OIL STORAGE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2025-2032)

Global Oil Storage Market Size and Forecast – 2025-2032  

The Global Oil Storage Market size is estimated to be 2,233.2 MCM in 2025 and is expected to reach 3,121.4 MCM by 2032, exhibiting a compound annual growth rate (CAGR) of 4.9% from 2025 to 2032.

Key Takeaways of the Oil Storage Market

• Fixed roof is projected to hold 36.6% share of the market in 2025, driven by its cost-effectiveness, dependable performance, and low maintenance requirements.
• The carbon steel segment is expected to account for 39.7% of the global oil storage market share in 2025.
• North America is expected to lead the global oil storage market in 2025 with a 25.7% share, driven by strong infrastructure and strategic reserves. Asia Pacific, with a 12.5% share in 2025, will grow fastest, supported by rising energy demand, refinery expansions, and government energy security measures.

Market Overview

The oil storage market is witnessing several key trends that are shaping its future. One notable trend is the shift towards more advanced and environment-friendly storage solutions, such as floating storage and offloading (FSO) systems and underground storage facilities. Additionally, the adoption of smart technologies, including IoT sensors and data analytics, is enabling better inventory management, predictive maintenance, and enhanced safety measures. Furthermore, the growing emphasis on renewable energy is driving the demand for oil storage infrastructure that can accommodate biofuels and other alternative energy sources.

Current Events and Its Impact

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Segmental Insights

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Oil Storage Market Insights, By Product - Fixed Roof Dominates Due to its Cost-Effectiveness and Reliability

Fixed roof segment is expected to contribute 36.6% share of the market in 2025, owing to its cost-effectiveness, reliability, and ease of maintenance. Fixed roof storage tanks are the most common type of oil storage tanks, consisting of a cylindrical steel shell with a fixed roof welded to the top. These tanks are designed to store a variety of petroleum products including crude oil, gasoline, diesel fuel, and kerosene.

One of the primary factors driving the growth of the fixed roof segment is its cost-effectiveness compared to other storage options. Fixed roof tanks are relatively simple in design and construction, requiring fewer materials and labor hours to build. This translates to lower initial investment costs for oil companies, making fixed roof tanks an attractive choice for those looking to expand their storage capacity while minimizing capital expenditure.

Oil Storage Market Insights, By Material - Carbon Steel Leads the Oil Storage Tank Market, Driven by Its Strength, Durability, Cost-Effectiveness, and Corrosion Resistance

Carbon steel segment is projected to contribute 39.7% share of the global oil storage market in 2025. The widespread adoption of carbon steel in oil storage tanks can be attributed to its excellent mechanical properties, cost-effectiveness, and compatibility with various petroleum products.

Carbon steel is an alloy of iron and carbon, with a carbon content ranging from 0.12% to 2%. The specific grade of carbon steel used in oil storage tanks is selected based on factors such as the type of oil being stored, the environmental conditions, and the required service life of the tank. The most common grades used in the industry are API 5L and ASTM A36, which offer a balance of strength, ductility, and weldability.

Regional Insights

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North America Oil Storage Market Analysis and Trends

The North America region is projected to lead the market with a 25.7% share in 2025. The region has a well-established oil and gas industry, with a robust infrastructure for oil storage and transportation. The presence of major oil-producing countries, such as the U.S. and Canada, has led to a significant demand for oil storage facilities.

The region's market ecosystem is characterized by the presence of key players, including ExxonMobil, Chevron, and ConocoPhillips, which have made substantial investments in oil storage infrastructure. Government policies supporting the oil and gas industry, such as favorable tax incentives and regulations, have further contributed to the region's dominance. Additionally, North America's strategic location and advanced trade dynamics have made it a hub for oil storage and distribution, serving both domestic and international markets.

Asia Pacific Oil Storage Market Analysis and Trends

The Asia Pacific region is expected to exhibit the fastest growth in the market contributing 12.5% share in 2025. The region's rapid economic growth, industrialization, and urbanization have led to a surge in energy demand, particularly for oil. Countries like China and India are major oil consumers, driving the need for expanded oil storage capacity. The market ecosystem in the Asia Pacific region is characterized by the presence of national oil companies, such as PetroChina and Indian Oil Corporation, as well as international players seeking to capitalize on the region's growth potential.

