Technological Innovations Shaping the Future of Cryogenic Tanks Market
Cryogenic Tanks Market will grow at highest pace owing to increasing demand from chemicals and petrochemicals industry
Cryogenic tanks are high-performance containers used for storing gases such as nitrogen, oxygen, argon, hydrogen and natural gas at cryogenic temperatures. Cryogenic tanks find widespread applications in shipping industrial and medical gases over long distances. They play a pivotal role in preserving perishable commodities during transportation. Cryogenic tanks offer excellent thermal insulation to maintain extremely low temperatures inside while preventing the condensation of atmospheric gases. Key advantages include durability, ease of handling and transportation. Rising demand from petrochemical facilities, gas liquefaction plants and research laboratories is fuelling sales of cryogenic tanks.
The Global Cryogenic Tanks Market is estimated to be valued at US$ 6.51 Bn 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 are ArcelorMittal, China Baowu Group, Nippon Steel Corporation, POSCO, Shagang Group, Ansteel Group. Cryogenic tanks find widespread applications in storing and transporting industrial gases in various end-use industries such as energy & power, chemicals, metallurgy, electronics, shipping and biomedical. The global cryogenic tanks market is primarily driven by increasing demand from the chemicals and petrochemicals industry. Rising natural gas trade has also boosted demand for cryogenic tanks in shipping LNG across regions. Technological advancements such as development of vacuum insulated tanks with enhanced thermal efficiency are improving cold chain logistics and supporting market growth.
Market Trends
One of the key trends in the cryogenic tanks market is the growing demand for mid-sized cryogenic tanks in the energy sector. Mid-sized tanks with capacities ranging from 10,000-40,000 liters are increasingly used for onsite storage of liquefied natural gas and hydrogen at refueling stations. Another major trend is the increasing adoption of cryogenic tanks made from composite materials. Carbon fiber reinforced polymer (CFRP) cryogenic tanks offer superior performance, durability and lighter weight. Their adoption is growing across industries requiring portable cryogenic storage solutions.
Market Opportunities
One of the major opportunities for cryogenic tank manufacturers is the rising demand from the LNG industry. Rapid infrastructure development and expansion of LNG facilities across Asia Pacific and Middle East are expected to drive sales. Another key opportunity is presented by the hydrogen economy. Widespread commercialization of fuel cell vehicles and setting up of hydrogen refueling network will augment demand for hydrogen storage and transportation cryogenic tanks over the forecast period.
Impact of COVID-19 on Cryogenic Tanks Market
The outbreak of COVID-19 has significantly impacted the cryogenic tanks market. During the lockdown period, demand for cryogenic gases such as oxygen, nitrogen, and argon decreased sharply from industries such as oil & gas, metal manufacturing, healthcare, etc. This led to a decline in the production of cryogenic tanks. Manufacturing facilities were shut down during lockdowns to curb the spread of the virus. Supply chain disruptions affected the availability of raw materials for tank production. Transportation restrictions made it difficult to deliver completed tanks to customers.
However, demand increased from the healthcare sector as there was a surge in requirement for medical oxygen to treat COVID-19 patients. This provided some relief to the cryogenic tanks market. With economies restarting operations in a phased manner after lockdowns were lifted, demand from other industries is recovering gradually. The oil & gas industry is witnessing a pickup in exploration and production activities, boosting nitrogen tank demand. Metal manufacturers are ramping up production to fulfil the growing order books, driving the need for both cryogenic liquid and gas storage tanks.
Going forward, partnerships between tank manufacturers and gas suppliers are expected to ensure uninterrupted supply. Adopting advanced technologies like additive manufacturing can help improve production efficiency. Focusing on developing portable and modular cryogenic tanks with fast filling/emptying capabilities will expand market reach in remote healthcare and other off-grid applications. Overall, the long-term outlook remains positive as the penetration of cryogenic applications widens across sectors with industrial and economic recovery.
Geographical Regions with High Concentration in Cryogenic Tanks Market
Asia Pacific accounts for the largest share of the global cryogenic tanks market in terms of value. This is mainly due to the massive semiconductor, metal manufacturing and healthcare industries in countries such as China, Japan, India and South Korea which create sustained demand for cryogenic gases and associated storage and transportation equipment. North America ranks second powered by oil & gas exploration activities and healthcare sector development in the US and Canada. Europe is another major regional market led by Germany, UK, France and countries increasing investments to bolster industrial gas infrastructure and expand gas transport networks for supporting manufacturing and technology industries.
Fastest Growing Regional Market for Cryogenic Tanks
The Middle East & Africa region is projected to witness the fastest growth in the cryogenic tanks market over the forecast period. This is because of ongoing megaprojects to establish gas production and liquefaction facilities along with construction of new industrial parks and special economic zones across GCC nations and rest of Africa. The huge spending on development of oil, petrochemical and manufacturing capacities, and growing medical infrastructure in the region provides major opportunities for cryogenic tank manufacturers and contractors.
