Oxygen Market Size
| Study Period | 2019 - 2029 |
| Market Volume (2024) | 538.11 Million tons |
| Market Volume (2029) | 637.47 Million tons |
| CAGR (2024 - 2029) | 4.59 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Oxygen Market Analysis
The Oxygen Market size is estimated at 538.11 Million tons in 2024, and is expected to reach 637.47 Million tons by 2029, growing at a CAGR of 4.59% during the forecast period (2024-2029).
- The increasing demand for oxygen in the medical and healthcare sector and the growing demand for oxygen in the metals and mining industry are the major factors driving the demand for the market studied.
- After the COVID-19 pandemic, oxygen production increased in various countries to meet the rising demand from hospitals. The demand is likely to remain strong in the medical industry and other sectors.
- However, high costs for manufacturing oxygen and the availability of other fuel gases used for welding and cutting applications are expected to hinder the market's growth.
- Nevertheless, the growing usage of oxygen for portable oxygen concentrators, which are becoming increasingly affordable and user-friendly, and technological advancements in oxygen generation are expected to create more opportunities for the market.
- Asia-Pacific is expected to dominate the market and witness the highest growth during the forecast period.
Oxygen Market Trends
Healthcare Sector Expected to Dominate the Market
- Oxygen is a critical medical resource that is indispensable for treating respiratory conditions like COVID-19 and pneumonia and supporting surgical and trauma interventions. Recognized by the World Health Organization (WHO) as a fundamental investment, medical oxygen serves as a linchpin for health systems, enabling various treatments and stabilizing patients.
- In 2023, data from China's Ministry of Finance revealed that public expenditure on healthcare and hygiene reached approximately CNY 2.24 trillion (~USD 316 billion), slightly down from CNY 2.25 trillion (~USD 325 billion).
- According to data from the US Centers for Medicare and Medicaid Services (CMS), healthcare spending in the United States is estimated to have risen by 7.5% in 2023 to USD 4.8 trillion, and it is projected to grow by 5.2% in 2024.
- According to data from the Central Bureau of Health Intelligence (CBHI), India witnessed a 47% increase in medical colleges over five years, totaling 704 as of 2023-24. This expansion is set to bolster the oxygen market.
- As per the National Medical Products Administration, as of December 2022, the number of medical device companies amounted to 32,632 in China, which is a 13% increase compared to the previous year's 28,682 companies, impacting the oxygen market positively.
- The World Health Organization's (WHO) resolution on medical oxygen in January 2023 and the establishment of the Global Oxygen Alliance (GO2AL) signal increased global attention to the medical oxygen shortage crisis, which is expected to drive the oxygen market during the forecast period.
- Given these dynamics, a global expansion of the oxygen market seems imminent during the forecast period.
Asia-Pacific Expected to Dominate Oxygen Market
- Asia-Pacific is poised to dominate the oxygen market, with China leading the way as the region's largest economy by GDP. Both China and India are recognized as some of the world's fastest-growing economies.
- In India, government initiatives and industrial growth are driving the oxygen market. According to the Press Information Bureau (PIB), in 2022, India implemented proactive measures funded through the PM Cares fund in response to the COVID-19 pandemic, setting up 1,222 pressure swing adsorption plants capable of producing 1,750 metric tons of captive oxygen daily. The government's commitment to enhancing medical oxygen generation capacity is boosting the oxygen market in India.
- In May 2023, India's second medical oxygen skill laboratory was inaugurated at the Assam Medical College and Hospital (AMCH) in Dibrugarh. By enhancing healthcare professionals' expertise and understanding of medical oxygen applications, this initiative is expected to foster increased demand for oxygen-related equipment and services, thereby positively impacting the oxygen market in India.
- In China, where coal-based blast furnace–basic oxygen furnace routes dominate 90% of crude steel production, the oxygen demand is significant. Blast furnaces (BF) and basic oxygen furnaces (BOF) contribute substantially to ironmaking and steelmaking capacities, as per World Steel Association data.
- According to the World Steel Association, China ranked 1st globally in steel production, producing 86.4 million tons in August 2023, showcasing a 3.2% increase. India, with a robust steel industry, produced 11.9 million tons, marking a notable 17.4% growth. These steel production figures contribute to the rising demand for oxygen in Asia-Pacific.
- The role of oxygen in the oil and gas industry is related to industrial processes, enhanced oil recovery, and refining operations. The substantial production volumes of petroleum products in India and crude oil in China indicate a consistent demand for oxygen in these processes.
- Japan's oxygen gas production, amounting to approximately 9.58 billion cubic meters in 2022, reflects a slight decrease from the previous year by 1.4 billion cubic meters, as reported by METI (Japan). Despite this, factors like steel production, government initiatives, and industrial processes across the region are contributing to the expectation of steady growth in the oxygen market in Asia-Pacific during the forecast period.
