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

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

The India Industrial Gases Market size is valued at around USD 1.48 billion in 2025 and is projected to reach USD 2.19 billion by 2032. Along with this, the market is estimated to grow at a CAGR of around 5.76% during the forecast period, i.e., 2026-32. India’s Industrial Gases industry is poised for robust growth, driven by large-scale manufacturing growth across steel, chemicals, refining, and energy transitions.

For instance, the outlook is strengthened by new green-hydrogen investments of BPCL’s 50:50 JV with Sembcorp, announced in April 2025 aims to develop large-scale hydrogen and renewable-energy projects, including green ammonia and refinery decarbonization. At the same time, its 5 MW green-hydrogen unit at the Bina Refinery, commissioned in 2025, is expected to produce nearly 780 tonnes of hydrogen per year while reducing CO₂ emissions by about 9,000 tonnes annually, boosting demand for oxygen required in electrolyzer-based hydrogen production.

Major steel capacity additions further lift industrial-gas requirements. For example, JSW Steel’s expansion roadmap raises crude steel output to 43.5 mtpa by 2027 and 51.5 mtpa by 2031, increasing consumption of oxygen in BOFs and auxiliary processes, and elevating nitrogen and argon demand for specialty grades. Its commitment to cutting CO₂ intensity by 42% by 2030 also supports future oxygen-linked hydrogen and cleaner-process applications.

Additionally, policy momentum is creating further demand for industrial gases. For instance, under the India Semiconductor Mission (ISM), India has sanctioned major fab and advanced packaging investments in states such as Gujarat and Karnataka, with facilities in Dholera and Sanand focused on high-purity manufacturing. These fabs require ultra-high-purity oxygen, nitrogen, argon, and specialty gases for wafer fabrication, oxidation, etching, and packaging.

India’s accelerating push toward large-scale steelmaking, clean-energy transitions, and semiconductor manufacturing is structurally expanding long-term demand for industrial gases. As hydrogen, electronics, and high-value metallurgy mature through 2026–2032, the need for high-purity oxygen, nitrogen, argon, and specialty gases will deepen across strategic sectors. Together, these investments position the industrial gases sector for sustained multi-year growth with higher capacity deployment, long-term offtake contracts, and increased on-site gas infrastructure nationwide.

India Industrial Gases Market Recent Developments:

• August 2025: Deendayal Port Authority (DPA) has commissioned India’s first 1 MW Make-in-India green hydrogen plant at Kandla, built in just four months using an indigenous electrolyzer developed by L&T. The facility is expected to produce around 140 tonnes of green hydrogen annually, initially powering 11 hydrogen-fuelled buses and port street lighting. DPA also plans to scale the project to 10 MW, supporting the National Green Hydrogen Mission and advancing cleaner, sustainable port operations. 
• January 2025: INOX Air Products commissioned a 2,150 TPD (tons per day) Air Separation Unit at SAIL’s Bokaro Steel Plant in January 2025, investing USD 87 million. The plant will produce 2,000 TPD of gaseous oxygen, 150 TPD of liquid oxygen, 1,200 TPD of nitrogen, and 100 TPD of argon. This addition boosts INOX’s total gas production at Bokaro to over 6,300 TPD across all gases.

India Industrial Gases Market Scope:

India Industrial Gases Market Drivers:

Increasing Oxygen Demand from Expanding Steel Industry

India’s accelerated steel-capacity additions and ongoing plant upgrades continue to be the most significant contributors to rising oxygen demand. The expansion of integrated steel facilities and the gradual shift toward EAF-based production require stable, high-volume oxygen and argon flows.

For instance, Linde announced in early 2024 that it would build a new 1,000-ton-per-day air-separation unit (ASU) at Steel Authority of India Limited (SAIL)’s Rourkela plant to support the company’s modernization drive. This large-scale investment ensures a reliable, long-term oxygen supply for both SAIL’s production and the broader merchant gas market.

Over the coming years, suppliers are expected to deploy additional high-capacity ASUs in tandem with India’s new steelmaking lines, especially within rapidly expanding industrial corridors. Companies are also assessing investments in low-carbon oxygen generation technologies and scaling up their cryogenic logistics fleets.

For example, the Ellenbarrie Industrial Gases has outlined a forward expansion plan that includes the commissioning of a 320-TPD air separation unit in Eastern India by March 2026. The company has also earmarked approximately USD 47.9 million in capital expenditure over the following 12–18 months, extending into 2026 to develop multiple ASU facilities across key regional clusters.

Collectively, these capacity-linked investments and logistics upgrades reinforce a structurally rising demand environment, firmly positioning industrial gases as essential enabling inputs for India’s next decade of steel and manufacturing growth.

