China's industrial gas market continues to expand, with third-party supply models gaining favour among small and medium-sized enterprises.

In recent years, China's industrial gas market has demonstrated robust growth resilience, emerging as one of the world's most dynamic markets. The core driver behind this expansion stems from the nation's high-quality economic development, particularly within strategic emerging industries such as high-end manufacturing, new energy lithium batteries, semiconductor integrated circuits, and biopharmaceuticals. Production processes across these sectors rely heavily on the stable supply of fundamental raw materials including oxygen, nitrogen, argon, and specialty gases.
Traditionally, large and medium-sized enterprises have invested in constructing their own air separation units (ASUs). However, such projects entail substantial capital expenditure, demand high levels of operational expertise, and offer limited flexibility in start-up and shutdown. For numerous small and medium-sized enterprises with moderate or fluctuating gas requirements, a third-party service model known as "On-site Gas Production" is gaining increasing favour. Under this model, industrial gas companies invest in, construct, and operate air separation units, delivering gases directly to customer workshops via pipelines. Clients settle payments based on actual consumption, eliminating upfront investment and ongoing operational burdens. This approach optimises resource allocation, enabling manufacturing enterprises to focus more intently on their core production activities.
Additionally, the retail gas market—including bottled gases and liquid nitrogen Dewar flasks—continues steady growth for customers with low volumes, diverse requirements, and dispersed locations. Market analysis indicates that China's industrial gas sector still holds potential for increased concentration. Localised specialist gas companies are gradually gaining prominence in competition with international giants by enhancing technical service capabilities and optimising regional coverage. Looking ahead, as energy conservation and emission reduction requirements intensify, efficient, low-carbon gas supply solutions will become pivotal in market competition. The industry as a whole is progressing healthily towards greater specialisation, intensification, and service orientation.