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Gas Cylinder Market Forecast 2034 Global Growth & Trends| 6.0% CAGR
Gas Cylinder Market Size, Share, Growth, and Forecast 2025–2034 | Rising Demand for Industrial Gases, Medical Oxygen, LPG, Hydrogen Storage, and Composite Cylinders Fuelling Market Expansion; Safety Regulations, Smart Tracking Technologies, and Infrastructure Upgrades Transforming Applications Across Healthcare, Manufacturing, Automotive, and Energy Sectors Globally
Report Overview
The Gas Cylinder Market is estimated at USD 8.6 billion in 2024 and is on track to reach roughly USD 13.4 billion by 2034, implying a compound annual growth rate of 6.0% over 2024–2034. Demand has historically been anchored in household LPG, medical oxygen, and industrial gases, with unit volumes steadily expanding as governments replace biomass and kerosene with cleaner fuels and as healthcare systems strengthen oxygen security. The market’s size evolution reflects this policy momentum: Asia–Pacific already accounts for 46.4% of global revenues, underpinned by rapid consumer adoption and industrialization, while multi-year programs have widened affordability and last-mile access. India’s LPG consumption alone rose more than 84%—from 15.3 million tonnes in 2011–12 to 28.3 million tonnes in 2021–22—illustrating how sustained subsidies translate into cylinder penetration and refill frequency. Targeted cash transfers in Latin America (e.g., monthly vouchers of S/25 per household, totaling S/.1.36 billion by October 2022) and the distribution of 60,000 six-kilogram cylinders alongside VAT exemptions for cooking LPG further underscore the policy tailwinds. India’s Pradhan Mantri Ujjwala Yojana, covering over 90 million beneficiaries, increased its per-cylinder subsidy to ₹300 in 2024 for up to 12 refills, reinforcing demand elasticity at the base of the pyramid.
Growth drivers over the forecast horizon include accelerated clean-cooking transitions in South and Southeast Asia and parts of Africa; post-pandemic resilience in medical oxygen infrastructure; and industrial demand from metals, fabrication, and specialty gases. On the supply side, manufacturers benefit from scale in cylinder fabrication, automated testing, and globalized valve and regulator supply chains. Key challenges persist: input-material volatility (steel and aluminum), safety and recertification compliance costs, counterfeiting risks in informal resale markets, and distribution inefficiencies in remote geographies. Regulatory tightening—covering design codes, periodic inspection, and traceability—raises barriers to entry but supports long-term quality and brand consolidation.
Technology is reshaping adoption. Lightweight composite cylinders (often 30–50% lower tare weight than steel) improve safety and ergonomics for rural users; RFID/IoT tagging and smart valves enhance asset tracking, anti-pilferage, and predictive maintenance; AI-enabled routing optimizes last-mile delivery and refill logistics; and automated filling lines raise throughput and consistency. Regionally, Asia–Pacific will remain the anchor of absolute growth, with South Asia as the largest volume opportunity and Southeast Asia as a fast-follower. Investment hotspots to watch include Africa’s emerging clean-cooking initiatives, Latin America’s targeted subsidy frameworks, and Europe’s specialty and hydrogen-ready cylinder niches, collectively shaping a stable, policy-backed growth trajectory through 2034.
Key Takeaways
- Market Growth: The global gas cylinder market is projected to expand from USD 7.6 billion in 2024 to USD 13.4 billion by 2034, reflecting a 6.0% CAGR (2025–2034), underpinned by clean-cooking programs, industrial gas demand, and resilient medical oxygen infrastructure.
- Segment Dominance – Material: Steel cylinders lead with a 64.5% revenue share due to lower cost, established codes, and high-pressure ratings; however, composite cylinders, which are typically 30–50% lighter, are gaining share in consumer and healthcare segments on safety and ergonomics.
- Segment Dominance – Application: Liquefied gases (primarily LPG) account for 52.4% of demand, sustained by household and small-business refills as governments subsidize clean cooking and expand last-mile distribution.
- Segment Dominance – Capacity: 10–50 kg formats hold 37.1% share, balancing portability with refill economics for household clusters, micro-enterprises, and field industrial uses.
- Driver: Policy support is a decisive catalyst—industrial end-use already contributes 42.2% of market revenues, while clean-cooking subsidies (e.g., India’s PMUY at ₹300 per 14.2-kg refill and Latin American voucher programs) have lifted LPG adoption and refill frequency.
- Restraint: Input-material volatility and compliance costs weigh on margins; steel price swings can materially affect cylinder ASPs, while mandatory inspection/recertification cycles (often every 5 years) add recurring OPEX and downtime, especially for small distributors.
- Opportunity: A USD 4.8 billion incremental pool opens through 2034; if composites capture even +5 percentage points of share from steel by 2034, that shift alone would reallocate roughly USD 620 million of annual revenue toward higher-value lightweight designs.
- Trend: Digitization is scaling fast—RFID/IoT-tagged cylinders enable asset traceability and anti-pilferage, and route optimization/automated filling lines are reducing delivery and turnaround costs, supporting higher refill throughput and improved safety performance.
- Regional Analysis: Asia–Pacific is the demand anchor at approximately USD 3.5 billion in 2024 (≈46% share), led by South and Southeast Asia’s clean-cooking transitions and industrialization; Latin America remains subsidy-driven and Africa is emerging as the next clean-cooking hotspot, while Europe skews toward specialty and hydrogen-ready cylinders.
Material Analysis
Steel remains the reference material in 2025, accounting for roughly 64.5% of installed cylinder revenues. Its dominance reflects a superior cost-to-pressure ratio, broad code acceptance (ISO/EN/DOT), and proven performance in high-pressure service for LPG, oxygen, nitrogen, and industrial mixes. High recyclability also aligns steel with tightening stewardship and end-of-life mandates, supporting procurement in industrial, healthcare, and municipal contracts.
Aluminium and advanced composites are, however, capturing incremental share in weight-sensitive use cases. Aluminium’s corrosion resistance and clean internal finish suit medical and beverage gases, while Type III/IV composites deliver 30–50% lower tare weight, reducing handling risk and last-mile costs in residential LPG and home-care oxygen. As AI-enabled route planning and IoT tracking scale, the economics of lighter, traceable assets improve; the resulting shift is expected to move several share points from steel to composites through 2030–2034, particularly in retail LPG and mobility pilots.
Capacity Analysis
The 10–50 kg band remains the workhorse of the market with about 37.1% share, balancing refill economics and portability. This format underpins household and micro-enterprise LPG use and supports field operations in hospitality, light fabrication, and construction where manual handling and rapid swap-outs are critical. Distributors favor this range for higher asset turns and better truck utilization.
Sub-10 kg packs are expanding with clean-cooking programs and last-mile delivery platforms, offering safer alternatives to biomass in peri-urban and rural settings. At the other end, 50–100 kg and >100 kg formats anchor industrial consumption—cutting/welding shops, chemical dosing, and water treatment—where stationary storage and manifolded banks dominate and price sensitivity to steel and valve components is highest. Across tiers, compliance (hydrostatic tests, periodic inspection) and improved valve/OPD designs are raising safety while preserving uptime.
Application Analysis
Liquefied gases lead with an estimated 52.4% share in 2025, propelled by LPG for cooking and commercial energy, and CO₂/N₂O in food, beverage, and medical applications. Growth is reinforced by subsidy frameworks, VAT relief in select markets, and expanding cold-chain and carbonation demand, which prefer standardized cylinders and well-developed exchange networks.
Non-liquefied (compressed) gases—oxygen, nitrogen, argon—remain essential to hospitals and fabrication shops, benefiting from post-pandemic oxygen infrastructure and ongoing manufacturing recovery. Dissolved gases, led by acetylene for welding, constitute a smaller but resilient niche; innovations in porous mass and safety valves continue to reduce incident rates and insurance costs, protecting share despite slower volume growth.
End-use Analysis
Industrial users account for roughly 42.2% of 2025 consumption, underwritten by metals fabrication (O₂/Ar/CO₂ blends), chemicals and petrochemicals (N₂ blanketing, specialty gases), and water treatment (chlorination/ozonation). Capital projects and infrastructure upgrades in emerging markets sustain multi-year demand visibility, while strict plant safety audits favor certified suppliers and drive replacement of legacy assets.
Residential and commercial segments grow on the back of LPG penetration and small-format refills for restaurants and small industries. Healthcare maintains elevated baseline demand for medical oxygen and specialty gases, with hospitals specifying lighter cylinders and integrated regulators to reduce manual-handling risk. In transportation, early hydrogen mobility and composite cylinder adoption in fleets and aerospace ground support remain pilot-scale but represent the fastest structural optionality for the supply base.
