Germany Industrial Gases market size was valued at USD 4,663.96 million in 2018, reached USD 5,550.31 million in 2024, and is anticipated to reach USD 10,950.59 million by 2032, at a CAGR of 7.92% during the forecast period.
REPORT ATTRIBUTE
DETAILS
Historical Period
2020-2023
Base Year
2024
Forecast Period
2025-2032
Germany Industrial Gases Market Size 2024
USD 5,550.31 Million
Germany Industrial Gases Market, CAGR
7.92%
Germany Industrial Gases Market Size 2032
USD 10,950.59 Million
The Germany industrial gases market is dominated by major players such as Messer Group GmbH, Linde plc, Air Products Germany, SOL Deutschland, SIAD Deutschland, and Westfalen Group. These companies collectively drive innovation in bulk gas production, on-site generation systems, and hydrogen infrastructure projects. Southern Germany leads the market with 33% share in 2024, supported by strong automotive, chemical, and machinery manufacturing hubs. Western Germany follows with 28% share, driven by heavy industrial and healthcare gas consumption. Northern and Eastern regions account for 22% and 17% shares respectively, with rising demand from LNG terminals, shipbuilding, and renewable energy projects boosting growth potential.
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The Germany industrial gases market was valued at USD 5,550.31 million in 2024 and is projected to reach USD 10,950.59 million by 2032, growing at a CAGR of 7.92% during the forecast period.
Rising demand from manufacturing, automotive, and healthcare sectors is the primary driver, with oxygen and nitrogen accounting for a dominant share in welding, cutting, and medical applications.
Key trends include growth of on-site gas generation systems, expansion of hydrogen infrastructure under Germany’s National Hydrogen Strategy, and digital monitoring solutions enabling real-time supply tracking.
The market is moderately consolidated with major players such as Messer Group, Linde plc, Air Products Germany, SOL Deutschland, SIAD Deutschland, and Westfalen Group focusing on capacity expansions and green energy integration.
Southern Germany leads with 33% share, followed by Western Germany at 28%, with cutting & welding applications contributing over 28% to overall demand.
Market Segmentation Analysis:
By Gases Type
Oxygen holds the largest share of the Germany industrial gases market, accounting for over 32% in 2024. Its high demand in steelmaking, chemical processing, and healthcare drives growth. Rising investments in clean energy projects and advanced medical infrastructure further support consumption. Nitrogen follows as a key gas for inerting and blanketing applications in chemical and food industries. Hydrogen is gaining traction with government-backed hydrogen economy programs. Carbon dioxide remains essential in beverage carbonation and welding. Acetylene and argon continue niche use in metal cutting and shielding, contributing to specialized manufacturing processes.
For instance, in December 2022, Air Liquide completed a 4-kilometer hydrogen pipeline to connect Thyssenkrupp’s steel mill in Duisburg to its regional network. This pipeline is intended to eventually supply green hydrogen for a new direct reduction plant, enabling climate-friendly steel production from 2024 onwards.
By Application
Cutting & welding dominate the application segment with over 28% share in 2024, driven by Germany’s strong manufacturing and automotive industries. Industrial gases enable precision welding, reducing defects and increasing production efficiency. Cryogenic applications are growing due to rising adoption in liquefied natural gas (LNG) handling and medical storage systems. Packaging and carbonation segments are expanding with demand from food and beverage producers. Laboratory use remains steady, supported by R&D investments. Air separation facilities continue to ensure stable supply of high-purity gases for multiple industries, securing a critical role in the value chain.
For instance, Linde did have a record year for “small on-site solutions” in 2024, signing 59 new agreements for 64 plants worldwide. However, these were not identified as a 3,500 Nm³/h facility in Hamburg.
By End-User Industry
Manufacturing leads the market with over 35% share in 2024, supported by Germany’s robust automotive, machinery, and electronics sectors. Industrial gases play a key role in welding, heat treatment, and process optimization, improving operational efficiency. Healthcare is a fast-growing segment, driven by rising medical oxygen demand and advanced surgical applications. Food & beverage industries contribute significantly through carbonation, chilling, and modified atmosphere packaging. Metallurgy & glass industries rely on oxygen and argon for smelting and refining processes. The chemicals & energy sector is adopting hydrogen for decarbonization, aligning with Germany’s 2045 net-zero emission targets.
