Medical Gas Market Size, Share & Trends Analysis Report By Product (Pure Gases, Gas Mixtures), By Application (Therapeutic, Diagnostics), By End Use (Hospitals, Ambulatory Surgical Centers, Home Healthcare), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global medical gas market size was valued at USD 12.8 billion in 2021 and is projected to expand at a compound annual growth rate (CAGR) of 8.1% from 2022 to 2030. The rising prevalence of chronic diseases, and advantageous initiatives commenced by government organizations, are key factors driving the market. Moreover, the growing geriatric population and rising demand for home healthcare and point-of-care products are some of the other factors responsible for the market.

The rising prevalence of Chronic Respiratory Diseases (CRDs) such as asthma, chronic obstructive pulmonary disease, occupational lung diseases, and pulmonary hypertension is driving the demand for medical gases. For instance, the WHO data states that more than 3.0 million people die each year from Chronic Obstructive Pulmonary Disease (COPD), accounting for approximately 6% of all deaths worldwide and might become the third leading cause of death in the world by 2030. In addition, as per the same source, nearly 235.0 million people suffer from asthma. Medical gases such as oxygen, lung gas mixtures, and heliox are used extensively in the treatment and diagnosis of these respiratory disorders.

Oxygen aids in the prevention of pulmonary artery hypertension and its long-term usage might help relieve the strain on the heart. Thus, the rising prevalence of respiratory diseases is propelling the market forward. The market was significantly impacted due to the COVID-19 pandemic. The pandemic had led to shortages of medical oxygen owing to its increased demand that had eventually caused major disruption in the oxygen market and supply chain breaks. For instance, as per the data published in Business Standard Private Ltd., prior to the pandemic, the demand for liquid medical oxygen (LMO) in India was 700 tons per day (TPD). During the first wave of Covid-19, the demand for LMO increased fourfold to 2,800 TPD. Furthermore, with the second wave, demand has increased by more than seven times that of the pre-Covid levels - 5,000 TPD.

Similarly, according to a survey by the European Industrial Gases Association, members like Air Liquide and Linde are seeing 5-10 times the normal demand for medical oxygen. Air Liquide had seen 4-6 times the average demand for medical oxygen in Italy and Eastern France. Thereby, owing to the aforementioned factors, the market witnessed a high boom in growth. Nonetheless, as the world's COVID-19 position is improving, the increased demand from the healthcare industry is projected to be adjusted downwards in the coming years. However, demand for medical gases is expected to remain higher than it was prior to COVID-19. 

Furthermore, the pandemic has also led to the development of new innovations to aid in oxygen treatment for the large number of people suffering from respiratory diseases. Additionally, the rising adoption of home healthcare will propel the market post-COVID-19. Moreover, the growing number of FDA approvals for medical gas equipment is also encouraging market growth. The Food and Drug Administration (FDA) is proposing to update its Current Good Manufacturing Practice (CGMP) rules to include new color, labeling, design, and devotion requirements for medical oxygen gas compartments and closures. These standards are intended to make the contents of medical oxygen gas cylinders more easily identifiable, limit the risk of containers of industrial or other gases being incorrectly associated with medical oxygen supply systems, and reduce the risk of medical gas pollution.

The growing aging population susceptible to chronic conditions is foreseen to indirectly drive the demand for medical gases. The aging population is more vulnerable to chronic diseases, owing to weakened immune responses. According to the WHO statistics, 2021, the global population of adults aged 60 and above might nearly double (2.1 billion) by 2050. Moreover, the number of persons aged 80 years or older is likely to reach 426 million by 2050. As a result of the large increase in the geriatric population, the prevalence of respiratory conditions has increased. For instance, as per the Princeton Health Care Center data around 15.0% of older adults suffer from asthma, Chronic Obstructive Pulmonary Disease (COPD), or other respiratory disorders. Such facts and figures showcase that the demand for oxygen supply is expected to surge, which may eventually drive the market throughout the forecast period.

Mounting demand for home healthcare and point of care diagnostics markets is anticipated to boost the market by triggering a rise in demand for packaged medical-grade gases (such as oxygen). In July 2012, the U.S. Congress passed a bill putting into effect the Food and Drug Safety and Innovation Act. This act is expected to serve this market as a driver during the forecast period owing to the elimination of drug user fees for medical gas manufacturers and the establishment of a standard certification process for medical gas among others.

Product Insights

The pure gases segment held the largest market share of around 57.0% in terms of revenue in 2021. The increasing number of patient hospitalization, rising prevalence of chronic diseases, and road accidents around the world are major factors driving the segment expansion. For instance, as per the United Nations, 2021 statistics, road accidents account for 1.3 million yearly deaths and 50 million injuries globally. As a result of the rising number of road accidents, the need for oxygen therapy in various life care settings is increasing exponentially.

