INDONESIA INDUSTRIAL GASES MARKET

Indonesia industrial gases market is forecast to experience steady CAGR growth fueled by rapid industrialization and increasing need for gases in various industries.

Major Market Drivers and Emerging Trends

Market growth is mainly fueled by rapid industrialization in the country which drives the need for industrial gases across industries like manufacturing. A rise in investments for manufacturing infrastructure development has led to an increased need for industrial gases across different sectors in the country. For instance, manufacturing metals or chemicals along with other products heavily relies on oxygen and hydrogen to enhance effectiveness while improving product quality.

The growing healthcare sector is also contributing to Indonesia industrial gases market growth. Gases like oxygen are used in medical practices for purposes like anesthesia or sterilizing medical instruments. The rising population coupled with increased financial investments are anticipated to further foster the need for industrial gases within the healthcare industry.

The market is further growing driven by the increasing need for industrial gases within the automotive industry. The rising need for gases including argon in automotive lighting applications is fueling market growth. Specialized gas mixtures are also employed in shaping sheet metal for automobile bodies and doors. The increasing use of the brazing method for automotive HVAC heat exchangers in a controlled nitrogen or hydrogen environment is further supporting market growth. The growing focus on vehicle safety has also made airbags a critical component of proactive safety systems where the growing use of argon and various rare gases with high pressure in rapid airbag inflation is accelerating market growth.

Innovations in technology further positively influence the market in Indonesia. New applications including cryogenic separation and PSA technology are expanding supply capacities while minimizing expenses which makes industrial gases available to different industries.

Additionally the shift to sustainable solutions particularly the increasing emphasis on hydrogen to be a green energy option is having a significant impact on the market growth. Hydrogen is becoming increasingly important for carbon neutrality because it finds broad use in applications including fuel cell technology for EVs along with energy storage solutions. Policies and government initiatives advocating for clean energy development and carbon reduction goals are thereby driving hydrogen market along with other renewable gases.

Java is a significant market driven by its substantial industrial activity and extensive infrastructure advancement. Sumatra is rapidly becoming a key market driven by its expanding industrial base along with government efforts to promote regional development. The abundant natural resources and developing industrial base in Kalimantan also make it a vital area for the market.

Based on type, nitrogen and oxygen stand out owing to their extensive applications in industries including healthcare and manufacturing. Oxygen is essential for medical applications and metal cutting while nitrogen finds broad use in food packaging or oil refining. These gases are experiencing steady growth driven by rising industrialization and increasing need for specialty gases. Hydrogen represents an important segment with significant growth potential driven by its capacity to be a clean energy carrier in fuel cells along with its involvement in industrial processes. The increasing focus on hydrogen infrastructure along with its sustainable production is expected to drive significant sector growth. CO2 is also seeing significant growth fueled by the expanding food processing sector and the rising carbonated beverages consumption. Acetylene also continues to be a reliable segment in the market primarily driven by its unique applications in metal fabrication and welding.

Based on application the manufacturing segment accounted for the largest market share. The increasing industrial activity in Indonesia which fuels the need for essential gases like oxygen in metal fabrication or welding is the main factor behind this dominance. Additionally the manufacturing sector which includes substantial investments in industries like automobiles is critical to the economic advancement. Industrial gases are critical for these industries to improve operational efficiency and ensure product quality. Given the ongoing need for industrial gases from the manufacturing sector the segment is anticipated to remain the leading force in the country.

The food and beverage sector has also seen significant growth which results in a rising need for industrial gases including nitrogen or carbon dioxide. These gases are essential for applications including carbonation or freezing which helps improve the shelf life and freshness among food products. The industrial gas market is anticipated to grow because consumer demand for packaged and frozen foods increases and the food processing sector continues to expand.

Key Market Players

Several prominent companies are Aneka Gas Industri, Linde Plc among others. Companies are using growth strategies including strategic partnerships along with new product launches to drive innovation in the market.

Key Development

• • In 2024, Linde revealed that it has begun supplying industrial gases to Freeport Indonesia. Linde has committed USD 120 million to establish and operate the largest on-site ASU in Indonesia which also marked its largest unit in Southeast Asia.

Segments covered in the Report:

The Indonesia Industrial Gases Market has been segmented on the basis of Type and Application. Based on Type, the market is segmented into Oxygen, Nitrogen, Hydrogen, Carbon Dioxide, Acetylene, and Argon. Based on Application, the market is segmented into Healthcare, Manufacturing, Metallurgy & Glass, Food & Beverages, Retail, Chemicals & Energy, and Others.

Market Segmentation

Indonesia Industrial Gases Market by Type

• • Oxygen
  • Nitrogen
  • Hydrogen
  • Carbon dioxide
  • Acetylene
  • Argon

Indonesia Industrial Gases Market by Application

• • Healthcare
  • Manufacturing
  • Metallurgy & Glass
  • Food & Beverages
  • Retail
  • Chemicals & Energy
  • Others

Indonesia Industrial Gases Market Leading players

• • Aneka Gas Industri
  • Linde Plc