Government policies in various Asia Pacific countries aim to ensure energy security and support the development of oil storage infrastructure. Moreover, the region's evolving trade dynamics, including the establishment of strategic petroleum reserves and the growth of oil refining capacities, have further fueled the demand for oil storage facilities.

Global Oil Storage Market Outlook for Key Countries

U.S. Oil Storage Market Trends

The U.S. oil storage market is characterized by its vast network of storage facilities, including strategic petroleum reserves and commercial storage sites. The country's market dynamics are influenced by factors such as domestic oil production, import-export trends, and geopolitical events. Key players in the U.S. oil storage market include Magellan Midstream Partners, Kinder Morgan, and Plains All American Pipeline, among others. These companies have made significant investments in expanding and upgrading storage infrastructure to meet the evolving needs of the market.

China Oil Storage Market Trends

China oil storage market has experienced significant growth in recent years, driven by the country's increasing energy demand and efforts to ensure energy security. The Chinese government has implemented policies to support the development of strategic petroleum reserves and commercial storage facilities. State-owned companies, such as PetroChina and Sinopec, play a dominant role in the market, investing heavily in storage infrastructure and forming partnerships with international players.

India Oil Storage Market Trends

India continues to be a key player in the global oil storage market, with a growing demand for oil storage capacity. The country's market is driven by factors such as increasing oil consumption, refining capacity expansions, and government initiatives to build strategic petroleum reserves. Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation are among the major players in the India oil storage market, actively investing in storage infrastructure development.

Japan Oil Storage Market Trends

Japan oil storage market is characterized by its focus on ensuring energy security and maintaining adequate reserves. The country has a well-developed network of storage facilities, including both strategic and commercial reserves. Key players in the Japan oil storage market include JXTG Nippon Oil & Energy Corporation and Idemitsu Kosan Co., Ltd., which have made significant investments in storage infrastructure and technology.

Macro-Economic Factors

• Industry Investments and Partnerships: Private sector investments are scaling storage capacity. In 2024, India’s strategic partnership with the U.A.E included joint ventures to build storage terminals illustrating how collaborations address regional demand gaps. Similarly, OPEC’s USD 10.8 billion market outlay in 2025 reflects capital inflows into innovative storage projects.
• Government Policies and Strategic Stockpiling: Governments globally are investing in oil storage infrastructure to enhance energy security. For instance, Iraq awarded a USD 3.2 million-barrel crude oil depot project to China Petroleum Pipeline Engineering (CPP) in 2023, while India and the U.A.E collaborated in 2024 to expand strategic crude reserves. These initiatives reflect efforts to mitigate supply disruptions, stabilizing prices during geopolitical tensions. Similarly, India released 5 million barrels from its reserves in 2022 to curb inflation, underscoring how policy interventions directly impact storage demand.

Market Players, Key Development, and Competitive Intelligence

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Key Developments

• On May 23, 2025, U.S. crude oil storage demand surged in recent weeks, reaching levels not seen since the COVID-19 pandemic, according to data from storage broker, The Tank Tiger. This surge comes as traders anticipate a significant increase in supply from the Organization of the Petroleum Exporting Countries and its allies (OPEC+) in the coming months, potentially sparking a price war in the oil market.
• On May 17, 2025, Iran’s crude oil storage capacity increased by 2 million barrels following the completion of major repairs and upgrades to Tanks 25 and 26 at the Kharg oil terminal. Mr. Hamid Bovard, CEO of the National Iranian Oil Company (NIOC), announced the development during a site visit. Each tank, with a capacity of 1 million barrels, has been fully reconstructed and is now back in operation.
• On May 15, 2025, Montenegro’s mining, oil and gas ministry launched a fresh tender for the overhaul of state-owned oil storage facilities in the Adriatic city of Bar. The estimated value of the project remains unchanged at (USD 2.0 million).
• In April 2025, the Nigerian Navy deactivated an illegal oil storage facility in Tumburu Community, Bayelsa State. According to the Navy, personnel uncovered a site containing pipes, valves used for unlawful connections, and numerous sacks filled with illegally refined products. The operation led to the recovery of significant evidence from the location.
• On January 17, 2025, CB&I secured a contract for the engineering, procurement, fabrication, and construction (EPFC) of new storage facilities supporting the Vaca Muerta crude oil export project in Punta Colorada, Río Negro province, Argentina. The contract was awarded by VMOS, a midstream oil joint venture led by state-owned YPF, with Pan American Energy, Vista Energy, and Pampa Energía as initial shareholders. The project includes the construction of storage facilities with a total capacity of 630,000 cubic meters, equivalent to four million barrels of crude oil.

