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Saudi Arabia Industrial Gas Market: Data, Trends & Future Expansion
Market Data & Analytics
In-depth insights into the Saudi industrial gas sector's performance metrics and statistical overview.
Emerging Trends & Dynamics
Analysis of current market shifts, technological advancements, and influencing factors shaping the industry.
Strategic Growth & Outlook
Prospective plans and expansion strategies forecasting the market's trajectory through 2033.
Market Overview 2024
The Saudi Arabian industrial gas market is a significant regional powerhouse, projected for robust growth over the next decade. As of 2023, Saudi Arabia contributes approximately 1.1% to global industrial gas revenues, highlighting its strategic importance due to its connection with the Kingdom's vast hydrocarbon and petrochemical sectors.
Market Valuation & Growth Projection
The market is currently valued at USD 1.02 billion in 2024 and is expected to reach USD 1.47 billion by 2033, demonstrating a steady Compound Annual Growth Rate (CAGR) of 4.16%.
This growth is underpinned by the Kingdom's extensive hydrocarbon and petrochemical industries, making it a critical market for international gas producers and technology providers.
Historical Growth 2018–2024
The Saudi Arabian industrial gas market has shown consistent growth over the past six years, marked by key milestones and strategic expansions. Below is a visual representation of its revenue trajectory.
2018: Baseline Established
Market revenue approximately USD 900 million, establishing a strong baseline for future growth trajectory.
2020-2021: Pandemic Resilience
Pandemic impacts were largely offset by increased demand for medical oxygen and continued industrial development.
2022-2023: Accelerated Expansion
Accelerated growth was observed as the manufacturing, chemicals, and oil & gas sectors expanded their operations significantly.
2024: Market Milestone
The market successfully reached USD 1.02 billion, boosted by the Hawiyah Gas Plant expansion and other major projects.
The Saudi industrial gas market has demonstrated remarkable resilience and consistent growth despite global economic fluctuations, supported by the Kingdom's unwavering commitment to industrial diversification and expansion.
Key Product Segments
Oxygen (28%)
Cornerstone of the market, highest revenue in 2023.
Nitrogen (22%)
Fastest-growing segment through 2030, expanding applications.
Hydrogen (18%)
Significant share, vital for industrial processes.
The Saudi industrial gas market is dominated by these key product segments, reflecting diverse industrial demands and strategic economic growth initiatives.
Market Breakdown by Value
Oxygen (28%)
Largest segment by value, critical for refining, manufacturing, and healthcare applications.
Nitrogen (22%)
Second largest segment, with rapidly growing applications in food processing, electronics, and chemical manufacturing.
Hydrogen (18%)
Strategic importance growing with national decarbonization initiatives and blue hydrogen development.
Carbon Dioxide (12%)
Essential for enhanced oil recovery, food and beverage industries, and various industrial processes.
The remaining 20% of market value is distributed among argon (9%), acetylene (5%), propane (4%), and helium (2%). Notably, helium has limited local production capacity, making Saudi Arabia reliant on imports for this strategic gas.
Major End-Use Industries
Oil & Gas
Saudi Arabia's dominant industrial sector utilizes nitrogen for inerting, CO₂ for enhanced recovery, and hydrogen for refining processes, accounting for approximately 42% of industrial gas consumption.
Chemicals & Petrochemicals
The second-largest consumer at 28%, using nitrogen, hydrogen, and oxygen for various chemical processes, catalytic reactions, and cooling applications.
Metals & Manufacturing
Represents 15% of consumption, primarily using oxygen, argon, and acetylene for steel production, welding, cutting, and metal fabrication.
Food & Healthcare
Growing sectors collectively accounting for 11% of usage, with applications in food packaging, preservation, and medical treatment.
Regional Industrial Hubs
Jubail Industrial City
The epicenter of Saudi Arabia's industrial gas infrastructure, hosting the largest concentration of air separation units, hydrogen production facilities, and industrial gas pipelines. Home to major joint ventures between international gas companies and Saudi partners.
Yanbu Industrial City
Western Saudi Arabia's primary industrial gas hub, supporting refining, petrochemical operations, and manufacturing with significant oxygen and nitrogen production capacity.
Rabigh & Eastern Province
Emerging clusters with expanding industrial gas networks, particularly focused on supporting the growing manufacturing and chemical sectors.

While specific industrial gas consumption data by region is proprietary, these hubs are the primary demand centers.
Future analyses may include a visual representation of regional market share as data becomes available.
Oxygen: Segment Highlights
Market Leadership by Value
Oxygen stands as the leading industrial gas in Saudi Arabia by revenue, contributing 28% to the total market value in 2023. It is primarily supplied in bulk liquid form to large industrial operations or distributed via pipelines to key consumers.
