The medical gases market in France

Medical gases are mainly used in hospitals for treatment, pain relief, anesthesia and respiratory function.

The medical gases sub-segment is included in the broader industrial gases segment: manufactured gases produced by the distillation of air. These include oxygen, nitrogen, argon, helium, hydrogen, carbon dioxide and other rare gases. Thanks to their physical and chemical properties, they are used in the majority of industrial sectors: health (therapeutic gases for anesthesia, intensive care, pneumology, surgery, etc.), food and beverages (oxygen, nitrogen, argon, helium, hydrogen, carbon dioxide and other rare gases).), the food industry (soft drinks, for example), metallurgy, electronics, petrochemicals, etc.

Medical gases are grouped into three categories:

Medicinal gases (Oxygen (O2), nitrous oxide (N2O), nitric oxide, etc.);

Medical device gases (CO2, N2O, etc.);

Non-status gases.

The medical gases market is dominated by international industrial gas producer and distributor groups, leaving very little room for new entrants. Most of the independent players have been bought out by the major groups, as part of their diversification strategies over the last 10 years. The various players in the medical gases sector are therefore players in the industrial gases sector more generally, who are focusing on international growth. This growth is achieved through the conquest of emerging markets and major R&D efforts.

The global medical gases market is estimated at 14.34 billion dollars in 2023and should record an average annual growth rate of8,30 %over the period 2024-2032, reaching a value of29.29 billion in 2032. [EMR]

The French market has also been dynamic and growing for several years. This growth is reflected in theincrease in AMO spending on medical gases: CPAP (Continuous Positive Airway Pressure) treatment with 862 million euros in 2021,oxygen therapy with 422 million euros and assisted ventilation devices with 320 million euros. [CEPS]

The French market leader is Air Liquide Santé - France, an Air Liquide subsidiary specializing in the manufacture of medical gases. This subsidiary reported sales of€166.79 million in 2021. The main challenge facing the market for medical gas producers is to be able to adapt to various contemporary issues, such as the increase in chronic diseases and global warming. [Air Liquide]

Growth is being driven in particular by an aging population and an increase in chronic diseases, combined with favorable government initiatives and better access to healthcare in developing countries. Finally, the Covid-19 pandemic has had a real positive impact on this market, considerably increasing demand for oxygen and other medical gases to treat the disease.