In pure gases, the oxygen segment is expected to witness the highest CAGR of 8.2% during the forecast period. Oxygen is a base for all modern anesthetic procedures and life support for artificially ventilated patients because it plays such an important part in respiratory support. In several conditions such as cyanosis, COPD, shock, severe bleeding, respiratory/cardiac arrest, and significant trauma, the gas is critical in restoring tissue oxygen tension by increasing oxygen availability.

Oxygen is typically delivered in gas cylinders, and it is administered to patients using a facial mask that can hold around 60% of the oxygen or a tight-fitting anesthetic type mask that can hold up to 100% of the oxygen. Furthermore, according to the Pharma Review, 20-40% oxygen is commonly used in the treatment of COPD, 40-60% oxygen is used in the treatment of bronchial asthma, and 100% oxygen is utilized in the treatment of severe hypoxia and noxious gas poising, all of which are propelling this segment's growth. In addition, patients admitted to intensive care units (ICUs) and ambulatory care for numerous types of surgeries require oxygen gas for life support. Thereby, owing to its high usability and demand, the segment is likely to dominate the market over the forecast period.

The medical air segment is expected to witness a CAGR of 7.8% during the forecast period, owing to its varied use in the treatment and management of patients. Medical air is used in nebulizers for respiratory therapy and humidity treatment. Medical air is given to patients who have a delicate respiratory system and are susceptible to oxygen toxicity. Moreover, it is mainly used in ICU and NICU. Thus, due to the aforementioned factors, the market is expected to witness a high growth rate over the forecast period.

The gas mixtures segment is expected to witness the fastest CAGR of 8.2% over the forecast period owing to its increasing use in therapeutic and diagnostic applications. The largest market revenue in 2021 was held by lung diffusion mixtures as they are used to calibrate analytical instruments that detect the quantity of carbon monoxide distributed in the lungs, as well as in pulmonary function testing.These are diagnostic tests used in fields including intensive care, neonatal care, rehabilitation, wellness and disability assessments, and the diagnosis of respiratory, gastrointestinal, and cardiovascular system diseases.

The patient inhales a lung diffusion mixture containing a small amount of carbon monoxide during a pulmonary function test. The breath of the patient is measured to see how thoroughly the carbon monoxide has dispersed in the lungs. The lung volume is determined by the helium component of the lung diffusion mixture. Thus, owing to its wide applicability and rising prevalence of respiratory disorders, the segment is expected to grow at a significant pace in the forecast period.

Application Insights

The therapeutic application segment held the largest market share of 40.1% in terms of revenue in 2021 owing to a broad range of medical gases used to treat and manage various disease conditions. Gases utilized for therapeutic purposes are classified as medicines and must meet stringent purity and quality requirements. Therapeutic gases mainly include oxygen, medical air, nitric oxide, carbon dioxide, and mixtures of helium and oxygen. Medical oxygen is widely used in all healthcare settings, from anesthesia to inhalation therapy. 

Medical nitrous oxide is used for anesthesia, pain relief, inflating the abdominal cavities during a laparoscopy, and as a refrigerant in cryosurgery. In minimally invasive surgery (laparoscopy, endoscopy, and arthroscopy), carbon dioxide is frequently utilized as an insufflation gas to widen and stabilize body cavities in order to enhance the visibility of the operating area. Helium is a gas that is used in breathing mixtures for patients with weakened lungs. Significant advancements in the therapeutic uses of medical gases have resulted in an uptick in medical gas usage for a wide range of clinical applications. 

The diagnostics segment is also expected to gain a lucrative CAGR of 8.6% during the forecast period. The highest growth is attributable to its rising use in medical imaging and general laboratory applications. Controlled aerobic or anaerobic incubator environments for biological cell culture or tissue growth are among the culture growth applications used in laboratories. Controlled aerobic conditions are made with oxygen-rich mixtures, whereas anaerobic conditions are produced with hydrogen or carbon dioxide-rich mixtures. 

Moreover, they are usually used for patient diagnostics such as blood gas analysis and lung function testing. For instance, liquid helium is required an MRI to cool down superconductive magnets coil scanners. In addition, test gases are utilized to calibrate and maintain medical instruments that provide anesthetic gases. Thus, varied usage of these gases in diagnostics is expected to propel segment growth.

End-use Insights

The hospital segment dominated the market and accounted for a revenue share of around 28.4% in terms of revenue. In hospitals, all types of commercially available medical gases such as oxygen (O2), nitrogen (N2), medicinal air, carbon dioxide (CO2), and nitrogen protoxide (N2O), are widely used. The use of medical gases in medical procedures such as surgeries, intensive care, and emergency response, as well as the high prevalence of medical procedures performed worldwide, contribute to the segment's dominance. For instance, every year, more than 2 million people receive medical oxygen. According to the National Health Service, approximately 17.5% of hospital patients in the U.K. are receiving oxygen at any given time, which equates to around 18,000 patients every day. Moreover, as per a research article published in MDPI (2018), the annual consumption per hospital bed was computed as 350 m³ for oxygen, 325 m³ for medicinal air, 9 m³ for nitrogen protoxide, and 3 m³ for carbon dioxide.

