Summary

The global medical gas equipment market is experiencing steady growth, driven by increasing surgeries, hospital admissions, and a growing elderly population. This rising demand has created a greater need for equipment capable of accurately and reliably delivering medical gases to patients. Advancements in technology, including the introduction of digital flow meters, remote monitoring systems, and wireless connectivity, are enhancing the efficiency, reliability, and safety of these devices. Environmental factors such as rising pollution levels and increased tobacco consumption have led to a surge in respiratory-related conditions, driving the need for respiratory support systems and boosting demand for medical gas equipment. Respiratory illnesses remain a major challenge for healthcare systems worldwide and contribute significantly to non-communicable disease-related deaths. Asthma, pneumonia, and COPD are the leading causes. Oxygen therapy is used to treat some chronic lung conditions, such as COPD, by reducing the strain on the heart instead of the lungs and preventing pulmonary artery hypertension. Medical gases are used to treat a variety of respiratory conditions and the increasing incidence of these illnesses is driving growth in the medical gases and equipment market. To meet the rising demand for reliable, safe, and effective respiratory care, equipment such as vacuum pumps, alarm systems, flowmeters, manifolds, and others are increasingly being used. According to the data published by American Lung Association, in 2020 approximately 12.5 million people were diagnosed with COPD, further increasing the demand for medical gas equipment. Also, the industry is witnessing the introduction of advanced technologies like wearable respiratory equipment like masks, portable oxygen concentrators, and vacuum systems. As medical gases are essential to several long-term care therapies for chronic diseases, the market is anticipated to grow significantly in the next years. According to the research report "Global Medical gas and Equipment Market Outlook, 2030," published by Bonafide Research, the Global Medical gas and Equipment market was valued at more than USD 17.55 Billion in 2024, and expected to reach a market size of more than USD 26.57 Billion by 2030 with the CAGR of 7.31% from 2025-2030. Medical gases are used in various healthcare facilities, such as clinics, hospitals, ambulatory surgery centers, and home healthcare. Medical gases are widely used and generate revenue due to their adaptability in treating a wide range of medical problems and the diverse healthcare landscape in which they operate. In October 2023, A brand-new air separation unit (ASU) that produces oxygen, nitrogen, and argon, as well as a liquid storage capacity, are all part of the production and distribution infrastructure that Air Liquide will construct, own, and run. Hydropower sources will provide sustainable energy for the new ASU, in line with Air Liquide's ADVANCE strategy to cut CO2 emissions by 33% by 2035. The Bécancour PEM electrolyzer will be connected as part of the project, allowing for the recovery and value-adding of renewable oxygen from hydrogen generation. Equipment manufacturing remains fragmented, with Atlas Copco’s purchase of Air Way providing access to service contracts that ensure recurring pipeline maintenance revenues. Meritus Gas Partners executed three regional distributor acquisitions in 2024, reflecting private equity's appetite for local cylinder distribution networks that complement national supplier footprints. Technology differentiation, especially AI-based predictive monitoring such as Linde’s AIRGENIOUS, strengthens customer lock-in by improving uptime and reducing unplanned cylinder swaps. Market Drivers • Rising Prevalence of Chronic Diseases: One of the primary drivers for the global medical gas and equipment market is the increasing prevalence of chronic respiratory diseases, cardiovascular conditions, and other critical illnesses that require therapeutic gases such as oxygen, nitrous oxide, and medical air. Hospitals, clinics, and homecare setups rely heavily on advanced medical gas delivery systems to provide accurate, safe, and continuous supply to patients. For instance, the growing incidence of COPD, asthma, and COVID-19-related respiratory complications has accelerated the demand for oxygen therapy devices and supporting infrastructure. • Expansion of Healthcare Infrastructure: The expansion and modernization of healthcare infrastructure in emerging economies, including Asia-Pacific, Latin America, and the Middle East, are driving market growth. Governments are investing in new hospitals, specialty clinics, and homecare facilities, which require reliable medical gas supply systems and equipment. Additionally, public-private partnerships are facilitating the installation of centralized gas pipelines, storage solutions, and portable delivery systems in both urban and rural areas. Market Challenges • High Initial Costs and Maintenance Requirements: A major challenge for the global medical gas and equipment market is the high cost associated with the installation, operation, and maintenance of medical gas systems. Hospitals and clinics often need specialized infrastructure, including pipeline networks, storage tanks, and monitoring devices, which require substantial capital investment. Additionally, maintaining safety standards and ensuring regulatory compliance adds ongoing operational costs. • Stringent Regulatory: the medical