S. hydrogen economy is expected to expand as the government continues to invest in hydrogen infrastructure. Hydrogen will be increasingly used as a fuel alternative in transportation, particularly for trucks and buses. With more hydrogen refueling stations expected to be operational by 2028, the demand for industrial gases like hydrogen will experience steady growth, driven by the U.S. Department of Energys funding initiatives.

Rising Adoption of Carbon Capture Technologies: By 2028, carbon capture technologies are expected to become a key focus in U.S. industries as emission reduction targets tighten. The demand for industrial gases used in carbon capture, such as nitrogen and carbon dioxide, will grow as companies invest in technologies to meet federal emissions standards. This trend is expected to drive growth in the industrial gas market over the next five years.
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