Cryogenic Tanks Market Witness High Growth Owing to Rising LNG Consumption
The cryogenic tanks market is estimated to reach a valuation of US$6.51 billion by 2024 owing to the growing need for storing liquefied gases such as LNG, oxygen, nitrogen, argon, and liquefied hydrogen, among others, at extremely low temperatures. Cryogenic tanks are specialized vessels used for storing industrial and medical gases in their liquefied state at temperatures below −150 °C. They find widespread application across sectors such as energy power, chemicals, metallurgy, electronics, shipping, healthcare, and biomedical. The growing consumption of LNG as a cleaner alternative fuel in power generation and transportation is expected to drive the demand for cryogenic tanks over the next few years.
The global cryogenic tanks market is estimated to be valued at US$6.51 billion in 2024 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023 to 2030.
Key Takeaways
Key players operating in the cryogenic tanks market are ArcelorMittal, China Baowu Group, Nippon Steel Corporation, POSCO, Shagang Group, Ansteel Group, Glencore, Sumitomo Metal Mining Company, Linde, INOX India Pvt., Cryofab, FIBA Technologies, Air Products and Chemicals, Inc., M1 Engineering, Chart Industries, Wessington Cryogenics, Isisan, and Lapesa.
The growing offshore and onshore liquefaction terminals provide lucrative opportunities for cryogenic tank manufacturers. Also, increasing investments in medical oxygen plants and biomedical research facilities will augment the demand.
Technological advancements such as smart sensors and cloud-based monitoring solutions allow real-time tracking of tank parameters, enhancing safety and optimizing operations. Materials like 9% nickel steel and composite cryogenic storage vessels provide better insulation.
Market Drivers
The main driver for the cryogenic tanks market is the rapid growth of the global LNG industry. LNG demand is surging due to environmental regulations favoring natural gas over coal and oil. Also, the increasing consumption of industrial and medical gases and the expansion of cold chain logistics are fueling the need for cryogenic storage and transportation solutions. Stringent safety regulations and initiatives to develop infrastructure for hydrogen economy will further support the cryogenic tanks market.
Current challenges in the Cryogenic Tanks Market:
The cryogenic tanks market is facing challenges like high cost of production and transportation of cryogenic tanks. It requires extensive material testing and quality control to build tanks that can withstand extreme low temperatures without leakage. This increases production costs. Transporting cryogenic tanks is also a complex operation that demands specially designed cryogenic tankers and well-trained personnel due to the risk of liquefied gases expanding catastrophically if their containers breach containment. Strict regulations surrounding the transport of hazardous cryogenic materials further drive up transportation costs. Dependence on fossil fuels for manufacturing cryogenic steel also increases carbon footprint and cost.
SWOT Analysis
Strength: High demand from industries that require storage and transport of liquefied gases like oil gas, metal fabrication, food etc. Advancements in materials and manufacturing technologies improving safety and efficiency.
Weakness: High capital requirement for setting up cryogenic manufacturing and transport facilities. Logistical challenges of transporting tanks over long distances.
Opportunity: Rising demand for LNG and other industrial gases presents an opportunity to scale up production. Developing economies investing heavily in establishing gas pipeline networks and storage facilities.
Threats: Availability and prices of raw materials like steel fluctuate with market dynamics. Strict environmental regulations regarding emissions from manufacturing pose compliance challenges.
Geographical regions
The North American region accounted for the largest share in the global cryogenic tanks market in terms of value in 2023, primarily driven by high demand from oil gas industry owing to development of shale gas reserves. Asia Pacific is the fastest growing regional market projected to expand at around 7% CAGR during forecast period due to increasing natural gas demand and LNG import volumes in China, India and other countries to meet their rising energy needs.
The Middle Eastern region is also emerging as a major market concentrated with oil and gas producing countries establishing strategic LNG storage and export facilities. Countries like Qatar, UAE investing in large liquified natural gas carrier fleets and constructing receiving terminals worldwide to expand global outreach.