gas industry is heavily regulated due to the critical nature of its applications. Compliance with stringent regulations on manufacturing, storage, transportation, and usage of medical gases can pose significant challenges for companies. For example, ensuring correct labeling, leak-proof packaging, and safe handling in line with international standards such as ISO, FDA, and EU MDR requires continuous monitoring and investment in quality control. Market Trends • Smart Medical Gas Systems: The market is witnessing a trend toward technologically advanced medical gas delivery systems integrated with digital monitoring and IoT-enabled solutions. Smart ventilators, automated oxygen concentrators, and remote monitoring devices are enabling healthcare providers to enhance patient safety, optimize gas usage, and track consumption in real-time. These innovations improve efficiency, reduce wastage, and offer predictive maintenance, thereby attracting investment from hospitals and homecare providers looking to modernize their facilities. • Shift toward Home Healthcare: another significant trend is the increasing demand for portable medical gas equipment to support home-based care. With the rise in chronic illnesses and post-hospitalization care, patients are increasingly using portable oxygen concentrators, inhalers, and nebulizers. This trend is driving manufacturers to develop compact, lightweight, and user-friendly devices that allow patients to manage their therapy outside clinical settings. Medical gases such as oxygen, nitrous oxide, carbon dioxide, nitrogen, and others dominate the global medical gas and equipment market because they are essential across all critical healthcare applications anesthesia, surgery, diagnostics, and patient care, making them the backbone of modern medical practice. Medical gases form the foundation of the global medical gas and equipment market, as they are indispensable in virtually every area of healthcare, from operating rooms and intensive care units to diagnostic laboratories and home healthcare settings. Among these, oxygen is the most widely used medical gas, serving as a life-sustaining element for patients with respiratory distress, cardiac complications, and various critical illnesses. The global rise in chronic respiratory diseases such as asthma, chronic obstructive pulmonary disease, and pulmonary fibrosis has driven the continuous demand for oxygen therapy. Furthermore, the COVID-19 pandemic underscored the vital importance of oxygen supply, prompting hospitals worldwide to invest in large-scale oxygen generation and distribution systems. Hospitals, clinics, and homecare facilities rely on these gases daily for both life support and therapeutic procedures. Their versatility in application from oxygen therapy in ICUs and emergency wards to nitrous oxide-based anesthesia in operating rooms ensures consistent and widespread demand. In addition, specialty gases like helium, hydrogen, and gas mixtures are increasingly being used in advanced diagnostic imaging, cryogenics, and respiratory treatments, further expanding the product segment’s scope. The integration of centralized medical gas pipeline systems in hospitals has enhanced operational efficiency and patient safety by providing uninterrupted gas supply through advanced monitoring and alarm systems. Geographically, demand for medical gases is robust across both developed and emerging economies. In developed regions such as North America and Europe, the presence of advanced hospitals, aging populations, and increasing surgical volumes drive high consumption rates. Therapeutic applications dominate the global medical gas and equipment market because medical gases are essential for treating respiratory conditions, making them indispensable across hospitals and homecare settings. Therapeutic applications hold the largest share in the global medical gas and equipment market due to the critical role medical gases play in life-saving and disease management procedures. Among these, oxygen therapy is the most prominent, addressing conditions such as chronic obstructive pulmonary disease, asthma, pneumonia, cardiovascular disorders, and post-surgical recovery. The surge in respiratory diseases, accelerated by global events like the COVID-19 pandemic, has emphasized the indispensable nature of oxygen in intensive care units, emergency wards, and homecare setups. Alongside oxygen, other gases like nitrous oxide and medical air are extensively used for anesthesia, pain management, and respiratory support, reinforcing the reliance of therapeutic interventions on medical gas systems. Hospitals and healthcare facilities are increasingly investing in advanced infrastructure to support therapeutic use of medical gases. Centralized gas pipeline systems, bulk storage tanks, and automated monitoring equipment ensure uninterrupted supply and precise control over gas delivery, which is crucial for patient safety and treatment efficacy. Ventilators, oxygen concentrators, nebulizers, and anesthesia delivery systems are all dependent on reliable medical gas supply, making therapeutic applications a key driver for the adoption of related equipment. Increasing aging populations worldwide, rising prevalence of lifestyle-related diseases, and higher incidence of chronic conditions such as COPD, cardiac ailments, and sleep apnea are driving sustained demand for medical gas therapy. Hospitals are the largest end-users in the global medical gas and equipment market because they require continuous