Industrial Gas Generators Market Size & Growth Report to 2030

The global industrial gas generators market size was valued at over USD 2.5 billion in 2022 and anticipated to register a significant CAGR of over 8% during the forecast period. The growth of the market is spurred by expanding industries requiring gases like nitrogen and oxygen for manufacturing, healthcare, electronics, and energy. On-site gas production replaces cumbersome cylinder logistics, enhancing cost-efficiency, safety, and sustainability. Advanced technologies ensure energy efficiency and compact setups. In sectors like electronics and healthcare, stringent gas purity demands make on-site generation indispensable. Government regulations, supply chain disruptions, and a focus on operational resilience further bolster adoption, resulting in a shift towards reliable, efficient, and self-sufficient gas supply solutions.

Market Snapshot:

Market Drivers:

• Growing Industrialization: As industries expand and evolve, their demand for gases used in various processes and applications also increases. Industries like manufacturing, chemicals, and electronics rely on gases such as nitrogen, oxygen, and hydrogen for purposes like inerting, chemical reactions, and heat treatment. This surge in industrial activity fuels the need for reliable and efficient gas generation solutions.
• Need for On-Site Gas Generation: Traditional gas supply methods involve the transportation and storage of gas cylinders, which can be cumbersome, costly, and logistically challenging. On-site gas generators offer a convenient solution by producing gases directly at the location where they are needed, eliminating the need for frequent cylinder deliveries and storage space.
• Energy Efficiency and Sustainability: Industries are under increasing pressure to reduce their carbon footprint and adopt sustainable practices. Advanced gas generation technologies, such as membrane separation and PSA, allow for more energy-efficient production of gases compared to conventional methods. This aligns with sustainability goals while also providing cost savings over time.
• Cost Savings and Operational Efficiency: On-site gas generation offers significant cost savings over the long term. While the initial investment in setting up the generator might be higher, the ongoing operational savings from avoiding cylinder rentals, transportation, and handling costs can be substantial. Additionally, businesses benefit from reduced downtime due to uninterrupted gas supply.
• Demand in Healthcare and Pharmaceuticals: In healthcare and pharmaceutical industries, gases like oxygen and nitrogen are critical for various medical applications, from patient treatment to research and testing. On-site gas generators ensure a reliable and continuous supply of high-purity gases, essential for maintaining patient care and research quality.
• Electronics Manufacturing: The electronics industry requires ultra-pure gases for semiconductor fabrication and other manufacturing processes. Contaminants in gases can adversely affect the quality of electronic components. On-site gas generators provide a controlled environment, ensuring the purity required for precise manufacturing.
• Oil and Gas Exploration: The oil and gas industry utilize gases for numerous applications, including pressurizing pipelines, inerting tanks, and refining processes. On-site gas generation offers flexibility and efficiency in providing these gases, especially in remote or challenging locations.
• Advancements in Gas Generation Technologies: Technological advancements have led to the development of more compact, efficient, and user-friendly gas generation systems. These advancements improve overall system performance, reduce maintenance requirements, and make gas generators a more attractive option for industries.
• Increasing Awareness of Safety and Risk Mitigation: Compressed gas cylinders can pose safety risks due to their weight, pressure, and potential for leaks. On-site gas generation mitigates these risks by producing gases on-demand, reducing the need for handling and storage of hazardous cylinders.

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Market Insights:

Market Analysis by Gas Type:

The global industrial gas generators market is bifurcated into gas type, technology, application, and geography. on the basis of gas type, the market is further segmented into nitrogen generators, oxygen generators, hydrogen generators, carbon dioxide generators, and others. The nitrogen generators and oxygen generators have often been considered dominant segments due to their widespread use across multiple industries. Nitrogen generators have a dominant presence in industries like food packaging, chemicals, electronics, and pharmaceuticals. The demand for nitrogen gas in these sectors is driven by its inerting properties, which prevent oxidation, improve product quality, and extend shelf life. As industries emphasize product preservation and quality control, nitrogen generators have remained crucial for their efficiency and cost-effectiveness. Furthermore, oxygen generators play a vital role in various industries, including medical, aerospace, and metal fabrication. The medical sector requires a continuous and reliable supply of oxygen for patient care, making on-site oxygen generation essential. Similarly, oxygen generators are used in aerospace applications, such as rocket propulsion and life support systems. Additionally, metal fabrication processes like oxy-fuel cutting rely on oxygen generators for precision and efficiency.

Nitrogen Generators: Nitrogen generators cater to industries needing a reliable source of high-purity nitrogen gas. Applications range from preserving freshness in food packaging, inerting during chemical processes, and preventing oxidation in electronics manufacturing.

Oxygen Generators: Oxygen generators provide on-site oxygen supply for medical facilities, metal cutting, ozone generation, and more. They ensure uninterrupted access to oxygen without relying on traditional cylinder deliveries.

Hydrogen Generators: Hydrogen generators serve industries like electronics, power generation, and fuel cell development. They produce hydrogen gas for various applications, including semiconductor manufacturing and renewable energy production.

Carbon Dioxide Generators: Carbon dioxide generators find use in the food and beverage industry for carbonating beverages, preserving freshness, and enhancing food packaging. They offer an efficient solution for businesses requiring a consistent carbon dioxide supply.

Others: This category encompasses various specialty gases, such as argon and helium, used in unique industrial processes, analytical instrumentation, and research applications.