Top Strategies Followed by Global Oil Storage Market Players

• Established Players: Leading players in the global oil storage market, such as Vopak, Kinder Morgan, and Oiltanking GmbH, are heavily investing in research and development (R&D) to introduce advanced storage solutions.
  • For instance, Vopak is pioneering digitalization in storage terminals through its Vopak Smart Terminal programme, enhancing operational efficiency, safety, and real-time monitoring.

• Mid-level players: Mid-tier companies such as Royal Vopak Terminals India, Zenith Energy, and ITC Global focus on delivering cost-effective storage solutions tailored for price-sensitive markets. They optimize production by streamlining operations and adopting lean manufacturing approaches, allowing them to offer competitive pricing without compromising quality.
  • For instance, Zenith Energy formed partnerships with technology providers like Honeywell to integrate automation and safety features into their storage facilities.

• Small-scale players in the global oil storage market, such as CST Industries and Permian Tank & Manufacturing, thrive by carving out niches in specialized segments. CST Industries focuses on bolted tank designs for challenging environments like desert or seismic zones, offering a unique selling proposition compared to large-scale welded tanks. Meanwhile, Permian Tank & Manufacturing leverages IoT integration—embedding sensors for real-time leak detection and predictive maintenance—to differentiate its offerings.

Market Report Scope

Oil Storage Market Report Coverage

Oil Storage Market Dynamics

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Oil Storage Market Driver - Increasing demand for oil and petroleum products

The global oil storage market is experiencing a significant driver in the form of increasing demand for oil and petroleum products worldwide. As economies continue to grow and industrialize, particularly in developing nations, the consumption of oil and its derivatives is rising at a substantial pace. This surge in demand is fueled by the expansion of transportation sectors, including automotive and aviation industries, as well as the growth of manufacturing and power generation sectors. Additionally, the use of crude oil flow improvers is becoming increasingly important to facilitate the efficient transportation and storage of oil, particularly in challenging environments and long-distance pipelines, thereby enhancing the overall operational efficiency of oil storage facilities.

This heightened demand necessitates the development and maintenance of efficient oil storage infrastructure to ensure a stable supply chain. According to the International Energy Agency (IEA), global oil demand is projected to reach 104.1 million barrels per day by 2026, up from 91.3 million barrels per day in 2020 (IEA, 2021). This substantial increase in demand directly influences the need for expanded oil storage capacity worldwide.

Oil Storage Market Opportunity - Expansion of strategic petroleum reserves

The expansion of strategic petroleum reserves presents a significant opportunity for the global oil storage market. Governments around the world are increasingly recognizing the importance of maintaining adequate oil reserves to ensure energy security and mitigate the impact of supply disruptions. This has led to a growing demand for the construction and expansion of strategic petroleum reserve facilities. Additionally, the increasing integration of liquefied natural gas infrastructure alongside traditional oil storage assets reflects the need for diversified energy storage solutions to support a resilient energy ecosystem. As countries seek to bolster their oil stockpiles, the market for oil storage infrastructure, including above-ground storage tanks and underground caverns, is expected to witness substantial growth.

