India Industrial Gas Production Market Size & Growth Rate
According to 6Wresearch internal database and industry insights, the India Industrial Gas Production Market was valued at USD 256.0 million in 2025 and is projected to reach USD 392.62 million by 2032, growing at a CAGR of approximately 6.3% during 2026–2032.
India Industrial Gas Production Market Highlights
| Report Metric | Details |
| Report Name | India Industrial Gas Production Market |
| Market Size 2025 | USD 256.0 million |
| Market Size 2032 | USD 392.62 million |
| Absolute Growth 2025–2032 | USD 136.62 million |
| CAGR 2026–2032 | 6.3% |
| Peak Annual Growth | 9.2% in 2032 |
| Forecast Period | 2026–2032 |
| Historical Data | 2022–2025 |
| Base Year | 2025 |
| Leading Gas Type, 2025 | Oxygen (37% share) |
| Leading Production Method, 2025 | Cryogenic Distillation (47% share) |
| Leading Storage Format, 2025 | Liquid / Cylinder (50% share) |
| Leading End User, 2025 | Steel & Welding Industry (48% share) |
| Fastest-Growing Gas Type | Hydrogen (7.5% CAGR) |
| Fastest-Growing Production Method | Electrolysis / Reforming (7.6% CAGR) |
| Fastest-Growing Storage Format | Liquid / Onsite Plants (8.4% CAGR) |
| Fastest-Growing End User | Energy & Fuel Applications (8.7% CAGR) |
| Growing Sector | Steel & Welding Industry |
| Key End Users | Steel Industry, Healthcare Sector, Food Processing Industry, Energy Sector |
India Industrial Gas Production Market Year-wise Growth Rate and Key Drivers (2022–2032)
This graph illustrates the annual growth rates of the market from 2022 to 2032, highlighting a steady upward trajectory and projected market expansion over the forecast period.
Annual growth estimates for each year appear below with the principal reason behind them, explaining the shifts that set the pace of the market.
| Year | Estimated Annual Growth (%) | Market Rationale |
| 2022 | 6.8 | The market showed strong activity, driven by the recovery in manufacturing and healthcare sectors. |
| 2023 | 5.2 | Growth slowed due to temporary supply chain disruptions affecting industrial gas delivery. |
| 2024 | 4.6 | Demand continued to slow as production capacity struggled to keep pace with rising needs. |
| 2025 | 7.4 | A surge in steel production boosted growth as the industry consumed more industrial gases. |
| 2026 | 6.2 | Growth is expected to slow again as companies face challenges in scaling up production capabilities. |
| 2027 | 3.9 | The market is projected to experience a slowdown as investments in new technologies take time to materialise. |
| 2028 | 5.9 | An increase in energy applications is expected to spur growth as new projects come online. |
| 2029 | 4.0 | Demand is projected to slow as the market adjusts to previous years' rapid growth. |
| 2030 | 6.8 | Growth is expected to accelerate again, driven by the National Hydrogen Mission's initiatives. |
| 2031 | 8.2 | Rising demand from the healthcare sector will contribute to a faster growth rate. |
| 2032 | 9.2 | The market is projected to peak as investments in hydrogen production gain momentum. |
Note: Market size estimations and growth projections presented in this report are based on 6Wresearch's proprietary forecasting methodology, utilizing the latest available industry data, government publications, and primary research inputs.
India Industrial Gas Production Market Synopsis
The India Industrial Gas Production Market involves the manufacturing of essential gases such as oxygen, hydrogen, nitrogen, and carbon dioxide. These gases are produced through methods like cryogenic distillation and electrolysis, serving industries including steel, energy, and healthcare. The market is growing due to increased domestic demand, particularly from the steel industry, which consumed around 40% of total production. Government initiatives like the National Hydrogen Mission are driving new demand, further supporting market expansion.