Key applications include:
  • Oil refining and petrochemical processing
  • Steel manufacturing and metal fabrication
  • Healthcare facilities and medical treatment
  • Wastewater treatment and environmental applications
In a strategic move post-pandemic, the government has prioritized expanding medical oxygen capacity to bolster healthcare resilience and ensure supply security nationwide.
Oxygen represents a significant portion of the total industrial gas market in Saudi Arabia.
Nitrogen: Segment Highlights
Fastest Growing Segment
Nitrogen is projected to outpace all other industrial gases in growth through 2030, with a forecast CAGR of 5.3% compared to the market average of 4.16%. This exceptional growth is driven by nitrogen's versatility and expanding applications across multiple sectors.
Key applications include:
  • Inerting and blanketing in chemical processing
  • Food packaging and preservation
  • Electronics manufacturing
  • Oil and gas well stimulation
The expansion of food processing facilities and electronics manufacturing in Saudi Arabia is particularly driving nitrogen demand growth.
Argon: Segment Highlights
Argon's primary application in Saudi Arabia is in metal fabrication and welding, where it serves as a shielding gas for TIG and MIG welding processes. The Kingdom's expanding manufacturing capabilities are driving increased demand in this sector.
High-purity argon is increasingly required for the growing semiconductor and solar manufacturing sectors in Saudi Arabia, supporting the Kingdom's renewable energy initiatives and technological advancement.
Niche applications in research, specialized lighting, and preservation make up a smaller but growing segment of the argon market, particularly within Saudi Arabia's expanding academic and scientific research sectors.
Argon's Market Share
Argon accounts for approximately 9% of the Saudi industrial gas market by value, with production primarily occurring alongside oxygen and nitrogen in air separation units located in major industrial hubs across the Kingdom.
Hydrogen: The Shift to Clean Energy
Blue Hydrogen Production
Saudi Arabia is strategically investing in blue hydrogen production, derived from natural gas with integrated carbon capture technology. This positions hydrogen as a cornerstone for industrial decarbonization.
Jubail BHIG Venture
A landmark joint venture, the Jubail Blue Hydrogen Industrial Gases Company (BHIG), represents the Kingdom's most substantial investment in hydrogen infrastructure to date, supplying industrial customers in Jubail Industrial City.
Vision 2030 & Energy Transition
Hydrogen is a pivotal element in Saudi Vision 2030 and the Kingdom's broader energy transition strategy. Substantial acceleration in investment across production, storage, and distribution infrastructure is anticipated through 2033.
Carbon Dioxide & Helium
Carbon Dioxide and Helium play distinct yet crucial roles in Saudi Arabia's industrial gas market, driven by diverse applications from energy to healthcare.
Carbon Dioxide (12% market share)
Carbon dioxide applications in Saudi Arabia are diverse and growing:
  • Enhanced oil recovery in aging oil fields
  • Carbonation for beverages and sparkling water
  • Food processing and preservation
  • Chemical manufacturing processes
As carbon capture initiatives expand across the Kingdom's industrial facilities, CO₂ supply is expected to increase, potentially creating new market opportunities for utilization.
Helium (2% market share)
Despite its small market share, helium remains strategically important:
  • MRI and medical imaging equipment cooling
  • Research applications in Saudi universities
  • Electronics manufacturing
  • Specialized welding applications
Saudi Arabia remains primarily dependent on imports for helium supply, with limited domestic production capacity currently available.
Acetylene & Propane
1
2
Acetylene (5% market share)
As the primary gas for welding and cutting applications, acetylene demand in Saudi Arabia is closely tied to the expansion of the manufacturing and construction sectors. Continuous advancements in safety considerations have led to improved storage and handling infrastructure nationwide.
3
4
Propane (4% market share)
While commonly recognized as a fuel, industrial applications of propane in Saudi Arabia include critical heating processes, serving as fuel for forklifts and other industrial vehicles, and acting as a vital feedstock for petrochemical manufacturing.
Both acetylene and propane benefit significantly from Saudi Arabia's extensive natural gas processing capabilities. Production facilities are strategically positioned near major industrial centers, optimizing supply chain efficiency by minimizing transportation costs and ensuring reliable delivery to end-users.
Market Share by Company
The Saudi Arabian industrial gas market is characterized by a strategic mix of global industry leaders and key local partnerships. Most international players operate through joint ventures with prominent Saudi entities, such as SABIC and Aramco, effectively combining global technological expertise with in-depth local market understanding. Local and regional players collectively hold approximately 13% of the market share, primarily focusing on specialized distribution and smaller-scale industrial applications.
