United Kingdom (UK) Industrial Gases Market Overview, 2029

United Kingdom (UK) Industrial Gases Market Overview, 2029

The industrial gases market in the United Kingdom is a vital component of the country’s industrial and economic landscape, supporting a wide range of sectors from healthcare to manufacturing and energy. In the UK, industrial gases such as oxygen, nitrogen, hydrogen, and carbon dioxide are essential for various applications. The healthcare sector is a significant consumer, particularly for medical oxygen, which is crucial for respiratory treatments and surgical procedures. The COVID-19 pandemic underscored the critical role of medical gases, driving increased demand and investment in supply infrastructure. The UK’s advanced manufacturing sector also relies heavily on industrial gases. Industries such as aerospace, automotive, and electronics utilize gases like nitrogen and argon for processes including welding, cutting, and inerting. With the UK's strong focus on innovation and high-precision manufacturing, the demand for high-purity gases continues to grow. In the energy sector, hydrogen is emerging as a key element in the UK’s strategy to achieve net-zero carbon emissions by 2050. The government’s Hydrogen Strategy envisions hydrogen as a clean alternative fuel to decarbonize industries, transportation, and heating. The UK is investing in large-scale green hydrogen projects and infrastructure, aiming to position itself as a leader in the hydrogen economy. Furthermore, carbon dioxide is crucial for the food and beverage industry, particularly for carbonation in drinks and food preservation. The UK’s emphasis on food safety and quality ensures a stable demand for these gases. Distribution in the UK is facilitated through a robust network of pipelines, bulk transportation, and cylinder deliveries, tailored to meet the specific needs of different sectors. Companies like BOC (a member of the Linde Group) and Air Products dominate the UK market, providing comprehensive gas solutions and leveraging advanced technologies to enhance efficiency and sustainability. These companies are also involved in significant R&D efforts to develop greener gas production methods and to reduce the environmental impact of their operations. The UK’s regulatory framework ensures that industrial gases are produced, stored, and transported safely, adhering to stringent health and environmental standards. Additionally, the UK’s commitment to reducing greenhouse gas emissions and advancing green technologies is driving innovation in the industrial gases market, from carbon capture and utilization projects to the integration of renewable energy in gas production. As the UK continues to transition towards a more sustainable and technologically advanced economy, the industrial gases market is poised for continued growth and evolution, playing a critical role in supporting the country’s industrial capabilities and environmental objectives.

According to the research report ""UK Industrial Gases Market Overview, 2029,"" published by Bonafide Research, the UK Industrial Gases Market is expected to grow at more than 6% CAGR from 2024 to 2029. The growth of the industrial gases market in the UK is driven by several key factors specific to the country’s economic and industrial landscape. A major factor is the UK's diverse and advanced manufacturing sector, particularly in automotive, aerospace, and electronics industries. These sectors extensively use gases like nitrogen and argon for welding, cutting, and precision manufacturing processes, necessitating a consistent and growing demand for high-purity industrial gases. The UK's emphasis on innovation and high-quality production standards further fuels this demand. Additionally, the UK’s robust healthcare sector significantly contributes to the market, with medical gases like oxygen and nitrous oxide being crucial for patient care, surgeries, and respiratory therapies. The COVID-19 pandemic highlighted the critical role of medical gases, leading to increased investments in medical gas supply chains and infrastructure to ensure resilience and reliability. The UK’s commitment to sustainability and its net-zero carbon emissions target by 2050 also plays a vital role in promoting the growth of the industrial gases market. Hydrogen, in particular, is seen as a cornerstone of the UK’s energy transition strategy. The government’s Hydrogen Strategy envisions hydrogen as a key player in decarbonizing industries, transportation, and heating. Significant investments are being made in green hydrogen production projects, such as the development of electrolysis plants that generate hydrogen from renewable energy sources. These initiatives are positioning the UK as a leader in the hydrogen economy, driving demand for hydrogen production and distribution technologies. In terms of newer technologies, the UK is adopting advanced methods to enhance the efficiency and sustainability of industrial gas production and distribution. The use of cryogenic air separation units (ASUs) for high-purity gas production is well established. Additionally, the integration of digital technologies, including smart sensors and IoT systems, is becoming prevalent for real-time monitoring and optimization of gas supply chains. These technologies enable predictive maintenance and operational efficiency, reducing costs and improving reliability. The UK is also exploring innovations in carbon capture and utilization (CCU) technologies, which capture and repurpose carbon dioxide emissions for industrial use, supporting the country’s environmental goals.

