The Industrial gases market size in Europe was valued at USD 0.31 billion in 2024. The European market is estimated to be worth USD 0.52 billion by 2033 from USD 0.33 billion in 2025, growing at a CAGR of 5.8% from 2025 to 2033.
Industrial gases such as oxygen, nitrogen, carbon dioxide, hydrogen, and specialty gases play an important role in the manufacturing, healthcare and energy sectors in the European region and. These gases are indispensable across diverse applications, including metal fabrication, chemical production, food processing, medical oxygen supply, and environmental management. The demand for industrial gases in Europe is expected to continue fuel during the forecast period owing to the industrialization, urbanization, and the transition toward sustainable energy solutions.
The healthcare sector has emerged as a significant consumer of industrial gases, particularly medical oxygen, with demand surging by 12% annually since 2020, as reported by the World Health Organization (WHO). Additionally, the growing emphasis on decarbonization has propelled hydrogen adoption, with the European Commission identifying it as a key enabler of the EU Green Deal. The European Environment Agency notes that carbon dioxide usage in food and beverage industries has grown by 8% annually, driven by rising consumption of carbonated drinks and packaged foods.
The increasing demand for hydrogen as a clean energy carrier is a major driver of the European industrial gases market. The European Commission’s EU Green Deal has set ambitious targets to achieve carbon neutrality by 2050, with hydrogen expected to play a pivotal role in decarbonizing industries such as steel, refining, and transportation. According to Eurostat, investments in green hydrogen production have surged by 30% annually since 2020, supported by government subsidies and private sector initiatives. The European Environment Agency highlights that hydrogen demand in industrial applications is projected to grow by 10% annually, reaching 8 million tons by 2030. This shift is driven by policies promoting renewable energy integration and reducing reliance on fossil fuels. As Europe accelerates its transition to sustainable energy solutions, hydrogen’s versatility and eco-friendly properties continue to drive the industrial gases market.
The healthcare sector’s growing reliance on medical gases, particularly oxygen, is another key driver propelling the European industrial gases market. The World Health Organization (WHO) reports that medical oxygen demand surged by 12% annually between 2020 and 2023, fueled by aging populations and increased prevalence of respiratory diseases. Additionally, the COVID-19 pandemic underscored the critical role of oxygen in emergency care, prompting governments to expand healthcare infrastructure. The UK Office for National Statistics notes that over €5 billion was allocated to enhance medical gas supply chains across Europe in 2022. Furthermore, advancements in cryogenic technologies have improved the efficiency of oxygen production and distribution. With Europe prioritizing universal healthcare access and medical innovation, the demand for industrial gases in healthcare applications is set to rise significantly, reinforcing their importance in the market.
The production of industrial gases is highly energy-intensive, making the European market vulnerable to rising energy costs, which pose a significant restraint. According to Eurostat, energy expenses account for approximately 40% of the total production costs in the industrial gases sector, with natural gas being a critical input for processes like air separation. The European Commission reports that energy prices surged by 60% in 2022 due to geopolitical tensions and supply chain disruptions, severely impacting manufacturers. Additionally, the EU Emissions Trading System (ETS) imposes carbon pricing, further increasing operational costs. These financial pressures are particularly challenging for small- and medium-sized enterprises, limiting their ability to invest in innovation or expand capacity. As Europe grapples with an ongoing energy crisis, the industrial gases market faces significant hurdles in maintaining profitability while meeting growing demand.
Stringent environmental regulations, while promoting sustainability, present another major challenge to the European industrial gases market. The European Environment Agency highlights that compliance with emission reduction targets under the EU Green Deal requires significant investments in low-carbon technologies, raising operational costs by up to 25% for manufacturers. For instance, the production of gases like carbon dioxide and nitrogen involves high energy consumption and emissions, attracting scrutiny under the Industrial Emissions Directive (IED). Non-compliance can result in penalties or operational shutdowns, creating additional financial burdens. Furthermore, the European Chemical Industry Council (CEFIC) notes that smaller players often struggle to adapt to these regulatory pressures, leading to reduced competitiveness. While these measures aim to foster greener practices, they also slow market growth by increasing barriers to entry and operational complexity.
The growing emphasis on hydrogen as a key enabler of renewable energy presents a significant opportunity for the European industrial gases market. The European Commission’s EU Green Deal has set a target to produce 40 gigawatts of green hydrogen by 2030, creating immense demand for industrial gas manufacturers. According to Eurostat, investments in hydrogen infrastructure have grown by 35% annually since 2021, supported by subsidies and incentives under the European Hydrogen Strategy. The International Energy Agency (IEA) highlights that hydrogen’s role in decarbonizing sectors like steel, refining, and transportation could reduce carbon emissions by up to 20% by 2030. Additionally, advancements in electrolysis technologies are making green hydrogen production more cost-effective. As Europe accelerates its transition to clean energy, industrial gas companies are well-positioned to capitalize on this expanding market.
