Air Separation Unit Market Size & Share 2026-2035
Market Size By Process (Cryogenic, Non-Cryogenic), By Gas (Nitrogen, Oxygen, Argon, Others), By End Use (Iron & Steel, Oil & Gas, Healthcare, Chemicals, Others). The market forecasts are provided in terms of value (USD).
Report ID: GMI7018
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Published Date: April 2026
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Report Format: PDF
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Authors:
Ankit Gupta, Shashank Sisodia
Air Separation Unit Market Size
The global air separation unit market was estimated at USD 6.3 billion in 2025. The market is expected to grow from USD 6.6 billion in 2026 to USD 9.6 billion by 2035, at a CAGR of 4.2%, according to a recent study by Global Market Insights Inc.
Air Separation Unit Market Key Takeaways
Market Size & Growth
Regional Dominance
Key Market Drivers
Challenges
Opportunity
Key Players
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. For instance, in March 2026, Nikkiso commissioned ASU for Coregas in Queensland, Australia. The new project will expand the supply capacity for specialty, industrial, and medical gas markets.
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.
For reference, in November 2025, Air Liquide inaugurated a new large modular air separation unit in Geismar, Louisiana, U.S. The new facility or the ASU unit represents a substantial investment along with a significant rise in the company’s production capacity. In addition, this will serve the region’s expanding industrial base across North America.
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.
In November 2025, Praxair, an industrial gas company in India decided to invest USD 24 million on a cryogenic ASU to produce liquid oxygen & nitrogen across the state of Karnataka. The company signed a MoU with the Karnataka state government, with the investment set to begin in the current financial year.
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 alterations 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 gases 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.
For reference, in April 2026, Messer in Germany that produces industrial & medical gases obtained a permit to build a new for over USD 60 million facility in the Ghent port area. The project includes the construction of an air separation plant located across Evergem.
Air Separation Unit Market Analysis
Based on process, the market is segmented into cryogenic and non-cryogenic. The cryogenic air separation unit industry will reach at USD 7 billion by 2035. 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. For instance, in February 2026, Messer and Aurubis launched an advanced air separation plant in Lunen. This will boost efficiency, security supply, and sustainable metal recycling operations.
Based on gas, the air separation unit market is categorized into nitrogen, oxygen, argon, and others. The nitrogen gas witnessed a market share of 37.7% in the year 2025. 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.
For instance, in June 2025, Linde signed a long-term agreement to supply industrial gases to a world scale low-carbon ammonia facility in Louisiana, U.S. The agreement with Blue Point Number One, being a joint venture between CF Industries, Mitsui & Co. & JERA will supply industrial gases to Blue point’s 1.4 million metric tons low-carbon ammonia plant in Ascension Parish, Louisiana.
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 was valued at USD 900 million in the year 2025. 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.
For instance, in July 2025, Linde announced new investment plans to support the commercial space industry in the U.S. by supplying gases to them. The company will expand its industrial gases facility in Mims, Florida to provide with liquid oxygen & nitrogen to support rocket launches at space facilities. In addition, the company will build, own, and operate a new ASU in Brownsville, Texas, under a separate agreement.
Asia Pacific’s air separation unit market will grow at a CAGR of 5.1% by 2035 and 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 at pace to fulfill the rising demand.
For instance, in July 2025, Air Liquide decided to expand its presence in India by investing in its second ASU and cylinder filling station in the state of Gujarat. The company in the country will build, own, and operate the new ASU and CFS, that are planned to start operating from 2027. This will double the company’s production capacity in the country and thereby ensuring enhanced supply for customers across the Gujarat state.
Air Separation Unit Market Share
The top 5 companies including Linde, Air Liquide, Air Products and Chemicals, Messer, and Taiyo Nippon holds over 45% of the total market share. These companies 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:
15% Market Share
45% Collective Market Share
Air Separation Unit Industry News
This air separation unit market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2022 to 2035, for the following segments:
Market, By Process
Market, By Gas
Market, By End Use
The above information has been provided for the following regions and countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
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2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.
5. Forecast model & key assumptions
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✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
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Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
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Trust & credibility
Verified data sources
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GMI archive
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Trade data
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