Market Dynamics Impact Analysis (2026–2032)
| Factor | Type | Impact | Primary Segment Affected |
| Growing demand from the steel industry drives the need for oxygen and nitrogen. | Driver | High | Oxygen |
| Expansion of hydrogen production initiatives is creating new market opportunities. | Driver | High | Hydrogen |
| Investment in hydrogen fuel infrastructure is increasing due to government support. | Opportunity | High | Hydrogen |
| Rising demand for industrial gases in the healthcare sector presents new avenues for growth. | Opportunity | High | Oxygen |
| Supply chain disruptions affect timely delivery of industrial gases. | Restraint | High | Oxygen |
| High initial investment costs for advanced production technologies can limit expansion. | Restraint | High | Hydrogen |
| Intense competition among producers leads to price wars. | Challenge | High | Oxygen |
| Technology adoption lags behind global standards, affecting productivity. | Challenge | High | Hydrogen |
Evaluation of Drivers in India Industrial Gas Production Market (2026–2032)
The main growth drivers and the segments they affect most are set out below.
| Drivers | Primary Segment Affected | Why It Matters (Evidence) |
| Increased steel production drives demand for oxygen, accounting for 40% of total consumption. | Oxygen | This sector's growth leads to higher oxygen production, as steel manufacturers require significant supplies. |
| The National Hydrogen Mission aims to produce 5 million tons of hydrogen by 2030. | Hydrogen | This initiative is expected to significantly boost hydrogen production and utilization across various sectors. |
| The adoption of cryogenic distillation technology supports large-scale gas production. | Cryogenic Distillation | This method accounts for 60% of oxygen production, ensuring efficiency in supply to industries. |
| Liquid nitrogen is increasingly used in food preservation, boosting demand in the sector. | Nitrogen | The food processing industry is a key user, driving up nitrogen production for preservation applications. |
| The Ministry of Heavy Industries promotes green hydrogen initiatives to reduce emissions. | Hydrogen | This initiative encourages investments in hydrogen technologies and infrastructure, enhancing production capabilities. |
Market growth in India for Industrial Gas Production hinges on increasing demand from the steel industry, which consumes about 40% of total production. The National Hydrogen Mission, launched in 2021, aims to generate 5 million tons of hydrogen by 2030, significantly increasing hydrogen usage. Investments in cryogenic distillation technology are enhancing efficiency, with this method responsible for 60% of oxygen production. The food processing sector is increasingly utilising liquid nitrogen for preservation, boosting nitrogen demand.
Evaluation of Restraints in India Industrial Gas Production Market
The key brakes on demand, and where they bite hardest, are shown below.
| Market Restraint | Primary Segment Affected | Why It Matters (Evidence) |
| Supply chain disruptions affect timely delivery of industrial gases. | Oxygen | These disruptions have led to delays in meeting the demand from industries, particularly healthcare. |
| High initial investment costs for advanced production technologies can limit expansion. | Hydrogen | Many companies hesitate to invest heavily in new hydrogen production facilities due to financial constraints. |
| Regulatory compliance costs can burden smaller producers in the market. | Cryogenic Distillation | Smaller firms struggle to meet stringent safety standards, impacting their competitiveness in the market. |
| Limited infrastructure for hydrogen distribution hampers market growth. | Hydrogen | The lack of established distribution networks makes it difficult to supply hydrogen effectively to end-users. |
| Market volatility in raw material prices affects production costs. | Nitrogen | Fluctuating prices can lead to uncertainty in production planning and profitability for producers. |
India Industrial Gas Production Market Challenges
The India Industrial Gas Production Market encounters several practical issues, starting with a skills shortage that hampers operational efficiency; many workers lack sufficient training, which delays production timelines for suppliers. Intense competition among producers leads to price wars, forcing some to compromise on quality, negatively impacting buyers who depend on reliable gas supplies. Supply chain disruptions often arise from logistical challenges, causing delays in gas delivery to critical sectors like healthcare, where timely access is crucial. Technology adoption lags behind global standards, with only 40% of industrial gas production using advanced methods, limiting productivity for producers.
