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Air Separation Plant Market Size, Share, Growth & Industry Analysis, By Process (Cryogenic, Non-cryogenic), By Gas (Oxygen, Nitrogen, Argon, Others), By End-use Industry (Iron & Steel, Oil & Gas), and Regional Analysis, 2025-2032
Pages: 170 | Base Year: 2024 | Release: September 2025 | Author: Versha V.
Key strategic points
Air separation plants are industrial systems designed to separate atmospheric air into its primary components: oxygen, nitrogen, and argon. These plants use cryogenic and non-cryogenic processes to achieve high purity levels for industrial applications.
Their applications include metal production, energy processing, chemical synthesis, and medical oxygen generation for healthcare facilities. The report scope covers processes, gas types, and end-use industries including iron and steel, oil and gas, chemicals, and healthcare.
The global air separation plant market size was valued at USD 5.57 billion in 2024 and is projected to grow from USD 5.81 billion in 2025 to USD 8.05 billion by 2032, exhibiting a CAGR of 4.78% during the forecast period.
The market is growing due to a high demand from the iron and steel industry and rising preference for high-purity rare gases, including argon, neon, krypton, and xenon, in electronics, semiconductors, and specialized manufacturing applications.
Major companies operating in the air separation plant market are Linde PLC, Air Liquide Engineering & Construction, Air Products and Chemicals, Inc., MITSUBISHI HEAVY INDUSTRIES, LTD., Messer, INOX-Air Products Inc., MATHESON Tri-Gas, Inc., POSCO Holdings Inc., Universal Industrial Gases, LLC, Cryostar, NIKKISO, Sanghi Oxygen, Honeywell International Inc., AIR WATER INC., and Technex.
The increasing use of low-carbon electricity in air separation procedures to reduce carbon footprint is further supporting market growth. Operators are making use of solar and wind power to supply electricity for energy-intensive processes.
This supports sustainability targets and aligns with global emission reduction initiatives. Investments in green energy-powered facilities are expanding, enabling producers to achieve lower operational emissions while maintaining high production efficiency.
Growing Demand from the Iron and Steel Industry
The increasing demand from the iron and steel industry is a major driver of the market. The growth in global steel production, supported by infrastructure projects and industrial development, is creating strong demand for continuous oxygen supply.
Oxygen is a critical input in steel manufacturing, particularly for blast furnace operations and basic oxygen furnaces, where it supports combustion and impurity removal. This rising requirement establishes air separation plants as an essential component in ensuring efficient and large-scale gas production for steelmaking operations.
High Capital Investment Limiting New Installations
A major challenge in the air separation plant market is the substantial capital investment required for setting up and maintaining these facilities. Building large-scale cryogenic units involves significant costs for equipment, land, and advanced safety systems, which restricts new entrants and makes expansion difficult.
This financial burden slows capacity addition and impacts overall market growth. To overcome this challenge, companies are focusing on modular plant designs, leasing options, and strategic partnerships to share investment costs. Businesses are also adopting build-own-operate models to reduce upfront expenses and ensure long-term returns.
Shift Toward High-Purity Rare Gas Production
The market is witnessing a notable shift toward high-purity rare gas production. Gases such as argon, neon, krypton, and xenon are increasingly used in advanced electronics, semiconductor manufacturing, and lighting applications.
These gases support critical processes that demand ultra-high purity levels. This trend is driving plant operators to adopt advanced cryogenic separation technologies and invest in specialized systems for precise extraction and purification of these rare gases.
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Segmentation |
Details |
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By Process |
Cryogenic, Non-cryogenic |
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By Gas |
Oxygen, Nitrogen, Argon, Others |
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By End-use Industry |
Iron & Steel, Oil & Gas, Chemical, Healthcare, Others |
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By Region |
North America: U.S., Canada, Mexico |
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Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe |
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Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific |
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Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa |
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South America: Brazil, Argentina, Rest of South America |
Based on region, the global market has been classified into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
Asia Pacific air separation plant market share stood at 47.60% in 2024, with a valuation of USD 2.65 billion in the global market. The region's dominance can be attributed to a strong demand from the iron and steel industry in China, India, and Japan, driving large-scale consumption of industrial oxygen for steelmaking.
The growing presence of integrated steel plants combined with long-term industrial gas contracts is ensuring consistent capacity utilization. Rapid industrialization and infrastructure development have also accelerated steel production, creating a sustained requirement for high-capacity air separation units in the region.
North America is poised to grow at a CAGR of 4.67% over the forecast period. This growth is driven by new air separation projects and high capital investments by major industrial gas companies to meet rising demand from energy, chemical, and healthcare sectors.
The construction of advanced facilities in the United States and Canada is enhancing production capacity and improving supply chain resilience for critical industrial applications. Global players investing in large-scale projects and strategic partnerships are also accelerating market expansion in the region.
Key players in the air separation plant market are prioritizing capacity expansion and geographic diversification to strengthen their competitive position. Market participants are commissioning new large-scale facilities and modernizing existing plants to enhance operational efficiency and ensure reliable supply.
Strategic investments in high-growth regions are being done through long-term agreements and partnerships, enabling local presence and operational resilience. These initiatives are focused on addressing increasing demand for industrial gases while securing a sustainable foothold in key regional markets.
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