Key Growth Drivers
Rising Demand from Manufacturing Sector
Germany’s strong manufacturing base drives consistent demand for industrial gases, particularly oxygen, nitrogen, and argon. Automotive and machinery industries rely on gases for welding, cutting, and heat treatment processes. Growth in precision engineering and advanced manufacturing increases the need for high-purity gases. The expansion of Industry 4.0 and automation in factories further supports consumption. Manufacturers are also integrating gas-based technologies to improve efficiency and reduce operational costs, making industrial gases a critical enabler for production stability and technological competitiveness.
For instance, Air Liquide built a new Air Separation Unit (ASU) at BASF’s facility in Schwarzheide, Germany, to supply oxygen and nitrogen for battery material production, with the ASU planned to be operational in 2023.
Expanding Healthcare and Medical Applications
The healthcare sector contributes significantly to market growth through rising oxygen demand. Germany’s aging population and investments in modern hospital infrastructure drive usage in respiratory therapy and surgical procedures. Cryogenic gases are increasingly used for medical storage and biobanking. Recent advancements in healthcare, such as minimally invasive surgeries, require precise gas delivery systems. Additionally, government initiatives to strengthen public health systems post-pandemic have boosted the installation of on-site gas generation units, ensured reliable supply and improved overall patient care.
For instance, in 2023, Air Liquide registered a record number of new contracts for small, on-site gas production units for various customers, including those in the healthcare sector.
Hydrogen Economy and Energy Transition
Germany’s commitment to carbon neutrality by 2045 fuels investment in hydrogen production and infrastructure. Industrial gases players are expanding hydrogen generation and distribution capacities to support green mobility and decarbonization projects. The National Hydrogen Strategy encourages adoption in refineries, steel production, and heavy transport. Growing collaborations between gas producers and energy companies are creating large-scale hydrogen hubs. This transition presents a significant growth avenue, positioning hydrogen as a long-term demand driver within the industrial gases market and strengthening Germany’s leadership in clean energy innovation.
Key Trends & Opportunities
Growth of On-Site Gas Generation
On-site generation systems are gaining traction as industries seek cost control and supply security. Steel plants, chemical producers, and healthcare facilities are adopting captive oxygen and nitrogen plants to ensure uninterrupted availability. This trend reduces logistics costs and enhances operational efficiency. Leading suppliers are offering modular on-site generation units with advanced monitoring systems. Adoption is expected to accelerate as companies aim to optimize production and lower carbon emissions associated with gas transportation and bulk deliveries.
For instance, in April 2024, the industrial gas specialist Messer commissioned a new, more energy-efficient on-site nitrogen generator at the Harman Becker Automotive System manufacturer in Székesfehérvár, Hungary.
Increasing Use of Digital Monitoring
Digitalization is transforming the industrial gases market with real-time monitoring and predictive analytics. IoT-enabled cylinders and storage systems allow remote tracking of gas levels, reducing downtime and optimizing refills. Smart distribution networks also enable suppliers to forecast demand more accurately. This trend enhances customer service and supports sustainability by minimizing waste. Digital solutions are also helping in compliance with safety regulations by providing automated leak detection and performance data, improving workplace safety and process control.
For instance, Air Products utilized its IoT-enabled telemetry systems in Europe and globally to enable remote tank monitoring, which assists with optimizing delivery schedules and improves supply reliability for its industrial gas customers.
Opportunities in Food & Beverage Sector
Rising demand for processed and packaged foods creates opportunities for nitrogen and carbon dioxide suppliers. Modified atmosphere packaging (MAP) is becoming standard for extending shelf life of fresh produce and meat products. Carbon dioxide is also critical for beverage carbonation, supporting Germany’s large brewing and soft drink industries. Growth in frozen food exports further boosts demand for cryogenic gases used in quick-freezing applications. These factors position the food & beverage segment as a consistent revenue driver for market players.
Key Challenges
Volatility in Energy and Feedstock Prices
The production of industrial gases is highly energy-intensive, making it sensitive to fluctuations in electricity and natural gas prices. Germany’s transition away from coal and nuclear energy has led to higher energy costs, putting pressure on gas producers. These rising costs directly affect margins and can lead to price hikes for end-users. Companies are increasingly investing in energy-efficient technologies and renewable energy integration to mitigate the impact, but cost volatility remains a persistent challenge for market stability.
Strict Environmental Regulations
Germany’s rigorous emission and safety regulations create compliance challenges for industrial gas producers. The EU’s tightening carbon emission limits and mandatory reporting requirements increase operational complexity and costs. Gas producers must invest in cleaner production technologies, carbon capture, and leak prevention systems to meet sustainability goals. While these efforts align with long-term decarbonization strategies, they demand significant capital expenditure. Failure to comply can result in fines and reputational damage, making regulatory adherence a critical challenge for industry participants.