Rising Healthcare and Medical Applications

The expanding public-health infrastructure is driving demand for medical-grade oxygen. One of the most significant developments is the operationalization of 175,418 Ayushman Arogya Mandirs (AAMs) as of 10 December 2024, created by upgrading sub-health and primary health centers. These facilities broaden access to preventive, curative, and rehabilitative services, naturally increasing requirements for on-site oxygen availability, PSA plants, and reliable backup systems.

Furthermore, the Ayushman Bharat–PM-JAY scheme has further amplified the coverage of healthcare services. Offering up to USD 6,000 annual coverage per family, the Programme recorded 8.39 crore cumulative hospital admissions by November 2024. This high volume of admissions sustains continuous oxygen demand across tertiary hospitals, district hospitals, and emergency-care units through increased usage of liquid oxygen, cryogenic cylinders, and medical-gas pipeline systems.

Meanwhile, in March 2025, the Ministry of Health, in collaboration with AIIMS New Delhi, issued the National Guidelines for Medical Oxygen Management. These guidelines formalize mandatory oxygen-infrastructure standards requiring all major healthcare institutions to maintain primary, secondary, and reserve oxygen systems, including automated backup switching and minimum emergency cylinder reserves. This regulatory framework ensures an uninterrupted oxygen supply and elevates baseline consumption across facilities.

Collectively, these initiatives embed oxygen as a foundational element of India’s healthcare delivery system, structurally increasing year-round demand rather than event-driven consumption. With mandatory infrastructure standards and expanded care networks, medical oxygen is positioned to remain one of the most stable and rapidly growing demand pillars for the industrial gases market.

India Industrial Gases Market Trends:

Inclination Towards Standard & Modular Air-Separation Units (ASUs)

The adoption of modular, skid-mounted air-separation units (ASUs) has accelerated sharply across India’s industrial ecosystem, driven by the need for faster deployment and predictable engineering outcomes. For instance, in 2024, Air Liquide announced the global scale-up of its “Next Generation” modular ASU platform, designed to shorten construction and commissioning schedules through factory-built modules and repeatable engineering packages as an approach positioned for rapid rollouts in emerging industrial regions.

Similarly, Linde highlighted in 2024 its modular plant engineering programme, which incorporates standardized cold-box designs, pre-assembled skids, and digital commissioning tools to compress project timelines across gases, refining, and petrochemical applications. These standardized packages reduce site-level complexity and enable faster integration with existing utility and pipeline networks.

Modularization is becoming integral to India’s cluster-led industrial growth, as states develop new steel, chemical, and refinery corridors. Standardized, repeatable ASU modules enable gas suppliers to deploy capacity quickly, cut engineering hours, and reduce construction uncertainty factors that improve project bankability for lenders. This shift also enhances agility for suppliers such as INOX Air Products, Linde India, Air Liquide India, and Messer India.

For instance, Modular ASUs help these companies align commissioning with customer timelines, replicate proven design packs across sites, and minimize upfront capex. As a result, firms can scale rapidly in high-demand industrial zones, optimize asset utilization, strengthen long-term contracted revenues, and solidify modularization as a core competitive strategy in India’s industrial gases market.

This modularization trend will significantly lift industrial-gas demand by enabling faster commissioning, tighter integration with expanding industrial clusters, and more reliable long-term supply capacity. As deployment cycles shorten and customer off-take becomes more synchronized, overall consumption of oxygen, nitrogen, and argon will rise steadily across core sectors.

India Industrial Gases Market Challenges:

Cryogenic Logistics Constraints

India’s industrial gases market continues to face structural constraints in cryogenic logistics, driven by shortages of specialized transport assets, regional storage gaps, and slow approvals for new ASUs. Liquid oxygen and nitrogen distribution depends heavily on specialized cryogenic tankers, but fleet capacity remains insufficient despite government-supported expansions.

Many regions, especially in the East, Northeast and parts of Central India, lack adequate tank farms, buffer storage and ISO container availability, creating last-mile delivery delays and higher transport costs. Further, regulatory bottlenecks, including slow land approvals and safety clearances for new ASUs and storage facilities, extend project timelines. Rail-based cold-chain logistics have improved, yet reliance on road tankers remains dominant, increasing vulnerability during demand spikes.

These logistical gaps raise delivered-gas prices for remote industrial users and constrain reliable supply for healthcare and manufacturing hubs. Without accelerated tanker production, regional storage development, and public-private coordination, cryogenic logistics will continue to pose a persistent constraint on market efficiency through 2032.

