Medical Gases Market Research, 2032
The global medical gases market size was valued at $8.5 billion in 2022, and is projected to reach $16.7 billion by 2032, growing at a CAGR of 7% from 2023 to 2032. Medical gases find a wide range of usage in the medical and pharmaceutical industry. Healthcare providers use these gases for diagnosis and treatment of patients with various diseases. Examples of medical gases that are used in healthcare settings include hydrogen, oxygen, hydrogen, nitrous oxide, nitrogen, and carbon dioxide. These gases are produced, packaged, and delivered to patients under anesthesia, in therapy, or for diagnosis through medical gas equipment.
Market Dynamics
The medical gases market size is experiencing significant growth due to various driving factors including the increase in prevalence of respiratory diseases, rise in surgical procedures and surge in awareness of home healthcare. Respiratory diseases, including chronic obstructive pulmonary disease (COPD), asthma and respiratory infection, are on the rise around the globe. Medical gases such as oxygen, helium or nitrous oxide are used for treatment such as therapy with oxygen, nebulizers and inhalations. Thus, there is a surge in demand for medical gases in hospitals and at home healthcare settings with a rise in prevalence of respiratory diseases. This propels the growth of the medical gases market share.
In addition, various applications of medical gases in the healthcare sector are fostering market growth. For instance, dry ice is formed from carbon dioxide by applying a pressure of 5.2 atmospheres and cooling to a temperature of -56.6°C. This dry ice finds application in the treatment of cataracts and other vascular diseases. On the other hand, oxygen is provided to individuals with oxygen deficiency and small amounts of nitrous oxide may act as an analgesic and anesthetic agent. Such applications of medical gases in diagnosis and treatment propel the medical gases market growth.
Furthermore, the rise in number of surgeries contribute to the growth of medical gases market share. Medical gases may be used in many types of surgical procedures including anesthesia, respiratory support, and other purposes. Thus, there is a growing need for medical gases in the healthcare sector, with rise in the number of surgical procedures and ageing population.
However, strict regulations on the production and supply of medical gases act as a restraint for the growth of the market. The regulation of medical gases is highly stringent, and the manufacturers and healthcare providers need to follow set guidelines to manufacture and market their product. Compliance with the regulations is time-consuming and expensive, and non-compliance can lead to significant penalties. This is projected to hinder market growth to some extent.
For instance, in November 2022, the World Health Organization (WHO) published ‘WHO good manufacturing practices for medicinal gases’, that provides guidelines, which focus on the production, control, storage and distribution of medicinal gases. Thus, the stringent regulations regarding manufacturing of medical gases may be a significant restraint for the medical gases market.
However, developing regions with advanced healthcare facilities and cost advantages attract medical tourists from other countries. Medical gases are an integral part of healthcare services provided to these international patients for surgeries, diagnostics, and post-operative care. This is further anticipated to foster market growth during the medical gases market forecast period.
The COVID-19 pandemic had a significant impact on medical gas usage and supply. COVID-19 is primarily a respiratory illness, and in severe cases, patients may experience low oxygen levels. This led to an increased demand for medical oxygen in hospitals and other healthcare facilities. With the pandemic, there has been an increased demand for medical gases from non-traditional markets, such as field hospitals and other temporary medical facilities. This has led to changes in distribution channels and new partnerships between manufacturers and distributors.
The increased demand for medical oxygen has led to shortages in some areas, particularly in low- and middle-income countries. This has been a significant challenge for healthcare providers who are treating COVID-19 patients. However, post pandemic initiatives are taken by the key players and government to normalize the medical gases supply which is anticipated to drive the market growth during the forecast period.
Market Segmentation
The global medical gases market is segmented on the basis of product, application, end user and region. On the basis of the product, the market is bifurcated into pure medical gases and medical gases mixture. The pure gases segment is further categorized into oxygen, carbon dioxide, nitrogen, nitrous oxide and others. Whereas the medical gas mixture segment is further divided into medical air and others. On the basis of application, the market is categorized into therapeutics, diagnostics and others. By end user, the market is classified into hospitals, pharmaceutical and biotechnology companies, diagnostic centers and others.