Key National Investments (2024–2025)
Jafurah Phase 1
Adding 2 billion cubic meters of gas annually to Saudi Arabia's supply, providing feedstock for industrial gas production, particularly hydrogen and nitrogen.
Tanajib Gas Plant
Set to add 27 billion cubic meters of gas per year when fully operational, significantly expanding the Kingdom's gas processing capabilities.
Jafurah Phase 2
A massive $25 billion investment to further develop this unconventional gas resource, creating opportunities for expanded industrial gas production.
Projected Annual Gas Production Increase
These investments in natural gas infrastructure directly support the industrial gas sector by ensuring abundant feedstock for hydrogen production and energy for air separation units that produce oxygen, nitrogen, and argon.
Natural Gas Production Expansion
The monumental Jafurah gas field, estimated to hold 229 trillion cubic feet of raw gas and 75 billion barrels of condensate, signifies a transformative resource for Saudi Arabia's industrial gas sector. This massive development underpins the Kingdom's commitment to expanding its energy capabilities.
With Saudi Arabia's natural gas output projected to increase by 4% in 2025, this growth provides essential feedstock crucial for diverse industrial gas production. Furthermore, the strategic expansion of the Master Gas System—the national gas grid—is precisely engineered to serve industrial consumers, guaranteeing a consistent and reliable supply to manufacturing centers and chemical plants heavily reliant on industrial gases. This critical infrastructure advancement is fundamental to supporting the forecasted 4.16% Compound Annual Growth Rate (CAGR) in the industrial gas market through 2033.
Decarbonization & Low-Carbon Initiatives
BHIG facility in Jubail supplying blue hydrogen to industrial sectors, reducing carbon emissions while maintaining production capabilities.
Major projects capturing CO₂ from industrial processes, including gas production facilities, to reduce atmospheric emissions.
National initiative targeting a 50:50 mix of natural gas and renewables for power generation, significantly reducing liquid fuel consumption.
Green hydrogen pilot projects are beginning to supplement blue hydrogen production, diversifying the low-carbon energy portfolio.
Saudi Arabia's ambitious decarbonization initiatives are not only fostering new markets for industrial gases, particularly hydrogen, but also driving significant innovation in carbon capture and utilization technologies across various sectors.
Supply Chain & Infrastructure
Dedicated Pipelines
New dedicated pipelines for hydrogen and oxygen are rapidly developing in Jubail Industrial City.
Gas Storage Expansion
Gas storage at the Hawiyah facility is expanding, expected to be operational by September 2024.
Air Separation Units
Increased investment in air separation units is located near major consumers to optimize distribution.
Specialized Transport Fleets
Development of specialized transport fleets for efficient liquid gas delivery across the region.
These infrastructure investments are critical for meeting growing demand while maintaining reliability and reducing transportation costs. The pipeline network is particularly important for high-volume gases like nitrogen, oxygen, and increasingly, hydrogen.
Applications: Oil & Gas Sector
Nitrogen
Used extensively for inerting tanks and pipelines, pressure testing, and enhanced oil recovery through nitrogen injection into reservoirs. Demand exceeds 220,000 tons annually across Saudi oil and gas operations.
Carbon Dioxide
Critical for enhanced oil recovery in aging fields, with over 80,000 tons used annually to increase reservoir pressure and improve extraction efficiency in mature oil fields.
Hydrogen
Increasingly integrated into refining processes to reduce sulfur content in fuels, with demand growing as Saudi Arabia implements stricter fuel standards and pursues cleaner production methods.
Saudi Aramco remains the largest single consumer of industrial gases in the Kingdom, utilizing multiple gases across its vast operations from exploration and production to refining and petrochemicals.
Applications: Manufacturing & Metals
Saudi Arabia's expanding manufacturing sector represents a major growth driver for industrial gases:
Steel & Iron Production
Oxygen is used for basic oxygen furnace operations, while argon serves as an inert shield gas in continuous casting. The Kingdom's steel production capacity of 12 million tons annually drives significant demand for these gases.
Welding & Metal Fabrication
Acetylene and argon are essential for precision welding and cutting operations in Saudi Arabia's growing manufacturing sector, particularly in fabrication shops supporting the oil and gas industry.
Cooling & Inerting Systems
Nitrogen is widely used for creating inert atmospheres in manufacturing processes and for cooling systems in high-temperature operations, with applications across aluminum smelting, electronics, and automotive manufacturing.
Applications: Healthcare & Food
Healthcare Applications
The medical gas segment in Saudi Arabia has seen significant investment following the COVID-19 pandemic:
Oxygen
For hospitals, clinics, and emergency supply (over 15,000 tons annually)
Nitrous oxide
Used for surgical procedures
Helium
For MRI machine cooling
Medical air systems
For respiratory care
Food Industry Applications
Saudi Arabia's growing food processing sector utilizes:
Liquid nitrogen
For flash freezing and temperature control
CO₂
For carbonated beverages and modified atmosphere packaging
Argon
For premium food preservation
Nitrogen
For packaging to extend shelf life
These sectors represent high-value applications where purity and reliability are essential, driving premium pricing compared to industrial applications.