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

The India 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 oxygen segment now holds the top spot in the India Industrial Gases Market, accounting for around 37% market share. This leadership is largely driven by its central role in steelmaking, petrochemicals, and metallurgical processes. Steel production is oxygen-intensive for both BOF and EAF processes, and India’s steel capacity expansion acts as the primary demand anchor. As per Ministry of Steel documents, rising crude steel production and policy support for specialty steel translate into multi-year oxygen demand growth.

Hospitals rely on medical-grade oxygen for emergency care, surgeries, and ICU operations, while municipal bodies use oxygen and ozone systems for water and wastewater treatment. Industries such as welding, metal fabrication, glass, and chemicals also consume oxygen for combustion efficiency and process enhancement. This diversified application profile ensures stable baseline demand.

With economies of scale in large ASUs and expanding end-use sectors, oxygen is expected to maintain its dominant market share through 2032, with additional growth driven by rising steel production, refinery upgrades, and ongoing expansion of medical infrastructure.

Based on the End-User Industry

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

Mining, Steelmaking, and Metals dominate the India Industrial Gases Market, accounting for approximately 26% market share as the sector consumes very high volumes of oxygen, argon, and specialty gases across smelting, heat treatment, and downstream fabrication. The National steel growth plans and large capex projects announced in 2024 (expansions, greenfield units, and EAF conversions) translate directly into multi-year supply contracts for industrial-gas suppliers.

Suppliers target the segment with tailored solutions for dedicated ASUs, captive pipelines, and long-term take-or-pay contracts that synchronise gas commissioning with steel plant start-ups. These structures reduce commercial volatility and justify large capital investments in high-TPD units. Recent decaptivation and contract deals illustrate how supplier-steelmaker partnerships lock in volumes and protect margins.

Concentration of metals activity in industrial corridors improves logistics and serviceability for suppliers, enabling them to achieve higher utilization of cryogenic fleets and buffer storage advantages that sustain this segment’s share through 2032.

Leading Players of the India Industrial Gases Market:

• INOX Air Products Pvt. Ltd.

The INOX Air Products was established in 1963, is one of India’s oldest industrial-gas companies. It is headquartered in Mumbai, Maharashtra, and operates as a joint venture with Air Products Inc., USA. The company specialises in producing and distributing industrial and medical gases such as oxygen, nitrogen, argon, hydrogen, helium, and specialty gases. It runs one of India’s largest networks of air-separation units and cryogenic logistics assets, supplying steel, refineries, chemicals, pharmaceuticals, and hospitals across the country.

• Linde India Limited

Linde India, incorporated on 24 January 1935, is headquartered at Taratala Road, Kolkata. As the Indian subsidiary of Linde plc, it provides industrial and medical gases, engineering services, and cryogenic equipment solutions. Its expertise spans large air-separation plants, nitrogen and hydrogen systems, medical oxygen solutions, and integrated supply for metals, food processing, electronics, and healthcare industries.

• Air Liquide India Holding Pvt Ltd.

The Air Liquide India Holding Pvt. Ltd. was incorporated on 29 March 1996 and is headquartered in New Delhi. It is part of the global Air Liquide Group, focusing on industrial, medical, and specialty gases in India. Its capabilities include oxygen, nitrogen, and hydrogen production, advanced gas solutions for electronics and semiconductors, and on-site gas generation systems for large industrial clients.

Messer India Pvt Ltd., Goyal MG Gases Pvt Ltd., Ellenbarrie Industrial Gases Ltd., Air Water India Pvt. Ltd., Pavan Industrial Gas Ltd, Universal Air & Gas Pvt. Ltd., Bhoruka Specialty Gases, and others are the key players in the India Industrial Gases Market.

India Industrial Gases Market (2026-32): Regional Projection 

The India Industrial Gases Market is dominated by the West region because it hosts the country’s highest concentration of refining, petrochemical, chemical, and pharmaceutical industries that depend heavily on large-volume oxygen, nitrogen, hydrogen, and specialty gases. This structural industrial density allows the region to consistently outpace others in both consumption and new gas-plant installations.

For instance, the Indian Oil’s major expansion at the Gujarat refinery, involving a USD 1.98 billion upgrade to boost crude capacity by mid-2026, significantly raised long-term gas demand. Simultaneously, Gujarat’s chemical-pharma ecosystem expanded rapidly, with nearly half of the pharma MoUs signed during the Vibrant Gujarat Summit 2024 commissioned by May 2025, adding over USD 1.28 billion in investments and driving additional industrial gas requirement across production clusters.

Together, these sustained capacity additions and concentrated industrial investments ensure that the West firmly remains the undisputed demand and growth hub of India’s industrial-gas market through 2032.

Gain a Competitive Edge with Our India Industrial Gases Market Report 

• India 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. 
• India 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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