Air Separation Plant Market

Air Separation Plants Market Overview

The global Air Separation Plant Market size was valued at USD 6.04 billion in 2024 and is predicted to reach USD 7.89 billion by 2030 with a CAGR of 4.6% from 2025 to 2030. 

The market is driven by various factors such as boosting oil and gas industry couple with stringent environmental regulations and expansion of iron and steel industry. The market is however hindered by the high initial investment but on the other hand, the market shows promising future with integration of carbon capture systems in air separation industry driving future growth. Moreover, companies such as EuroChem Group AG along with Air Products and Chemicals, Inc. and Air Liquide S.A. are embracing business approaches such as business expansion to maintain their dominance in the market.

Boosting Oil and Gas Industry Surges Market Growth

Expansion of oil and gas industry drives the market as essential gases such as oxygen and nitrogen are essential for improving thermal efficiency and ensuring safety. Global oil demand rose from 870 kb/d to 1.1 mb/d in 2025 within 2 years. With the booming oil and gas sector the need for enhanced production of these gases becomes crucial that promotes the air separation plant market expansion. 

Stringent Environmental Regulations Drives Market Growth

Global regulatory bodies implement stringent environmental regulations towards industrial emission by boosts the adoption of air separation plant as industries seek to comply with stricter emissions standards. These plants provide essential industrial gases that enhance process efficiency and reduce harmful emissions in various sectors. For example, UNO implemented the Industrial Emissions Regulations 2017 for limiting environmental impacts involving industrial emissions. The implementation of such regulations prompts companies to invest in cleaner technologies to meet regulatory requirements that propels the air separation plant market growth. 

Expansion of Iron and Steel Sector Bolster Market Growth

The boosting global iron and steel sector surges the demand for air separation units due to the important role that industrial gases play in steel production. As per World Steel Association, global steel demand rose by 2.2%, reaching 1,881.4 million tons in 2023 from 1,840.2 million tons in 2022. This growth of the steel production propels the need for reliable and efficient gas supply promoting market growth.

High Installation Cost Hinders Market Growth

The high installation costs of air separation plant restrain the market growth by creating barriers to entry for new players, limiting competition. These substantial capital expenditures deter potential investments from companies seeking to expand or upgrade their facilities, leading to slower overall market growth. 

Integration of Carbon Capture Systems in Air Separation Plant Creates Future Opportunities

The integration of carbon capture systems in the industry is anticipated to create significant opportunities in future. As industries face increasing regulatory pressure, air separation units meet these demands attracting more investments and fostering innovation in cleaner production processes in the forthcoming years showcasing its future potential. 

Market Segmentations and Scope of the Study

The air separation plant market report is segmented on the basis of process, gas, industry vertical, and region. On the basis of process, the market is divided into cryogenic and non-cryogenic. On the basis of gas, the market is classified nitrogen, oxygen, argon and others. On the basis of industry vertical, the market is segmented into iron & steel, chemical, oil & gas, healthcare and others. Regional breakdown and analysis of each of the aforesaid segments include regions comprising North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

Asia-Pacific dominates the air separation plant market share. This is due to the foundation of separation plants in India and China that increases supply of oxygen and nitrogen. For instance, Air Liquide India in August 2024 inaugurated its new air separation unit with oxygen production capacity exceeding 365 tons per day. The inaugural of such new units in the region fosters technological advancements that boost the market growth. 

Moreover, the boosting iron and steel production in the region drives the demand for air separation plant, as these facilities provide essential gases vital for efficient steel manufacturing and combustion in blast furnaces. Centre for Research on Energy and Clean Air stated crude steel production in China summed 1 billion tons in 2023. As the industry grows, the demand for dependable and efficient gas supply systems becomes essential that boost the market growth. 

Conversely, North America region is expected to show a steady rise in the industry and is expected to hold its position in the coming years. This is due to rising healthcare sector in the region that surges the need for dependable gas supply systems to aid respiratory therapies along with surgeries and other medical applications. In the U.S., healthcare expenses increased to 7.5%, reaching USD 4.9 trillion or USD 14,570 per person in 2023 as per CMS. This surge in healthcare spending encourages capitalizing in air separation industry that promotes growth in the market. 

Moreover, the execution of stringent regulations on industrial emissions boosts the adoption of air separation plant as industries seek to comply with these environmental standards. For instance, in August 2023, Canadian government implemented Net Zero Governance framework to create a comprehensive legal structure for achieving a net zero economy by 2050. Such regulations boost the adoption of air separation units allowing companies to efficiently produce essential gases that boost the market growth. 

Competitive Landscape

Various key market players operating in the air separation plant industry includes Air Liquide S.A., EuroChem Group AG, Messer Group GmbH, Praxair, Inc., Air Products and Chemicals, Inc., Enerflex Ltd., Technex Group, Universal Industrial Gases, Nippon Sanso Holdings Corporation, Linde Plc., Nikkiso Co., Ltd., Matheson Tri-Gas, Inc., SIAD Macchine Impianti S.p.A., Brise Chemicals Private Limited, Buzwair Industrial Gases Factories and others. These market players are adopting strategies such as business expansion to stay competitive and maintain their market positions.

For instance, in February 2025, Air Liquide S.A. expanded its presence in Japan by establishing new unit to support rising demand driven by energy transition. The market expansion showcases the company’s ambition to be global leader in the domain. 

Furthermore, in July 2024, Air Products established a new air separation unit in Georgia and North Carolina aimed at increasing the supply of industrial gases for various sectors. The establishment boosts the company's capacity to provide essential gases and support growing customer demand. 

Moreover, in January 2024, Eurochem established an air separation unit at its Nevinnomysskiy facility in Russia aimed at enhancing production capabilities. This aims to supply high-purity oxygen and nitrogen supporting the company's growth strategy. 

Key Benefits

• The report provides quantitative analysis and estimations of the air separation plant industry from 2025 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep dive analysis of the current and future air separation plant market trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the air separation plant industry is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated on the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Air Separation Plant Market Key Segments

By Process

• Cryogenic 

• Non-Cryogenic 

By Gas

• Nitrogen

• Oxygen

• Argon 

• Others 

By Industry Vertical

• Iron & Steel

• Chemical

• Oil & Gas

• Healthcare 

• Others 

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia        

  • Rest of Europe    

• Asia Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

Key Players

• Air Liquide S.A.

• EuroChem Group AG 

• Messer Group GmbH

• Praxair, Inc

• Air Products and Chemicals, Inc.

• Enerflex Ltd.

• Technex Group

• Universal Industrial Gases

• Nippon Sanso Holdings Corporation

• Linde Plc.

• Nikkiso Co., Ltd.

• Matheson Tri-Gas, Inc.

• SIAD Macchine Impianti S.p.A.

• Brise Chemicals Private Limited

• Buzwair Industrial Gases Factories

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Market Size in 2024	USD 6.04 Billion
Revenue Forecast in 2030	USD 7.89 Billion
Growth Rate	CAGR of 4.6% from 2025 to 2030
Analysis Period	2024–2030
Base Year Considered	2024
Forecast Period	2025–2030
Market Size Estimation	Billion (USD)
Growth Factors	Growth of the global oil and gas industry fuels the market. Implementation of stringent environmental regulations towards industrial emission by global regulatory bodies boosts the market growth. Expansion of the global iron and steel sector propels the market growth
Countries Covered	28
Companies Profiled	15
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.