Forecast Period | 2025-2029 |
Market Size (2023) | USD 47.65 Billion |
CAGR (2024-2029) | 4.71% |
Fastest Growing Segment | Gas |
Largest Market | Asia Pacific |
Market Size (2029) | USD 62.09 Billion |
Market Overview
Global
Oxygen Market was valued at USD 47.65 Billion in 2023 and is expected to reach USD
62.09 Billion by 2029 with a CAGR of 4.71% during the forecast period. Oxygen,
an essential element in various industries, is seeing rising demand due to its
critical role in sectors such as healthcare, steel manufacturing, chemicals,
and wastewater treatment. The market’s trajectory is shaped by advancements in
production technologies, the growing need for high-purity oxygen, and an
increasing focus on sustainable industrial practices.
One
of the primary drivers of the global oxygen market is the healthcare sector's
increasing demand. Oxygen therapy is crucial for the treatment of respiratory
conditions, including chronic obstructive pulmonary disease (COPD), pneumonia,
and more recently, COVID-19. As the global population ages and the prevalence
of respiratory disorders rises, the demand for medical-grade oxygen continues
to surge. Moreover, advancements in oxygen delivery systems and home-based
oxygen therapies are further contributing to the market's growth.
The
oxygen market is benefiting from advancements in air separation technologies,
which allow for the efficient production of oxygen at high purity levels.
Traditional cryogenic air separation remains dominant, but emerging
technologies such as pressure swing adsorption (PSA) and vacuum swing
adsorption (VSA) are gaining traction due to their energy efficiency and
cost-effectiveness. These technologies are particularly appealing for
smaller-scale operations and industries requiring consistent oxygen purity.
Despite
its growth potential, the global oxygen market faces several challenges. High
production costs, energy-intensive processes, and infrastructure limitations in
certain regions can hinder market expansion. Additionally, the logistics of
transporting oxygen, especially to remote areas, poses a significant challenge.
Key Market Drivers
Growing Demand of Oxygen in Healthcare
Industry
One
of the primary factors contributing to the growing demand for oxygen in the
healthcare industry is the increasing prevalence of respiratory diseases.
Chronic obstructive pulmonary disease (COPD), asthma, and pneumonia are among
the leading causes of respiratory failure worldwide. The World Health
Organization (WHO) estimates that over 3 million people die from COPD each
year, a number expected to rise as air pollution and smoking rates increase.
These conditions often require supplemental oxygen therapy, which has become a
standard treatment in hospitals, clinics, and even home healthcare settings. As
a result, the demand for medical-grade oxygen has surged, contributing to the
overall growth of the oxygen market.
The
world’s aging population is another key driver of the growing demand for oxygen
in the healthcare industry. As life expectancy increases, the prevalence of
age-related diseases such as cardiovascular conditions, cancer, and chronic
respiratory disorders is also rising. These conditions often necessitate
long-term oxygen therapy, particularly for patients who require assistance with
breathing or oxygen saturation maintenance. This trend is especially pronounced
in developed regions such as North America and Europe, where the elderly
population is expanding rapidly. As more patients require oxygen therapy to
manage chronic illnesses, the global oxygen market is poised for continued
growth.
UNICEF
is actively advancing and implementing oxygen solutions to address the
challenges of providing access to medical oxygen in underserved regions. These
initiatives include robust oxygen concentrators designed for difficult
environments, solar-powered and heat recovery oxygen plants ensuring a reliable
power supply, the Oxygen-as-a-Service model, which harnesses public-private
partnerships, and the Newborn CPAP Respiratory Support program, aimed at
introducing and scaling innovative newborn care technologies.
Technological
advancements in the healthcare industry are further boosting the demand for
oxygen. Innovations in medical devices such as ventilators, oxygen
concentrators, and portable oxygen systems have made oxygen therapy more
accessible and efficient. These technologies are not only improving patient
outcomes but are also expanding the applications of oxygen in healthcare.
Portable oxygen concentrators, for example, enable patients to receive oxygen
therapy outside of clinical settings, promoting greater independence and
quality of life. As medical technologies continue to evolve, the role of oxygen
in modern healthcare is expected to grow, driving market demand even further.
Growing Demand of Oxygen in Chemical
Industry
Oxygen
is a vital component in numerous chemical manufacturing processes, including
oxidation reactions, combustion, and synthesis of various chemical compounds.