The home healthcare segment is expected to witness the fastest CAGR of 7.1% during the forecast period. The trending shift from hospital to home care is a key enabler of this segment's growth. In line with this trend, regulatory bodies are gradually paving the way for a robust establishment of this segment. Patients with a variety of respiratory illnesses, such as pneumonia, COPD, and lung cancer, are also gravitating toward portable devices. This will increase demand for the product in-home care settings. Technological innovations have expanded the functionality options for numerous medical gas handling equipment used in-home care. The advent of lightweight and portable medical gas handling equipment has proven to be a boon to the home healthcare market's growth. 

Furthermore, in the last five years, medical gas cylinder technology has advanced remarkably. Lightweight, non-limited life (NLL) composite cylinders have recently hit the market and are forecasted to play a significant role in the development of innovative homecare treatments, portable oxygen therapies, and medical gas applications in the coming years. These products offer considerable benefits to patients in the homecare setting, addressing the end user's desire for a lightweight cylinder that is far lighter than aluminum cylinders. Thereby, such advancements in medical gas equipment are contributing to fueling the market growth.

Regional Insights

North America dominated the medical gas market and accounted for a revenue share of 35.9% in 2021 and is expected to witness a considerable growth rate over the forecast period. This steady growth is attributed to the rising use of medical gases in the treatment of respiratory diseases such as COPD and asthma. The rising prevalence of COPD, asthma, and other medical conditions such as cardiovascular and lifestyle-related diseases are predicted to drive demand for medical gases in the U.S. during the projected timeline. Moreover, the presence of cutting-edge healthcare facilities, particularly intensive care units, a well-established market, and a growing geriatric population have all contributed to the U.S. capturing the major share of the market. 

In addition, the medical gas sector in the U.S. is undergoing a shift in standards, analysis, and delivery procedures as a result of the current increase in the use of home oxygen therapy, which is leading to the modernization of medical gas standards and the means of supply. In terms of market share, Europe was closely followed by North America and is expected to expand at a CAGR of 7.9% over the forecast period. The presence of numerous associations such as the EIGA (European Industrial Gases Association) and MGA (Medical Gas Association), that enable providing standard rules and regulations for medical gas manufacturers is one of the major factors contributing to the growth of this region. 

In addition, the Medicines and Healthcare Products Regulatory Agency (MHRA), which is an Executive Agency of the Department of Health and Social Care (DHSC), is the U.K. regulator for medical gases in the U.K. The MHRA protects and encourages public health and patient safety by ensuring that medicines, healthcare products, and medical equipment fulfill appropriate safety, quality, performance, and effectiveness standards and are used adequately. Furthermore, the expansion of the market in this region is being fueled by an increase in the number of hospitals, as well as an increase in the use of home healthcare settings in nations such as the U.K., France, Italy, and others. According to the (WHO), the region's life expectancy has increased in recent decades. In the coming years, the rising number of care-dependent elderly people in Europe is predicted to radically change the home care settings business in Europe, which will indirectly benefit the market.

Key Companies & Market Share Insights

The market is moderately consolidated, owing to the presence of a few key players in the market. Furthermore, leading players are involved in collaborations, product launches, mergers, and acquisitions to strengthen their product portfolios. For instance, in June 2021, Air Liquide S.A. agreed to purchase South Africa's largest oxygen-producing facility. Sasol and Air Liquide strategically made a deal for Air Liquide to buy and operate the plant. This strategy is expected to boost the firm’s overall manufacturing capacity and strengthen its market position. Thus, with various strategies acquired by leading players, the market is expected to impel during the forecast period. Some of the prominent players in the medical gas market include:

• Linde plc.

• Air Liquide

• Atlas Copco

• Messer

• Air Products Inc.

• Taiyo Nippon Sanso Corporation

• Matheson Tri-Gas Inc. 

Medical Gas Market Report Scope

Segments Covered in the Report 

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global medical gas market report on the basis of product, application, end use, and region:

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Pure Gases

    • Medical Air

    • Oxygen

    • Nitrous Oxide

    • Nitrogen

    • Carbon Dioxide

    • Helium

  • Gas Mixtures

    • Aerobic Gas Mixtures

    • Anaerobic Gas Mixtures

    • Blood Gas Mixtures

    • Lung Diffusion Mixtures

    • Medical Laser Mixtures

    • Medical Drug Gas Mixtures

    • Others

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Therapeutic

  • Diagnostics

  • Pharmaceutical Manufacturing

  • Others

• End-use Outlook (Revenue, USD Million, 2018 - 2030)

  • Hospitals

  • Ambulatory Surgical Centers

  • Home Healthcare

  • Pharmaceutical And Biotechnology Companies

  • Diagnostic and Research Laboratories

  • Academic And Research Institutions

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Spain

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Argentina

    • Mexico

    • Colombia

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE