CHEMICALS
Industrial Gases
World's Most Productive Companies
Industrial Gases: Opportunities in a Changing Economy
Companies in the Industrial Gases peer group are suppliers of oxygen, nitrogen, hydrogen, argon, and specialty gases used in industrial, medical, and electronics manufacturing. Gases are produced through air separation units and cryogenic distillation, and are distributed via cylinders, tanker trucks, pipelines, or on-site generation systems. These companies typically serve a wide range of industries (manufacturing, healthcare, electronics, energy) and often operate through large-scale air separation units and distribution networks (including pipelines and on-site gas generation for customers). Following the COVID-19 downturn in 2020, which briefly dented demand from sectors such as steelmaking and industrial manufacturing, medical oxygen needs surged to partially compensate for the lost revenue. And although cost inflation of energy and distribution costs presented challenges in 2022–2023, many costs were passed through via contract clauses.
Key market environment characteristics include sensitivity to industrial production trends, energy costs (electricity is a major input for gas production), and opportunities arising from new applications like hydrogen energy or semiconductor fabrication. The business model typically features long-term contracts and capital-intensive infrastructure, resulting in relatively stable, albeit slow-growing, demand.
Top 100 World's Most Productive Companies - Industrial Gases
Productivity Snapshot
Industrial Gas companies showed relatively stable and sustained productivity gains, making it one of the stronger performers in the Chemicals industry (in addition to Organic & Advanced Materials).
- Productivity grew 10.5% over the last six years, with long-term productivity improvements reflecting steady efficiency gains. As companies began positioning for the energy transition, they invested in hydrogen production and carbon capture-linked opportunities.
- Between 2020 and 2022, the segment largely rebounded as growth in electronics and healthcare fueled demand for high-purity gases.
- All five companies experienced positive productivity growth in 2023 and 2024.
- In 2024, industrial gas providers experienced an average 4.8% increase in productivity.
- Linde earned its position within the LNS 2025 World’s Most Productive Companies by growing productivity 20.5% over the last six years, significantly outpacing the flat-to-modest gains of its peers. Strategic investments have included advanced process controls, energy management systems, and optimized distribution logistics. The merger that formed the modern Linde helped leapfrog others by unlocking scale economies and new hydrogen and specialty gas projects.
