Africa Industrial Gases Market Market Research Report: Forecast (2026-2032)

Africa Industrial Gases Market Size: Forecast (2026-2032)

The Africa Industrial Gases Market size is valued at around USD 4.38 billion in 2025 and is projected to reach USD 5.31 billion by 2032. Along with this, the market is estimated to grow at a CAGR of around 3.94% during the forecast period, i.e., 2026-32.

Africa Industrial Gases Market Key Takeaways:

• Africa’s manufacturing base remains small relative to the world and limits long-term industrial gas demand. The continent contributes 3.2% of global GDP and just 2.0% of world manufacturing value added. Manufacturing value-added growth is 2.4% and manufacturing accounts for 7.6% of employment on the continent. These structural constraints mean baseline demand for industrial gases used in chemicals, metal fabrication, food processing, and pharmaceuticals will expand from a low base as industrialization proceeds.
• A regional program launched in East Africa in October 2024 mobilized USD22 million to expand liquid oxygen production by about 60 tons per day and to increase regional production capacity threefold while lowering prices by up to 27% in targeted markets. At the country level, the World Bank provided USD13.5 million for the procurement and installation of hospital oxygen plants in Ethiopia in September 2024. These investments materially increase the supply of both medical and industrial-grade oxygen over the 2026 to 2032 forecast window.

Africa Industrial Gases Market Key Trends & Developments:

October 22, 2024

Unitaid and partners launched the East African Program on Oxygen Access with a USD22 million blended financing package to expand liquid oxygen manufacturing in Kenya and Tanzania. The program targets a threefold increase in production capacity in East Africa and an expansion of capacity by over 60 tons per day for the participating manufacturers. The initiative is expected to reduce oxygen prices by up to 27% and to serve neighboring markets, including Malawi, Mozambique, Uganda, and Zambia.

September 18, 2024

The United Nations Office for Project Services announced a World Bank-funded USD13.5 million program to procure and install oxygen generation and supply equipment across hospitals in Ethiopia. The project aims to cut dependence on imports and build domestic PSA and plant capacity that will secure routine medical oxygen supply and create local bulk oxygen availability that can support industrial and emergency needs.

Africa Industrial Gases Market Scope:

Africa Industrial Gases Market Drivers:

Relocation of Energy-Intensive Industries in Africa

Rapid relocation of energy-intensive industries into Africa is pushing demand for on-site gases such as oxygen, nitrogen, and argon. For instance, Egypt doubled exports of cement, fertilizers, and chemicals between 2022 and 2024 and increased those exports by 350% since 2019, thereby boosting demand for gas products in chemical synthesis and drying stages. This export growth forces local producers to integrate gas supply into production to control costs and logistics rather than rely on imports. Several governments are incentivizing industrial parks that require continuous and stable gas inputs for steel, glass, and agrochemical processing. Gas producers are also forming joint ventures with heavy manufacturers to build captive supply plants. This integration enhances local gas capacity and strengthens the overall market base.

Competitive Green Hydrogen Cost Potential

Declining renewable power costs and favorable geographies create lucrative growth opportunities in Sub-Saharan Africa. For instance, modeling shows Mauritania can produce green hydrogen at USD1.86/kg with an annual potential of 259 TWh. That opens hydrogen to industrial use (e.g., metal reduction) and fosters scaling of cryogenic gas infrastructure. This cost advantage attracts investment in hydrogen hubs that rely on advanced gas handling and purification systems. Several countries are planning cross-border infrastructure for hydrogen transport, which also supports oxygen and nitrogen co-production. As hydrogen expands as feedstock, industrial gases markets benefit from shared production, logistics, and demand synergies., and demand synergies.

Africa Industrial Gases Market Trends:

Modular Micro-Gas Plants Near Mines and Clusters

Rather than central large gas plants, mid-sized modular PSA or cryogenic units are being deployed adjacent to mineral processing corridors. For instance, in Ghana, the West Africa Gas Pipeline project supports local mini-clusters in Togo and Benin with gas supply closer to smelters and mills. This reduces long-distance transport cost by 20% and lowers leakage losses, making gas viability in remote industrial zones more attractive. Investors are targeting mine-adjacent locations because they provide stable baseline demand and faster permitting timelines compared to urban areas. This distributed model also reduces dependency on limited pipeline infrastructure, which remains underdeveloped in much of Sub-Saharan Africa. As a result, localized plants can support high-growth export industries without waiting for national grid expansion.

