Global Industrial Oxygen Market Growth, Share, Size, Trends and Forecast (2025 - 2031)

• In July 2021, Linde announced that it had started its new on-site facility in Qinzhou, China. The facility can supply up to 7,500 tons of oxygen per day.
• In June 2021, Air Liquide finalized the acquisition of Sasol's 16 Air Separation Units in Secunda, South Africa. The facility is the world's largest oxygen production site.

The global industrial oxygen market is segmented based on type, product type, and geography. In terms of type, the market is categorized into compressed oxygen gas, liquid oxygen, and oxygen mixtures. Compressed oxygen gas is widely used across industries such as healthcare, manufacturing, and aerospace due to its accessibility and ease of transportation. Liquid oxygen, on the other hand, is primarily employed in applications requiring higher volumes, such as metal production and chemical processing. Oxygen mixtures serve niche applications like welding and medical therapies, offering a blend of oxygen with other gases tailored to specific needs.

By product type, the market includes captive oxygen production, merchant oxygen, and onsite oxygen generation systems. Captive production involves generating oxygen within industrial facilities for internal use, particularly in large-scale operations such as steel and petrochemical manufacturing. Merchant oxygen, which is produced offsite and delivered to end-users, is preferred for industries with fluctuating or moderate demand. Onsite oxygen generation systems cater to industries aiming to optimize costs and ensure a steady supply by producing oxygen directly at their locations, gaining popularity in sectors like water treatment and food processing.

Geographically, the market spans North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. Asia-Pacific dominates the market due to its booming industrial and healthcare sectors, with countries like China and India leading in oxygen consumption. North America and Europe are witnessing steady growth driven by advancements in manufacturing technologies and increasing healthcare needs. Meanwhile, the Middle East & Africa and Latin America are emerging markets, with infrastructure development and industrialization fueling demand for industrial oxygen.

Global Industrial Oxygen Segment Analysis

In this report, the Global Industrial Oxygen Market has been segmented by Type, Usage, Form, Product Type and Geography.

Global Industrial Oxygen Market, Segmentation by Type

The Global Industrial Oxygen Market segmentation by Type into Low Purity (90%-99%) and High Purity (Greater than 99.5%).

Distinguishes between Low Purity (90%-99%) and High Purity (Greater than 99.5%) oxygen, each serving distinct industrial needs. Low Purity Oxygen, typically ranging from is commonly used in applications where the presence of other gases does not significantly affect the process. This type of oxygen is often utilized in industries such as wastewater treatment, where it aids in biological processes, and in steel manufacturing, where it helps improve combustion efficiency in blast furnaces and basic oxygen furnaces.

On the other hand, High Purity Oxygen, with purity levels exceeding is essential for processes requiring stringent control over impurities. This high-purity oxygen is crucial in the healthcare sector, particularly for medical applications such as respiratory therapies and surgical procedures. Additionally, it is used in the chemical industry for oxidation reactions and in the electronics industry, where high purity is vital to prevent contamination in manufacturing processes, such as semiconductor production.

The demand for high-purity oxygen is growing, driven by the increasing complexity of industrial processes and the need for cleaner production methods. This trend is particularly evident in sectors that prioritize product quality and safety, such as pharmaceuticals and food processing. As industries continue to evolve, the differentiation in oxygen purity requirements underscores the importance of tailored solutions to meet specific operational needs, highlighting the role of technological advancements in production and purification processes.

Global Industrial Oxygen Market, Segmentation by Form

The Global Industrial Oxygen Market segmentation by Form into Gas, and Liquid.

The global industrial oxygen market is segmented based on its form into gas and liquid categories. The gas segment dominates the market, primarily due to the widespread use of oxygen in its gaseous state across various industries such as healthcare, manufacturing, and chemical processing. Gaseous oxygen is used for applications such as combustion, welding, and in the production of steel, making it essential for industries that rely on high-temperature processes. The gas form of oxygen is easier to transport, store, and handle, making it a preferred choice for many industrial sectors.

The liquid oxygen segment, while smaller compared to the gas form, has specific applications in industries where higher concentrations of oxygen are required. Liquid oxygen is commonly used in the aerospace sector, medical applications, and in industries that require cryogenic processes. It offers a more compact and efficient way to store large quantities of oxygen, making it ideal for high-demand environments where space and transportation logistics are crucial factors. In addition, liquid oxygen is used in some chemical processes and as an oxidizer in rocket propulsion systems.

