How packaged gas is sold around the world

Packaged gas is the backbone of the industrial gases industry. It supplies oxygen, acetylene, argon, and carbon dioxide, plus specialty gases and much more, in high-pressure cylinders and small tanks to hundreds of thousands of businesses across the world.

Small-volume gas storage lies at the heart of the industry and substantially shapes its public profile. Everything from power welding shops to science laboratories, breweries to hospitals, plus myriad small-scale manufacturers, are using cylinders or microbulk tanks to maintain crucial gas supply.

At the same time, behind every vessel lies a supply network that varies substantially from region to region. From the indepedendent distributors active in the US to the majors’ direct-delivery dominance in parts of Europe, and the mixed up models seen in Asia and Latin America, the global packaged gases market is anything but uniform.

What unites these regions and varied contexts is a common drive for tighter logistics, safer tracking and evolving ownership models, even if the players and the value chains differ from place to place. Digitisation, vending solutions and rent-free cylinders for more infrequent users are beginning to reshape the end-user experience, but with efficiency gains and data-driven transparency the watchword everywhere.

Let’s put this crucial market in perspective, before we dive in. The global industrial gases market was valued at $94.25bn in 2024 and is projected to reach over $167bn by 2030. Packaged gas is estimated to account for around one third of that total – but, crucially, in terms of numbers of end-users this third easily represents the vast majority of the world’s businesses that put gases to work.

Now let’s walk you through how things work in different jurisdictions. What follows isn’t comprehensive but is our attempt to give you a strong flavour of the global picture and how it shapes.

North America

North America represents the largest slice of the global industrial gases market, valued at around $31.9bn in 2024. The US dominates, with more than 1,500 production facilities and a market worth approximately $27.7bn. These facilities include large air separation units for air gases production, hydrogen and CO2 plants, and other gas production sites. Cylinder filling depots – fill plants – are typically not counted as production facilities in this context.

Packaged gases are a big slice of this picture. In the US and Canada, it represents around 28% of a $29.8bn market, equating to more than $8.5bn in cylinder-based sales, led by nitrogen, industrial oxygen, medical oxygen, hydrogen and CO2, according to market research company IMARC Group.

This is a decentralised, distributor-driven model. Walk into a welding supply store in the US Midwest and you might be dealing with a fourth-generation family-run distributor, refilling cylinders in-house and delivering to local farms, garages and workshops. Or that same gas might come from a major via a wholly owned subsidiary. Both models and plenty of others are at work.

A report from independent global bank Harris Williams estimated 800 to 900 independents in the US a few years ago. Industry sources consistently say independents still command roughly 45% to 50% of cylinder gas revenues, despite the ongoing trickle of deals.

Next to this, larger players are active, led by giants like Linde, Air Liquide, Air Products and Messer. Sometimes they sell direct, but in the case of Air Liquide it has Airgas as a channel, while Linde has nexAir.  Collectively the majors pull in 72% of all US gas revenue, according to financial reports. They sell directly to large accounts and sell wholesale gas and bulk liquids to distributors.

Still, independents continue to hold their ground. At the most recent count, GAWDA, the Gases and Welding Distributors Association, still maintained over 550 members, and the Independent Welding Distributors Cooperative, which is a buying group for all of North America, continues to pack a punch through its collective approach.

Linde’s acquisition of nexAir in 2023, a major Southeast-based independent with $400m in sales, showed how there is still appetite from the majors to eat into the market share of independents. The many that remain still continue to thrive by investing in digitisation, by expanding service offerings, by carving out niches in specific industries, and through buy-ups within this market space, with independents buying others when founders retire, for example.

Canada

©WestAirCanada 

Canada’s industrial gas market brought in around $2.05bn in 2024 and uses a mix of direct delivery and third-party distribution. Companies like Air Liquide Canada, Linde Canada and Air Products Canada run nationwide operations, supplying large users directly while also working with independent distributors that support smaller businesses. The independent distributor slice is, however, much smaller proportionally than in the US.

The dual approach that’s in evidence supports a broad customer base, from healthcare and manufacturing to food and beverage, and helps with coverage for more remote areas. Demand is expected to grow steadily, particularly in food and healthcare.