Regional Analysis
Asia Pacific remains the demand anchor with a mid-40s revenue share (~46%) and an estimated value near USD 3.5 billion in 2024, extending momentum into 2025. India, Southeast Asia, and China drive volumes via clean-cooking expansion and industrialization, while localization of cylinder manufacturing and valve assembly shortens lead times and buffers FX risk.
North America and Europe are mature, compliance-intensive markets where growth is tied to asset renewal, healthcare resilience, and specialty gases. Uptake of composite cylinders and hydrogen-ready designs is most pronounced here, aided by stringent safety frameworks and decarbonization funding. Latin America and the Middle East & Africa show accelerating, subsidy-supported LPG adoption and industrial project pipelines; although smaller in absolute value, these regions offer above-market CAGRs through 2034 as distribution networks formalize and medical gas infrastructure scales.
Market Key Segments
By Material
- Steel
- Aluminium
- Composites
- Glass Fiber
- Carbon Fiber
- Aramid Fiber
- Others
- Others
By Capacity
- Less than 10 Kg
- 10 to 50 Kg
- 50 to 100 Kg
- Above 100 Kg
By Application
- Liquefied Gases
- Non-liquefied Gases
- Dissolved Gases
By End-use
- Industrial
- Food and Beverages
- Chemical and Petrochemicals
- Healthcare
- Oil and Gas
- Metal and Mining
- Water Treatment
- Others
- Transportation
- Automotive
- Aerospace
- Marine
- Others
- Residential
- Commercial
Regions
- North America
- Latin America
- East Asia And Pacific
- Sea And South Asia
- Eastern Europe
- Western Europe
- Middle East & Africa
Driver:
Industrial Expansion and Clean-Energy Programs Driving Cylinder Market Growth
As of 2025, demand is being led by an upswing in manufacturing activity, sustained healthcare oxygen needs, and policy-backed clean-cooking initiatives. Industrial end use accounts for roughly 42.2% of consumption, while liquefied gases—including LPG for household and commercial energy—represent about 52.4% of application demand. With Asia Pacific holding ~46% of global revenue and serving as the center of incremental volumes, the market is positioned to expand at ~5.0% CAGR through 2034 as fabrication, chemicals, and food & beverage plants standardize gas-intensive processes and refill cycles.
The strategic impact is twofold: stable base-load consumption from industrial gases raises asset utilization for distributors, and subsidy-supported LPG programs accelerate cylinder turns in the 10–50 kg band (≈37.1% share). Suppliers with certified product portfolios and broad last-mile networks can capture higher wallet share via multi-gas contracts, bundled maintenance, and guaranteed turnaround times.
Restraint:
Cost Volatility and Safety Compliance Challenges Restricting Profitability
Margin pressure stems from input-material volatility and tightening compliance. Steel—still ~64.5% of installed cylinder revenues—exposes producers to commodity swings that can elevate cylinder ASPs and lengthen payback periods for fleet renewals. Mandatory hydrostatic testing and periodic inspection (commonly every five years) add recurring opex and downtime; industry estimates suggest safety and recertification costs can trim 80–150 bps from distributor EBITDA if not offset by pricing or route efficiency gains.
Safety risk remains a parallel constraint. High-pressure handling, counterfeit cylinders in informal channels, and leak incidents raise insurance and training outlays. Lost or pilfered assets—often 2–4% of fleets in under-digitized markets—erode returns and deter smaller operators from scaling without clear traceability and deposit frameworks.
Opportunity:
Lightweight Composites and Emerging Regions Unlocking High-Value Opportunities
Lightweight and specialty formats present the clearest upside. If composites gain even +5 percentage points of share from steel by 2030–2034, roughly USD 600–650 million of annual revenue could shift toward higher-value designs, supported by double-digit adoption in medical home-care oxygen, retail LPG, and mobility pilots. Africa, South Asia, and parts of Latin America are poised for above-market growth as clean-cooking programs and industrial parks expand—collectively representing a multiyear, USD ~4.8 billion incremental pool through 2034 under a 5% global CAGR baseline.
Vendors that localize manufacturing, offer cylinder-as-a-service (CaaS) models, and integrate telemetry can monetize premium features (integrated regulators, excess-flow valves, IoT tags) while lowering lifecycle costs for end users. Strategic partnerships with oil & gas marketers and hospital networks can accelerate channel penetration and lock in refill volumes.