As industries continue to expand and evolve, the demand for both gas and liquid oxygen is expected to grow, driven by technological advancements and an increasing range of applications. The gas segment is anticipated to maintain its dominance, particularly due to its versatility and ease of use. However, the liquid oxygen market will continue to play a crucial role in specialized sectors that require its unique properties. Both segments will see growth, with advancements in production, storage, and distribution methods enhancing their efficiency and accessibility.

Global Industrial Oxygen Market, Segmentation by Usage

The Global Industrial Oxygen Market segmentation by Usage into Primary Oxygen, and Secondary Oxygen.

The global industrial oxygen market is segmented based on usage into primary oxygen and secondary oxygen. Primary oxygen refers to the oxygen that is directly used in industrial applications such as steel manufacturing, chemical production, and medical applications. It is produced through processes like cryogenic distillation, pressure swing adsorption, and membrane technology, ensuring that the oxygen is of high purity to meet the specific needs of industries. This form of oxygen plays a crucial role in various sectors, particularly in processes where oxygen is required for combustion or chemical reactions.

On the other hand, secondary oxygen is derived as a byproduct of other industrial processes. This oxygen is typically produced during activities like natural gas processing or as a waste product in chemical manufacturing plants. Although it may not be as pure as primary oxygen, secondary oxygen is still valuable in certain applications where a lower grade of oxygen is sufficient. Secondary oxygen is commonly used in sectors such as wastewater treatment, pulp and paper production, and other industries with less stringent oxygen purity requirements.

The demand for both primary and secondary oxygen varies depending on industry needs and geographic factors. Primary oxygen is more prevalent in industries requiring high-purity oxygen for processes like combustion, oxidation, or chemical synthesis, while secondary oxygen is more cost-effective and used in applications that do not require the same level of purity. The growth of industries such as healthcare, metal processing, and energy is likely to drive the demand for primary oxygen, while the increasing focus on environmental sustainability could lead to more utilization of secondary oxygen in various industrial processes.

Global Industrial Oxygen Market, Segmentation by Product Type

The Global Industrial Oxygen Market segmentation by Product Type into Compressed Oxygen Gas, Liquefied Oxygen, and Oxygen Gas Mixtures.

Compressed Oxygen Gas is stored in high-pressure cylinders and is widely used across various industries due to its convenience in transportation and ease of use. This form is particularly common in sectors like healthcare, where it is used for medical treatments, and in welding and cutting applications in manufacturing.

Liquefied Oxygen is stored at very low temperatures in insulated cryogenic containers, making it ideal for applications requiring large volumes of oxygen. This includes industries such as steel manufacturing and chemical processing, where continuous and large-scale oxygen supply is critical. Liquefied oxygen is also used in aerospace applications, where its high energy density is advantageous.

Oxygen Gas Mixtures consist of oxygen combined with other gases like nitrogen, carbon dioxide, or argon, tailored for specific industrial processes. These mixtures are crucial in applications such as gas chromatography, calibration of medical and industrial equipment, and controlled atmosphere storage in the food industry. The choice of product type depends on factors like the required purity, volume, storage capacity, and specific application needs, reflecting the diverse demands across different industrial sectors.

Global Industrial Oxygen Market, Segmentation by Geography

In this report, the Global Industrial Oxygen Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Global Industrial Oxygen Market Share (%), by Geographical Region, 2024

The Global Industrial Oxygen Market's geographic segmentation includes North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa, each offering unique market dynamics and opportunities. In North America, the market is driven by the robust healthcare sector, advanced manufacturing industries, and stringent environmental regulations. The region's demand for high-purity oxygen, particularly in medical and electronics applications, supports steady market growth.

In Europe, industrial oxygen demand is influenced by the region's strong automotive and chemical manufacturing sectors, as well as its emphasis on sustainable practices and emission reduction. The European market also benefits from technological innovations in oxygen production and applications, catering to industries such as aerospace and pharmaceuticals that require high purity standards.

The Asia-Pacific region represents the fastest-growing segment, driven by rapid industrialization, urbanization, and infrastructure development. Countries like China, India, and Japan are major consumers, leveraging oxygen for steel production, electronics, and healthcare. In Latin America and the Middle East & Africa, growth is supported by expanding industrial bases and increased investment in healthcare infrastructure. Each region's unique industrial landscape and regulatory environment play a crucial role in shaping the demand and utilization of industrial oxygen.