Trends in the India Industrial Gas Production Market
Several trends are reshaping the India Industrial Gas Production Market; the most important are set out below.
- Shift from Traditional to Green Hydrogen Production: The Indian government initiated the National Hydrogen Mission in 2021 to promote green hydrogen production. This shift aims to produce 5 million tons of hydrogen by 2030, supporting sustainability efforts.
- Increase in Liquid Nitrogen Usage in Food Processing: The food processing industry in Maharashtra is increasingly adopting liquid nitrogen for preservation. This trend is supported by a rise in demand for industrial gases in healthcare, which also uses nitrogen.
- Growth of Onsite Gas Production Facilities: The trend towards liquid onsite plants is gaining traction, particularly in Gujarat, where investments are increasing. This shift allows large consumers to produce gases on-site, improving supply reliability.
- Rising Adoption of Pressure Swing Adsorption Technology: Pressure Swing Adsorption technology is being increasingly adopted in various industries across India. This method is particularly effective for nitrogen generation, aligning with the growing need for efficient gas production.
Investment Opportunities in the India Industrial Gas Production Market
Below are the investment opportunities with the strongest case in the India Industrial Gas Production Market.
- Investment in Hydrogen Production Infrastructure: The Indian government allocated INR 800 crores for hydrogen fuel infrastructure by 2025, creating an opportunity for investment in production facilities. Collaborating with local partners can facilitate market entry.
- Supply of Liquid Nitrogen for Food Processing: The increasing use of liquid nitrogen in food preservation presents a timely opportunity for suppliers. Targeting food processing companies in Maharashtra can help capture this growing demand.
- Expansion of Cryogenic Distillation Capabilities: Investing in advanced cryogenic distillation plants can meet the rising oxygen demand from the steel industry. The timing is ideal as the steel sector continues to expand its production capacity.
- Development of Green Hydrogen Technologies: With the National Hydrogen Mission promoting sustainable practices, there is an opportunity for companies to develop green hydrogen technologies. Engaging with research institutions can drive innovation.
Government Initiatives in the India Industrial Gas Production Market
The National Industrial Gas Policy, introduced in 2022, focuses on boosting domestic production capabilities and reducing import dependency. This policy aims to support local producers by ensuring compliance with safety standards and encouraging investment in new technologies. The government allocated INR 500 crores in 2023 for research and development in industrial gas technologies, enabling producers to innovate and improve efficiency. The Bureau of Indian Standards updated IS 3096:2020 for safe handling and storage of industrial gases, ensuring compliance for producers and users.
The Ministry of New and Renewable Energy oversees the National Hydrogen Mission, which promotes hydrogen production and utilization. This agency is responsible for approving projects and allocating funds, facilitating the development of hydrogen infrastructure across the country. The Clean Energy Fund, initiated in 2021, supports projects related to hydrogen and clean fuels, with an allocation of INR 1,000 crores. This funding enables producers to invest in sustainable technologies and infrastructure.
Future Insight of the India Industrial Gas Production Market
By 2032, transformative changes will reshape the India Industrial Gas Production Market, driven by the National Industrial Gas Policy, which aims to boost production capabilities significantly. The National Hydrogen Mission is projected to increase hydrogen output, with INR 800 crores allocated for hydrogen fuel infrastructure development. Advanced technologies will enhance efficiency in gas generation across various sectors. The National Gas Grid will facilitate improved distribution of industrial gases, ensuring timely supply to essential industries such as steel and healthcare.
Market Segmentation Analysis
The analysis below covers each segmentation, its leading category in 2025 and its fastest-growing category through 2032.