and advanced equipment to support critical care and therapeutic applications across diverse departments. Large-scale healthcare facilities are equipped with multiple departments intensive care units (ICUs), operating theaters, emergency wards, and respiratory care units that demand uninterrupted supply of medical gases such as oxygen, nitrous oxide, medical air, carbon dioxide, and specialty gases. These gases are indispensable for life-saving procedures, patient monitoring, anesthesia administration, and therapeutic interventions. The sheer volume of patients treated in hospitals, coupled with the high severity of cases, creates a consistent and high-demand environment for medical gases and the equipment used to deliver them. Many hospitals adopt piped medical gas networks, bulk storage tanks, and automated monitoring systems to ensure safe, reliable, and efficient delivery of gases across departments. Such infrastructure not only enhances operational efficiency but also ensures precise control of gas flow and pressure, critical for patient safety. Additionally, equipment such as ventilators, anesthesia machines, oxygen concentrators, and nebulizers are largely deployed in hospital settings, directly linking the demand for medical devices to the institutional requirement for medical gases. Hospitals are at the forefront of adopting technological innovations in medical gas delivery systems. With advancements such as IoT-enabled monitoring, smart gas delivery systems, and automated alert mechanisms, hospitals increasingly invest in modern infrastructure to optimize patient care and reduce wastage. Regulatory standards and accreditation requirements for hospitals mandating high-quality gas supply, safety protocols, and adherence to international guidelines also drive the purchase and installation of advanced medical gas systems and related equipment. North America is the largest market for medical gas and equipment due to advanced healthcare infrastructure and strong regulatory and government support for critical care and therapeutic applications. North America is home to some of the world’s most developed healthcare networks, including top-tier hospitals, specialty clinics, and research institutions, which rely heavily on medical gases and associated equipment to provide high-quality care. The advanced infrastructure not only enables hospitals to serve large patient populations efficiently but also drives consistent demand for medical gases such as oxygen, nitrous oxide, medical air, carbon dioxide, and specialty gases, positioning North America as the dominant market region. The high prevalence of chronic and acute diseases, including respiratory disorders, cardiovascular conditions, and post-surgical requirements, further contributes to the region’s market dominance. Oxygen therapy, ventilator support, anesthesia delivery, and pain management therapies are in constant demand due to the growing aging population, high incidence of lifestyle-related illnesses, and increasing cases of respiratory infections. Government policies, regulatory frameworks, and reimbursement mechanisms in North America also play a pivotal role in market growth. Strict safety standards and guidelines issued by organizations such as the U.S. Food and Drug Administration (FDA) and Health Canada ensure that medical gases and equipment meet high-quality benchmarks, fostering market confidence and encouraging adoption of technologically advanced solutions. Favorable reimbursement policies for home healthcare therapies, including oxygen therapy and portable medical gas systems, facilitate adoption beyond hospital settings, further expanding market potential. The region is also a hub for innovation, with major manufacturers launching new, sophisticated medical gas systems, smart delivery devices, and IoT-enabled monitoring solutions that improve patient safety, reduce wastage, and optimize clinical outcomes. • February 2025: Linde announced record wins for small on-site solutions in 2024, signing 59 long-term agreements to build and operate 64 nitrogen and oxygen plants, driven by electronics manufacturing growth and decarbonization initiatives. • January 2025: Air Liquide expanded low-carbon medical gas supply to hospitals in Europe and Brazil, reflecting growing demand for sustainable medical gas solutions in healthcare settings. • January 2025: Messer announced plans to invest over USD 70 million in air separation operations in Berryville, Arkansas, creating more than 20 jobs with production beginning in the second half of 2026. • October 2024: Linde signed agreements to de-captivate two air separation units and expand industrial gas supply to Tata Steel Limited in India, more than doubling on-site capacity while serving local merchant markets. • June 2024: Messer Group GmbH (Germany) acquired the Federal Helium System, including the Federal Helium Reserve, Cliffside Field, its gathering and well system, and other operational assets. • February 2024: Argosy Healthcare Partners, a lower middle market private equity fund dedicated to healthcare, and a division of Argosy Capital Group, Inc., a diversified investment firm managing $3.3 billion in assets, disclosed a recapitalization and collaboration with Command Medical Products. • December 2023: Technik Spirits Inc. received a patent for its new medical gas systems used in hospitals. These systems produce important gases like Medical Air, Vacuum, and Oxygen, which are essential for supporting life and carrying out medical procedures.