Italy Industrial Gases market size was valued at USD 2,040.48 million in 2018 to USD 2,466.11 million in 2024 and is anticipated to reach USD 4,113.73 million by 2032, at a CAGR of 5.93% during the forecast period.
REPORT ATTRIBUTE
DETAILS
Historical Period
2020-2023
Base Year
2024
Forecast Period
2025-2032
Italy Industrial Gases Market Size 2024
USD 2,466.11 Million
Italy Industrial Gases Market, CAGR
5.93%
Italy Industrial Gases Market Size 2032
USD 4,113.73 Million
The Italy industrial gases market is led by major players such as Messer Italia S.r.l., SOL Group, SIAD S.p.A., Linde plc, Air Liquide Italia, and Air Products Italia. These companies dominate through strong production capacities, extensive distribution networks, and advanced air separation technologies. Northern Italy holds the largest share, accounting for over 45% of the market in 2024, driven by its dense manufacturing base, automotive sector, and advanced healthcare infrastructure. Central Italy contributes around 28%, supported by its food, beverage, and pharmaceutical industries. Southern Italy and the islands hold nearly 27%, with growing demand from energy, shipbuilding, and food processing sectors.
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The Italy industrial gases market was valued at USD 2,466.11 million in 2024 and is projected to reach USD 4,113.73 million by 2032, growing at a CAGR of 5.93%.
Rising demand for medical oxygen, nitrogen, and carbon dioxide from hospitals and homecare is a key driver, supported by aging population and increased healthcare spending.
Adoption of hydrogen for clean energy projects and Industry 4.0-driven manufacturing growth are major trends, boosting demand for oxygen, argon, and nitrogen in advanced processes.
The market is moderately consolidated with leading players such as Messer Italia S.r.l., SOL Group, SIAD S.p.A., Linde plc, Air Liquide Italia, and Air Products Italia focusing on production expansion and digital supply solutions.
Northern Italy leads with over 45% market share, followed by Central Italy at 28% and Southern Italy & Islands at 27%, while oxygen remains the dominant gas type with over 30% share.
Market Segmentation Analysis:
By Gases Type
Oxygen dominates the Italy industrial gases market, holding over 30% share in 2024. Its demand is driven by widespread use in healthcare for respiratory support, in metallurgy for steelmaking, and in wastewater treatment. Nitrogen follows, supported by applications in food packaging and electronics manufacturing. Hydrogen demand is growing with Italy’s focus on clean energy and fuel cell development. Carbon dioxide remains essential for carbonation and welding. Acetylene and argon are used mainly in cutting, welding, and specialty applications. Expanding industrial activities and medical infrastructure continue to boost oxygen consumption nationwide.
For instance, Air Liquide Italy serves more than 2,500 hospitals and clinics with medical gases and other services. This is part of the company’s broader healthcare business, which in 2024 served a total of 20,000 hospitals and clinics across 35 countries.
By Application
Cutting and welding lead the market applications, accounting for over 28% share in 2024. This dominance stems from their critical role in metal fabrication, automotive, and construction sectors. Carbonation applications are strong in the beverage industry, particularly in sparkling water and beer production. Cryogenic applications are expanding with growth in healthcare and pharmaceuticals, where controlled-temperature storage is vital. Packaging applications rely heavily on nitrogen to extend shelf life of perishable products. Growing manufacturing and infrastructure projects in Italy are sustaining high demand for welding and cutting gases across industrial clusters.
For instance, the SIAD Group reported a 2024 turnover exceeding one billion euros and serving 70,000 customers globally, including those in Italy’s industrial gases market for applications such as welding, cutting, and metallurgy. The company is also active in carbonation applications within the beverage industry, supplying carbon dioxide for sparkling water, beer, and soft drink production.