By Gas Type – Oxygen Dominated, Hydrogen Expected to Grow Fastest
According to Sachin Kumar Rai, Senior Research Analyst at 6Wresearch, Oxygen took a 37% share of gas type in 2025, more than any other category. Oxygen leads the market share in India's industrial gas sector due to its vital applications in the steel industry, which consumes approximately 40% of total production. Additionally, its importance in healthcare, particularly with the installed base of oxygen concentrators in hospitals reaching 50,000 units, solidifies its dominant position. Hydrogen is projected to grow fastest, at a CAGR of 7.5% during 2026–2032. Hydrogen is poised for rapid growth, driven by the National Hydrogen Mission initiated in 2021, which aims to enhance hydrogen production for applications like fuel cells and refining. This governmental support is expected to significantly increase hydrogen's market share as demand escalates. Suppliers must invest in hydrogen production technologies to capitalise on the anticipated surge in demand across multiple sectors.
By Production Method – Cryogenic Distillation Dominated, Electrolysis / Reforming Expected to Grow Fastest
The largest production method category in 2025 was Cryogenic Distillation, with a 47% share of total revenue. Cryogenic distillation is the leading method for large-scale gas production, accounting for a substantial share of the industrial gas output in India. Its efficiency and reliability make it the preferred choice for producers, ensuring consistent supply to various industries. Electrolysis / Reforming is set to record the highest CAGR in this split, 7.6% over 2026–2032. Electrolysis and reforming are emerging as the fastest-growing methods, particularly for hydrogen production, as industries seek cleaner alternatives to traditional techniques. The increasing emphasis on sustainability will likely accelerate the adoption of these production methods. Buyers should seek suppliers employing advanced production methods to secure a reliable supply of high-quality industrial gases.
By Storage Format – Liquid / Cylinder Dominated, Liquid / Onsite Plants Expected to Grow Fastest
In 2025, Liquid / Cylinder led the storage format split with a 50% share. Liquid and cylinder storage formats command the largest share in the market, as they are the most common and practical solutions for storing industrial gases across various sectors. Their versatility and ease of transport make them indispensable for industrial applications. Over 2026–2032, Liquid / Onsite Plants are expected to post the fastest growth, at a CAGR of 8.4%. Liquid onsite plants are rapidly becoming the preferred storage solution for large consumers, allowing for immediate access to gases while minimising transportation costs. This trend reflects the increasing demand for efficient gas supply systems in major industries. Suppliers must adapt their storage solutions to meet the growing preference for onsite plants among large-scale users.
By End User – Steel & Welding Industry Dominated, Energy & Fuel Applications Expected to Grow Fastest
Steel & Welding Industry accounted for a 48% market share by end user in 2025. The steel and welding industry commands the largest market share as the foremost consumer of industrial gases, relying heavily on these gases for production and welding operations. This sector's substantial consumption patterns ensure a strong market position for gases like oxygen. The quickest growth will come from Energy & Fuel Applications, forecast to expand at a CAGR of 8.7% between 2026 and 2032. Energy and fuel applications are witnessing the fastest growth, as industrial gases play a crucial role in energy production and refining processes. The increasing emphasis on energy efficiency and the transition to cleaner fuels will drive this segment's rapid expansion. Suppliers should tailor their offerings to meet the evolving needs of the energy sector to capture growth opportunities in this dynamic end user group.