Mexico 

Mexico’s $2.1bn industrial gas market plays a major role in the Latin American region. While detailed figures for packaged gases are limited, strong demand is driven by the country’s industrial base including automotive, construction and manufacturing sectors. Distribution typically combines direct supply by major gas companies with local distributor partnerships, reflecting a hybrid model that blends North American scale with regional adaptability.

There are about 80 to 100 independent distributors in Mexico that between them are reckoned to account for 30% to 40% of the market.

Europe

Europe is one of the most mature packaged gas markets in the world. Its cylinders supply everyone from German carmakers to French hospitals to Spanish food producers. 

Here, packaged gases make up the largest segment of the industrial gases business by value, around 40% according to gasworld Intelligence. While growth is steady rather than spectacular, the region is a leader in operational standards and digitisation.

Delivery is substantially vertically integrated in many markets, but not all. Major suppliers handle production, filling and logistics in-house, meaning cylinders very often come straight from the source.

The big names – Linde, Air Liquide, Air Products, Messer, and Nippon Gases – dominate the landscape, while regional players like Italy’s SOL Group and SIAD are strong in their local market, giving a different spin on what is found elsewhere. 

In southern and central Europe, the model is certainly more fragmented. Italy, for example, retains a dense web of small to mid-sized suppliers. Even as larger firms modernise, these regional operators continue to serve workshops, clinics and vineyards with locally filled cylinders delivered by van.

Asia

Asia is a continent of contrasts and nowhere is that more apparent than in its packaged gas market. From Japan’s hyper-regulated, tech-forward systems to China’s sprawling network of small distributors and South Korea’s agile hybrid approach, Asia shows just how many ways gas can be circulated to end-users.

In Japan, everything is structured, centralised and safety-led. Whether it’s medical oxygen for hospitals in Osaka or high-purity gases for electronics firms in Nagoya, cylinders are managed with clinical precision. Companies like Taiyo Nippon Sanso, Iwatani, Air Water and Air Liquide Japan run tightly integrated supply chains, handling production, filling and delivery with little left to chance.

Most end-users are served directly, while affiliated dealers cover harder-to-reach regions. Independent distributors are rare, partly due to the demands of the country’s strict High Pressure Gas Safety Act. 

Middle East & Africa

In the Middle East and Africa, the packaged gas landscape is as varied as the geography. From the oil-rich Gulf states to the remote goldmines of sub-Saharan Africa, gas cylinders connect industries across regions with vastly different infrastructure and needs.

The region accounts for a smaller slice of global industrial gas revenues, at just 3% to 5%, but it’s growing fast. The Middle East alone was valued at $3.5bn in 2024, driven by demand from

petrochemicals, healthcare, and heavy industry. Africa is catching up, with expanding activity in mining, food processing and medical sectors in certain countries.

In the UAE and Saudi Arabia, major players like Linde, Air Liquide, Air Products, and regional specialists such as Gulf Cryo and Abdullah Hashim Gases dominate large-scale supply. Delivery is often direct to major accounts, particularly in energy and healthcare, while smaller clients rely on local dealers for cylinder delivery.

Australasia

Australia and New Zealand may be small in population but when it comes to packaged gases they punch above their weight. From outback mines to urban hospitals and coastal breweries, cylinders and microbulk tanks are integral to keeping industry, medicine and agriculture running smoothly.

The Australasian industrial gas market is valued at around $1.4bn, with packaged gases forming a substantial share, thanks to the region’s heavy reliance on decentralised, cylinder-based supply.

Distribution here is a hybrid model. The majors – BOC (Linde), Air Liquide, and Nippon Sanso Holdings (NSHD) – operate national filling plants and delivery fleets but also rely on hundreds of regional distributors to reach rural and remote areas. That mix of global scale and local coverage is what defines the region.

NSHD now owns Supagas and Coregas, giving it serious reach across both Australia and New Zealand. Supagas, with over 58 locations, focuses on packaged gases and dry ice, while Coregas adds production muscle and cross-border capabilities. LPG-focused players like Elgas and Kleenheat also have a strong foothold in specialised applications.

Technology adoption is widespread. Most suppliers offer digital ordering portals, while barcodes, RFID tags and telemetry systems track assets, automate refills and streamline delivery. For customers, that means fewer missed drops, less manual handling and tighter control over stock.