Its application extends to the production of key chemicals such as ethylene
oxide, sulfuric acid, and ammonia, all of which are central to a wide range of
industrial activities. Oxygen’s ability to facilitate these processes under
controlled conditions not only improves product yield but also enhances energy
efficiency. The increasing emphasis on maximizing production output and minimizing
energy consumption has further intensified the demand for oxygen in the
chemical sector.
Chemical
looping, an emerging technology in the chemical sector, offers low CO2
emissions and holds significant potential for energy and chemical production. A
critical challenge for advancing chemical looping and integrating it into
industrial applications is the selection and ongoing development of suitable
oxygen carrier (OC) materials. These solid OC materials provide the required
stoichiometric oxygen for various chemical processes. Key selection criteria
for oxygen carriers include reactivity, cost, toxicity, thermal stability,
attrition resistance, and chemical stability. To achieve optimal performance
and long-term stability, oxygen carriers must be developed with careful
consideration of reactor configurations, the objectives of the chemical looping
process, the thermodynamic properties of active phases, interactions with
support materials, internal ionic migration, and the strengths and limitations
of synthesis methods employed.
The
rapid growth of the global chemical industry, driven by rising demand for
chemicals used in pharmaceuticals, agriculture, and consumer goods, has created
a substantial need for industrial gases like oxygen. Countries with large-scale
chemical production capabilities, such as China, India, and the United States,
are seeing heightened demand for oxygen, given its integral role in both basic
chemical production and advanced specialty chemicals. This upward trend in
chemical production, combined with technological advancements, is expected to
boost the consumption of oxygen at an accelerated rate in the coming years.
In
addition to production demand, there is a growing focus on the environmental
benefits of oxygen usage in industrial applications. The use of oxygen in
chemical processes, particularly in combustion and gasification, significantly
reduces harmful emissions by enhancing the combustion process. By achieving a
cleaner and more efficient burn, industries can lower their carbon footprint
while meeting stricter environmental regulations. As governments worldwide
implement more stringent environmental policies, industries are increasingly
relying on oxygen to meet sustainability goals, further driving market growth.
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Key Market Challenges
High Cost of Production
One
of the primary drivers of the high cost of oxygen production is the
energy-intensive nature of the air separation process. Most industrial oxygen
is produced through cryogenic air separation, which involves cooling air to
extremely low temperatures (-183°C) to liquefy oxygen and separate it from
nitrogen and other gases. This method, while effective at producing high-purity
oxygen, consumes a significant amount of energy, making it one of the most
expensive components in the production process.
In
many regions, rising energy prices further exacerbate this challenge. The cost
of electricity directly influences the operational expenses of air separation
units (ASUs), making it difficult for producers to maintain competitive
pricing. Additionally, in countries with limited access to affordable energy
sources, the cost of oxygen production is particularly burdensome, affecting
the overall market growth in these regions.
The
infrastructure required for large-scale oxygen production and distribution adds
another layer to the overall cost. Cryogenic ASUs are capital-intensive
facilities that require specialized equipment, ongoing maintenance, and skilled
labor to operate. For smaller industries or regions with low demand, the
investment in such infrastructure may not be economically viable, limiting the
accessibility of oxygen in certain areas.
Moreover,
the logistics of oxygen distribution can be costly, especially in remote
locations. Transporting oxygen, which is usually stored in compressed gas
cylinders or cryogenic tanks, requires specialized vehicles and safety
protocols, adding to the operational expenses of producers. These logistics
challenges make it difficult for companies to expand their market reach,
particularly in emerging economies or rural areas.
Key Market Trends
Emergence of Oxygen in Fuel
Sector
One
of the key ways oxygen is impacting the fuel sector is through oxygen-enhanced
combustion technology. By enriching air with high-purity oxygen during
combustion processes, industries can achieve more efficient fuel burning. This
technique has proven especially beneficial in sectors that rely on heavy fuels,
such as power generation and petrochemical refining. The introduction of
additional oxygen during combustion improves fuel efficiency, reduces harmful
emissions, and optimizes energy output.
Oxygen-enhanced
combustion is particularly relevant in industries seeking to reduce their
carbon footprints. By using oxygen in place of atmospheric air, which contains
only about 21% oxygen, the combustion process becomes more complete, resulting
in fewer pollutants like carbon monoxide and nitrogen oxides. As the global
focus shifts towards reducing emissions and adopting sustainable energy
practices, the use of oxygen in fuel combustion is expected to play a pivotal
role in the energy transition, contributing to the expansion of the global
oxygen market.