- Furthermore, among all regions, Asia is forecasted to be the source of over 60% of additional oil demand for the production of petrochemicals until 2050. Capacity growth in Asia is not set to slow until 2035, thus creating a strong positive outlook for the market studied. In terms of countries, by 2030, China and India are expected to experience the largest petrochemical capacity additions.
- For instance, India's chemical and petrochemical (CPC) industry was valued at USD 178 billion in 2022, and it is expected to reach about USD 300 billion by 2025. India benefited from the diversification attempts of the global chemical and petrochemical industry, which offers a more lucrative business ecosystem with favorable investment policies.
- The production and refining of petroleum involve various industrial processes where oxygen is utilized. In refining operations, oxygen is employed for enhanced efficiency and to facilitate the removal of impurities from petroleum products.
- India, a significant player in the global pharmaceutical arena, exports to over 200 countries. With a solid R&D foundation, the nation is set to strengthen its pharmaceutical dominance. In the first half of fiscal year 2022-2023, pharmaceuticals saw a 25% surge in FDI inflows, while hospitals and diagnostic centers enjoyed a remarkable 44% growth. The Ministry of Pharmacy also approved 21 FDI proposals for brownfield projects from January to November 2022, totaling a hefty INR 4,681 crore (USD 566.6 million).
- Given these dynamics, the oxygen market in Asia-Pacific is anticipated to witness steady growth in the coming years.
Oxygen Industry Overview
The oxygen market is partially fragmented in nature. The major players (not in any particular order) include Air Products and Chemicals Inc., Linde PLC, Air Liquide, Yingde Gases Group, and Messer North America Inc.
Oxygen Market Leaders
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Linde plc
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Air Liquide
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Yingde Gases Group
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Messer North America Inc
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Air Products and Chemicals, Inc.
*Disclaimer: Major Players sorted in no particular order
Oxygen Market News
- July 2024: Air Liquide India inaugurated a new manufacturing facility in Mathura, Uttar Pradesh, with an investment of INR 3500 million (approximately USD 41.79 million). This air separation unit is designed to bolster healthcare and industrial operations in Kosi, Mathura. With a production capacity exceeding 300 tonnes daily, the unit generates both liquid and medical oxygen.
- August 2023: Two oxygen generator plants were inaugurated in Bhutan, aiming to strengthen the country's health systems and improve emergency preparedness and response capabilities. These Pressure Swing Adsorption (PSA) plants have been established at Jigme Dorji Wangchuk National Referral Hospital and Mongar Regional Referral Hospital. Given their capacity to produce and refill 100 medical oxygen cylinders daily, the inauguration is expected to contribute to the growth of the oxygen market during the forecast period.
- March 2023: Air Liquide announced a EUR 60 million (USD 67.8 million) investment for the refurbishment of two air separation units (ASUs) located in the Tianjin industrial basin in China. These electrified ASUs are designed to produce oxygen and other air gases, providing a total oxygen production capacity of approximately 4,000 tons per day to supply YLC and other industrial customers in the Tianjin basin.
- December 2022: Atlas Copco completed the acquisition of Shandong Meditech Medical Technology Co. Ltd, a China-based manufacturer specializing in onsite oxygen solutions for the healthcare sector.
Oxygen Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Increasing Demand for Oxygen in the Medical and Healthcare Sectors
4.1.2 Growing Demand for Oxygen in the Metals and Mining Industry
4.1.3 Other Drivers
4.2 Market Restraints
4.2.1 High Costs for Manufacturing Oxygen
4.2.2 Availability of Other Fuel Gases Used for Welding and Cutting Applications
4.2.3 Other Restraints
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION (Market Size in Volume)
5.1 By Form
5.1.1 Gas
5.1.2 Liquid
5.1.3 Solid
5.2 By Type
5.2.1 Medical
5.2.2 Industrial
5.2.3 Other Types (Scientific and Electronic)
5.3 By Application
5.3.1 Metals and Mining
5.3.2 Chemical Industry
5.3.3 Oil and Gas
5.3.4 Healthcare
5.3.5 Pharmaceutical
5.3.6 Other Applications (Automotive and Aerospace, Energy, and Cosmetics)
5.4 By Geography
5.4.1 Asia-Pacific
5.4.1.1 China
5.4.1.2 India
5.4.1.3 Japan
5.4.1.4 South Korea
5.4.1.5 Malaysia
5.4.1.6 Thailand
5.4.1.7 Indonesia
5.4.1.8 Vietnam
5.4.1.9 Rest of Asia-Pacific
5.4.2 North America
5.4.2.1 United States
5.4.2.2 Canada
5.4.2.3 Mexico
5.4.3 Europe
5.4.3.1 Germany
5.4.3.2 United Kingdom
5.4.3.3 France
5.4.3.4 Italy
5.4.3.5 Spain
5.4.3.6 NORDIC Countries
5.4.3.7 Turkey
5.4.3.8 Russia
5.4.3.9 Rest of Europe
5.4.4 South America
5.4.4.1 Brazil
5.4.4.2 Argentina
5.4.4.3 Colombia
5.4.4.4 Rest of South America
5.4.5 Middle East and Africa
5.4.5.1 Saudi Arabia
5.4.5.2 Qatar
5.4.5.3 United Arab Emirates
5.4.5.4 Nigeria
5.4.5.5 Egypt
5.4.5.6 South Africa
5.4.5.7 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share (%)**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Air Liquide
