Cryogenic Air Separation Unit Market Size - By Gas, By End Use, Analysis, Share & Forecast, 2025 - 2034

Cryogenic Air Separation Unit Market Size

The global cryogenic air separation unit market was valued at USD 4.2 billion in 2024 and is estimated to reach the value of USD 6.7 billion by 2034, growing at a CAGR of 4.7% from 2025 to 2034. Rising demand from steel, chemical, and manufacturing industries drives the market growth. Rapid industrial growth in developing countries is increasing the need for gases, including oxygen and nitrogen, leading to more investments in facilities that separate these gases from the air to support production growth.
 

In citation, in 2024, China continued to be the world's largest steel producer, creating 1,005.1 million tons of crude steel, which is more than half of the global production. The process of making steel using a basic oxygen furnace uses about 55 cubic meters of oxygen for each ton of steel. This means they need over 55 billion cubic meters of oxygen annually, driving Chinese steel mills to place orders for new large-scale cryogenic air separation units (ASUs) to secure a stable, high-purity oxygen supply.
 

The shift to clean energy solutions, including hydrogen fuel and liquefied natural gas, is increasing the need for specialized cooling units. These technologies rely on very pure gases, leading energy companies to adopt efficient systems to separate air for sustainable production and storage. For instance, in 2024, the UK government provided up to USD 40 million in funding for the HyNet low-carbon hydrogen project in North-West England. A major part of this project is installing a unit that produces 200 tons per day to supply oxygen for blue hydrogen production, aiming to have the hub operational by 2026.
 

The COVID-19 pandemic has pointed out the need for reliable medical oxygen supplies in healthcare facilities around the world. As populations age and healthcare facilities expand, more systems are being installed to provide essential gases continuously. India's Ministry of Health & Family Welfare has increased its budget by 14% for 2024–25 to improve medical oxygen infrastructure. This includes storage and delivery systems in hospitals and community health centres across the country.
 

Companies are upgrading old systems to eco-friendly, high-capacity models, boosting market growth, meeting stricter environmental rules, and improving scalability across various industries. For instance, in 2024, the European Commission announced USD 4.1 billion in funding for projects aimed at reducing carbon emissions. One such project is GeZero in Germany, which will build a 2nd-generation oxyfuel cement kiln integrated with a new cryogenic ASU, a CO? liquefaction unit, and rail-loading station.
 

President Trump’s import tariffs in April 2025, with higher rates for select countries, raise costs for critical components including specialty steel, compressors, and rare-earth metals used in cryogenic units. Manufacturers may absorb expenses or hike prices, slowing industrial adoption in sectors including healthcare and steel. However, tariffs could spur U.S. production of air separation technologies, incentivizing domestic suppliers to innovate cost-efficient alternatives. Market investments may stall amid trade policy volatility, delaying upgrades or expansions until supply chains stabilize.
 

Cryogenic Air Separation Unit Market Trends

Industries are increasingly favoring small, adaptable cooling units for their flexibility and cost-effectiveness. These systems are perfect for remote areas and small operations, as they cut down installation time and expenses while meeting varied gas needs in fields including healthcare and electronics manufacturing. For instance, in 2024, the European Commission approved the IPCEI Hy2 Infra project, allocating USD 7.8 billion of public funding for modular cryogenic ASUs across seven Member States to scale up hydrogen infrastructure.
 

The combination of the IoT and AI is transforming cryogenic unit operations by using smart sensors for real-time monitoring, predicting maintenance needs, and managing energy, which reduces downtime and operational costs. Automation improves safety and accuracy in gas production, making it appealing to technology-focused industries. For instance, in 2024, the U.S. Department of Energy announced up to USD 36.8 million in funding for fiscal year 2025 to support digital twin technology and AI-driven predictive maintenance for cryogenic air separation units.
 

A growing emphasis on energy-efficient designs is aiding reducing carbon emissions and minimizing environmental impact in the gas production industry. Companies are using renewable energy and recycling waste heat to align with global climate goals. These eco-friendly innovations are appealing to industries aiming to comply with stricter environmental rules. For instance, in 2024, the EU Innovation Fund awarded USD 22.7 million to Austria's H2FUTURE project for renewable-powered air separation units that recover waste heat at the Voestalpine steel plant in Linz.
 

Rapid industrial growth in the developing regions is increasing the need for systems that separate gases at extremely low temperatures. The rise in building projects, along with growing healthcare and electronics industries, is leading to more investments to ensure a steady supply of gases for manufacturing and medical use. For instance, in 2024, Ghana's national plan for surgery and anaesthesia highlighted the need to install oxygen plants in all 16 regional hospitals to ensure a reliable supply of medical gases.
 

Cryogenic Air Separation Unit Market Analysis

• The global market for cryogenic air separation unit was valued at USD 3.9 billion, USD 4.1 billion, and USD 4.2 billion in 2022, 2023 and 2024, respectively. The gas segments include nitrogen, oxygen, argon, and others.
   