The
global push toward hydrogen as a clean fuel source is another driver of oxygen
demand in the fuel sector. Oxygen is an essential component in several hydrogen
production processes, including water electrolysis, where water is split into
hydrogen and oxygen using electrical energy. As governments and industries
around the world invest heavily in green hydrogen production to meet
decarbonization goals, the need for oxygen in this process is rising
significantly.
Hydrogen
fuel cells, which use hydrogen to produce electricity, are increasingly being
adopted in transportation and energy storage applications. The production of
green hydrogen, where renewable energy powers the electrolysis process, is
particularly reliant on oxygen as a byproduct. This trend is expected to create
substantial demand for oxygen in the coming years as hydrogen production scales
up to meet global energy needs. The growing focus on hydrogen as a clean fuel
is positioning oxygen as a critical resource in the transition to sustainable
energy solutions.
Biofuel
production, another segment of the fuel sector, is benefiting from the use of
oxygen to enhance efficiency and output. In biofuel refineries, oxygen is often
used in gasification and fermentation processes to produce bioethanol,
biodiesel, and other renewable fuels. By enriching these processes with oxygen,
producers can accelerate chemical reactions, increase fuel yields, and lower
the overall environmental impact of production.
Segmental Insights
Form Insights
Based
on Form, Gas have emerged as the fastest growing segment in the Global Oxygen Market
in 2023. One of the primary reasons for the rise of gaseous oxygen is its
versatile use in various industries, such as manufacturing, energy, and
chemicals. The steel manufacturing sector, which relies on gaseous oxygen in
the blast furnace and basic oxygen furnace (BOF) processes, continues to be a
major consumer. Oxygen gas helps optimize the combustion process, enhancing
production efficiency while reducing emissions. Other industries, such as
petrochemicals, pulp and paper, and glass manufacturing, also rely heavily on
gaseous oxygen for efficient operations.
The
gas segment offers substantial scalability and flexibility compared to other
oxygen forms, such as liquid or compressed oxygen. Gaseous oxygen can be
produced in varying volumes depending on specific industrial or medical needs,
allowing for efficient resource allocation and minimizing waste. This
flexibility is particularly beneficial in industries with fluctuating oxygen
demand, where bulk oxygen storage might not be cost-effective.
As
industries globally adopt more sustainable practices, the use of gaseous oxygen
has gained traction as a cleaner option. It plays a crucial role in reducing
emissions and optimizing combustion processes in industries such as energy
production and metal refining. Additionally, in wastewater treatment, gaseous
oxygen is increasingly used for aerobic biological processes, supporting
environmental sustainability efforts by reducing chemical waste and improving
water quality.
Application Insights
Based
on Application, Metals & Mining have emerged as the fastest growing segment
in the Global Oxygen Market during the forecast period. One of the primary
drivers behind the growth of oxygen demand in the metals and mining sector is
the rising need for high-purity oxygen in metal production processes. Oxygen
plays a crucial role in various metallurgical processes, including steelmaking,
copper production, and other non-ferrous metals. In steelmaking, for instance,
the use of oxygen in basic oxygen furnaces (BOFs) allows for more efficient
combustion of carbon and other additives, leading to higher quality steel with
reduced impurities. This demand for cleaner and more efficient steel production
methods is driving the growth of the oxygen market within the metals sector.
Moreover,
the increasing global demand for metals, particularly in emerging economies, is
further fueling the need for oxygen in production processes. As countries
industrialize and urbanize, the consumption of metals for infrastructure
development, construction, and manufacturing rises. Consequently, oxygen
suppliers are positioned to benefit from this growing demand as they provide
essential resources to support efficient metal production.
The
mining industry is also evolving, with advancements in technologies leading to
increased efficiency and productivity. Modern mining techniques, such as
underground mining and hydrometallurgy, often require the use of oxygen for
various applications, including mineral processing and ore extraction. For
instance, oxygen is essential in the leaching process, where it enhances the
extraction of metals from ores, improving overall recovery rates.
These
technological innovations not only enhance the efficiency of mining operations
but also reduce the environmental impact of metal extraction. By utilizing
oxygen in these processes, mining companies can achieve higher yields while
minimizing waste and emissions. As these technologies gain traction, the demand
for oxygen in the mining sector is expected to grow significantly.
