Industry Statistics and Trends
Market size and recent performance (2016-2031)
Industry revenue has grown at a CAGR of 0.6 % over the past five years, to reach an estimated $1.6bn in 2026.
Trends and Insights
Waning downstream demand has hindered manufacturers' performance
- Growing environmental consciousness among Canadian consumers has pressured government institutions to broaden their regulatory measures for pollution-heavy industries such as chemical manufacturing, steelmaking and petroleum refining. These efforts have taken place at both the federal and provincial levels, resulting in increased compliance costs. This trend has hindered production volumes and the consumption of oxygen and hydrogen gas.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2026-2031)
Market size is projected to decline over the next five years.
Trends and Insights
Manufacturers will enjoy modest growth
- Industrial capacity utilization, which measures Canada's overall industrial activity, is expected to expand slightly through the end of 2030. Still, expected resilience in downstream demand will preserve the performance of oxygen and hydrogen gas manufacturers.
Biggest companies in the Oxygen & Hydrogen Gas Manufacturing in Canada
| Company | Market Share (%)
2025 | Revenue ($m)
2025 | Profit ($m)
2025 | Profit Margin (%)
2025 |
|---|---|---|---|---|
Air Liquide SA | 114.2 | 20.5 | 18.0 | |
Linde PLC | 96.4 | 18.5 | 19.2 | |
Air Products and Chemicals Inc. | 58.1 | 21.4 | 36.8 |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Specialty gases, Air-separated gases and Industrial byproduct gases. Specialty gases is the largest segment of the Oxygen & Hydrogen Gas Manufacturing in Canada.
Trends and Insights
The air-separated gases segment expanded as demand from manufacturing climbed
- Air-separated gases include key products such as oxygen, nitrogen, argon and rare gases like xenon, krypton and neon. The largest subsegment is nitrogen, which can be distributed as compressed gas or cryogenic liquid via pipelines, compressed cylinders or tankers.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
This industry manufactures the following industrial gas products: carbon dioxide (dry ice); air-separated gases, such as nitrogen, oxygen and argon; steam-reformed gases, such as hydrogen, carbon monoxide and helium; and specialty gases, such as refrigerants and propellants. Gases are then supplied to customers via on-site air production plants, pipelines, rail or compressed cylinders. This industry does not include the production of natural gas-based fuels such as methane or propane.
What's included in this industry?
Products and services covered in the Oxygen & Hydrogen Gas Manufacturing industry in Canada include Manufacturing industrial gases in general, Separating atmospheric air into its gaseous components, Extracting hydrogen, carbon monoxide and helium from natural gas, Designing and producing advanced gases for specialized, technical or medical purposes, Reclaiming carbon dioxide and other byproduct gases from other manufacturing industries, Manufacturing, recycling or reclaiming ozone-depleting chlorofluorocarbon gases, Manufacturing acetylene and other welding gases, Purifying and distilling atmospheric air to reclaim rare gases such as xenon, krypton or neon, Purifying liquid or compressed oxygen for medical use and Operating refill stations, gas production plants and gas storage and distribution centres.Companies
Companies covered in the Oxygen & Hydrogen Gas Manufacturing industry in Canada include Air Liquide SA, Linde PLC and Air Products and Chemicals Inc.Purchase this report to view all 3 major companies in this industry.
