Industrial Gases Market

The electronics business sector is increasingly driving demand for industrial gases because it needs ultra-high-purity gases to manufacture semiconductors, display panels, and complex packaging. Chemical vapor deposition, plasma etching, photolithography and others, demand gases like nitrogen, argon, and helium, and specialty fluorinated compounds with very low impurity content. The recent rapid increase in semiconductor manufacturing, driven by the use of AI, IoT, and 5G, has increased the demand of these gases in semiconductor wafer manufacturing and chip assembly. Also, the development of flat-screen displays, LEDs and solar photovoltaics has produced sustained demand of electronic-grade gases. As mentioned by the Semiconductor Industry Association (SIA), global semiconductor sales reached USD 627.6 billion in 2024, which is an increase of 19.1% over the 2023, and is directly associated with the need to meet more industrial gas demand in high-tech manufacturing

Strict regulatory compliance is a major restraint of the industrial gases market since many of the gases, such as oxygen, acetylene, hydrogen, and special fluorinated compounds are highly hazardous. Environmental, safety, and transport regulations (e.g. storage pressure limits, leakage monitoring, emission controls and so on) complicate operations and raise costs to manufacturers and end-users. As an example, the OSHA, EPA, and ADR regulations would need constant monitoring, safety audits, and certified equipment, especially in chemical, healthcare, and semiconductor industry. Non-compliance may attract hefty fines, closure of production, and negative publicity. In 2024, the International Labour Organization noted an increase in the production of industrial accidents associated with gas management, which supports the high adherence levels, limiting the market development, particularly in developing markets with dynamic regulatory systems

The industrial gases market has a huge growth prospect with the rapid growth of the advanced semiconductor manufacture. Next-generation nodes and high performance chips require ultra-high-purity gases like nitrogen, hydrogen, argon and specialty fluorinated compounds in important processes like atomic layer deposition, chemical vapor deposition, etching and wafer cleaning. The global trend in AI, quantum computing, and 5G applications has led to the rapid development of state-of-the-art fabs in such regions as the US, Taiwan, South Korea, and the EU. This trend will allow gas suppliers to build custom solutions, to expand the local supply chain, and to sign a long-term contract with the major chip producers

Hazardous material handling and stringent safety regulations pose a critical challenge to the industrial gases market. Most of the industrial gases are highly flammable, toxic, or cryogenic such as hydrogen, acetylene, and specialty fluorinated compounds necessitating special storage, transportation, and handling procedures. The standards training, safety equipment, and monitoring systems required as a result of the need to comply with standards like ISO 21014, OSHAs Process Safety Management, and local environmental and transport regulations are costly in terms of investment. The International Labour Organization (2024) reported that the number of accidents with improper gas handling is increasing and points to operational risks. This would mean increased operating expenses, greater liability and delayed market penetration of products to the market especially in the developing markets where enforcement is not uniform hence limiting the swift market penetration in spite of the increased demand in high tech and manufacturing industries