Air Separation Unit Market Size – By Process, By Gas, By End Use, Analysis, Share, Growth Forecast, 2025 – 2034

Air Separation Unit Market Size

The global air separation unit market was valued at USD 6.1 billion in 2024 and is estimated to grow at a CAGR of 4.3% from 2025 to 2034. Air separation units are certain to witness a rapid surge in demand, and in turn a rapid boost in the ASU market over the forecasted period owing to the escalating demand for industrial high-grade gases coupled with sustainable techniques. The product adoption across various industries where technologies related to wind energy and electric vehicles is used have significantly boosted the demand for these gases, and this combined with the overall industrial growth has bolstered the ASU market.
 

Automation systems combined with alternatively efficient processes have created robust competitive landscape and the introduction to cost effective solutions has further improved the product feature across industries. In addition, use of compact, modular and smaller ASUs is likely to be more in demand in light of architectural and environmental considerations, and a shift towards greener production methods, thus complementing the industry outlook.

Air Separation Unit Market Trends

The market is witnessing transformation owing to the increasing need for integrated smart systems that assist in remote monitoring and predictive maintenance. Expansion in hydrogen production, specifically through steam methane reforming (SMR) and electrolysis, also serves as an important growth factor. The wider demand for these processes has resulted in a greater requirement for ASUs for nitrogen supply. Furthermore, international efforts pushing for sustainability have intensified the search for greener operating solutions. ASUs have undergone substantial alternations to meet environmental legislative regulations while also ensuring economic efficiency through energy conservation programs. ASU demand is increasing as industrial sectors expand and become diverse and a growing need for dependable, high-quality gasses together with a continuing focus on improving operational efficiency, sustainability, and lowering costs for a range of different uses will further proliferate the market growth over the forecast timeline.
 

Air Separation Unit Market Analysis

The cryogenic air separation unit industry is predicted to surpass USD 6.5 billion by 2034. This growth will be fueled by the increasing industrial demand coupled with the rising need for hydrogen production. There has been a greater adoption of cryogenic processes over Air Separation Units owing to the rising demand for industrial oils in the steel, electronics and healthcare industry. Furthermore, cryogenic ASUs are still preferred in other applications as they offer high purity gas manufacturing.
 

The nitrogen gas market will show an upward trend with over 4.1% CAGR by 2034. There is an increasing application of nitrogen gas across end use industries due to its high demand in various industrial sectors including, chemical, food and beverage, and electronics industry. ASUs are evolving to fulfill the requirements of these diverse industries, which in turn is increasing the adoption of nitrogen. ASUs enable the customization of nitrogen gas for different levels of purity which is a shift that different industries are considering as they all use the product for different purposes.
 

The U.S. air separation unit market is estimated to exceed USD 1.3 billion by 2034. The increasing concern towards carbon footprint and industry adherence in managing environmental policies have been shifting the market landscape, moving towards sustainability and environmental friendliness. The producing hydrogen market would require ASUs to grow which is also a factor for the industry expansion across the country. Moreover, the requirements of high purity medical gases including oxygen, especially in hospitals and other facilities that require medical gases supply systems, have contributed to the increased installation of ASUs, given the steady and standard supply of medical gases.
 

Asia Pacific’s air separation unit market is changing rapidly owing to the commitment of the region towards climate change and sustainability. The industrial development in the region is growing at a fast pace and so is the requirement for gases like oxygen, nitrogen and argon that are used in steel, electronics, and healthcare industries. As a result, the deployment of ASUs across the region during the given period will grow in pace to fulfill the rising demand.
 

Air Separation Unit Market Share

The air separation unit industry includes a number of both new and expanding companies which include Air Liquide, Linde, and Air Products and Chemicals, among others having extensive geographical presence along with strong clientele projects. The presence of this competition is beneficial for the market as it helps foster a spirit of innovation in the market as technological solutions continue to advance.
 

Air Separation Unit Market Companies

Major players operating in the air separation unit industry are:

• Air Liquide
• Air Products and Chemicals
• Cryotec Anlagenbau
• Kaifeng Air Separation Group
• Linde
• Messer
• Praxair Technology
• Ranch Cryogenics
• Sichuan Air Separation Plant Group
• Taiyo Nippon Sanso
• Universal Industrial Gases
• Yingde Gases
   

Air Separation Unit Industry News

• In October 2024, Linde came into an agreement to decapitate Air Separation Units and to increase its supply of industrial gases to Tata Steel in India. With Linde’s vision of becoming a renowned industry in India, it has formed a continuing-term partnership with Tata Steel to provide the industry with oxygen, nitrogen, and argon. This move in the industry will boost Linde’s market position in the country along with contributing to the market growth.
   
• In September 2024, Air Liquide announced to secure a long-term contract with Wanhua Chemical Group located in Yantai China, for which they will be investing a sum of over USD 60 million to acquire and operate an ASU. Also, the company will invest in a liquefied argon production unit utilized for supplying the Industrial Merchant markets across Yantai and Shandong province, set up by Air Liquide Engineering and Construction. The mutually beneficial long-enduring contract will provide opportunities for the company to strengthen their operations across the Shandong province by commencing the supply of industrial and medical gases across Yantai.
   

This air separation unit market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2021 to 2034, for the following segments:

Market, By Process

• Cryogenic
• Non-Cryogenic

Market, By Gas

• Nitrogen
• Oxygen
• Argon
• Others

Market, By End Use

• Iron & Steel
• Oil & Gas
• Healthcare
• Chemicals
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada 
• Europe
  • Germany
  • France
  • UK
  • Spain
  • Italy
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
• Latin America
  • Brazil
  • Argentina