Rising Demand in Electronics and Semiconductor Manufacturing
The rapid growth of the electronics and semiconductor industries offers another promising opportunity for the European industrial gases market. Specialty gases such as nitrogen, argon, and silane are critical in semiconductor fabrication, with demand projected to grow at a CAGR of 9% (2023-2028), as per the European Semiconductor Industry Association (ESIA). The UK Office for National Statistics reports that Europe’s semiconductor market is expected to reach €50 billion by 2025, driven by advancements in AI, IoT, and 5G technologies. Furthermore, the European Environment Agency emphasizes the role of industrial gases in enabling precise manufacturing processes while reducing environmental impact. With governments investing heavily in domestic semiconductor production to reduce reliance on imports, the demand for high-purity gases is set to surge, offering substantial growth potential for industrial gas manufacturers in Europe.
The European industrial gases market faces significant challenges due to supply chain disruptions and logistical bottlenecks, exacerbated by geopolitical tensions and post-pandemic recovery efforts. According to Eurostat, over 60% of critical raw materials used in gas production, such as natural gas and ammonia, are imported, making the industry vulnerable to trade restrictions and price volatility. The European Commission reports that supply chain disruptions caused a 15% increase in delivery times for industrial gases in 2022, impacting sectors like healthcare and manufacturing. Additionally, the European Chemical Industry Council (CEFIC) highlights that rising transportation costs, driven by fuel price hikes, have further strained operations. These challenges hinder timely delivery and increase operational costs, forcing manufacturers to explore alternative sourcing strategies while grappling with fluctuating demand.
Intense competition from substitute technologies poses another major challenge to the European industrial gases market. Alternative solutions, such as chemical processes that reduce reliance on traditional gases, are gaining traction in industries like food preservation and metal fabrication. The European Environment Agency notes that innovations in cryogenic freezing and nitrogen alternatives have led to a 10% decline in demand for certain industrial gases in specific applications since 2021. Furthermore, the UK Office for National Statistics highlights that smaller manufacturers struggle to compete with larger players offering cost-effective substitutes. While industrial gases remain indispensable in many sectors, the lack of awareness about their long-term benefits compared to substitutes limits their adoption. This competitive pressure requires manufacturers to innovate and differentiate their offerings to maintain market share
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REPORT METRIC |
DETAILS |
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Market Size Available |
2024 to 2033 |
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Base Year |
2024 |
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Forecast Period |
2025 to 2033 |
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CAGR |
5.8% |
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Segments Covered |
By Type, End-Use Industry, and Region |
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Various Analyses Covered |
Global, Regional, & Country Level Analysis; Segment-Level Analysis; DROC; PESTLE Analysis; Porter’s Five Forces Analysis; Competitive Landscape; Analyst Overview of Investment Opportunities |
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Regions Covered |
UK, France, Spain, Germany, Italy, Russia, Sweden, Denmark, Switzerland, Netherlands, Turkey, Czech Republic, Rest of Europe |
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Market Leaders Profiled |
Linde PLC (Ireland), Air Liquide (France), BASF SE (Germany), Air Products and Chemicals Inc. (US), Messer Group GmbH (Germany), Iwatani Corporation (Japan), SOL Group (Italy), Matheson Tri-gas Inc. (US), Taiyo Nippon Sanso Corporation (Japan), Elliniki Gases S.A. (Greece), and others. |
The oxygen segment dominated the European industrial gases market by accounting for 31.8% of the European market share in 2024. The lead of the oxygen segment is majorly attributed to its critical role in healthcare, particularly for medical oxygen supply, and industrial applications such as metal fabrication and chemical production. The World Health Organization (WHO) highlights that oxygen demand surged by 12% annually between 2020 and 2023, fueled by aging populations and increased prevalence of respiratory diseases. Additionally, Eurostat notes that oxygen is indispensable in processes like steelmaking, where it enhances efficiency and reduces carbon emissions. Its importance lies in its versatility, supporting both life-saving medical applications and high-value industrial processes, making it a cornerstone of the industrial gases market.
The hydrogen segment is the fastest-growing type in the European industrial gases market and is estimated to expand at a CAGR of 14.5% over the forecast period. The European Commission’s EU Green Deal has identified hydrogen as a key enabler of decarbonization, with investments in green hydrogen production growing by 35% annually since 2021. Hydrogen’s applications span diverse sectors, including renewable energy, transportation, and industrial processes like refining and ammonia production. The International Energy Agency (IEA) projects that hydrogen demand will reach 8 million tons by 2030, driven by policies promoting clean energy integration. As Europe accelerates its transition to sustainable energy solutions, hydrogen’s role in reducing reliance on fossil fuels underscores its rapid growth trajectory, positioning it as a pivotal driver of the industrial gases market.
