Procurement Market Intelligence Report
Industrial Use Gases
Sourcing Guide & Market Intelligence
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Industrial Use Gases Global Overview
Definition
Summary
Industrial use gases are manufactured for industrial purposes. Industrial use gasses are used across a variety of industries and key buyers include steel companies, pharmaceutical firms and government organizations. Industrial use gases include hydrogen-compound gases, chlorinated-mixed gases, ammonia, carbon dioxide, nitrogen, industrial air, inert gas mixtures, hydrogen sulfide, carbon monoxide, dry ice and liquid ammonia.
This Report Includes:
- Nitrogen, Industrial Air, & Inert Gas Mixtures
- Hydrogen Sulfide & Carbon Monoxide
- Dry Ice & Liquid Ammonia
- Hydrogen-Compound Gases & Chlorinated-Mixed Gases
- Ammonia & Carbon Dioxide
Not in this Report:
- Oxygen
- Helium
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Global Industrial Use Gases Procurement Trends
Discover the top international trends affecting procurement in the global Industrial Use Gases market.
Warning Trends
Tariffs to negatively impact chemicals industry
- The Trump Administration’s reciprocal tariffs, which apply general tariff rate increases to most leading US trade partners in August, and raised tariffs on specific chemicals like branded and patented pharmaceutical products to 100.0% in October. These changes will significantly increase the tariff rate on leading chemical exporting countries, including the European Union (15.0%), Canada (35.0%), China (54.0%), Singapore (10.0%), and India (25.0%).
- Certain chemicals, including polyethylene, polypropylene, polyethylene terephthalate, phenols, ethylene, and titanium dioxide, are exempt from tariffs. However, according to Chemical Processing Magazine, tariffs, in general, are expected to add 2.0% to 5.0% to overall expenses for US chemical producers due to higher steel and equipment costs, as well as rising supply chain risk.
- China is a major supplier of chemicals to the United States, estimated to account for around 11.0% of total imports, according to the US Chamber of Commerce. Most of these imports are intermediate products used as inputs in domestic chemical production, meaning the tariffs will still impact chemical suppliers with US manufacturing operations.
- According to the Society of Chemical Manufacturers and Affiliates (SOCMA), the higher US tariff rate on imports of chemicals will disrupt supply chains and raise operating costs for domestic chemical manufacturers. Increased input costs are typically passed on to buyers in the form of higher prices.
- The United States is the most important export market for Germany’s chemical industry, and major suppliers like BASF are expected to be negatively impacted by the 15.0% tariff on the European Union member countries. However, chemicals covered under the United States-Mexico-Canada (USMCA) agreement, meaning those produced wholly in Mexico or Canada, will be exempt from tariffs on Canadian and Mexican imports, providing some relief for the highly integrated North American chemicals trade.
The European Commission is proposing the European Supply Chain Act
- Early in 2022, the European Commission (EC) proposed a new law that would impact supply chains throughout the European Union (EU).
- The law consists of provisions requiring companies to identify current and potential negative impacts on human rights and the environment throughout their supply chain and to mitigate these risks.
- Businesses will have to investigate all links of their supply chain, upstream and downstream, and adjust their supply chain to ensure labor rights and environmental standards are not being violated as a result of their operations over the course of two years.
- While many countries have their own national laws similar to the one being proposed by the EC, such as Germany’s German Supply Chain Due Diligence Act, this proposed law supersedes national laws and is stricter in most cases.
Global Industrial Use Gases Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 China | 1,580 |
| #2 Europe | 990 |
| #3 India | 815 |
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Geography Drilldown - US, Canada & Europe
Average Cost of Industrial Use Gases
United States
2026 Market Pricing$80.00 to $XXX.XX
per 74-liter tankCanada
Europe
Average Price
Prices in the Industrial Use Gases market range from $80.00 to $XXX.XX, depending on Type of gas, Purity and Delivery and Storage. For example, lower prices are associated with Common gases (industrial air, carbon dioxide) ($120 to $250 Per 74-liter tank), whereas higher prices are associated with Specialty gases (chlorinated-mixed gases, hydrogen-compound gases) ($450 to $550 Per 74-liter tank).