Related Terms
Related terms covered in the Oxygen & Hydrogen Gas Manufacturing industry in Canada include sublimation, cryogenic distillation, steam methane reformer (smr), air separation unit (asu), natural helium reserve, air separated gases (asg's), process gases and tonnage users.Industry Code
NAICS 325120 - Oxygen & Hydrogen Gas Manufacturing in Canada
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Canadian manufacturers endured tough times because of environmental regulations and import competition. Stricter pollution controls and higher import penetration have reduced...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2016-2025) and forecast (2026-2031)
- Employees, including historical (2016-2025) and forecast (2026-2031)
- Businesses, including historical (2016-2025) and forecast (2026-2031)
- Profit, including historical (2016-2026)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
US tariffs on Canadian energy products, including gases, will significantly reduce export volumes. Analysts predict these tariffs will depress Canadian prices, such as the Al...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2026
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2026
- Major market segmentation in 2026
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Manufacturers often place their largest production facilities near their research centers or headquarters. Air Liquide Canada Inc., based in Montreal, exemplifies this trend ...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each province
- Share of population compared to establishments in each region in 2026
Tables
- Number and share of establishments in each province in 2026
- Number and share of revenue each province accounts for in 2026
- Number and share of wages each province accounts for in 2026
- Number and share of employees in each province in 2026
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Internal competition hinges on price, product purity and supply reliability. Companies must ensure proximity to key markets to succeed. These factors drive competitive dynami...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2021-2026
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Linde's $2.0 billion investment is set to launch Canada's largest clean hydrogen production facility by 2028. This groundbreaking project will not only support Alberta's Dow ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2022 through 2026
- Major companies in the industry, including market share, revenue, profit and profit margin in 2026
- Overview of Air Liquide SA's performance by revenue, market share and profit margin from 2020 through 2026
- Overview of Linde PLC's performance by revenue, market share and profit margin from 2020 through 2026
- Overview of Air Products and Chemicals Inc.'s performance by revenue, market share and profit margin from 2020 through 2026
Detailed analysis
- Description and key data for Air Liquide SA, and factors influencing its performance in the industry
- Description and key data for Linde PLC, and factors influencing its performance in the industry
- Description and key data for Air Products and Chemicals Inc., and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Government institutions regulate the industry at both the federal and provincial levels. Environment Canada enforces broad air and water quality standards. This dual-layer re...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2016-2031)
- Assistance historical data and forecast (2016-2031)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Manufacturers' profit has climbed alongside higher prices. Thanks to economies of scale and favourable contracts, larger manufacturers have been well-positioned to capitalise...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2026
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2026
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2019-2024)
- Coverage Ratios (2019-2024)
- Leverage Ratios (2019-2024)
- Operating Ratios (2019-2024)
- Assets (2019-2024)
- Liabilities (2019-2024)
- Cash Flow & Debt Service Ratios (2016-2031)
- Revenue per Employee (2016-2031)
- Revenue per Enterprise (2016-2031)
- Employees per Establishment (2016-2031)
- Employees per Enterprise (2016-2031)
- Average Wage (2016-2031)
- Wages/Revenue (2016-2031)
- Establishments per Enterprise (2016-2031)
- IVA/Revenue (2016-2031)
- Imports/Demand (2016-2031)
- Exports/Revenue (2016-2031)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2016-2031)
- IVA (2016-2031)
- Establishments (2016-2031)
- Enterprises (2016-2031)
- Employment (2016-2031)
- Exports (2016-2031)
- Imports (2016-2031)
- Wages (2016-2031)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Oxygen & Hydrogen Gas Manufacturing industry in Canada in 2026?
The market size of the Oxygen & Hydrogen Gas Manufacturing industry in Canada is $1.6bn in 2026.
How many businesses are there in the Oxygen & Hydrogen Gas Manufacturing industry in Canada in 2026?
There are 27 businesses in the Oxygen & Hydrogen Gas Manufacturing industry in Canada, which has declined at a CAGR of 0.0 % between 2021 and 2026.
How may import tariffs affect the Oxygen & Hydrogen Gas Manufacturing industry in Canada?
The Oxygen & Hydrogen Gas Manufacturing industry in Canada is likely to be impacted by import tariffs with imports accounting for a moderate share of industry revenue.
How may export tariffs affect the Oxygen & Hydrogen Gas Manufacturing industry in Canada?
The Oxygen & Hydrogen Gas Manufacturing industry in Canada is likely to be impacted by export tariffs with exports accounting for a moderate share of industry revenue.
Has the Oxygen & Hydrogen Gas Manufacturing industry in Canada grown or declined over the past 5 years?
The market size of the Oxygen & Hydrogen Gas Manufacturing industry in Canada has been growing at a CAGR of 0.6 % between 2021 and 2026.
What is the forecast growth of the Oxygen & Hydrogen Gas Manufacturing industry in Canada over the next 5 years?
Over the next five years, the Oxygen & Hydrogen Gas Manufacturing industry in Canada is expected to decline.
What are the biggest companies in the Oxygen & Hydrogen Gas Manufacturing industry in Canada?
The biggest companies operating in the Oxygen & Hydrogen Gas Manufacturing industry in Canada are Air Liquide SA, Linde PLC and Air Products and Chemicals Inc.
What does the Oxygen & Hydrogen Gas Manufacturing industry in Canada include?
Manufacturing industrial gases in general and Separating atmospheric air into its gaseous components are part of the Oxygen & Hydrogen Gas Manufacturing industry in Canada.
Which companies have the highest market share in the Oxygen & Hydrogen Gas Manufacturing industry in Canada?
The company holding the most market share in the Oxygen & Hydrogen Gas Manufacturing industry in Canada is Air Liquide SA.
How competitive is the Oxygen & Hydrogen Gas Manufacturing industry in Canada?
The level of competition is moderate and increasing in the Oxygen & Hydrogen Gas Manufacturing industry in Canada.
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Canada include:
- Statistics Canada
- Industry Canada
- Canadian Business Patterns
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
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