The use of cryogenic tanks for storage of liquefied natural gas (LNG) has grown considerably over the years. Apart from the storage, another key application of these tanks in transportation of industrial gases and LNG. Market survey on cryogenic tanks notes a massive bearing of growing LNG production in the expansion of avenues. The growth dynamics has been shaped by the rise in import bills of LNG of numerous countries in recent years. The market has also made substantial advances on back of the incorporation of material composites such as stainless steel with better-performing materials in order to increase the functionality of cryogenic tanks.
Positive Outlook in Natural Gas Production Underpins Growth in Cryogenic Tanks Market
Despite the Covid-19 supply chain bottlenecks, the outlook of the oil and gas production has not suffered any significantly. The pandemic disruptions have had a bleak impact on the availability of global gas supplies. The demand for and consumption of natural gas in particular has grown after a brief decline post pandemic, propelling the growth of opportunities in the cryogenic tanks market. Emerging economies particularly in developing regions of the world have spearheaded by the recent rebound in production of LNG. Subsequently, the share of LNG in their sports has risen in recent years.
A great deal of impetus to the global cryogenic tanks market has come from the growing consumption of gas in industrial and power sectors. All these factors jointly underpin the high lucrativeness of the segment of LNG among all the key product segments in the cryogenic tanks market. The valuation of the segment is expected to advance at CAGR exceeding 7% during 2019 to 2027. The growth in the segment is fueled by rapid pace of industrialization in emerging Asian economies. These countries have seen rise of liquefaction facilities.
Growing Application of Industrial Gases Spurs Liquefaction Facilities, Other Applications also Picking Pace
Various economies worldwide are keenly making efforts in transitioning to low carbon energy systems. Developed economies have made a conscious shift from coal to non-fossil fuels. The adoption of such fuels is increasing in power and industrial sectors. These trends are propelling transition to a lower-carbon energy system. The growing use of nitrogen (N2), oxygen, argon, helium, and carbon dioxide has also spurred the manufacturing of cryogenic tanks.
Rapid Pace of Industrialization in Emerging Economies of Asia Pacific Makes Region Highly Lucrative Market
The various regions contributing to the growth dynamics in the cryogenic tanks market are North America, Latin America, Europe, Asia Pacific, and the Middle East & Africa. Of these, Asia Pacific held the majority of shares in 2018, and is anticipated to retain its dominance in the coming years as well.
Strides made in the production of natural gas in Asian economies have created a broad-based demand for natural gas. Countries such as China are becoming prominent producers as well as consumers of LNG, thereby spurring the growth avenues of cryogenic tanks in the Asia Pacific market. The focus on increasing the accessibility of gas around the world has spurred the volumes of LNG imports and exports. This aspect plays a key role in fueling opportunities, finds a market survey on cryogenic tanks market.
Past few decades have seen a spectacular increase in demand for LNG in the developed nations, notably in North America. The North America cryogenic tanks market is expected to advance at a moderate pace during the forecast period.
Regional Dominance of Players Shape the Competitive Landscape of Global Market
The research on the cryogenic tanks market notes that players exercise regional dominance. This accounts for a consolidated market landscape in key regions of the global cryogenic tanks market. Further, players are benefiting from the shift to non-fossil fuels for meeting the demands in the power sector.
Some of the key players in the cryogenic tanks market are Suretank Group Ltd., INOX India Pvt. Ltd., Gardner Cryogenics, Cryofab, Inc., FIBA Technologies, Inc., Eden Cryogenics, LLC., Cryoquip Australia, Chart Industries, Inc., Cryogas Equipment Private Ltd., and Linde AG.
High Manufacturing Costs a Deterrent
Despite the high utility of cryogenic tanks in storage and transportation of industrial gases, the high cost incurred by manufacturers has dampened the final demand. This has hampered the outlook of the cryogenic tanks market in the past few years.
Cryogenic Tanks Market: Product Type
Cryogenic Tanks Market: Application
Cryogenic Tanks Market: Regional Analysis
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- Rest of Middle East & Africa
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