Aggregated Industrial Zones Using Shared Gas Networks

Industrial parks in Kenya, Rwanda, and Mozambique are planning common utility corridors where multiple factories tap a shared high-pressure gas trunk. For instance, the proposed Lamu port industrial zone in Kenya will supply oxygen, nitrogen, and hydrogen through a centralized gas main to tenants. This spreads infrastructure cost across users, cuts unit capex by roughly 15% and encourages smaller firms to adopt gas in their processes. Such collective infrastructure is being favored by development finance institutions that seek to de-risk private investment. The approach allows industrial gas suppliers to sign multi-offtake agreements, ensuring predictable revenue streams. Over time, these shared corridors can stimulate new manufacturing clusters and build the foundation for regional gas trading hubs.

Africa Industrial Gases Market Challenges:

Cost-Reflective Energy Pricing and Fiscal Distortions

High under-recovery tariffs and distortive fiscal regimes distort the true cost of industrial gas supply. Because many African power and gas utilities operate with tariffs set below cost, governments subsidize energy, reducing incentives for industrial gas projects to scale. For instance, in Nigeria, over 55% of natural gas is sold below supply cost, putting pressure on utility margins and discouraging private capital in gas infrastructure. This gap forces gas suppliers to absorb cross-subsidy burdens or demand risk premiums, raising delivered gas prices by 10-25%. Without reforms to align tariffs with costs and rationalize fiscal burdens, industrial gas growth faces structural drag.

Africa Industrial Gases Market (2026-32) Segmentation Analysis:

The Africa Industrial Gases Market Report and Forecast 2026-2032 offers a detailed analysis of the market based on the following segments:

Based on Gas

• Nitrogen
• Oxygen
• Carbon dioxide
• Argon
• Hydrogen
• Helium
• Acetylene
• Others

The leading gas segment in Africa is oxygen, commanding roughly 28% of MEA industrial gas revenues in 2023, according to a regional study. Its dominance stems from integrated use in steelmaking, glass, combustion systems, and downstream chemical oxidation. For instance, as cement, fertilizer, and chemical export industries scale in Egypt and Morocco, onsite oxygen plants are increasingly installed to cut import costs. The expansion of medical oxygen infrastructure after the pandemic also created surplus capacity that can be redirected to industrial end users. Moreover, energy transition policies are encouraging process efficiency upgrades in heavy industries, which further boosts oxygen demand.

Based on Application

• Combustion and process oxygen
• Welding and metal fabrication
• Inerting blanketing and heat treating
• Cryogenics and liquefaction
• Chemical synthesis and hydrogenation
• Purging and purifications
• Analytical and calibration

On application, welding and metal fabrication are the foremost use categories. Africa’s infrastructure build-out and rising demand for structural steel drive this segment. For instance, the African Welding Federation convened in Lagos in 2024 to promote standards and skills across nations, reflecting how critical welding is to manufacturing growth. Growing public works spending, which reached nearly 5% of GDP in Sub-Saharan Africa in 2023, is pushing demand for fabricated metal structures. Rising foreign investment in automotive assembly and shipbuilding adds further momentum to this segment.

Leading Manufacturers of the Africa Industrial Gases Market:

Carbacid Investments

Carbacid Investments is a leading CO₂ producer based in Kenya. It operates one of the largest natural underground CO₂ sources in East Africa and supplies beverage, medical, and industrial markets. Its production capacity expansion projects aim to meet rising demand in the regional manufacturing and food processing industries.

Afrox

African Oxygen Limited (Afrox) is headquartered in South Africa and has been a key supplier of oxygen, nitrogen, acetylene, and argon for decades. The company operates multiple filling and production sites across the country and supports sectors such as mining, steel fabrication, and healthcare.

Gogas (Egypt)

Gogas is a major Egyptian industrial gas producer supplying oxygen, nitrogen, and argon to domestic and export markets. It plays an important role in serving Egypt’s chemical and construction industries. Its plant capacity expansions align with the growing demand for oxygen in manufacturing and energy projects.

Air Liquide Africa, Boc Gases Nigeria, Ewig Gases, Messer Group, Nigerian Oxygen Limited, Siyakhula Industrial Gases, Tanzania Oxygen Limited, and others are the key players of the Africa Industrial Gases Market.

Africa Industrial Gases (2026-32): Regional Projection

The market for industrial gases in Africa is dominated by South Africa, owing to its highest industrial competitiveness and established heavy industry base. South Africa consistently leads African nations in the Competitive Industrial Performance (CIP) Index, followed by Morocco and Egypt. Its diverse extractive industries, automotive sector, metallurgical base, and chemical plants create substantial demand for oxygen, nitrogen, and specialty gases. For instance, Afrox and AECI supply oxygen and argon across multiple provinces, including Gauteng and Western Cape, leveraging proximity to mining and manufacturing hubs. Its advanced infrastructure and logistics networks give South Africa a structural advantage in gas distribution compared to its peers.

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