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Regional Insights
Based
on Region, Asia Pacific have emerged as the dominating region in the Global Oxygen
Market in 2023. The Asia Pacific region, particularly countries like China,
India, and Southeast Asian nations, is experiencing rapid industrialization and
urbanization. This growth is spurred by increasing investments in
manufacturing, healthcare, and chemical industries, all of which require
substantial amounts of oxygen. As industries expand, the demand for oxygen in
processes such as combustion, oxidation, and chemical synthesis rises
correspondingly, solidifying the region’s role in the global oxygen market.
Asia
Pacific is home to some of the world's largest chemical and pharmaceutical
companies. The increasing production of essential chemicals, pharmaceuticals,
and specialty chemicals drives the demand for industrial oxygen. For instance,
the production of ammonia, which heavily relies on oxygen, is crucial for
fertilizer manufacturing in agricultural economies. The region's robust
chemical sector not only meets local demand but also serves global markets,
further enhancing its position in the oxygen market.
Government
initiatives aimed at boosting infrastructure development and industrial output
have been pivotal in the growth of the oxygen market in Asia-Pacific. Countries
in this region are investing in advanced manufacturing capabilities, healthcare
infrastructure, and energy projects, all of which require reliable oxygen
supply. Additionally, policies promoting industrial gases, including oxygen,
have further fueled market growth, encouraging domestic production and
investment in oxygen generation technologies.
Recent Development
- In
October 2024, Inogen, Inc., a medical technology firm specializing in
innovative respiratory products for homecare, announced the U.S. market launch
of the Inogen Rove 4 Portable Oxygen Concentrator. This device features an
additional fourth flow setting that delivers up to 840 ml/min of medical-grade
oxygen within a lightweight, user-friendly design weighing less than 3 lbs.
With three battery configurations offering up to 5 hours and 45 minutes of
operational time, the Rove 4 provides patients with versatile options that
enhance their ability to engage in daily activities.
- In
another development, GEODIS has initiated a trial phase for Oxygen, an urban
electric truck developed in collaboration with Renault Trucks, which began in
2022. This testing phase, scheduled to run from September to December 2024 in
Paris and Lyon, aims to demonstrate the effectiveness of this innovative
solution. In response to the rapid expansion of urban logistics, GEODIS is
committed to developing solutions tailored to urban environments through its
ongoing partnership with Renault Trucks. The project aims to refine the Oxygen
urban electric truck, which incorporates advanced technologies such as
integrated screens, a connected driver station, and artificial intelligence to
enhance safety for drivers and other users in city centers, while addressing
freight transport demands and environmental concerns.
- In
September 2024, Oxymed launched the P2 Portable Oxygen Concentrator in the
Indian market. This device is designed to address critical oxygen needs,
providing a practical and accessible solution. Weighing 1.98 kg, the Oxymed P2
delivers oxygen with a purity level of 90-95 percent across all flow rates,
ensuring users receive the essential support they require. It offers five pulse
flow settings to accommodate various oxygen needs and features a long-lasting
battery that can provide up to 10 hours of use with a dual battery
configuration.
Key Market Players
- Air Products
and Chemicals, Inc.
- Air
Liquide India Holding Private Limited
- Bhuruka
Gases Limited
- Daesung
Industrial Gases Co., Ltd.
- Gulf
Cryo Holding C.S.C
- INOX-Air
Products Inc.
- Linde
plc
- Matheson
Tri-Gas, Inc.
- NIPPON
GASES EURO-HOLDING, S.L.U.
- SOL
SpA
|
By
Form
|
By
Application
|
By
Region
|
|
|
- Metals & Mining
- Chemical
- Oil & Gas
- Healthcare
- Others
|
- North
America
- Europe
- Asia
Pacific
- South
America
- Middle
East & Africa
|
Report Scope
In this report, the Global Oxygen Market has been
segmented into the following categories, in addition to the industry trends
which have also been detailed below:
o Gas
o Liquid
o Solid
- Oxygen Market, By Application:
o Metals & Mining
o Chemical
o Oil & Gas
o Healthcare
o Others
- Oxygen Market, By Region:
o North America
§ United States
§ Canada
§ Mexico
o Europe
§ France
§ United Kingdom
§ Italy
§ Germany
§ Spain
o Asia Pacific
§ China
§ India
§ Japan
§ Australia
§ South Korea
o South America
§ Brazil
§ Argentina
§ Colombia
o Middle East & Africa
§ South Africa
§ Saudi Arabia
§ UAE
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Global Oxygen
Market.
Available Customizations:
Global Oxygen Market report with the given market
data, TechSci Research offers customizations according to a company's specific
needs. The following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
Global Oxygen Market
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