Trend:
Digital Tracking and Safety-Focused Innovation Transforming Cylinder Operations
Digitization and safety-by-design are moving from pilots to scale. RFID/IoT-tagged cylinders, smart valves, and telemetry-enabled regulators are improving asset traceability, reducing losses, and enabling predictive maintenance; fleets with basic tagging report 10–15% faster turnaround and fewer stockouts. AI-assisted route optimization and automated filling lines are cutting delivery costs and enhancing compliance documentation—now a differentiator in tenders across healthcare and industrial accounts.
Concurrently, product architecture is shifting to lighter, hydrogen-ready and specialty-gas-compatible cylinders. Type III/IV composites—typically 30–50% lighter than steel—are penetrating weight-sensitive use cases, while enhanced liners and permeation barriers support high-purity gases for electronics and pharma. Together, these trends are redefining procurement criteria from upfront capex to total cost of ownership, favoring suppliers with integrated digital, safety, and service capabilities.
Key Player Analysis
3M Company: 3M’s Scott™ Fire & Safety business anchors the company’s relevance in the gas cylinder ecosystem through high-pressure SCBA cylinders used by fire services, defense, and industrial emergency teams. Its portfolio spans aluminum to carbon-wrapped cylinders, including 5,500 psig options and a 30-year service-life model in the U.S., targeting lower total cost of ownership in long-cycle fleets. The product roadmap emphasizes lighter profiles and user-centric ergonomics, aligning with stricter occupational safety standards and rising demand for high-reliability breathing air systems across North America and Europe.
Strategically, 3M is layering digital capabilities—device telemetry, inspection workflows, and documentation—around its SCBA platforms to improve uptime and compliance. Differentiation rests on integration (mask, regulator, and cylinder ecosystem), multi-duration options (30/45/60/75-minute), and extensive after-sales service networks. As municipalities upgrade fleets, 3M’s premium positioning and validated performance create pricing resilience despite steel and composite cost swings.
Hexagon Composites: In 2024, Hexagon divested Hexagon Ragasco (the world-scale LPG composite cylinder unit) to Worthington Enterprises, sharpening focus on alternative fuel mobility (CNG/RNG/H₂) and testing/analytics businesses. The shift concentrates capital on high-growth hydrogen and commercial vehicle platforms via Hexagon Agility and related units, with management guidance highlighting mix upgrade potential and a more focused asset base into 2025.
Post-divestiture, Hexagon’s edge is end-to-end know-how in Type IV storage integrated with vehicle systems and fleet telematics—positioning it to benefit from zero-emission truck and bus orders and early hydrogen refueling corridors. While Ragasco’s installed base exceeds 20–25 million composite LPG cylinders globally (now under Worthington), Hexagon’s retained businesses skew toward higher-value mobility applications, supporting margin expansion as hydrogen trials scale through the decade.
Supreme Industries Limited: Supreme has entered the cylinder market with Type IV composite LPG products under the KAVACH brand, backed by a highly automated facility in Halol, Gujarat. The Kautex-engineered line is designed for up to ~400,000 cylinders annually across six sizes, targeting India’s expanding LPG base and export opportunities in safety- and weight-sensitive segments. Robotics-enabled molding and finishing, combined with polymer expertise, underpin cost and quality control as the market shifts toward lighter SKUs.
Luxfer Gas Cylinders: Luxfer’s L7X® high-strength aluminum portfolio is a mainstay in medical oxygen and life-support, complemented by widespread global adoption—over 15 million Luxfer medical cylinders are in use worldwide. In alternative fuels, Luxfer’s G-Stor® Go H₂ Type IV cylinders and the G-Stor® Hydrosphere MEGC platform target hydrogen mobility and virtual pipeline logistics, launched and showcased across 2024 industry forums. This dual exposure to healthcare resilience and the energy transition provides balanced growth vectors into 2025–2027.
Differentiation stems from metallurgy (proprietary L7X alloy enabling higher fill pressures and lighter weight), broad certifications, and active H₂ R&D—including a 700-bar Type IV development program supported by public innovation grants. With specification tables spanning medical, SCBA, beverage, aerospace, and hydrogen, Luxfer competes on performance and lifecycle economics, and is positioned to benefit from elevated post-pandemic medical oxygen baselines and the step-up in hydrogen transport assets through the late 2020s.
Market Key Players
- Worthington Industries
- Faber Industrie
- 3M Company
- Luxfer Gas Cylinders
- Jiangsu Minsheng Heavy Industries Co., Ltd.
