Industrial Gases For The Plastic & Rubber Market Outlook

The global industrial gases market is projected to reach approximately USD 160 billion by 2035, growing at a compound annual growth rate (CAGR) of around 5.5% from 2025 to 2035. This growth is primarily driven by the increasing demand for industrial gases in various end-user industries such as plastic and rubber manufacturing, which require high-quality gases for production processes. The rise in manufacturing activities, coupled with technological advancements in gas production and distribution, is expected to further enhance market growth. Additionally, the growing focus on sustainability and energy efficiency in industrial operations is prompting manufacturers to adopt more eco-friendly gas solutions, contributing to the market's expansion. Furthermore, the ongoing investments in infrastructure development across emerging economies are likely to create new opportunities for industrial gas providers, solidifying their position in the market.

Growth Factor of the Market

The industrial gases market is experiencing robust growth due to several factors influencing its demand across multiple sectors. One of the primary drivers is the increasing utilization of industrial gases in the production processes of plastics and rubber, which require specific gas mixtures for optimal performance and product quality. Moreover, the booming packaging industry, largely propelled by growing consumer goods and e-commerce sectors, is another critical growth factor, as it relies on specialized gases for preserving product integrity and extending shelf life. Additionally, advancements in technologies such as gas separation processes and cryogenic technology are enhancing the efficiency of gas production and distribution, further driving market growth. The rising focus on environmentally sustainable practices among industries is also contributing to the market, as companies seek to reduce their carbon footprint and improve their operational efficiency through the use of cleaner gas options. Lastly, the increasing demand for gases in emerging markets, fueled by urbanization and industrialization, presents significant growth opportunities for industry players.

Key Highlights of the Market

• The industrial gases market is anticipated to grow at a CAGR of 5.5% from 2025 to 2035.
• Oxygen, nitrogen, and hydrogen are among the most consumed gases in the plastic and rubber sectors.
• The packaging application segment is expected to witness substantial growth due to the expansion of the e-commerce sector.
• Direct sales channels are projected to dominate the distribution landscape.
• Emerging markets in Asia Pacific are expected to show the highest growth rates in the coming years.

By Product Type

Oxygen:

Oxygen is one of the most crucial industrial gases used in the plastic and rubber markets, primarily for its role in combustion processes and as an oxidizing agent in chemical reactions. In plastic manufacturing, oxygen is often utilized to enhance the properties of materials such as polyethylene and polypropylene, improving their strength and durability. Additionally, oxygen is integral in the production of various rubber compounds, where it aids in the vulcanization process, ensuring that the final product possesses the desired elasticity and resilience. The growing demand for high-quality plastics and rubber products, driven by sectors like automotive and consumer goods, continues to propel the oxygen segment. Moreover, technological advancements that enhance the efficiency of oxygen production, such as pressure swing adsorption (PSA), are likely to further stimulate the market's growth.

Nitrogen:

Nitrogen is widely used in the plastic and rubber industries due to its inert properties, making it an ideal choice for various applications. In plastic manufacturing, nitrogen is often employed as a blanketing gas to prevent oxidation during production, which can compromise the quality of the final product. Furthermore, nitrogen is essential in the rubber production process, where it is utilized to create foamed rubber products that are lightweight and high-performing. The versatility of nitrogen and its ability to be supplied in bulk make it a critical component in the industrial gases market. As the demand for lightweight and durable materials in automotive, construction, and consumer goods industries increases, the nitrogen segment is expected to witness steady growth, supported by expanding production capacities in emerging markets.

Argon:

Argon, known for its inert and non-reactive nature, plays a significant role in various industrial applications, including the manufacturing of plastics and rubber. In the plastic sector, argon is often used in specialized welding processes to provide a stable atmosphere that prevents contamination and oxidation. This is particularly important in high-performance plastic applications where product integrity is paramount. Additionally, argon is utilized in the production of certain rubber materials, particularly in the synthesis of synthetic rubbers, where it ensures consistent quality and performance. The increasing adoption of argon in advanced manufacturing processes and the growing trend toward automation in production lines are expected to drive the argon segment's growth, further integrating it into the broader industrial gases market.