By End-User Industry
Healthcare is the dominant end-user industry, capturing more than 32% share in 2024. Oxygen usage in hospitals, emergency care, and home healthcare drives this growth, alongside rising demand for medical-grade nitrogen and carbon dioxide. Manufacturing follows, with steady demand from automotive, chemical, and electronics sectors using gases for welding, inerting, and processing. Metallurgy and glass industries are significant consumers of oxygen and argon for smelting and forming processes. Food and beverages sector supports nitrogen and carbon dioxide demand for packaging and carbonation. Expanding healthcare infrastructure is expected to keep healthcare as the top segment through 2032.
Key Growth Drivers
Rising Healthcare Demand
Healthcare expansion is a major driver for Italy’s industrial gases market. Increasing hospital infrastructure and home healthcare services boost oxygen consumption for respiratory therapies. Demand for medical-grade nitrogen and carbon dioxide is also growing for surgical procedures and cryopreservation. Rising aging population and chronic disease prevalence create consistent requirements for medical gases. The government’s focus on improving public health facilities and emergency care readiness further strengthens demand. This steady consumption ensures the healthcare segment remains a strong revenue contributor throughout the forecast period.
For instance, SOL Group is a major multinational supplier of medical gases, including oxygen and nitrogen, to healthcare facilities in Italy and other countries.
Growing Manufacturing and Metallurgy Sector
Italy’s manufacturing and metallurgy industries significantly fuel industrial gases demand. Oxygen, nitrogen, and argon are essential in welding, cutting, and steelmaking processes. Growth in automotive, shipbuilding, and mechanical engineering sectors supports higher gas consumption. Expanding export-focused production and modernization of metalworking facilities amplify usage of shielding and fuel gases. Industrial gases also play a crucial role in reducing impurities and improving process efficiency. This robust industrial base continues to be a major growth engine for the market.
For instance, Messer Group achieved record sales of approximately €4.5 billion ($4.8 billion) in 2024 by supplying a broad portfolio of industrial, medical, and specialty gases, including argon and oxygen for metallurgy and manufacturing uses. In the process, it supported a globally diversified customer base with over 11,800 employees and made strategic investments in new production plants and capacity expansions.
Shift Toward Clean Energy and Hydrogen Economy
The transition to renewable energy and hydrogen adoption is opening new market opportunities. Italy’s national hydrogen strategy supports production and infrastructure development, driving demand for hydrogen and related gases. Industrial gases are also vital in carbon capture, utilization, and storage (CCUS) projects, aligning with Italy’s decarbonization targets. Emerging fuel cell applications and hydrogen-powered mobility projects strengthen the market outlook. This energy transition is expected to create sustained growth for hydrogen production and distribution over the next decade.
Key Trends & Opportunities
Digitalization and Smart Gas Delivery
Automation and IoT-enabled gas management systems are gaining adoption in Italy. Smart cylinders and telemetry solutions help monitor gas levels and optimize refilling schedules. These digital solutions improve operational efficiency for hospitals and manufacturing units while reducing supply chain disruptions. Integration of predictive analytics allows suppliers to enhance distribution planning and minimize downtime. This trend supports cost optimization and strengthens supplier-customer relationships, creating a competitive edge in the market.
For instance, Italgas deployed its DANA (Digital Advanced Network Automation) platform, with the objective of digitally monitoring and controlling 90% of its Italian gas plant fleet by the end of 2024, enabling real-time data analytics on gas pressure and volume to anticipate network malfunctions and optimize operational efficiency.
Expansion of Food and Beverage Applications
Food and beverage sector offers a growing opportunity for nitrogen and carbon dioxide suppliers. Rising demand for packaged foods, sparkling water, and craft beverages drives gas usage in packaging, carbonation, and preservation. Modified atmosphere packaging (MAP) technology adoption is expanding among Italian producers to extend shelf life. The trend towards premium and organic food products also creates higher demand for consistent, high-purity gases. This growth offers suppliers long-term revenue streams in the consumer goods market.
For instance, SOL Group, a key player in the Italian industrial gases market, continued to supply its modified atmosphere packaging (MAP) technology services to the food and beverage industry in 2024, utilizing gases like high-purity nitrogen and carbon dioxide.