- Quantum Fuel Systems LLC.
- Al Aman Gas Cylinders Manufacturing
- Manchester Tank
- Beijing Tianhai Industrial Co., Ltd.
- Supreme Industries Limited
- Aygaz A.Ş
- Hexagon Composites
- Everest Kanto Cylinder Ltd.
- BINA (SHANGHAI) GAS CYLINDER CO., LTD.
- Confidence Group
- Other Key Players
Recent Developments
Dec 2024 – Luxfer Holdings (Luxfer Gas Cylinders): Released its 2024 Sustainability Report, reporting a 48% reduction in Scope 1 & 2 emissions vs. 2019 and meeting its 34% waste-to-landfill reduction goal ahead of the 2025 target. This elevates Luxfer’s ESG credentials in public tenders and large enterprise procurements for medical, industrial, and hydrogen storage cylinders.
Feb 2025 – Hexagon Purus: Renewed a multi-year supply agreement (through 2028) with a leading European bus OEM for hydrogen fuel storage systems (Type IV); deal value undisclosed (industry estimates: USD 25–40 million over the term, depending on fleet awards). The extension secures backlog in zero-emission transit and reinforces Hexagon Purus’ leadership in high-pressure on-vehicle storage.
Mar 2025 – Worthington Enterprises (Ragasco): Rebranded the Viking Cylinders portfolio to Ragasco across North America, aligning the acquired Norwegian composite LPG leader with its regional go-to-market. The unified brand accelerates composite cylinder adoption and strengthens pricing power and channel leverage in the propane value chain.
Jun 2025 – Luxfer Gas Cylinders: Launched Luxfer Care, a Europe-wide aftercare and technical support program for hydrogen and CNG systems, already assisting ~25 operators across bus, rail, marine and industrial projects. The service layer creates sticky, recurring revenues while de-risking deployments with on-site diagnostics, warranty management, and spares. (
Jun 2025 – Worthington Enterprises (Ragasco): Announced a 5% list-price increase on Ragasco composite cylinders for the North American market, effective July 15, 2025 (or as contracts allow). The move protects margins amid input-cost volatility and tests elasticity as composite penetration rises in residential and commercial propane segments.
Jul 2025 – Supreme Industries: Secured a Letter of Acceptance for 200,000 10-kg composite LPG cylinders from BPCL and a repeat order for 231,000 cylinders from IOCL; management guided to >INR 1,000 crore FY26 revenue with improved capacity utilization. The wins position Supreme as a scale challenger in India’s fast-growing composite LPG category.
Sep 2025 – Luxfer Gas Cylinders: Partnered with Reynolds Logistics to deploy 40-ft G-Stor® Hydrosphere MEGCs for the UK’s first dedicated HyHaul hydrogen mobility corridor (M4). This strengthens Luxfer’s role in hydrogen logistics and underpins corridor economics with high-capacity mobile storage.
| Report Attribute | Details |
| Market size (2024) | USD 8.6 billion |
| Forecast Revenue (2034) | USD 13.4 billion |
| CAGR (2024-2034) | 6.0% |
| Historical data | 2020-2023 |
| Base Year For Estimation | 2024 |
| Forecast Period | 2025-2034 |
| Report coverage | Revenue Forecast, Competitive Landscape, Market Dynamics, Growth Factors, Trends and Recent Developments |
| Segments covered | By Material (Steel, Aluminium, Composites, Others), By Capacity (Less than 10 Kg, 10 to 50 Kg, 50 to 100 Kg, Above 100 Kg), By Application (Liquefied Gases, Non-liquefied Gases, Dissolved Gases), By End-use (Industrial, Transportation, Residential, Commercial) |
| Research Methodology |
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| Regional scope |
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| Competitive Landscape | Worthington Industries, Faber Industrie, 3M Company, Luxfer Gas Cylinders, Jiangsu Minsheng Heavy Industries Co., Ltd., Quantum Fuel Systems LLC., Al Aman Gas Cylinders Manufacturing, Manchester Tank, Beijing Tianhai Industrial Co., Ltd., Supreme Industries Limited, Aygaz A.Ş, Hexagon Composites, Everest Kanto Cylinder Ltd., BINA (SHANGHAI) GAS CYLINDER CO., LTD., Confidence Group, Other Key Players |
| Customization Scope | Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. |
| Pricing and Purchase Options | Avail customized purchase options to meet your exact research needs. We have three licenses to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF). |
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