The commercial industrial gases market in India generated revenues of just over $1.82bn in 2024, up from $1.3bn in 2014, according to a new gasworld Intelligence report.
However, the industrial gases market did not perform as well as in the first decade (2000 to 2011) with 2016, 2020 and 2023 all recording drops in activity from the prior year.
The metallurgical industry is by far the largest end-user of industrial gas in India, accounting for 39% of total sales (equivalent to $708m).
Industrial gas major Linde is the most significant company, with a 26% market share, equating to $466m in revenues, while INOX Air Products (a joint venture between INOX Leasing and Finance Ltd and Air Products) is next largest with 25% (equating to $456m). Air Liquide and Air Water have market shares of around 7%, while NSHD (through the joint venture company Matheson K-Air Gases) has a minor share of 2%, according to the report.
In the merchant market, packaged gas sales stood at $590m in 2024, while the sale of bulk liquid produced a further $506m in revenue for gas companies. This equated to 32% and 28% respectively of commercial market revenue. Estimated total demand for merchant carbon dioxide came to about 3,565 tpd in 2024, primarily serving food and beverage producers.
In terms of commercial gas sales, oxygen is the largest revenue-generator, with sales of about $561m for both industrial and medical oxygen – equating to 31% of the total market.
Despite strong growth potential, India faces several challenges, including persistent inflation, especially in food, high youth unemployment and underemployment, fiscal and current account deficits, structural issues such as income inequality, and the need for labour market and land reforms. It is also hampered by global economic uncertainty and tighter financial conditions.
Food and beverage, electronics, refining, and energy are the sectors tipped to record the highest growth rates in the next five years.
Gas market growth is forecasted to be relatively strong in India, with forecasting models suggesting a compound annual growth rate of between 9.2% and 9.5% across the next five years. Accordingly, this should see the gas market in India achieve revenues of between $2.83bn and $2.87bn by 2029.
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