Market Analysis by Application:

On the basis of application, the global industrial gas generator market is further segmented into chemical, oil & gas, food & beverage, electronics, pharmaceuticals, power generation, metals & mining, and others. The pharmaceuticals segment is estimated to hold a significant revenue share of the global market in 2022. The pharmaceutical and biotechnology industry often emerges as a dominant segment. These sectors require precise and high-purity gases for various applications, such as research, development, and manufacturing of drugs and medical products. On-site gas generation ensures a continuous supply of gases like nitrogen and oxygen, maintaining the stringent purity standards required for these critical applications. The industry’s emphasis on safety, quality, and regulatory compliance contributes to the prominence of on-site gas generators in this segment. Furthermore, the need for controlled environments in pharmaceutical cleanrooms and research laboratories underscores the importance of reliable on-site gas supply. By eliminating the logistical challenges and potential contamination risks associated with gas cylinders, on-site gas generation aligns well with the industry’s requirements.

Chemical Industry: Chemical processes often require inert gases like nitrogen for maintaining product quality and preventing reactions. On-site nitrogen generators offer a reliable source of nitrogen, enhancing safety and efficiency in chemical manufacturing.

Oil & Gas Industry: The oil and gas sector utilizes gases like nitrogen for inerting and blanketing to prevent explosions, as well as for purging pipelines. Oxygen generators might be used in enhanced oil recovery processes. On-site gas generation ensures safety and operational continuity in this industry.

Food & Beverage Industry: Nitrogen and carbon dioxide generators find extensive use in food and beverage applications. Nitrogen is used for food preservation and packaging, while carbon dioxide is employed for carbonating beverages and extending product shelf life.

Electronics Industry: The electronics sector requires high-purity gases for semiconductor manufacturing and other processes. On-site gas generators ensure the consistent supply of ultra-pure gases, essential for producing high-quality electronic components.

Pharmaceuticals & Biotechnology Industry: In pharmaceuticals, high-purity gases are critical for various applications, such as anesthesia and laboratory testing. On-site gas generators maintain strict purity standards while offering cost-effective solutions.

Power Generation Industry: Gas generators play a role in power generation, providing hydrogen for cooling generators and nitrogen for fire prevention. These generators enhance safety and operational reliability in power plants.

Metals & Mining Industry: Gases like nitrogen and oxygen are used in metals and mining for applications like oxidation control during smelting and metal cutting processes. On-site gas generation streamlines operations in challenging environments.

Others: This category encompasses diverse applications, such as aerospace, healthcare, and research, where on-site gas generation provides customized solutions to meet specific demands.

The industrial gas generators market research report presents the analysis of each segment from 2020 to 2030 considering 2022 as the base year for the research. The compounded annual growth rate (CAGR) for each respective segment is calculated for the forecast period from 2023 to 2030.

Historical & Forecast Period

• 2020-21 – Historical Year
• 2022 – Base Year
• 2023-2030 – Forecast Period

Market Segmentation:

By Gas Type:

• Nitrogen Generators
• Oxygen Generators
• Hydrogen Generators
• Carbon Dioxide Generators
• Others

By Technology:

• Membrane Separation
• Pressure Swing Adsorption (PSA)
• Electrolysis
• Cryogenic Distillation
• Others

By Application:

• Chemical
• Oil & Gas
• Food & Beverage
• Electronics
• Pharmaceuticals
• Power Generation
• Metals & Mining
• Others

By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Regional Analysis:

Geographically, North America is accounted to hold the largest revenue share of the global industrial gas generator market in 2022. North America’s dominance in the market reflects its strong position as a leader in adoption, innovation, and influence. The region’s technological advancements, particularly in the United States, have yielded cutting-edge gas generation solutions, making on-site production more efficient and reliable. With a diverse industrial landscape encompassing manufacturing, electronics, healthcare, aerospace, and energy, North America experiences robust demand for various gases, driving the widespread adoption of on-site gas generators. The region’s economic strength provides industries with the resources necessary to invest in modernization, including the implementation of advanced gas generation technologies. Stringent safety, environmental, and quality regulations also push businesses towards reliable on-site solutions that adhere to standards while minimizing the risks associated with gas transportation. North America’s focus on research and development, sustainability, and energy efficiency further strengthens its position, as does its well-established infrastructure and the presence of key industry players.

Competitive Assessment:

Some of the prominent market players operating in the global industrial gas generators market are Air Products and Chemicals, Inc., Linde plc, Air Liquide S.A., Peak Scientific Instruments Ltd., and Parker Hannifin Corporation. Companies are exploring markets through expansion, new investment, the introduction of new services, and collaboration as their preferred strategies. Players are exploring new geography through expansion and acquisition to gain a competitive advantage through joint synergy.

Key Companies:

• Air Products and Chemicals, Inc.
• Linde plc
• Air Liquide S.A.
• Peak Scientific Instruments Ltd.
• Parker Hannifin Corporation
• Atlas Copco AB
• South-Tek Systems
• Taiyo Nippon Sanso Corporation
• Proton OnSite
• Angstrom Advanced Inc.

Key Questions Answered by Industrial Gas Generators Market Report

• Global industrial gas generators market forecasts from 2023-2030
• Regional market forecasts from 2023-2030 covering Asia-Pacific, North America, Europe, Middle East & Africa, and Latin America
• Country-level forecasts from 2023-2030 covering 15 major countries from the regions as mentioned above
• Industrial gas generators submarket forecasts from 2023-2030 covering the market by gas type, technology, application, and geography
• Various industry models such as SWOT analysis, Value Chain Analysis about the market
• Analysis of the key factors driving and restraining the growth of the global, regional, and country-level industrial gas generators markets from 2023-2030
• Competitive Landscape and market positioning of top 10 players operating in the market