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

Asia Pacific Industrial Gases Market Size: Forecast (2026-2032)

The Asia Pacific Industrial Gases Market size is valued at around USD 40.58 billion in 2025 and is projected to reach USD 52.93 billion by 2032. Along with this, the market is estimated to grow at a CAGR of around 5.46% during the forecast period, i.e., 2026-32.

Asia Pacific Industrial Gases Key Takeaways:

• Major on-site capacity additions are being driven by metals and heavy industry projects. Linde invested about USD120 million to build, own, and operate a new air separation unit supplying oxygen and nitrogen to PT Freeport Indonesia's Manyar copper smelter, representing Linde's largest ASU in Southeast Asia and increasing bulk supply density in East Java.
• Low-carbon hydrogen ambitions are creating a new merchant demand vector that could scale rapidly in Southeast Asia. The International Energy Agency reports that global hydrogen demand exceeded 97 million tonnes in 2023, and the IEA and related analysis show Southeast Asia's hydrogen volumes could rise from roughly 3,000 tonnes today to about 430,000 tonnes by 2030 under announced projects and plans, implying a multi-hundredfold increase in regional demand that will require both electrolyzer and industrial gas infrastructure.

Asia Pacific Industrial Gases Market Key Trends & Developments:

• September 26, 2024

Air Liquide announced an investment close to USD69.9 million to acquire and operate an air separation unit for Wanhua Chemical Group in Yantai, China. The project includes a new liquid argon unit and an ASU expected to serve Wanhua and the wider Shandong industrial merchant market with more than 2,000 tonnes per day of production capacity reported in project disclosures. The move strengthens Air Liquide's footprint in a major chemical cluster and expands local supply for nitrogen, oxygen, and argon.

• October 29, 2024

Linde started up its new on-site air separation unit, supplying oxygen and nitrogen to PT Freeport Indonesia's Manyar copper smelter. Linde reported an investment of about USD120 million in the ASU, which it described as the largest in Indonesia and its largest ASU in Southeast Asia. The facility will supply process gases to the smelter and provide liquefied industrial gases to bulk customers across East Java.

Asia Pacific Industrial Gases Market Scope:

Asia Pacific Industrial Gases Market Drivers:

Industrial Densification Around Downstream Hydrogen Hubs

Rapid clustering of ammonia, methanol, and refining complexes in Indonesia, Malaysia, and Singapore is catalyzing on-site industrial gas demand. For instance, Southeast Asia’s hydrogen demand reached 4 Mt in 2024, with Indonesia accounting for over one third, driving captive hydrogen, nitrogen, and oxygen infrastructure needs. These clusters prioritize local low-carbon production to reduce import dependence and logistical cost, creating long-term contracts for industrial gas suppliers. Vertical integration strategies by chemical majors further tighten supply lock-ins, making industrial gas provision a strategic enabler of regional value chain localization. The growing cross-border industrial corridors under the ASEAN Power Grid and regional hydrogen partnerships are expected to further intensify long-term gas infrastructure investments.

Electrolyzer Scale Economies Enabling Merchant Hydrogen Trade

Asia Pacific’s growing electrolyzer manufacturing base is rapidly reducing green hydrogen capital cost curves. For instance, the global electrolyzer market value is projected to grow from USD3.5 billion in 2024 to USD14.7 billion by 2034, implying steep cost declines. As producers in China and Korea scale, merchant hydrogen trade routes open across regional corridors, catalyzing demand for high-purity compression, storage, and grid blending gases (such as argon, helium, nitrogen). This new merchant hydrogen-led demand layer overlays and augments legacy industrial gas markets, especially in export-oriented corridors. The rapid build-out of electrolyzer parks in Inner Mongolia and Shandong is already spurring new procurement contracts for oxygen and nitrogen supply.

Asia Pacific Industrial Gases Market Trends:

Hydrogen Blending into Industrial Gas Networks

Across the Asia Pacific, several jurisdictions are piloting hydrogen blending into existing natural gas or industrial gas pipelines, particularly in China, Japan, and Australia. For instance, under national hydrogen roadmaps, blending rates of up to 5% H₂ by volume are targeted in some mixed-fuel networks by 2030 as a stepping stone. This trend compels industrial gas suppliers to adopt modular blending, compression, and purity control services, thereby layering hydrogen-grade N₂/O₂ demand over legacy networks while ensuring backward compatibility and safety in distribution. It also fuels demand for advanced monitoring systems and new safety certification protocols in pipeline jurisdictions.