• The nitrogen segment was valued at USD 1.9 billion in 2024. Nitrogen is popular in the market owing to its widely used in chemicals, food packaging, and electronics. Its non-reactive nature helps prevent rust, air-driven systems, and keep food fresh, leading to a steady demand for pure nitrogen from cooling units. For instance, in 2023, global ammonia production reached about 150 million tons of nitrogen, supporting the fertilizer, chemical, and industrial gas industries.
   
• The oxygen segment is estimated to grow at a CAGR of 3.2% through 2034. After the pandemic, the demand for medical oxygen continues to be strong, driven by healthcare needs and industries including steelmaking and chemicals. For instance, in 2024, Kenya's Ministry of Health announced a plan to buy, set up, and start six large medical oxygen systems (totaling 840,000 liters) in hospitals across the country.
   
• The argon segment is estimated to reach USD 1.4 billion by 2034. Its ability to create non-reactive environments for precise processes, along with the increase in solar panel production, is driving demand. According to the USGS MCS 2024 report, argon is obtained as a by-product of cryogenic air separation, now often used instead of helium in welding, metalwork, semiconductor manufacturing, and making glass for solar panels, showing growth in detailed manufacturing processes.
   

• Based on end use, the cryogenic air separation unit market is segmented into healthcare, iron & steel, oil & gas, chemicals, and other. The healthcare segment has a market revenue share of 24.6% in 2024. Since the pandemic, hospitals and home-care facilities emphasize maintaining a reliable oxygen supply.
   
• Rising elderly populations and expanding healthcare systems are increasing installations of cooling units to meet higher medical gas demand. For instance, in 2024 the Department of Health Baguio General Hospital, Philippines issued RFQ No. 2024-017-EPA-LIQUID-OXYGEN for the procurement of cryogenic liquid oxygen (≥99.5% purity) with 10,000 Liter storage tanks per unit.
   
• Iron & steel segment is estimated to grow over a CAGR of 4.3% till 2034. Cryogenic units are crucial for providing oxygen in steel production processes, including blast furnaces and converters. The growing demand for infrastructure and automobiles is boosting steel production, which in turn increases the need for oxygen. For instance, in 2024, India's steel production capacity reached 179.52 million tons per year, requiring about 9.9 billion cubic meters of oxygen.
   
• Oil & gas market revenue was valued at USD 625 million in 2024. With the increase in LNG production and shale gas activities, the need for high-purity nitrogen is growing, as it is essential for refinery operations and reducing the risk of combustion in unstable environments. For instance, under May 2024 amendments to the FSS Code, IMO requires oil and gas tanker ships to install inert gas systems, boosting global demand for high-purity nitrogen from cryogenic ASUs.
   
• Chemical segment is estimated to have a revenue share of over 23% in 2034. The increasing demand for fertilizers, petrochemicals, and specialized chemicals is boosting the need for these gases. Cryogenic systems enable efficient, large-scale gas production, meeting industry needs for scalability and compliance with safety and environmental standards. For instance, in 2024, Linde Engineering signed a contract with Perdaman Industries to supply a 63,000 Nm³/h cryogenic ASU and 392,000 Nm³/h nitrogen wash unit for Australia.
   

• The U.S. cryogenic air separation unit market in 2022, 2023 and 2024 was valued at USD 600 million, USD 620 million, and USD 640 million, respectively. North America’s shale gas and hydrogen energy growth drives industrial demand for cryogenic ASU installations, particularly in remote industrial zones.
   
• This growth is also fueled by the increasing need for nitrogen production in various industries including healthcare and agriculture. For instance, according to the EIA, in 2024 U.S. dry natural gas production averaged 113 Bcf/d, underpinning nitrogen inserting for LNG and pipelines. DOE’s Regional Clean Hydrogen Hubs include large ASUs.
   
• The Europe cryogenic air separation unit market is expected to grow at a CAGR of over 2.8% through 2034. Europe’s green energy transition and steel sector decarbonization are driving up oxygen demand. While EU policies prioritize hydrogen and LNG, spurring significant investments boosting cryogenic unit investments. For instance, in 2014, the EU approved a grant of USD 1.4 billion German state aid for the hydrogen-based decarbonization of the steel plants of Bremen and Eisenhüttenstadt by ArcelorMittal, which will create additional demand of oxygen from cryogenic ASUs.
   
• The Asia Pacific cryogenic air separation unit market is likely to exceed USD 2.8 billion by 2034. Rapid industrialization in China, India, and Southeast Asia has propelled the market growth. Government infrastructure projects and medical oxygen needs with post-pandemic accelerated installations are making APAC the fastest-growing region. For instance, China produced 1,005.1 Mt of crude steel in 2024 over 55 billion Nm³ O? demand, while India’s NHM budget rose 14% to USD 4.1 billion for 191 district-level cryogenic oxygen plants.
   
