What Are Air Separation Plants and Why Do They Matter?

What Are Air Separation Plants and Why Do They Matter?

According to the report by Next Move Strategy Consulting, the global Air Separation Plant Market size is predicted to reach USD 7.89 billion by 2030 with a CAGR of 4.6% from 2025 to 2030.

Download Your Free Sample Here: https://www.nextmsc.com/air-separation-plant-market-ep3150/request-sample

Air separation plants are specialized facilities that extract and purify atmospheric gases—primarily oxygen, nitrogen, and argon—using a process called cryogenic distillation. These gases are essential for industries ranging from healthcare to electronics, supporting critical applications like medical oxygen supply, steel production, and semiconductor manufacturing. As India’s economy grows, the demand for these industrial gases is surging, making air separation plants vital to economic and societal progress.

In 2025, companies like Linde India and INOX Air Products are expanding their operations to meet this demand. For instance, Linde India’s new air separation unit (ASU) in Ludhiana, Punjab, and INOX Air Products’ fifth facility in Hosur, Tamil Nadu, highlight the industry’s role in supporting both traditional and emerging sectors.

Summary: Air separation plants are critical for producing industrial gases, fueling India’s industrial and healthcare sectors. Their expansion reflects the country’s growing economic needs.

  • Key Points:
    • Extract oxygen, nitrogen, and argon from the atmosphere.
    • Support industries like healthcare, steel, and electronics.
    • Recent expansions by Linde India and INOX Air Products underscore their importance.

How Do Air Separation Plants Work?

Air separation plants operate through cryogenic distillation, a process that cools air to extremely low temperatures to separate its components based on their boiling points. The air is compressed, cooled, and purified before being distilled into liquid oxygen, nitrogen, and argon. These gases are then stored or distributed as liquids or gases, depending on the application.

The process involves several stages:

  • Compression: Air is compressed to high pressure.
  • Purification: Impurities like water vapor and carbon dioxide are removed.
  • Cooling: Air is cooled to cryogenic temperatures (below -150°C).
  • Distillation: Gases are separated in a distillation column.
  • Storage/Distribution: Purified gases are stored in tanks or supplied via pipelines.

For example, Linde India’s Ludhiana plant, located in Hi-Tech Cycle Valley Park, uses this technology to supply gases through a pipeline network to nearby industries. Similarly, INOX Air Products’ Hosur facility produces ultra-high purity cryogenic medical oxygen, catering to over 100 hospitals in Tamil Nadu.

Summary: Air separation plants use cryogenic distillation to produce high-purity gases, enabling efficient supply to industries and healthcare facilities.

  • Key Points:
    • Cryogenic distillation separates air into oxygen, nitrogen, and argon.
    • Advanced technology ensures high-purity gas production.
    • Pipeline networks enhance distribution efficiency.

Why Are New Plants Being Built in India?

India’s rapid industrialization and growing healthcare needs are driving the demand for industrial gases. The establishment of new air separation plants, such as Linde India’s 50 metric tons per day facility in Ludhiana and INOX Air Products’ Hosur plant, reflects strategic investments to meet this demand. These facilities cater to both traditional sectors like steel and manufacturing and emerging industries like semiconductors and solar energy.

Linde India’s Ludhiana plant, for instance, more than doubles the company’s merchant capacity in northern India, serving industries across Punjab and beyond. In Tamil Nadu, INOX Air Products’ new facility increases the state’s liquid oxygen production capacity from 150 to 300 metric tons per day, supporting over 100 hospitals and various industries.

Summary: New air separation plants are being built to address India’s growing demand for industrial and medical gases, supporting economic and healthcare advancements.

  • Key Points:
    • Rising demand from healthcare, manufacturing, and electronics sectors.
    • Linde India’s Ludhiana plant doubles regional capacity.
    • INOX Air Products’ Hosur facility boosts Tamil Nadu’s oxygen production by 100%.

How Do These Plants Contribute to Economic and Social Growth?

Air separation plants contribute significantly to India’s economic and social development. Economically, they create jobs and support industrial growth. For instance, INOX Air Products’ Hosur plant, built with a Rs 150 crore investment, generates 150 direct and indirect jobs. Socially, they ensure a reliable supply of medical oxygen, strengthening healthcare infrastructure.

Government support also plays a role. Linde India’s Ludhiana plant benefited from Punjab’s “Invest Punjab” initiative, while INOX Air Products acknowledged Tamil Nadu’s government for facilitating the Hosur project. These collaborations highlight the alignment of industrial expansion with national goals like self-reliance.

Summary: Air separation plants drive economic growth through job creation and industrial support while enhancing social welfare through reliable medical gas supplies.

  • Key Points:
    • Generate employment (e.g., 150 jobs from Hosur plant).
    • Strengthen healthcare with medical oxygen supply.
    • Supported by government initiatives for regional self-reliance.

What Are the Next Steps for Stakeholders?

Air separation plants are pivotal for India’s industrial and healthcare sectors, and stakeholders can take actionable steps to maximize their impact:

  • Invest in Strategic Locations: Companies should target high-growth regions like Punjab and Tamil Nadu to meet rising gas demands.
  • Collaborate with Governments: Leverage initiatives like “Invest Punjab” to streamline approvals and infrastructure development.
  • Focus on Sustainability: Adopt energy-efficient technologies to reduce the environmental footprint of air separation plants.
  • Expand Healthcare Support: Prioritize ultra-high purity oxygen production to strengthen hospital networks.
  • Promote Skill Development: Train local talent to operate and maintain advanced air separation facilities, boosting employment.

Summary: Stakeholders can drive the growth of air separation plants by investing strategically, collaborating with governments, and prioritizing sustainability and healthcare.

Back to blog