Hydrogen:

Hydrogen is emerging as a key industrial gas in the plastic and rubber markets, primarily due to its role in various chemical processes, including hydrogenation and as a fuel source in fuel cells. In the plastics industry, hydrogen is utilized in the production of polyolefins, which are essential components in a wide range of plastic products. Additionally, hydrogen plays a vital role in the development of synthetic rubber, where it enhances the material's durability and elasticity. The increasing focus on renewable energy and hydrogen as a clean fuel alternative is driving innovation in hydrogen production technologies, including electrolysis and steam reforming. As industries continue to prioritize sustainability, the demand for hydrogen is expected to rise significantly, positioning it as a crucial driver of growth in the industrial gases market.

Carbon Dioxide:

Carbon dioxide is an essential industrial gas that finds extensive applications in the plastic and rubber industries. In plastic manufacturing, carbon dioxide is often utilized as a foaming agent, providing lightweight properties and enhancing the thermal insulation of various products. Moreover, it plays a critical role in the production of polymer materials, where it serves as a solvent in the synthesis of biodegradable plastics. In the rubber industry, carbon dioxide is increasingly being used as an alternative to more harmful chemicals, helping manufacturers adhere to stringent environmental regulations. The growing emphasis on sustainable materials and practices is likely to promote the use of carbon dioxide in innovative applications, thereby driving growth in this segment of the industrial gases market.

By Application

Plastic Manufacturing:

The plastic manufacturing segment is one of the largest consumers of industrial gases, primarily due to the extensive use of gases in various production processes. Industrial gases such as nitrogen and oxygen are essential in the polymerization processes, where they enhance the quality and performance of plastic products. The increasing demand for lightweight and high-performance plastics in automotive, aerospace, and consumer goods is propelling the growth of this segment. Additionally, the trend toward recycling and the development of bio-based plastics is further driving the need for innovative gas solutions that support these sustainable practices. As manufacturers seek to optimize their production efficiencies while reducing their environmental impact, the plastic manufacturing application is expected to witness significant advancements and growth in the coming years.

Rubber Manufacturing:

Rubber manufacturing is another critical application area for industrial gases, where specific gases are utilized in the vulcanization and compounding processes. Gases such as nitrogen and carbon dioxide are essential for achieving the desired properties in rubber products, including elasticity, durability, and resistance to heat. The increasing demand for high-performance rubber in automotive tires, industrial applications, and consumer products is driving the growth of this segment. Furthermore, as the rubber industry shifts toward more sustainable practices, there is a growing emphasis on the development of eco-friendly rubber materials, which often require specialized gas solutions. This trend is expected to create new opportunities for industrial gas suppliers, enhancing the rubber manufacturing segment's growth in the market.

Packaging:

The packaging application is experiencing rapid growth within the industrial gases market, driven by the expanding e-commerce sector and the rising demand for safe and reliable packaging solutions. Gases such as nitrogen and carbon dioxide are commonly employed in modified atmosphere packaging (MAP) techniques, which help preserve the freshness and quality of perishable goods, extending their shelf life. The increasing consumer preference for ready-to-eat meals and packaged food is further propelling the demand for industrial gases in the packaging sector. Additionally, the growing awareness of food safety and sustainability is prompting manufacturers to invest in advanced packaging technologies that utilize industrial gases efficiently. As a result, the packaging application is poised for continued growth, presenting significant opportunities for industrial gas providers.

Welding & Cutting:

Welding and cutting applications represent a significant segment of the industrial gases market, with gases such as oxygen, acetylene, and argon playing essential roles in various welding techniques. These gases are critical for achieving high-quality welds and cuts in diverse materials, making them indispensable in industries such as automotive, construction, and manufacturing. The increasing adoption of automation and advanced welding technologies is driving the demand for industrial gases in this segment, as manufacturers seek to improve productivity and efficiency in their operations. Additionally, the growing emphasis on safety and environmental regulations is prompting the development of cleaner and more efficient welding processes, which often require specialized gas mixtures. Consequently, the welding and cutting application is expected to witness strong growth in the coming years, reflecting the ongoing developments in the industrial gases market.