Key Challenges
High Production and Distribution Costs
Industrial gas production and delivery involve high capital and energy costs, impacting profitability. Rising electricity prices in Italy increase costs for air separation units and liquefaction plants. Transporting gases, especially in cryogenic form, requires specialized infrastructure, further adding expenses. These cost pressures can limit smaller suppliers’ competitiveness and challenge market expansion in cost-sensitive regions. Companies must adopt energy-efficient production technologies and optimize logistics to remain competitive.
Stringent Safety and Environmental Regulations
Strict safety regulations for production, storage, and transportation of industrial gases pose operational challenges. Compliance with EU directives and Italian environmental norms requires regular audits and infrastructure upgrades. Any lapses can result in penalties or operational shutdowns. Additionally, increasing pressure to reduce carbon emissions affects production processes, especially for CO₂-intensive gases. Manufacturers must invest in cleaner technologies and robust safety systems, which can increase capital expenditure and affect short-term margins.
Regional Analysis
Northern Italy
Northern Italy dominates the country’s industrial gases market, holding over 45% share in 2024. This region hosts key manufacturing hubs, including Lombardy, Veneto, and Emilia-Romagna, which drive high demand for oxygen, nitrogen, and argon in automotive, machinery, and chemical production. Strong healthcare infrastructure, including major hospitals and research centers, further boosts consumption of medical gases. The presence of leading industrial gas suppliers and advanced logistics networks ensures efficient distribution. Growth is supported by continued investments in Industry 4.0 manufacturing, renewable energy projects, and hydrogen infrastructure, making Northern Italy the most lucrative market for suppliers.
Central Italy
Central Italy accounts for around 28% share of the industrial gases market in 2024. The region benefits from its strong food and beverage sector, particularly in Tuscany and Lazio, where nitrogen and carbon dioxide are widely used for packaging and carbonation. Growing demand from pharmaceuticals and life sciences facilities supports steady oxygen and nitrogen consumption. Infrastructure development and construction projects increase usage of cutting and welding gases. Rome’s healthcare network adds significant demand for medical gases. Central Italy’s balanced mix of manufacturing, food production, and healthcare services drives moderate yet consistent growth in industrial gas consumption.
Southern Italy & Islands
Southern Italy, including Sicily and Sardinia, holds nearly 27% market share in 2024. This region is witnessing rising demand for gases in energy, chemicals, and shipbuilding sectors, particularly around Naples, Taranto, and Cagliari. Food processing facilities utilize nitrogen for preservation and carbon dioxide for carbonation. Healthcare sector expansion, with new hospitals and diagnostic centers, drives medical oxygen and nitrogen consumption. However, limited industrial base compared to the North slightly restricts growth. Government initiatives to boost southern industrialization and infrastructure are expected to increase demand for welding, cutting, and cryogenic gases, improving future market potential.
Market Segmentations:
By Gases Type
Oxygen
Nitrogen
Hydrogen
Carbon Dioxide
Acetylene
Argon
Others
By Application
Packaging
Coolant
Carbonation
Cryogenic
Cutting & Welding
Laboratory
Air Separation
Others
By End-User Industry
Healthcare
Manufacturing
Metallurgy & Glass
Food & Beverages
Retail
Chemicals & Energy
Others
By Production Method
Air Separation
Steam Methane Reforming (SMR)
Electrolysis
Partial Oxidation
Chemical Reactions
Others
By Delivery Mode
On-site
Bulk
Cylinder
Others
By Geography
Northern Italy
Central Italy
Southern Italy & Islands
Competitive Landscape
The Italy industrial gases market is moderately consolidated, with key players including Messer Italia S.r.l., SOL Group, SIAD S.p.A., Linde plc, Air Liquide Italia, and Air Products Italia leading the competition. These companies focus on expanding production capacities, upgrading air separation units, and enhancing distribution networks to meet growing demand from healthcare, manufacturing, and energy sectors. Strategic partnerships and acquisitions are common, enabling suppliers to strengthen market presence and broaden service portfolios. Digitalization initiatives, including smart cylinder tracking and automated supply systems, are being adopted to improve efficiency and customer service. Companies are also investing in hydrogen production and green energy projects to align with Italy’s decarbonization goals. Strong after-sales support, technical expertise, and localized supply chains provide a competitive edge. The presence of both multinational corporations and regional players ensures a healthy balance of innovation, pricing competitiveness, and tailored solutions across diverse end-user industries.