The chemicals segment is the largest end-use segment in the European industrial gases market and captured 25.6% of European market share in 2024. The extensive use of gases like nitrogen, hydrogen, and oxygen in chemical synthesis, refining, and process control is majorly propelling the expansion of the chemical segment in the European market. Eurostat reports that industrial gas consumption in the chemicals sector has grown by 6% annually, supported by Europe’s robust chemical manufacturing base. The versatility of industrial gases in applications such as ammonia production, oxidation processes, and inerting environments underscores their critical role. Additionally, the European Environment Agency emphasizes the growing adoption of green hydrogen in chemical processes to reduce carbon footprints, further solidifying the segment's leadership in driving innovation and sustainability within the industrial gases market.
The healthcare segment is another leading segment and is projected to grow at the fastest CAGR of 9.8% over the forecast period. Medical oxygen remains the cornerstone of this growth, with demand surging by 12% annually since 2020, fueled by aging populations, increased prevalence of respiratory diseases, and heightened awareness post-pandemic. The UK Office for National Statistics notes that over €5 billion was allocated in 2022 to enhance medical gas infrastructure across Europe. Industrial gases are also vital in cryogenic preservation, sterilization, and diagnostic equipment. As Europe prioritizes universal healthcare access and medical innovation, the healthcare segment is set to expand significantly, reinforcing its importance as a key growth driver in the industrial gases market.
Germany led the industrial gases market in Europe by capturing 30.7% of the European market share in 2024. The domination of Germany in the European market is primarily driven by its strong manufacturing base, particularly in chemicals, metallurgy, and automotive industries, which are intensive users of industrial gases like hydrogen, nitrogen, and oxygen. The Federal Ministry for Economic Affairs and Climate Action highlights Germany’s pivotal role in advancing green hydrogen technologies, supported by significant investments under the EU Green Deal. Additionally, Germany’s focus on decarbonization and innovation in industrial processes further solidifies its dominance. This strategic alignment with sustainability goals ensures Germany remains a key player in shaping the future of the industrial gases market.
France is another notable player in the European industrial gases market. The advanced healthcare sector and food & beverage industry of France, where gases like carbon dioxide and nitrogen play critical roles is boosting the French industrial gases market growth. France’s adherence to EU environmental regulations has also accelerated the adoption of sustainable practices, such as using industrial gases in wastewater treatment and food preservation. Furthermore, the country’s growing electronics sector, supported by government initiatives to boost semiconductor production, has increased demand for specialty gases. With its diversified industrial base and commitment to innovation, France continues to be a significant contributor to the growth of the industrial gases market.
The UK industrial gases market is anticipated to account for a prominent share of the European market over the forecast period. The rising demand for industrial gases in healthcare and electronics sectors in the UK is majorly fuelling the UK market growth. Healthcare and electronics industries rely heavily on industrial gases like medical oxygen and high-purity nitrogen. The aging population and increased prevalence of respiratory diseases have driven a 12% annual surge in medical gas consumption since 2020. Additionally, the UK’s push to enhance domestic semiconductor production, supported by investments in clean energy and advanced manufacturing, has boosted demand for specialty gases. This focus on healthcare innovation and technological advancement underscores the UK’s importance in the European industrial gases landscape.
The major key players in Europe Industrial gases market are Linde PLC (Ireland), Air Liquide (France), BASF SE (Germany), Air Products and Chemicals Inc. (US), Messer Group GmbH (Germany), Iwatani Corporation (Japan), SOL Group (Italy), Matheson Tri-gas Inc. (US), Taiyo Nippon Sanso Corporation (Japan), Elliniki Gases S.A. (Greece)
This research report on the Europe industrial gases market is segmented and sub-segmented into the following categories.
By Type
By End-Use Industry
By Country
Frequently Asked Questions
As of 2024, the Europe Industrial Gases Market is valued at approximately USD 0.31 billion. It is projected to reach USD 0.52 billion by 2033, growing at a CAGR of 5.8% from 2025 to 2033.
The European market primarily utilizes gases such as oxygen, nitrogen, carbon dioxide, hydrogen, acetylene, and inert gases.
Significant drivers include the growing demand for hydrogen in decarbonization efforts and the rising dependence of the healthcare sector on medical gases.
The market is segmented into various end-use industries, including healthcare, food and beverages, manufacturing, chemicals, and electronics.
Challenges include high energy costs associated with gas production and stringent environmental regulations.
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