By region, the market is analyzed across North America (U.S., Canada, and Mexico), Europe (Germany, France, UK, Italy, Spain, and rest of Europe), Asia-Pacific (Japan, China, Australia, India, South Korea, and rest of Asia-Pacific), and LAMEA (Brazil, South Africa, Saudi Arabia, and Rest of LAMEA).
By Product
Depending on product, the pure medical gases segment dominated the medical gases market in 2022 in terms of revenue. This growth is mainly attributed to the surge in demand for pure medical gases, especially oxygen, in the diagnosis and treatment of various diseases. In addition, surge in investments by the key players and the government support for the manufacturing of oxygen gas is driving the growth of the segment.
For instance, in October 2021, Indian Prime Minister Shri Narendra Modi announced to dedicate 35 PSA Oxygen Plants across 35 States and Union Territories, as a proactive measures to address oxygen shortage. Such initiatives taken up by the government and key players are anticipated to contribute to market growth.
On the other hand, the medical gases mixture segment is anticipated to grow at the fastest rate during the forecast period. The surge in demand for medical gases mixture for calibration of medical instruments, and its application in diagnosis of various diseases is expected to drive the market growth during the forecast period. In addition, key players are offering a wide range of medical gases mixtures having wide applications in the healthcare sector, which is further expected to drive the market growth.
By Application
On the basis of application, the therapeutics segment dominated the market in terms of revenue in 2022 owing to the surge in demand for medical gases which are administered to patients for the treatment of various medical conditions or to support vital bodily functions. For instance, oxygen therapy is used for anemia, a condition in which the body has a decreased number of red blood cells, leading to a reduced oxygen-carrying capacity. Such applications of medical gases in treatment of various conditions increases its demand and thus fosters the segment growth.
By End User
Based on end user, the hospitals segment dominated the market terms of revenue in 2022 owing to the rise in demand for medical gases from the hospitals. Rise in the number of hospitalizations owing to the ise in number of patients suffering from respiratory disease act as one of the major factors driving the growth of the medical gases market.
On the other hand, the others segment is expected to experience the fastest growth rate during the forecast period. This growth is mainly attributed to the rise in geriatric population and the subsequent surge in demand for home healthcare. Many of these patients prefer to receive medical care and treatment in the comfort of their homes rather than in hospitals or medical facilities. This contributes to the demand for medical gases in home healthcare and drives the growth of others segment.
Regional/Country Market Outlook
The market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. North America accounted for a major share of the medical gases market in 2022 in terms of revenue. The growth is mainly attributed to the availability of advanced healthcare infrastructure in this region. As the hospitals and other healthcare facilities offer advanced facilities it also includes the use of instruments and procedures requiring medical gases for operations. This contributes to the demand for medical gases in this region.
On the contrary, the Asia-Pacific region is anticipated to grow at a fastest CAGR during the forecast period. This growth is attributed to the large patient pool in this region and high population base in countries such as India and China. Furthermore, the developing countries in Asia-Pacific such as China, Japan, and India serve as the potential markets for medical gases, as these countries are witnessing rise in heart and respiratory diseases.
In addition, oxygen is the most essential medical gas, and there is a significant investment by the government for establishing oxygen plants in this region. This is anticipated to boost the revenue generation from the Asia-Pacific region.
Competitive Landscape
Competition analysis and profiles of the major players in the medical gases industry, such as Air Products and Chemicals, Inc., DCC Plc, Linde plc, Messer Holding GmbH, SOL Spa, Nippon Sanso Holdings Corporation, Air Liquide, PT Samator Indo Gas Tbk, NOL Group and WestAir Gases and Equipment Inc. are provided in this report.