Regional Analysis
Southern Germany
Southern Germany accounts for 33% of the industrial gases market in 2024, driven by the strong presence of automotive, machinery, and chemical manufacturing clusters in Bavaria and Baden-Württemberg. High demand for oxygen, nitrogen, and argon supports welding, heat treatment, and precision manufacturing operations. The region’s growing hydrogen initiatives, such as hydrogen refueling corridors, further boost demand. Healthcare facilities in Munich and Stuttgart contribute to medical oxygen consumption, while food and beverage producers rely on carbon dioxide for carbonation and modified atmosphere packaging, reinforcing Southern Germany as the market leader.
Western Germany
Western Germany holds 28% market share, supported by heavy industrial activity in North Rhine-Westphalia and Hesse. The region is home to major steel plants, chemical hubs, and logistics operations that consume large volumes of oxygen, nitrogen, and hydrogen. Its dense population drives healthcare gas usage, with strong adoption of on-site generation systems in hospitals. Food and beverage processing facilities also contribute significantly to carbon dioxide demand. Ongoing investments in hydrogen infrastructure and carbon capture projects are expected to further strengthen Western Germany’s position in the coming years, making it a critical contributor to overall market growth.
Northern Germany
Northern Germany represents 22% of the market, driven by its strong maritime and energy sectors. The region’s shipbuilding yards and offshore wind projects demand oxygen and argon for metal cutting and fabrication. Hamburg serves as a major logistics hub, boosting nitrogen use for warehousing and controlled-atmosphere storage. Liquefied natural gas (LNG) terminals and cryogenic applications are also expanding in this region. Hydrogen demand is rising with green hydrogen projects along the North Sea coast, aligning with Germany’s energy transition goals. Northern Germany continues to gain strategic importance due to its role in sustainable energy development.
Eastern Germany
Eastern Germany accounts for 17% of the market share, with demand led by the chemicals and energy sectors concentrated in Saxony and Brandenburg. The region is witnessing growth in hydrogen pilot projects and renewable energy-driven industrial initiatives, supporting future demand for gases. Manufacturing plants in Dresden and Leipzig rely on nitrogen and oxygen for electronics and precision engineering applications. Healthcare demand is increasing due to modernization of medical infrastructure. While Eastern Germany currently holds the smallest share, its focus on advanced technologies and green industrial projects positions it for higher growth in the long term.
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
Southern Germany
Western Germany
Northern Germany
Eastern Germany
Competitive Landscape
The Germany industrial gases market is moderately consolidated, led by key players such as Messer Group GmbH, Linde plc, Air Products Germany, SOL Deutschland, SIAD Deutschland, and Westfalen Group. These companies focus on expanding production capacities, developing on-site gas generation plants, and integrating digital monitoring solutions to enhance supply reliability. Messer Group continues to invest in bulk and cylinder gas distribution networks, while Linde strengthens its leadership through large-scale hydrogen infrastructure projects and long-term supply contracts with manufacturing and healthcare clients. Air Products emphasizes innovation in cryogenic and specialty gases, serving electronics and food sectors. Westfalen Group expands its footprint through regional production sites and logistics hubs, ensuring fast delivery. Strategic partnerships with energy and automotive companies, coupled with investments in green hydrogen, carbon capture, and renewable-powered air separation units, remain central to competitive differentiation. This rivalry fosters technological advancements and ensures robust supply to Germany’s diverse industrial base.
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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 high-purity gases will grow with expansion of precision manufacturing and semiconductor production.
Hydrogen adoption will accelerate as green mobility and energy transition projects scale across Germany.
On-site gas generation systems will become standard for cost control and uninterrupted supply.
Healthcare sector will see rising oxygen and specialty gas demand due to aging population.
Carbon capture and utilization projects will boost CO₂ supply and sustainability efforts.
Digital monitoring and IoT-enabled cylinders will enhance operational efficiency and predictive maintenance.
LNG terminals and cryogenic applications will expand gas demand in Northern Germany.
Strategic partnerships between gas producers and energy companies will support large hydrogen hubs.
Food and beverage sector will increase nitrogen and CO₂ use for packaging and carbonation.
Focus on low-emission production technologies will drive investments in renewable-powered air separation units.
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