Cryogenic tanks are high-performance containers used for storing gases such as nitrogen, oxygen, argon, hydrogen and natural gas at cryogenic temperatures. Cryogenic tanks find widespread applications in shipping industrial and medical gases over long distances. They play a pivotal role in preserving perishable commodities during transportation. Cryogenic tanks offer excellent thermal insulation to maintain extremely low temperatures inside while preventing the condensation of atmospheric gases. Key advantages include durability, ease of handling and transportation. Rising demand from petrochemical facilities, gas liquefaction plants and research laboratories is fuelling sales of cryogenic tanks.
The Global Cryogenic Tanks Market is estimated to be valued at US$ 6.51 Bn 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 are ArcelorMittal, China Baowu Group, Nippon Steel Corporation, POSCO, Shagang Group, Ansteel Group. Cryogenic tanks find widespread applications in storing and transporting industrial gases in various end-use industries such as energy & power, chemicals, metallurgy, electronics, shipping and biomedical. The global cryogenic tanks market is primarily driven by increasing demand from the chemicals and petrochemicals industry. Rising natural gas trade has also boosted demand for cryogenic tanks in shipping LNG across regions. Technological advancements such as development of vacuum insulated tanks with enhanced thermal efficiency are improving cold chain logistics and supporting market growth.
Market Trends
One of the key trends in the cryogenic tanks market is the growing demand for mid-sized cryogenic tanks in the energy sector. Mid-sized tanks with capacities ranging from 10,000-40,000 liters are increasingly used for onsite storage of liquefied natural gas and hydrogen at refueling stations. Another major trend is the increasing adoption of cryogenic tanks made from composite materials. Carbon fiber reinforced polymer (CFRP) cryogenic tanks offer superior performance, durability and lighter weight. Their adoption is growing across industries requiring portable cryogenic storage solutions.
Market Opportunities
One of the major opportunities for cryogenic tank manufacturers is the rising demand from the LNG industry. Rapid infrastructure development and expansion of LNG facilities across Asia Pacific and Middle East are expected to drive sales. Another key opportunity is presented by the hydrogen economy. Widespread commercialization of fuel cell vehicles and setting up of hydrogen refueling network will augment demand for hydrogen storage and transportation cryogenic tanks over the forecast period.
Impact of COVID-19 on Cryogenic Tanks Market
The outbreak of COVID-19 has significantly impacted the cryogenic tanks market. During the lockdown period, demand for cryogenic gases such as oxygen, nitrogen, and argon decreased sharply from industries such as oil & gas, metal manufacturing, healthcare, etc. This led to a decline in the production of cryogenic tanks. Manufacturing facilities were shut down during lockdowns to curb the spread of the virus. Supply chain disruptions affected the availability of raw materials for tank production. Transportation restrictions made it difficult to deliver completed tanks to customers.
However, demand increased from the healthcare sector as there was a surge in requirement for medical oxygen to treat COVID-19 patients. This provided some relief to the cryogenic tanks market. With economies restarting operations in a phased manner after lockdowns were lifted, demand from other industries is recovering gradually. The oil & gas industry is witnessing a pickup in exploration and production activities, boosting nitrogen tank demand. Metal manufacturers are ramping up production to fulfil the growing order books, driving the need for both cryogenic liquid and gas storage tanks.
Going forward, partnerships between tank manufacturers and gas suppliers are expected to ensure uninterrupted supply. Adopting advanced technologies like additive manufacturing can help improve production efficiency. Focusing on developing portable and modular cryogenic tanks with fast filling/emptying capabilities will expand market reach in remote healthcare and other off-grid applications. Overall, the long-term outlook remains positive as the penetration of cryogenic applications widens across sectors with industrial and economic recovery.
Geographical Regions with High Concentration in Cryogenic Tanks Market
Asia Pacific accounts for the largest share of the global cryogenic tanks market in terms of value. This is mainly due to the massive semiconductor, metal manufacturing and healthcare industries in countries such as China, Japan, India and South Korea which create sustained demand for cryogenic gases and associated storage and transportation equipment. North America ranks second powered by oil & gas exploration activities and healthcare sector development in the US and Canada. Europe is another major regional market led by Germany, UK, France and countries increasing investments to bolster industrial gas infrastructure and expand gas transport networks for supporting manufacturing and technology industries.
Fastest Growing Regional Market for Cryogenic Tanks
The Middle East & Africa region is projected to witness the fastest growth in the cryogenic tanks market over the forecast period. This is because of ongoing megaprojects to establish gas production and liquefaction facilities along with construction of new industrial parks and special economic zones across GCC nations and rest of Africa. The huge spending on development of oil, petrochemical and manufacturing capacities, and growing medical infrastructure in the region provides major opportunities for cryogenic tank manufacturers and contractors.