• The Middle East & Africa cryogenic air separation unit market was valued at USD 335 million in 2024. Large scale infrastructure projects in the GCC countries drive steel production and subsequently increase demand for cryogenic air separation units. Along with economic expansion into healthcare and technology has driven argons and oxygen demand. For instance, in 2024, Air Products, Aramco, ACWA Power and Qudra reached financial close on a USD 12 billion ASU/Gasification/Power JV at Jazan Economic City, Saudi Arabia, supplying oxygen, nitrogen and argon.
   
• Latin America cryogenic air separation unit market is expected to have a market revenue share of over 8.9% in 2034. Chile’s copper mining and Brazil’s steel exports rely on oxygen for smelting, with post-pandemic healthcare upgrades in Mexico and Colombia has boosted medical gas demand. For instance, in 2024, Colombia’s INVIMA Resolution 2718 mandated medicinal oxygen gas (≥99.5% purity) be produced exclusively via cryogenic ASUs, prompting healthcare networks to install or upgrade modular separation units nationwide.
   

Cryogenic Air Separation Unit Market Share

The top 4 companies in the cryogenic air separation unit industry are Linde plc, Air Liquide, Air Products and Chemicals, Inc. These companies collectively hold approximately 25% of the market share. These companies provide high-purity industrial gases including oxygen, nitrogen, and argon, meeting the growing demand for efficient and sustainable gas production solutions across diverse applications.
 

Linde plc specializes in designing and operating cryogenic air separation units (ASUs) that produce high-purity oxygen, nitrogen, and argon for industries including steel, healthcare, and electronics. In 2024, Linde introduced an advanced ASU with enhanced energy efficiency, reducing power consumption by 10% compared to previous models, aligning with global sustainability goals.
 

Cryogenic Air Separation Unit Market Companies

• Air Liquide, based in France, reported revenue of USD 29.8 billion in 2024. Air Liquide provides cryogenic ASUs for the healthcare, chemical, and energy sectors. Its Smart Innovative Operations (SIO) technology, enhanced in 2024, uses real-time data analytics to optimize performance of ASUs, resulting in improved energy efficiency of up to 15%.
   
• Air Products and Chemicals, Inc., headquartered in U.S., reported revenue of USD 12.1 billion in 2024. The company is famous for operating large-scale cryogenic ASUs catering to the electronics, metallurgy, and food processing industries. Its AP-DMR (Dual Mixed Refrigerant) ASU technology was launched in 2023, allowing for efficient gas separation while minimizing operational costs.
   
• Messer, based in Germany, recorded revenue of USD 4.8 billion in 2024. Messer provides compact and modular ASUs tailored for mid-sized industrial and healthcare applications. In 2024, Messer introduced its EcoVap technology, which minimizes energy consumption in ASUs by optimizing vaporization processes. With a growing footprint in Eastern Europe and Asia, Messer’s emphasis on customized solutions and sustainability.
   

Some of the key players operating across the cryogenic air separation unit market are:

• Air Liquide
• Air Products and Chemicals, Inc.
• AIR WATER INC
• AMCS Corporation
• CRYOTEC Anlagenbau GmbH
• Enerflex Ltd.
• KaiFeng Air Separation Group Co., LTD.
• Linde plc
• Messer
• Praxair Technology, Inc.
• Ranch Cryogenics, Inc.
• Sichuan Air Separation Plant Group
• TAIYO NIPPON SANSO CORPORATION
• Technex
• Universal Industrial Gases, Inc.
• Yingde Gases
   

Cryogenic Air Separation Unit Industry News

• In March 2024, Yingde Gases entered a strategic partnership with a leading Chinese chemical manufacturer to supply gases via a new cryogenic air separation unit in Shandong Province. The ASU will provide high-purity nitrogen and oxygen for chemical production, with a focus on energy-efficient operations.
   
• In June 2024, TAIYO NIPPON SANSO CORPORATION, a subsidiary of Nippon Sanso Holdings, announced a contract to supply a cryogenic air separation unit to a major steel manufacturing facility in India. The ASU will produce high-purity oxygen and nitrogen to support steel production processes, addressing the growing demand in India’s industrial sector.
   
• In August 2023, Universal Industrial Gases, Inc. secured a supply order to design and deliver a cryogenic air separation unit for a semiconductor manufacturing facility in South Korea. ASU is tailored to produce ultra-high-purity nitrogen for wafer fabrication, meeting the stringent requirements of the electronics industry.
   
• In October 2023, AIR WATER INC announced the expansion of its industrial gas operations in Southeast Asia, with the commissioning of a new cryogenic air separation unit in Malaysia. The facility is designed to supply oxygen, nitrogen, and argon to the electronics and manufacturing industries, supporting the region’s rapid industrialization.
   

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

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