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Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Industrial Use Gases Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Industrial Use Gases market, prices in the US have grown 2.6% from 2022 to 2025. and --5.3% in Europe.
United States (2022-2025)
Canada (2018-2021)
Compound Annual Growth Rate
Europe (2022-2025)
Compound Annual Growth Rate
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Cost Analysis - Total Cost of Ownership for Industrial Use Gases
Total cost of ownership is Medium in the Industrial Use Gases market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Emergencies may raise the total cost of ownership unexpectedly.
Negotiated Before
Transportation
Set Up Fees
Billed During
Handling
Unforeseen
Emergencies
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to -2.2 in the United States. Buyer power is most positively impacted by Market Share Concentration. It is most negatively impacted by Product Specialization. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Canada
Europe
Buyer power forecasts: your glimpse into the future
Develop strategies for the upcoming year and identify unforeseen opportunities for buying now
- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as High, which has a negative impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Natural Gas Distributors
- Fertilizer Manufacturers
- Coal Distributors
2nd
Tier Suppliers
- Oil Drilling & Gas Extractors
- Chemical Product Manufacturers
- Coal Miners
Biggest Industrial Use Gases Suppliers in the US by Revenue
The largest Industrial Use Gases vendors by revenue in the US are Air Water Inc., Air Products And Chemicals, Inc. and Kinder Morgan, Inc. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Air Products And Chemicals, Inc. | Global | ALLENTOWN, PA | >10,000 | 15-20 | ||||
| L'air Liquide, S.A. | Global | Paris, FR | >10,001 | 20-25 | ||||
| Linde Plc | Global | WOKING SURREY | >10,000 | 25+ | ||||
| Mitsubishi Chemical Holdings Corporation | Global | Tokyo, JP | >10,001 | < 5 | ||||
| Air Water Inc. | Global | Osaka, JP | >10,001 | < 5 | ||||
| Yara International ASA | Global | Oslo, NO | >10,001 | < 5 | ||||
| Kinder Morgan, Inc. | International | HOUSTON | >10,000 | < 5 | ||||
| Coastal Welding Supply Inc. | Regional | Beaumont, TX | 101-250 | < 5 | ||||
| Universal Industrial Gases, Inc. | Local | Bethlehem, PA | 25-50 | < 5 | ||||
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Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Industrial Use Gases market is 7.5% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Overhead. The cost trend for this component is falling, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
Suppliers of natural gas are exposed to a high degree of supply chain risk, primarily stemming from the volatility of gas and electric costs.
Vendors face moderate risk due to the reliance on natural gas. As a result, some risk is passed on to buyers in the form of higher prices.
As a result of high market share concentration, the largest manufacturers have significant pricing power, thereby reducing buyer power.
Regulations are not expected to disrupt prices or the availability of industrial use gases because they are well established. The regulations have been long-standing and are not expected to change significantly.
The United States is a net exporter of carbon dioxide, meaning it exports more carbon dioxide than it imports. Closer proximity to carbon dioxide suppliers may result in shorter lead times, reduced shipping costs, and improved supply chain reliability.
Supplier Information
Air Products And Chemicals, Inc.
Air Products & Chemicals, Inc. is a global provider of essential industrial gases, related equipment, and services to various industries, including refining, chemicals, metals, electronics, manufacturing, and food and beverage. It supplies atmospheric gases, such as oxygen, nitrogen, and argon; process gases,... Subscribe to learn more
L'air Liquide, S.A.
L'air Liquide, S.A. is a public company operating globally in the manufacturing, manufacturing and wholesale trade sectors. The company's offerings include noble & elemental gases, industrial use gases, preservatives, refrigerants, gas pressure regulators. Founded in 1902, the company is currently headquartered... Subscribe to learn more
Linde Plc
Linde plc is a global industrial gas company and a technological innovator in the industrial gas industry. Its primary products in its industrial gases business are atmospheric gases (oxygen, nitrogen, argon, and rare gases) and process gases (carbon dioxide, helium, hydrogen, electronic gases, specialty Subscribe to learn more
Air Water Inc.
