U.S. Medical Gases Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2032)

U.S. Medical Gases Market Dynamics

Adoption of Advanced Respiratory Therapies Is a Key Trend

Many patients with breathing problems are getting better medical care through a treatment method that does not use invasive techniques yet needs high oxygen levels. With HFNC being increasingly performed, the need for medical gases, especially oxygen, continues to rise.

Moreover, doctors and people now use HBOT more often For faster wound healing and fighting specific infections, propelling the demand for high-purity oxygen.

In January 2023, the American Journal of Respiratory and Critical Care Medicine stated that stable hypercapnic COPD is less likely to exacerbate by administering LTOT with high-flow nasal cannula.

Rising Prevalence of Chronic Respiratory Diseases Is Primary Growth Driver

The growing number of people with COPD, asthma, and sleep apnea drives the market. As per the Asthma and Allergy Foundation of America, 25 million people in the country suffer from this chronic respiratory condition. Similarly, the American Sleep Apnea Association pegs the prevalence of this condition in the country at 22 million people. Hence, the growing number of people with respiratory conditions push up the demand for oxygen and medical air.

Moreover, this drives the number of people receiving LTOT at home and outpatient settings. Many patients with COPD, which accounts for a patient pool of over 14 million, now prefer to receive LTOT at home because it eases hospitalization pressure, supports independent living, and drives down the cost of care.

Further, over 51 million surgeries are performed in the country each year, the vast majority being traditional open procedures. Because of their complexity and the excruciating pain they cause, patients are generally anesthetized. This drives the demand for mechanical ventilation as general anesthesia makes people incapable of breathing themselves, by leading to almost complete paralysis.

In October 2024, Air Liquide announced that it would invest USD 150 million to enhance its Tennessee plant capabilities under a partnership with LG Chem.

High Cost and Regulatory Pressure Are Major Challenges

Medical gases are expensive to produce, especially those that are needed to be highly pure. The expenses for purchasing raw materials and investing in machines, along with procuring energy and building infrastructure, raise medical gas prices. In addition, the regular maintenance of medical gas systems, such as oxygen concentrators and cryogenic devices, affects daily operating costs for healthcare systems.

Medical gas delivery faces difficulties with reimbursements from health insurance and federal programs, including Medicare. Healthcare providers and their patients may feel financial pressure if reimbursement payments fall short of covering all medical gas supplies.

Medical gases also face strict safety rules because they affect humans directly. The FDA watches over medical gas quality and safety, while OSHA defines safety requirements that must be followed at patient care facilities. In June 2024, the FDA publishes the final rules for medical gases related to modernized manufacturing standards and new reporting and labelling requirements, while adding product certification criteria.

Segmentation Analysis

Product Analysis

• The pure gases category held the larger market share, of 65%, in 2024, and it will grow at the higher CAGR, of 8.5%, during the forecast period.
• This is because doctors extensively use oxygen therapy for patients with COPD, asthma, and pneumonia.
• Patients need to be ventilated when natural breathing stops and the blood pressure drops too fast.
• In addition, patients in ICUs suffering from ARDS need oxygen over extended periods.
• Doctors use nitrous oxide as an anesthetic agent in both medical centers and dental offices as it reduces pain and anxiety.

The products analyzed here are:

• Pure Gases (Larger and Faster-Growing Category)
  • Medical air
  • Oxygen
  • Nitrous oxide
  • Nitrogen
  • Carbon dioxide
  • Helium
  • Nitric oxide
  • Argon
  • Others
• Gas Mixtures
  • Aerobic
  • Anaerobic
  • Blood
  • Lung diffusion
  • Medical laser
  • Medical drug
  • Others

Application Analysis

• The therapeutics category held the largest market share, of 45%, in 2024 because different gases are needed to treat or manage patients with different health problems.
• The two main gases used for therapeutic purposes are oxygen and nitrous oxide.
• The main therapeutic use of oxygen therapy is for respiratory diseases, such as COPD, and asthma, as well as long-term ventilation during surgery or extended ECMO support.
• The pharmaceutical manufacturing category will grow at the highest CAGR, of 8.7%, during the forecast period, because several gases, including nitrogen, carbon dioxide and oxygen, are used as ingredients while manufacturing pharmaceutical products.
• For instance, nitrogen serves as an essential ingredient for drug creation and helps create protective atmospheres during the manufacturing of delicate medicines

The applications analyzed here are:

• Therapeutics (Largest Category)
• Diagnostics
• Pharmaceutical Manufacturing (Fastest-Growing Category)
• Others

End User Analysis

• The hospitals category held the largest market share, of 55%, in 2024.
• This is because hospitals need a continuous medical gas supply, especially oxygen, for emergency rooms, ICUs, and operating theaters.
• Patients need oxygen therapy to survive multiple urgent medical conditions and surgical procedures.
• In addition, hospitals deliver substantial volumes of inhalation anesthetics, such as nitrous oxide and sevoflurane, every day for surgeries.
• Medical gases are necessary for daily treatment in hospital patient rooms and specialized care settings beyond emergency and surgical work.
• The ambulatory surgical settings will grow at the highest CAGR, of 8.8%, during the forecast period.
• The number of people choosing outpatient procedures at ASCs is rising because these procedures help patients recover quickly from simpler medical operations.
• ASCs are cost-effective over hospitals, and their network is quickly expanding in the U.S.

The end users analyzed here are:

• Hospitals (Largest Category)
• Ambulatory Surgical Settings (Fastest-Growing Category)
• Pharmaceutical and Biotechnology Companies
• Diagnostic Laboratories
• Academic and Research Institutions
• Others

U.S. Medical Gases Market Regional Outlook

• The Southern region in the U.S. held the largest market share, of 40%, in 2024.
• This is because of the increasing medical gas usage for an expanding patient population.
• Medical gas consumption rates in Texas, Florida, and Georgia are rather high because of the unique ethnic and age makeup of the regional population and its high obesity incidence.
• As per the CDC, 34.6% of the people in the region are obese.
• The development of an extensive healthcare network, including hospitals, outpatient clinics, and extended-stay centers, drives the demand for medical gases.
• The Western region in the U.S. will grow at the highest CAGR during the forecast period.
• This is because more medical procedures are moving from hospital rooms to ASCs in the Western region of the U.S., which raises consumer demand for oxygen and nitrous oxide.
• Moreover, California and Washington are witnessing a growing healthcare demand because of their expanding populations.
• Urban growth across the Western region drives medical facility numbers in its fastest-expanding metropolises, such as San Francisco, Los Angeles, and Seattle.

The regions analyzed in this report are:

• Northeast
• Midwest
• West (Fastest-Growing Category)
• South (Largest Category)

U.S. Medical Gases Market Share

The U.S. medical gases market is consolidated in nature because a small number of multinational firms occupy a major market share. These companies use their nationwide networks to produce medicine gases for hospital systems and utilize their extensive marketing abilities to work under long-term contracts with consumers.

Furthermore, most top firms in our market own the entire production and distribution infrastructure. They deliver medical gases to customers in large volumes via cylinders, tanker trucks and trains, and onsite production plants. Their expertise in healthcare, ability to comply with the FDA’s safety regulations, and ample lobbying power prevent smaller companies from gaining much ground.