Others:

The 'Others' category encompasses various niche applications of industrial gases beyond the primary sectors of plastic, rubber, packaging, and welding. This includes applications in food processing, healthcare, electronics manufacturing, and metal processing. For instance, in food processing, gases like carbon dioxide and nitrogen are employed to preserve food and enhance shelf life through controlled atmosphere storage. In healthcare, oxygen is vital for patient care, while in electronics, industrial gases are used in the production of semiconductors and display technologies. The diverse applications of industrial gases in these sectors contribute to the overall growth of the market, with ongoing innovations and advancements in gas technologies providing new opportunities for expansion. As industries continue to explore efficient and sustainable practices, the 'Others' category is likely to show considerable growth in response to emerging trends and demands.

By Distribution Channel

Direct Sales:

The direct sales distribution channel is a prominent method used in the industrial gases market, allowing manufacturers to establish direct relationships with their customers. This approach provides several advantages, including enhanced control over pricing, delivery, and customer service. Direct sales enable gas suppliers to customize their offerings based on specific customer needs, leading to improved customer satisfaction and loyalty. Additionally, this channel facilitates quicker response times and streamlined logistics, which are critical in industries where operational efficiency is paramount. The increasing trend of customization and tailored solutions in the industrial gases market is expected to further bolster the growth of direct sales as a preferred distribution channel for many businesses.

Distributors:

Distributors play a vital role in the industrial gases market by providing manufacturers with a wide-reaching network for the distribution of gases to various end-user industries. The distributor channel allows gas suppliers to expand their market presence and reach customers in diverse geographical locations without the need for extensive infrastructure investments. Distributors offer value-added services such as storage, logistics, and technical support, which are essential for ensuring timely delivery and optimal gas utilization for customers. Furthermore, as industries continue to globalize, the reliance on distributors is expected to grow, facilitating access to industrial gases across different regions. This trend underscores the importance of distributor channels in enhancing market accessibility and driving the overall growth of the industrial gases market.

By Region

The regional analysis of the industrial gases market reveals significant growth potential across various geographical areas. North America, valued at approximately USD 40 billion in 2025, is anticipated to maintain its dominant position in the market due to the strong presence of key industrial gas suppliers and the high demand from end-user industries, including automotive, aerospace, and food processing. The region is projected to grow at a CAGR of 4.8% during the forecast period. Europe follows closely, with a market size of around USD 35 billion in 2025, driven by the increasing focus on sustainable practices and innovations in gas technologies. The presence of established manufacturing hubs and a robust regulatory framework in Europe further supports the growth of the industrial gases market in this region, making it a key player in the global landscape.

Meanwhile, the Asia Pacific region is expected to witness the highest growth rate in the industrial gases market, projected to reach approximately USD 45 billion by 2035, growing at a CAGR of 6.5%. This growth can be attributed to rapid industrialization, urbanization, and the increasing demand for plastics and rubber products in emerging economies such as China and India. The rising investments in infrastructure development and the expansion of the manufacturing sector in these countries are also contributing to the rising demand for industrial gases. Latin America and the Middle East & Africa are gradually increasing their market shares, with growth driven primarily by the expanding industrial base and the rising need for innovative gas applications across diverse sectors. This diverse regional landscape emphasizes the escalating demand for industrial gases and the various growth opportunities available to suppliers.

Opportunities

The industrial gases market is poised for numerous opportunities in the coming years, particularly due to the increasing emphasis on sustainability and environmental responsibility among manufacturers. With industries worldwide striving to minimize their carbon footprint, there is a burgeoning demand for cleaner and more efficient gas solutions. For instance, the development of green hydrogen production technologies presents significant opportunities for industrial gas suppliers, as hydrogen becomes a prominent alternative fuel source across multiple sectors including transportation and power generation. Additionally, as industries shift towards circular economies, the need for recycling processes that utilize specialized gases is gaining importance. Companies that capitalize on these trends by offering innovative and sustainable gas applications will undoubtedly find a competitive edge in the market.