Integration of Advanced Technologies

Industrial gas suppliers are increasingly deploying IoT-enabled sensors, edge analytics, and digital twins to optimize ASU uptime, leak detection, and energy consumption. For instance, the Asia Pacific gas analyzer market earned a 32.5% share of global revenue in 2024, propelled by demand for real-time emissions monitoring. This digitalization helps firms reduce energy use by 3-5% and compress maintenance cycles, reinforcing the trend toward digital asset optimization across the supply chain. Moreover, over 55% of new ASU units in 2023 already incorporated digital automation and remote monitoring capabilities, accelerating penetration. In Southeast Asia, several gas suppliers now offer predictive maintenance as a service, enabling clients to avoid unscheduled downtime and increase process gas reliability.

Asia Pacific Industrial Gases Market Challenges:

High Cost of Hydrogen Transport

A critical barrier in the Asia Pacific is the steep cost of transporting hydrogen from production hubs to industrial demand centers in geographies with difficult topography or coastal isolation. For instance, models show hydrogen pipeline costs may vary by a factor of three depending on terrain, land use, and capital cost loading. The low volumetric energy density of hydrogen raises compression or liquefaction expenses, and regulations require extensive safety certification and infrastructure segregation. These transport overheads erode the margin for industrial gas suppliers to bundle hydrogen services, particularly where volume demand is uncertain or emerging.

Asia Pacific Industrial Gases Market (2026-32) Segmentation Analysis:

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

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

In the Asia Pacific, the chemical synthesis and hydrogenation segment leads in value share owing to its heavy reliance on industrial gases such as hydrogen, nitrogen, and oxygen for processes like ammonia and methanol production. For instance, in 2024, the chemical processing and refining sector accounted for 35.14% of Asia Pacific industrial gas demand. This dominance arises because integrated refining and petrochemical complexes require a continuous high-purity gas supply, and these customers secure long-term contracts, creating stable demand and margin security for gas suppliers.

Based on End-User Industry

• Oil and Gas
• Petrochemicals and Chemicals
• Power and Energy
• Mining, Steelmaking, Metals
• Healthcare
• Food and Beverages
• Fertilizers
• Others

The petrochemicals and chemicals industry is the region’s largest consumer of industrial gases, leveraging large-scale oxidation, hydrogenation, and syngas processes. For instance, chemical processing and refining accounted for more than 35% of the regional industrial gases market in 2024. These plants operate continuously and demand high volumes of gases, which enable suppliers to amortize capital costs across large load factors and lock in long-term partnerships with minimal volatility.

Leading Manufacturers of the Asia Pacific Industrial Gases Market:

Hangzhou Oxygen Plant Group Co Ltd (Hangyang)

Hangyang is a major Chinese industrial gases & engineering company established in 1950. It owns over 60 gas subsidiaries, with oxygen output capacity exceeding 3.3 million Nm³/h. It leads in the manufacture of ultra-large air separation units and supplies specialty gases for semiconductors, aerospace, medical, and food preservation applications.

Goyal MG Gases Pvt Ltd

Goyal MG Gases is an Indian company founded in 1973 that manufactures industrial, process, medical, and specialty gases. It operates multiple cryogenic air separation plants under merchant & BOO (Build-Own-Operate) models, with liquid storage and a large fleet to serve clients across India in sectors such as welding, chemicals & healthcare.

Yingde Gases Shanghai

Yingde Gases, founded in 2001 and headquartered in Shanghai, is an independent Chinese industrial gases firm. It has built over 160 production facilities and offers on-site gas supplies, bulk liquid, packaged & specialty gases, plus engineering of ASU equipment. The company is expanding via its NovaAir brand into Southeast Asia and India.

Air Liquide, Air Products and Chemicals Inc., Asia Technical Gas Co Pte Ltd, BASF, Bhuruka Gases Ltd, Iwatani Corporation, Linde plc, and others are the key players of the Asia Pacific Industrial Gases Market.

India Carbon Fiber (2026-32): Regional Projection

The market for Industrial Gases in the Asia Pacific is dominated by China, which accounts for over 50% of the regional demand. This leadership is driven by its massive industrial economy, particularly in the chemical, steel, and electronics manufacturing sectors. The country's unparalleled output in steel production and chemical processing directly fuels enormous consumption of oxygen, nitrogen, and other bulk gases. For instance, heavy industrial zones concentrated in provinces like Hebei and Jiangsu represent major demand centers for steelmaking and fabrication. Similarly, the Yangtze River Delta's advanced electronics and semiconductor manufacturing cluster is a critical consumer of high-purity specialty gases.

Gain a Competitive Edge with Our Asia Pacific Industrial Gases Market Report

• Asia Pacific Industrial Gases Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• Asia Pacific Industrial Gases Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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