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In October 2024, Air Liquide announced to supply oxygen to LG Chem for their electric vehicle battery plant in the U.S. Supplying oxygen to LG Chem’s future cathode active material plant, the Group will be supporting the growth of the battery ecosystem in the U.S. This investment will increase the Group’s footprint in a key region and support the development of its industrial merchant market.
In October 2024, Linde announced an agreement with Tata Steel to obtain and manage two additional Air Separation Units (ASUs) and enhance industrial gas supply to Tata Steel in Odisha, India. This arrangement will more than double Linde’s on-site capacity at Tata Steel’s Kalinganagar facility, where it presently runs two plants. The new ASUs, anticipated to be operational by 2025, will deliver oxygen, nitrogen, and argon to aid Tata Steel’s expansion project and cater to the local merchant market. Linde has additionally acquired renewable energy agreements to lower its scope emissions, in line with its 2035 GHG reduction goals.
In July 2024, Air Liquide announced an investment of USD 104.914 million to support Aurubis AG, a major global provider of non-ferrous metals and one of the largest recyclers of copper worldwide, in Bulgaria and Germany. This investment will finance a new Air Separation Unit (ASU) in Bulgaria and the upgrading of four existing units in Germany. Besides supplying substantial amounts of oxygen and nitrogen for the rising copper and other metal production by Aurubis, these facilities will also assist in the growth of industrial merchant markets in both areas.
In January 2024, Air Products, a company in industrial gases and clean hydrogen projects, announced the opening of its expanded Project Delivery Centre in Vadodara, India.
In July 2023, Nippon Sanso Holdings Corporation announced that Matheson Tri-Gas, Inc, NSHD’s U. S. operating entity, has entered into a gas supply contract with PointFive to deliver oxygen for the carbon capture, utilization, and sequestration company’s inaugural Direct Air Capture (DAC*) facility in Texas. MATHESON will invest in and set up an Air Separation Unit to provide oxygen to “Stratos,” PointFive’s DAC facility currently under construction in Ector County, Texas. The oxygen is utilized in the DAC process to generate a pure stream of CO2, which is subsequently securely sequestered in geological reservoirs.
Report Coverage
The research report offers an in-depth analysis based on Gases Type, Application, End-User Industry, Production Method, Delivery Mode and Geography. It details leading market players, providing an overview of their business, product offerings, investments, revenue streams, and key applications. Additionally, the report includes insights into the competitive environment, SWOT analysis, current market trends, as well as the primary drivers and constraints. Furthermore, it discusses various factors that have driven market expansion in recent years. The report also explores market dynamics, regulatory scenarios, and technological advancements that are shaping the industry. It assesses the impact of external factors and global economic changes on market growth. Lastly, it provides strategic recommendations for new entrants and established companies to navigate the complexities of the market.
Future Outlook
Demand for medical oxygen will continue to grow with rising healthcare infrastructure and aging population.
Hydrogen adoption will expand as Italy accelerates its clean energy and decarbonization strategy.
Digital gas monitoring and smart delivery systems will see wider integration across industries.
Food and beverage sector will boost nitrogen and carbon dioxide consumption for packaging and carbonation.
Industrial automation and advanced manufacturing will increase usage of welding and cutting gases.
Investments in air separation units and cryogenic plants will improve domestic supply capacity.
Strategic partnerships and acquisitions will strengthen the presence of major global players.
Southern Italy will witness faster growth due to government-led industrialization projects and infrastructure upgrades.
Sustainability initiatives will push suppliers to invest in low-carbon production technologies.
Demand from metallurgy, chemicals, and energy sectors will remain strong, supporting long-term market stability.
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