The industrial gases market is segmented in various ways to better understand its diverse applications and economic significance. By type, it includes gases such as oxygen, nitrogen, hydrogen, carbon dioxide, acetylene, and other types including ammonia, methane, butane, and propane. Each of these gases plays a crucial role in different industrial processes; for instance, oxygen is vital for combustion processes, nitrogen is used in food preservation, hydrogen in refining and chemical processes, carbon dioxide in carbonation, acetylene in welding, and other gases in various chemical reactions and energy applications. The market is further categorized by end-user industry, highlighting its extensive utilization across manufacturing, chemical, metal and mining, energy and power, food and beverage, and healthcare industries, among others. Manufacturing industries, for example, represent a significant segment due to their extensive use of gases for welding, cutting, and other processes. The chemical industry heavily relies on gases like hydrogen and nitrogen for producing various chemicals. The energy and power sector uses gases for enhanced oil recovery and power generation, while the food and beverage industry utilizes gases for packaging and carbonation. Healthcare industry applications include medical gases for respiratory therapies and anesthesia. Additionally, the distribution mode of these gases is an important aspect, categorized into on-site pipeline, bulk, and cylinder delivery methods, each tailored to specific industrial requirements and consumption patterns. On-site pipeline distribution is essential for industries with continuous, large-scale gas needs, bulk delivery caters to moderate requirements, and cylinder distribution is suitable for smaller, more flexible applications. The segmentation highlights the global, regional, and country-specific relevance of industrial gases, reflecting the market's dynamic nature and its critical role in supporting various industrial activities worldwide. Understanding these segments helps in comprehending the market trends, identifying growth opportunities, and addressing the specific needs of different industries and regions.

In the United Kingdom, the industrial gases market is governed by a combination of domestic legislation and European Union directives, despite Brexit reshaping some regulatory frameworks. Key regulations include the Control of Major Accident Hazards (COMAH) Regulations, which impose strict safety and environmental standards on facilities handling hazardous substances like industrial gases. These regulations ensure that operators comply with rigorous safety protocols and maintain emergency preparedness to prevent major accidents. Furthermore, the UK adheres to EU-derived legislation such as the REACH (Registration, Evaluation, Authorization, and Restriction of Chemicals) Regulation, which governs the safe use and handling of chemicals, including those used in industrial gas production and distribution. Looking ahead, the prospects for the UK's industrial gases market appear robust, driven by diverse applications across sectors like manufacturing, healthcare, and electronics. The shift towards sustainable energy solutions, particularly hydrogen as a clean fuel source, presents significant growth opportunities for industrial gas suppliers. Government support is integral to fostering this growth, evidenced by initiatives such as the Industrial Strategy Challenge Fund and the Clean Growth Strategy, which allocate funding for research and development in clean technologies, including hydrogen production and storage. Moreover, the UK government's commitment to achieving net-zero emissions by 2050 aligns with the market's trend towards sustainable practices, encouraging investment in innovative technologies and infrastructure. These factors collectively position the UK's industrial gases market for continued expansion, supported by regulatory stability and targeted government policies aimed at advancing sustainable industrial practices and enhancing economic competitiveness in the global market.

The industrial gases market in the UK faces several challenges that impact its operations and growth prospects. One significant challenge is regulatory uncertainty post-Brexit, as the UK navigates the divergence from EU regulations that previously governed environmental standards, safety protocols, and trade agreements. This uncertainty creates challenges for companies in the industrial gases sector, particularly in terms of compliance with new UK-specific regulations and the potential for divergence from EU standards, impacting market access and operational efficiency. Moreover, the competitive landscape in the UK's industrial gases market is characterized by consolidation among global and regional players, which increases competitive pressures and influences pricing dynamics. Smaller and medium-sized enterprises (SMEs) in the sector often struggle to compete against larger multinational corporations with extensive resources and economies of scale. Additionally, the transition towards sustainable energy solutions, including hydrogen, presents both opportunities and challenges. While there is growing demand for hydrogen in sectors such as transportation and energy storage, scaling up production and distribution infrastructure requires substantial investments in technology and regulatory frameworks. Brexit-related disruptions to supply chains and logistics further complicate operations for industrial gas suppliers, impacting supply reliability and cost efficiency. Moreover, fluctuations in raw material prices, such as natural gas and electricity, influence production costs for gases like hydrogen and oxygen, affecting profitability margins and market competitiveness. Geopolitical tensions and trade uncertainties also pose risks to market stability and global supply chains, impacting the UK's industrial gases sector, which heavily relies on international trade and cooperation. Despite these challenges, the UK government's support for innovation and clean technologies through initiatives like the Industrial Strategy Challenge Fund and the Clean Growth Strategy provides opportunities for the industrial gases market to innovate, develop sustainable solutions, and strengthen its competitive position in global markets.
Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Industrial Gases market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type
• Oxygen
• Nitrogen
• Hydrogen
• Carbon Dioxide
• Acetylene
• Other Types (Ammonia, Methane, Butane, And Propane)

By End user Industry
• Manufacturing Industry
• Chemical Industry
• Metal & Mining Industry
• Energy & Power Industry
• Food & Beverage Industry
• Healthcare Industry
• Others

By Mode of Distribution
• On-Site pipe line
• By Bulk
• By Cylinder

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Industrial Gases industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.