6.4.2 Air Products and Chemicals Inc.
6.4.3 Bhuruka Gases Limited
6.4.4 Daesung Group
6.4.5 Gulf Cryo
6.4.6 Koatsu Gas Kogyo Co. Ltd
6.4.7 Linde PLC
6.4.8 Matheson Tri-Gas Inc.
6.4.9 Messer North America Inc.
6.4.10 Nippon Gases
6.4.11 NOX-Air Products Inc.
6.4.12 SOL SpA
6.4.13 Steelman Gases Pvt. Ltd
6.4.14 Taiyo Nippon Sanso Corporation
6.4.15 Yingde Gases Group
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Growing Demand for Portable Oxygen Concentrators
7.2 Technological Advancements in Oxygen Generation
Oxygen Industry Segmentation
Oxygen is critical for human life. In addition to being required for human sustenance, oxygen is used for a variety of industrial and medical applications. For instance, combined with fuel gases or with argon (Ar) and carbon dioxide (CO₂), oxygen is also used for metal cutting, welding, scarfing, hardening, cleaning, and melting applications.
The oxygen market is segmented by form, type, application, and geography. By form, the market is segmented into gas, liquid, and solid. By type, the market is segmented into medical, industrial, and other types. By application, the market is segmented into metals and mining, chemical industry, oil and gas, healthcare, pharmaceuticals, and other applications. The report also covers the market size and forecasts for the oxygen market in 27 countries across major regions. For each segment, the market sizing and forecasts are provided on the basis of volume (kilotons).
| By Form | |
| Gas | |
| Liquid | |
| Solid |
| By Type | |
| Medical | |
| Industrial | |
| Other Types (Scientific and Electronic) |
| By Application | |
| Metals and Mining | |
| Chemical Industry | |
| Oil and Gas | |
| Healthcare | |
| Pharmaceutical | |
| Other Applications (Automotive and Aerospace, Energy, and Cosmetics) |
| By Geography | |||||||||||
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Oxygen Market Research FAQs
How big is the Oxygen Market?
The Oxygen Market size is expected to reach 538.11 million tons in 2024 and grow at a CAGR of 4.59% to reach 637.47 million tons by 2029.
What is the current Oxygen Market size?
In 2024, the Oxygen Market size is expected to reach 538.11 million tons.
Who are the key players in Oxygen Market?
Linde plc, Air Liquide, Yingde Gases Group, Messer North America Inc and Air Products and Chemicals, Inc. are the major companies operating in the Oxygen Market.
Which is the fastest growing region in Oxygen Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Oxygen Market?
In 2024, the Asia-Pacific accounts for the largest market share in Oxygen Market.
What years does this Oxygen Market cover, and what was the market size in 2023?
In 2023, the Oxygen Market size was estimated at 513.41 million tons. The report covers the Oxygen Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Oxygen Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
How is the Oxygen Market segmented?
The Oxygen Market is segmented by a) Type: Medical and Industrial b) Form: Gas, Liquid, and Solid c) Application: Metals and Mining, Chemical Industry, Oil & Gas, Healthcare and Pharmaceutical d) End User Industry: Metallurgical Industry, Chemical Industry, Health Care Industry
Oxygen Industry Report
The industrial and medical oxygen markets are experiencing robust growth, driven by the increasing demand for oxygen in chemical processes, advancements in production technologies, and its essential role in cleaner energy and hydrogen production. The surge in respiratory issues and the critical importance of oxygen in healthcare underscore the growth in the medical segment. Meanwhile, the global oxygen industry, including both sectors, benefits from the rising prevalence of respiratory diseases, environmental pollution, and innovative delivery solutions. The Asia-Pacific region, led by China and India, is at the forefront due to rapid industrialization and the expansion of healthcare facilities. Trends like IoT-enabled medical oxygen plants and a shift towards portable oxygen concentrators are shaping the market. Despite challenges like safety concerns and high production costs, the widespread demand for oxygen in industries such as healthcare, metallurgy, and energy is poised to propel market growth. For detailed market insights and forecasts, Mordor Intelligence™ Industry Reports offer a comprehensive analysis of the oxygen industry, including a market forecast outlook and a historical overview, available as a free report PDF download.