Air Water Inc. is a public company operating globally in the manufacturing sector. The company's offerings include industrial use gases. Founded in 1929, the company is currently headquartered in Osaka, Japan with an estimated employee count of over 10,000. Subscribe to learn more
Coastal Welding Supply Inc.
Coastal Welding Supply Inc. is a private company operating regionally in the manufacturing sector. The company's offerings include noble & elemental gases and industrial use gases. Founded in 1963, the company is currently headquartered in Beaumont, Texas, United States of America with an estimated 175 employees.... Subscribe to learn more
Kinder Morgan, Inc.
Kinder Morgan, Inc. is an energy infrastructure company operating in North America. It owns and operates an interest in pipelines, terminals, natural gas storage, oil and gas-producing fields, and facilities for renewable natural gas, liquefied natural gas, and landfill gas-to-electric. Its pipelines transport... Subscribe to learn more
Mitsubishi Chemical Holdings Corporation
Mitsubishi Chemical Holdings Corporation is a public company operating globally in the manufacturing and manufacturing sectors. The company's offerings include noble & elemental gases, industrial use gases, industrial robots, pallet trucks and gas pressure regulators. Founded in 2005, the company is currently... Subscribe to learn more
Universal Industrial Gases, Inc.
Universal Industrial Gases, Inc. is a private company operating locally in the manufacturing sector. The company's offerings include noble & elemental gases and industrial use gases. Founded in 2005, the company is currently headquartered in Bethlehem, Pennsylvania, United States of America with an estimated... Subscribe to learn more
Westair Gases & Equipment, Inc.
Westair Gases & Equipment, Inc. is a private company operating nationally in the manufacturing sector. The company's offerings include noble & elemental gases and industrial use gases. Founded in 1970, the company is currently headquartered in San Diego, California, United States of America with an estimated... Subscribe to learn more
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Procurement Management KPIs for the Industrial Use Gases Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Current Ratio (Assets/Liabilities) and Defect Density. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Safety Compliance and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Current Ratio (Assets/Liabilities) |
|
Current assets Current liabilities |
The current ratio represents a company’s liquidity. The current ratio can be used to determine a company’s ability to utilize its current assets to satisfy its current liabilities. |
| Defect Density |
|
Number of units sold Number of defective units |
The defect density represents the share of defective products a company produces. The defect density can be used to determine whether manufacturing, assembly or quality assurance processes require improvement. |
|
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Environment
How has volatility in electric power prices affected your profit margins in previous years?
When electric power prices are high, in what areas do you cut costs to protect profit margins?
Regulation
How do you keep up to date on industrial use gas regulations? What percentage of revenue is spent on compliance?
Will compliance with regulations cause problems regarding my ability to receive my products on time?
Supply Chain Risk
Where do you source your raw materials from?
Do you source materials with high exposure to market disruptions resulting from the coronavirus? How are you coping with these disruptions?
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Industrial Use Gases RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should describe their operations, including what type of business they operate.
Buyers should provide the contact information of the person overseeing the award.
Statement Of Need
Buyers should specify all types of gases they require, including their applications.
Buyers should state whether they require any cylinders as part of the contract.
Project Budget
Buyers should state the total dollar amount allocated to the project but should also inform suppliers that there will still be a bidding process wherein suppliers are encouraged to submit lower prices.
Buyers should inform suppliers that prices cannot go above the agreed-upon prices after the contract has been awarded and finalized, regardless of how the market changes.
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Our Reports include:
- Opportunity assessment
- Market dynamics
- Recent developments
- Positive and warning trends
- Buyer power levers
- Price environment and market pricing
- Geographic wage rates
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- Total cost of ownership
- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