Key Attractiveness of the Report
- 10 Years of Market Numbers
- Historical Data Starting from 2022 to 2025
- Base Year 2025
- Forecast Data until 2032
- Key Performance Indicators Impacting the Market
- Major Upcoming Developments and Projects
Key Highlights of the Report:
- India Industrial Gas Production Market Outlook
- Market Size of India Industrial Gas Production Market, 2025
- Forecast of India Industrial Gas Production Market, 2032
- Historical Data and Forecast of India Industrial Gas Production Revenues & Volume for the Period 2022 - 2032F
- India Industrial Gas Production Market Trend Evolution
- India Industrial Gas Production Market Drivers and Challenges
- India Industrial Gas Production Price Trends
- India Industrial Gas Production Porter's Five Forces
- India Industrial Gas Production Industry Life Cycle
- Historical Data and Forecast of India Industrial Gas Production Market Revenues & Volume By Gas Type for the Period 2022 - 2032F
- Historical Data and Forecast of India Industrial Gas Production Market Revenues & Volume By Oxygen for the Period 2022 - 2032F
- Historical Data and Forecast of India Industrial Gas Production Market Revenues & Volume By Hydrogen for the Period 2022 - 2032F
- Historical Data and Forecast of India Industrial Gas Production Market Revenues & Volume By Nitrogen for the Period 2022 - 2032F
- Historical Data and Forecast of India Industrial Gas Production Market Revenues & Volume By Carbon Dioxide for the Period 2022 - 2032F
- Historical Data and Forecast of India Industrial Gas Production Market Revenues & Volume By Production Method for the Period 2022 - 2032F
- Historical Data and Forecast of India Industrial Gas Production Market Revenues & Volume By Cryogenic Distillation for the Period 2022 - 2032F
- Historical Data and Forecast of India Industrial Gas Production Market Revenues & Volume By Electrolysis / Reforming for the Period 2022 - 2032F
- Historical Data and Forecast of India Industrial Gas Production Market Revenues & Volume By Pressure Swing Adsorption for the Period 2022 - 2032F
- Historical Data and Forecast of India Industrial Gas Production Market Revenues & Volume By Captured/Byproduct for the Period 2022 - 2032F
- Historical Data and Forecast of India Industrial Gas Production Market Revenues & Volume By Storage Format for the Period 2022 - 2032F
- Historical Data and Forecast of India Industrial Gas Production Market Revenues & Volume By Liquid / Cylinder for the Period 2022 - 2032F
- Historical Data and Forecast of India Industrial Gas Production Market Revenues & Volume By Pressurized / Gas Banks for the Period 2022 - 2032F
- Historical Data and Forecast of India Industrial Gas Production Market Revenues & Volume By Liquid / Onsite Plants for the Period 2022 - 2032F
- Historical Data and Forecast of India Industrial Gas Production Market Revenues & Volume By Cylinders/Tankers for the Period 2022 - 2032F
- Historical Data and Forecast of India Industrial Gas Production Market Revenues & Volume By End User for the Period 2022 - 2032F
- Historical Data and Forecast of India Industrial Gas Production Market Revenues & Volume By Steel & Welding Industry for the Period 2022 - 2032F
- Historical Data and Forecast of India Industrial Gas Production Market Revenues & Volume By Energy & Fuel Applications for the Period 2022 - 2032F
- Historical Data and Forecast of India Industrial Gas Production Market Revenues & Volume By Electronics & Inerting Use for the Period 2022 - 2032F
- Historical Data and Forecast of India Industrial Gas Production Market Revenues & Volume By Beverage & Fire Control for the Period 2022 - 2032F
- India Industrial Gas Production Import Export Trade Statistics
- Market Opportunity Assessment By Gas Type
- Market Opportunity Assessment By Production Method
- Market Opportunity Assessment By Storage Format
- Market Opportunity Assessment By End User
- India Industrial Gas Production Top Companies Market Share
- India Industrial Gas Production Competitive Benchmarking By Technical and Operational Parameters
- India Industrial Gas Production Company Profiles
- India Industrial Gas Production Key Strategic Recommendations
Market Covered
Segments analysed in this report are listed below.
By Gas Type
- Oxygen
- Hydrogen
- Nitrogen
- Carbon Dioxide
By Production Method
- Cryogenic Distillation
- Electrolysis / Reforming
- Pressure Swing Adsorption
- Captured/Byproduct
By Storage Format
- Liquid / Cylinder
- Pressurized / Gas Banks
- Liquid / Onsite Plants
- Cylinders/Tankers
By End User
- Steel & Welding Industry
- Energy & Fuel Applications
- Electronics & Inerting Use
- Beverage & Fire Control