15K
Oxygen Tons Annually
Supplied to hospitals, clinics, and emergency services in the healthcare sector.
High
Purity Standards
Essential for both healthcare and food applications, ensuring product safety and efficacy.
Premium
Pricing
Driven by the critical nature and strict requirements of these specialized applications.
International Trade & Imports
Saudi Arabia has strategically invested in domestic production capacity for high-volume gases like oxygen, nitrogen, and hydrogen, significantly reducing import dependence. However, specialty gases and helium remain heavily reliant on imports, representing a strategic opportunity for future investment in domestic capabilities.
Helium
Highly reliant on imports for helium supply (92% dependency), primarily sourced from Qatar and the United States, essential for various high-tech applications.
Specialty Gases
High-purity gases critical for advanced electronics, semiconductors, and specialized research applications are frequently imported (45% imported) to meet stringent industry standards.
Oxygen
Saudi Arabia maintains substantial domestic production capacity for oxygen, limiting the need for imports (8% imports needed) to a very small percentage of total demand.
Nitrogen & Hydrogen
The nation is nearly self-sufficient in nitrogen and hydrogen production (5% imports needed), supported by robust local infrastructure and strategic investments.
Import Dependency by Gas Type
This chart illustrates Saudi Arabia's varied import dependency across key industrial gases, highlighting the significant reliance on foreign sources for helium and specialty gases compared to its near self-sufficiency in oxygen, nitrogen, and hydrogen.
Future Expansion Plans (2025–2033)
1
2025-2026: Initial Capacity Boost
Deployment of new large-scale hydrogen, nitrogen, and oxygen plants in the Eastern Province, coupled with a significant expansion of distribution networks and specialized storage facilities to meet growing demand.
2
2027-2029: Green Energy Transition
Inauguration of NEOM's pioneering green hydrogen facilities, marking a strategic pivot towards green ammonia exports. This period also includes advanced developments in gas purification technologies and specialized gas production capabilities.
3
2030-2033: Regional Integration & Sustainability
Comprehensive integration of industrial gas networks with broader regional markets. Key initiatives include the development of cutting-edge helium recovery capabilities and a substantial expansion of carbon capture and utilization (CCU) infrastructure, reinforcing environmental commitments.
These strategic expansion plans represent over $3 billion in potential investment, offering significant opportunities for global technology providers, engineering firms, and industrial gas specialists to contribute to Saudi Arabia's industrial future.
$3B
Potential Investment
Over three billion dollars in strategic investments planned for the industrial gas sector.
2033
Target Year
Vision 2030 and beyond, aiming for comprehensive market integration.
3
Key Phases
Expansion structured across three distinct developmental stages.
Challenges & Opportunities in Saudi Arabia's Industrial Gas Market
Market Challenges
Navigating these hurdles requires strategic planning and investment:
Increasing competition from emerging regional markets with similar industrial capabilities
Requirement for advanced storage, distribution, and enhanced safety infrastructure to support market expansion
Significant capital expenditure necessary for new large-scale production facilities and specialized equipment
Securing and developing highly qualified technical expertise and skilled personnel for complex operations
Growth Opportunities
Strategic areas offering significant potential for market participants:
Opportunities for technology transfer and localization of manufacturing for critical gas equipment and components
Development of specialized gas capabilities to support the burgeoning electronics and advanced manufacturing sectors
Synergistic integration with Saudi Arabia's ambitious hydrogen economy initiatives and pioneering carbon capture projects
Substantial regional export potential, particularly for high-value hydrogen derivatives like green ammonia
Companies that strategically address these challenges while proactively capitalizing on emerging opportunities will be exceptionally well-positioned to capture significant value and leadership in Saudi Arabia's rapidly evolving industrial gas market.
Summary & Outlook
Saudi Arabia positioned to become key global supplier of industrial gases
Hydrogen economy and export infrastructure development for regional markets
Continued growth in manufacturing, petrochemicals, and food processing driving demand
Decarbonization, hydrogen economy development, and local value chain expansion
The Saudi Arabian industrial gas market is set for robust and diversified growth through 2033, supported by national development plans, industrial expansion, and strategic investments in next-generation technologies. As the Kingdom continues its economic transformation, industrial gases will play an increasingly critical role in enabling manufacturing excellence, energy transition, and industrial innovation. The market is projected to grow at a 4.16% CAGR, reaching USD 1.47 billion in market value by 2033.