The industrial gases market to reach $365.65bn by 2035 driven by hydrogen

Global demand for industrial gases will grow on the back of hydrogen expansion, carbon capture technologies, and advanced use in healthcare, electronics, and low-carbon fuel manufacturing.

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The global industrial gases market is expected to reach $365.65bn by 2035, up from $105.82bn in 2024, recording an annual growth rate of 11.95%. This expansion is driven by the rising prominence of hydrogen in global energy strategies, the integration of high-purity gases in advanced manufacturing, and the widespread adoption of carbon capture, utilisation and storage (CCUS) technologies.

Hydrogen as a strategic driver of the sector

Hydrogen, both green and blue, is becoming a pillar of the energy transition. Large-scale investments in production, distribution and storage infrastructure aim to support clean mobility and power grid decarbonisation. Industry players are expanding their portfolios to include low-emission gases in response to net-zero goals and circular industrial policies implemented by several governments.

In heavy industrial processes, gases such as oxygen, nitrogen and carbon dioxide are used to optimise chemical reactions, reduce emissions and improve energy efficiency across facilities. Increased use of these gases is also accompanying the technological advancement of sectors such as metallurgy, petrochemicals and electronic components manufacturing.

Technological deployment and cross-sector alliances

The industry is shifting towards on-site gas generation systems that are more compact and energy efficient, suited to increasing requirements for reliability and operational flexibility. These modular units are addressing rising demand in the production of electric vehicle batteries, semiconductors and photovoltaic cells.

At the same time, the digitalisation of operations – through the use of artificial intelligence (AI) and the Internet of Things (IoT) – is enabling predictive logistics management, real-time monitoring and enhanced traceability across the value chain. Several industrial gas providers are forming partnerships with energy groups, industrial manufacturers and logistics operators to build integrated ecosystems.

Strategic positioning for market players

Diversifying into high-value segments, such as aerospace, precision medicine and advanced electronics, is becoming a key focus. These markets require ultra-high-purity gases and stringent reliability standards. Within this context, the ability to capture, store and monetise carbon is also emerging as a competitive lever, notably through carbon credit markets or CO₂ conversion into industrial feedstocks.

Regional dynamics show an acceleration of projects in areas with high industrial density and supportive policy frameworks. This trend positions industrial gases not merely as commodities but as strategic assets within global energy and technology value chains.

Nel Hydrogen US will supply a containerised electrolyser to H2 Energy for a hydrogen production facility commissioned by the Association for Waste Disposal in Buchs, Switzerland.
UK-based manufacturer ITM Power has signed an engineering contract for a green hydrogen project shortlisted under the country's second Hydrogen Allocation Round.
Agfa strengthens its industrial position with the launch of a ZIRFON membrane production site for electrolyzers, backed by a €11mn European subsidy.
Driven by Air Liquide and SEGULA Technologies, the ROAD TRHYP project aims to lower hydrogen transport costs and improve safety through a series of technical innovations by 2030.
Qair obtains structured bank financing of €55mn for its Hyd’Occ ecosystem, integrating renewable hydrogen production and distribution in Occitanie, with commissioning scheduled before the end of 2025.
Swedish firm Metacon has secured a EUR7.1mn ($7.7mn) contract to deliver a 7.5 MW electrolysis plant to Elektra Power SRL, marking its operational entry into the Romanian market.
The Clean Hydrogen Partnership has closed its first call for Project Development Assistance (PDA), totaling 36 applications from 18 countries. Results are expected in October, with support starting in November.
Kandla port plans a 150,000-ton-per-year integrated renewable methanol unit, targeting the growing fleet of compliant vessels on the Singapore-Rotterdam maritime route.
OMV is investing several hundred million euros in a 140 MW electrolysis unit in Austria, set to produce 23,000 tonnes of green hydrogen annually to supply its Schwechat refinery.
Jolt Green Chemical Industries appoints Dyar Al-Safwah to engineer a high-performance electrode facility at King Salman Energy Park, backed by the Ministry of Energy.
With the certification of three new sites, Lhyfe takes the lead in the European RFNBO hydrogen market, reaching 21 MW of installed capacity across France and Germany.
VINSSEN becomes a central player in designing the world’s first commercial transport vessel fully powered by a fuel cell using ammonia as a hydrogen carrier.
The global hydrogen production market is expected to more than double by 2035, supported by technological advances and growing demand from transport, heavy industry and decarbonised energy systems.
Accelera will supply a 5MW electrolysis system at the Port of Schweinfurt, aiming to produce 2.2 tonnes of green hydrogen daily for industrial and logistics applications in central Germany.
The Sauda municipal council has approved the zoning plan for the Iverson project, paving the way for a 270 MW electrolysis facility powered by hydropower to produce renewable ammonia.
Sinopec reaches a milestone in hydrogen logistics with a 1,500 km journey from Shanghai to Hubei, supported by a network of 146 stations and 11 supply centres.
Meeting in Berlin, the H2med Alliance formalised the integration of 40 new industrial members and received increased government backing to accelerate the development of Europe's hydrogen corridor.
Woodside Energy, Japan Suiso Energy and Kansai Electric Power are joining forces to develop a liquid hydrogen supply chain between Australia and Japan, with production planned at a new facility in Perth.
Element One Hydrogen announces the acquisition of two geological properties focused on natural hydrogen and critical minerals in Canada for $10,000 and 1.25 million shares.
Cavendish Hydrogen has signed a contract with PAK-PCE H2 Stations to upgrade the Rybnik station, which will now support a fleet of more than 30 hydrogen-powered buses in southern Poland.