The India Industrial Gases Market is undergoing transformative growth due to rising demand from sectors such as healthcare, electronics, automotive, and infrastructure development. Valued at USD 3.06 billion in 2024, the market is expected to expand at a CAGR of 4.92% through 2030, as per TechSci Research.
Major gases in the Indian market include oxygen, nitrogen, carbon dioxide, argon, hydrogen, and helium. Their usage spans from ICU support and cryogenics in healthcare to etching and plasma cleaning in electronics. With increasing demand for high-purity and specialty gases, the market is seeing strong momentum in gas innovation, on-site generation, and pipeline distribution systems.
India is rapidly embracing specialty gases such as silane, acetylene, nitrous oxide, and hydrogen chloride. These are critical to semiconductor manufacturing, biotech research, and laser applications.
On a regional basis, South India leads in terms of investment and infrastructure, particularly in Tamil Nadu, Karnataka, and Andhra Pradesh. These regions are attracting both domestic and international industrial gas suppliers due to favorable policies and proximity to ports and industrial clusters.
Emerging Trends and Market Drivers
1. High-Purity Gases Reshaping Advanced Manufacturing
Demand for ultra-high-purity gases is exploding in electronics, pharma, and chemical engineering. India’s initiative to become a global semiconductor hub has resulted in surging demand for semiconductor gases like ammonia, argon, and silane, used for chip fabrication and display technologies.
2. Post-COVID Healthcare Infrastructure Surge
Following the COVID-19 pandemic, India's focus on medical oxygen, liquid nitrogen, and sterile gases has intensified. Several hospitals now have PSA oxygen plants, and there is a nationwide push toward building decentralized oxygen supply infrastructure.
3. Green Hydrogen Adoption
India’s National Green Hydrogen Mission is paving the way for investments in green hydrogen production, storage, and transportation. Industrial gases companies are exploring low-carbon alternatives, using renewable electricity to split water and produce clean hydrogen for use in refining, mobility, and power generation.
4. Smart Supply Chain Management
Digitization is driving better tracking and efficiency in gas logistics. Cryogenic plants now feature remote monitoring, AI-based forecasting, and IoT sensors for cylinder inventory, improving delivery efficiency and minimizing downtime.
5. Localization of Production and On-site Gas Plants
With demand peaking in remote locations, companies are investing in modular on-site plants for gas generation. This trend supports real-time production for industries like food processing, biotech, and metal fabrication in Tier 2 and 3 cities.
Future Outlook
The India Industrial Gases Market is expected to diversify rapidly, supported by long-term government initiatives like Make in India, PLI for electronics, and the Green Hydrogen Mission. Growth will be shaped by:
Strategic investments in high-purity gas infrastructure
Expansion of ASUs in underserved regions
Increased participation of MSMEs in custom gas blends
Export opportunities in South Asia and Middle East markets
Wider adoption of hybrid gas distribution models (on-site + pipeline)
India’s ambitious goal to become energy independent by 2047 will further push innovation in gas storage technologies, alternative energy integration, and decentralized supply systems.
Import-Export Dynamics
India is increasingly self-reliant in key gases like oxygen, nitrogen, and argon, but still imports:
Helium from Qatar and the USA
Neon, krypton, xenon from Ukraine, Russia, and the US for use in semiconductors and lasers
India is also becoming a key exporter of industrial gases, particularly carbon dioxide, oxygen, and argon to neighboring countries like Nepal, Bhutan, and Sri Lanka, thanks to better production and cryogenic storage facilities.
Regional Snapshot: Key Developments by State
Tamil Nadu: INOX Air Products’ ultra-pure plant in Hosur and robust demand from auto and electronics hubs.
Maharashtra: Linde India’s long-term supply deal with IOCL at Panipat Refinery drives nitrogen and hydrogen production.
Telangana: Praxair’s 250 TPD ASU powers the pharmaceutical belt around Hyderabad.
Gujarat: With refineries and chemical zones, Gujarat demands high volumes of hydrogen, oxygen, and nitrogen.
Odisha and Jharkhand: Emerging hotspots for gas consumption in mining and steel production.
Technological Disruptions in the Market
Smart cylinders with RFID tracking
Liquid gas tankers with predictive maintenance software
Digital twins for plant simulation and optimization
Carbon capture-integrated gas systems
Low-temperature vaporization units powered by solar PV
These innovations are enabling both large and mid-sized players to offer premium, low-footprint gas solutions.
10 Profit Points of Research Report and Competitive Analysis
Data-driven Forecasting: Enables businesses to plan investments confidently for 2024–2030.
Granular Segmentation: Covers all product types, distribution methods, and region-specific growth patterns.
Policy Guidance: Includes analysis of environmental compliance, PESO regulations, and subsidy schemes.
Competitive Benchmarking: Profiles players such as Linde, Air Liquide, INOX Air Products, and Ellenbarrie.
Supply Chain Analysis: Comprehensive view of gas transportation, packaging, and on-site generation models.
Capex Planning Toolkits: Aids in evaluating feasibility of setting up ASUs, cryogenic units, or cylinder plants.
R&D and Patent Pipeline Review: Tracks innovation in gas purification, specialty gas blends, and equipment design.
Price Sensitivity Index: Analyzes how input costs, logistics, and regulations affect profit margins.
Trade and Export Potential: Maps overseas demand and competitive positioning for Indian gas producers.
Tailored Business Insights: Recommendations for both large enterprises and SMEs to improve ROI.
Frequently Asked Questions (FAQs)
Q1. What is the projected growth of the India Industrial Gases Market?
The India Industrial Gases Market is anticipated to grow at a CAGR of 4.92% between 2024 and 2030, supported by advancements in electronics, healthcare, and specialty gases.
Q2. Which gases are experiencing the highest demand in India?
Nitrogen, oxygen, and argon dominate due to their application in metalworking, packaging, and medical oxygen therapies.
Q3. What role does green hydrogen play in the industrial gas sector?
Green hydrogen is a clean fuel produced using renewable energy. It supports decarbonization efforts in refining, steelmaking, and transport, and will become a core segment of the market in the next decade.
Q4. How is the market adapting to technological trends?
Companies are embracing smart cylinders, IoT tracking, AI-based demand prediction, and remote operations in cryogenic plants to improve safety and cost-efficiency.
Q5. Are Indian gas companies focusing on exports?
Yes, Indian firms are expanding industrial gas exports to neighboring countries by leveraging capacity upgrades and regulatory clearances for medical, industrial, and CO₂-based gases.
Q6. What is the government's role in supporting this industry?
Policies such as PLI, Make in India, and the National Green Hydrogen Mission are directly supporting India Industrial Gases Market through incentives, funding, and simplified regulation.
Conclusion
The India Industrial Gases Market stands at the crossroads of technological innovation, industrial diversification, and sustainability. With rising investment in green energy, expanding demand from emerging sectors, and a shift toward digitally enabled supply chains, the sector is set to play a pivotal role in India's journey to becoming a global industrial powerhouse.
From the cryogenic depths of medical oxygen plants to the ultra-clean gases used in semiconductor fabs, industrial gases are no longer commodities—they are strategic enablers of economic progress. Stakeholders who embrace smart infrastructure, custom gas solutions, and ESG-aligned production are poised to lead in the decade ahead.
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