There are some important players in the market such as Catalina Cylinders, Tri-TechMedical Inc., American Welding & Gas, Chengdu Taiyu Industrial Gases Co., Ltd., MVS Engineering Pvt. Ltd., INOX-Air Products Inc., Chemtron Science Laboratories Private Limited. and others. Major players have adopted acquisition as key developmental strategies to improve the product portfolio of medical gases.
Recent Acquisition in the Medical Gases Market
In July 2020, Air Liquide announced the acquisition of Sasol's 16 Air Separation Units (ASU) located in Secunda, South Africa. Air Liquide will operate the biggest oxygen production site in the world with a plan to reduce its CO2 emissions by 30% to 40% within the next ten years.
In November 2021, Nippon Sanso Holdings Corporation (NSHD), announced the execution of a raw gas supply agreement with Enlink Midstream, LLC and will also be constructing a state-of-the-art facility in Texas dedicated to the production of liquefied carbon dioxide and dry ice.
Key Benefits for Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the medical gases market analysis from 2022 to 2032 to identify the prevailing medical gases market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the market segmentation assists to determine the prevailing medical gases market opportunity.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global medical gases market trends, key players, market segments, application areas, and market growth strategies.
Medical Gases Market Report Highlights
| Aspects | Details |
 Market Size By 2032 | USD 16.7 billion |
 Growth Rate | CAGR of 7% |
 Forecast period | 2022 - 2032 |
 Report Pages | 270 |
 By Product |
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 By Application |
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 By End User |
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 By Region |
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 Key Market Players | DCC Plc, NOL Group, Messer Holding GmbH, Linde plc, Air Products and Chemicals, Inc., PT Samator Indo Gas Tbk., Nippon Sanso Holdings Corporation, SOL Spa, WestAir Gases And Equipment Inc., Air Liquide |
 | Taiyo Nippon Sanso Corp, Messer Group, Matheson Tri-Gas, H.A.C Technical Gas Services, Cranney Companies, RS Gases, Sharjah Oxygen Company, Ellenbarrie industrial Gases, MEC Medical Ltd. |
Analyst Review
The medical gases market presents several opportunities and challenges. The medical gases market has witnessed notable growth owing to a rise in prevalence of respiratory diseases such as chronic obstructive pulmonary disease (COPD), and asthma, which further increases the demand for medical gases.
In addition, the expanding global population, particularly the aging demographics, contributes to the demand for medical gases as the susceptibility geriatric patients are more prone to chronic disorders. Moreover, surge in demand for oxygen therapies as a lifesaving treatment in various conditions is further boosting the market growth. In addition, improved healthcare infrastructure, especially in developing regions, enhances access to diagnosis and treatment, contributing to the growing demand for medical gases.
Furthermore, in North America, several driving factors contribute to the growth of the medical gases market. Increase in cases of cardiac diseases and respiratory diseases, rise in surgical procedures, availability of robust healthcare infrastructure, and strong presence of key players are contributing to the market growth. On the other hand, Asia-Pacific is anticipated to witness notable growth during the forecast period owing to rise in investments by the key players in production and development of medical gases to fulfill the local needs of oxygen, large population base, and surge in access to healthcare services.
The forecast period for medical gases market is 2023 to 2032.
The base year is 2022 in medical gases market.
Major players that operate in the medical gases market are Air Products and Chemicals, Inc., DCC Plc, Linde plc, Messer Holding GmbH, SOL Spa, Nippon Sanso Holdings Corporation, Air Liquide, Samator Group, NOL Group and WestAir Gases and Equipment Inc.
Key factors driving the growth of the medical gases market includes increase in prevalence of respiratory diseases, rise in number of surgical procedures and rise in adoption of home healthcare.
Asia-Pacific has the highest growth rate in the market with 7.8% CAGR owing to to rise in investments by the key players in production and development of medical gases to fulfill the local needs of oxygen, large population base, and surge in access to healthcare services.
The pure medical gases segment is the most influencing segment in the market owing to the surge in demand for these medical gases in the treatment of various diseases.
The total market value of medical gases market is $8.5 billion in 2022.
The market value of medical gases market in 2032 is $16.7 billion.
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