Furthermore, the global trend of digitalization and automation in manufacturing processes is creating new avenues for the industrial gases market. Smart factories are becoming more prevalent, and with them arises the need for precise gas management solutions that optimize performance and enhance productivity. As manufacturers adopt IoT and data analytics technologies, the ability to monitor and manage industrial gas usage in real time will become increasingly critical. By leveraging these technological advancements, industrial gas suppliers can offer tailored solutions that meet the specific needs of their customers, fostering long-term partnerships and driving further growth in the market.

Threats

Despite the promising growth prospects in the industrial gases market, several threats could potentially hinder its expansion. One of the primary concerns is the volatility of raw material prices, which can significantly impact the cost of producing industrial gases. Fluctuations in the prices of energy sources, particularly natural gas and electricity, can lead to increased production costs, which may be passed on to customers. This could result in reduced demand for industrial gases, especially from price-sensitive industries. Moreover, the rising competition from alternative materials and processes, particularly in sectors like plastics and rubber, poses a threat to traditional industrial gas applications. As industries increasingly seek to reduce reliance on fossil fuels and harmful chemicals, the demand for specific industrial gases may decline, necessitating adaptations from suppliers to remain competitive.

Another significant threat to the industrial gases market is the stringent regulatory environment surrounding emissions and environmental impacts. Governments worldwide are progressively imposing stricter regulations aimed at reducing greenhouse gas emissions and promoting sustainable practices. While this trend encourages innovation and the adoption of cleaner gas solutions, it also places considerable pressure on industrial gas providers to comply with these regulations. Failure to meet regulatory standards can result in significant financial penalties and reputational damage, potentially limiting market access. Consequently, companies must invest in research and development to align their offerings with evolving regulations, which can pose challenges for smaller players with limited resources. These factors combined underscore the potential vulnerabilities within the industrial gases market, necessitating proactive strategies to mitigate risks and capitalize on opportunities.

Competitor Outlook

• Linde plc
• Air Products and Chemicals, Inc.
• Air Liquide S.A.
• Praxair Technology, Inc.
• Matheson Tri-Gas, Inc.
• Messer Group GmbH
• Taiyo Nippon Sanso Corporation
• Universal Industrial Gases, Inc.
• Showa Denko K.K.
• Southern Industrial Gas Sdn. Bhd.
• Norco Holdings, Inc.
• Chemgas Co.
• Indura S.A.
• Universal Industrial Gases, Inc.
• Gulf Cryo

The competitive landscape of the industrial gases market is characterized by a mix of established players and emerging companies, all vying for market share in this dynamic industry. Key players such as Linde plc, Air Products and Chemicals, and Air Liquide have a stronghold in the market, leveraging their extensive distribution networks and advanced production technologies to cater to a diverse range of industries. These companies are continuously investing in research and development to innovate and enhance their product offerings, ensuring they stay ahead in a competitive environment. Additionally, strategic mergers and acquisitions are notable trends, as companies aim to expand their geographical presence and broaden their product portfolios to meet the evolving demands of customers across different sectors.

Moreover, regional players also play a significant role in the market, contributing to localized service delivery and specialized solutions tailored to meet the specific needs of various industries. For instance, regional companies like Messer Group GmbH and Matheson Tri-Gas are focusing on niche markets, providing customized gas solutions that cater to specific applications within the plastic and rubber sectors. These players are essential in fostering competition and driving innovation within the market, as they often bring unique approaches and relationships with customers that larger corporations may not possess. As the industrial gases market continues to evolve, the competitive landscape will likely become even more fragmented, with both global and regional companies adapting to market changes and exploring new growth opportunities.

Among the major players, Linde plc is noteworthy for its expansive global presence and its commitment to sustainability initiatives, which include investments in green hydrogen production and carbon capture technologies. This focus on eco-friendly solutions positions Linde favorably in an industry increasingly driven by environmental considerations. Air Products and Chemicals, another leading player, is recognized for its technological advancements in gas production and processing, offering a wide range of industrial gases across various sectors. The company's strategic approach to partnerships and collaborations enhances its market presence and allows it to tap into emerging trends effectively. Similarly, Air Liquide S.A. has made significant strides in expanding its product offerings while emphasizing safety and efficiency, which are crucial in the industrial gases market.