SPRs are government-controlled stockpiles of crude oil, designed to provide a buffer against unexpected shortages or price spikes. As global geopolitical tensions persist and the demand for oil continues to grow, governments are increasingly recognizing the importance of expanding their SPR capacities. For instance, in 2020, the United States Department of Energy announced plans to store up to 1 billion barrels of oil in its SPR, which would represent a substantial increase from its current capacity of 713.5 million barrels, as reported by the U.S. Energy Information Administration (EIA).

Analyst Opinion (Expert Opinion)

• The oil storage market is witnessing significant transformation, driven by fluctuating oil prices and the increasing demand for efficient logistics and supply chain management. Companies like Royal Vopak are investing in advanced storage solutions and digital technologies to optimize operations and enhance safety. Recent conferences, such as the International Oil & Gas Storage Conference (2022) and the Tank Storage Asia (2023), have provided critical forums for industry stakeholders to discuss innovations in storage technology and regulatory compliance.
• These events highlight the growing importance of sustainability and environmental considerations in oil storage practices, as companies face pressure to reduce carbon footprints and improve operational efficiencies. As geopolitical factors and market dynamics continue to evolve, the oil storage sector must adapt through technological advancements and strategic collaborations to ensure resilience and competitiveness in a rapidly changing landscape.

Market Segmentation

•  Product Insights (Volume, MCM, 2020 - 2032)
  • Fixed Roof
  • Open Top
  • Floating Roof
  • Others
•  Material Insights (Volume, MCM, 2020 - 2032)
  • Carbon Steel
  • Fiberglass Reinforced Plastic
  • Stainless Steel
  • Others (Polyethylene, Concrete)
•  Application Insights (Volume, MCM, 2020 - 2032)
  • Crude Oil Storage
  • Refined Products Storage
  • Liquefied Natural Gas (LNG) Storage
  • Others
• Regional Insights (Volume, MCM, 2020 - 2032)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Vitol Tank Terminals International BV (VTTI)
  • Koninklijke Vopak NV
  • Oiltanking GmbH
  • Shawcor Ltd.
  • Buckeye Partners, L.P.
  • Containment Solutions, Inc.
  • ZCL Composites
  • Belco Manufacturing
  • Zepnotek Storage
  • Columbian Steel Tank
  • Aluminum Tank Industries
  • Westeel
  • Tnemec Company, Inc.
  • Santos Group
  • Bechtel Corporation

Sources

Primary Research Interviews

• Operations Director – Major Oil Storage Terminal Operator
• Procurement Manager – International Oil Trading Company
• Engineering Head – Tank Manufacturing Company
• Regulatory Affairs Manager – Pipeline & Storage Authority

Stakeholders

• Manufacturers
• End-use Sectors:
• Transportation & Aviation (fuel storage and distribution)
• Chemical Industries & Petrochemicals (feedstock storage)
• Military & Strategic Reserves (emergency petroleum storage
• Terminal Operators: LBC Tank Terminals, Oiltanking GmbH, Odfjell SE, Royal Vopak, Vitol
• Service Providers: Tank inspection companies, maintenance contractors, automated monitoring system providers

Databases

• US Energy Information Administration (EIA) – Global liquid fuel production and storage capacity data
• International Energy Agency (IEA) – Emergency oil reserves and strategic petroleum data
• Canada Energy Regulator – Western Canada crude oil storage capacity statistics

Magazines

• Oil & Gas Journal – Storage infrastructure developments and capacity expansions
• Petroleum Equipment & Technology – Tank design innovations and safety systems
• Tank Storage Magazine – Terminal operations and logistics optimization
• Hydrocarbon Engineering – Storage technology and automation trends
• World Oil – Market analysis and strategic storage investments

Journals

• Journal of Petroleum Science and Engineering – Storage system efficiency and safety protocols
• Energy Policy – Strategic petroleum reserves and energy security analysis
• Process Safety and Environmental Protection – Tank safety and environmental compliance
• International Journal of Energy Research – Storage infrastructure and supply chain optimization
• Applied Energy – Energy security and storage capacity planning

Newspapers

• The Wall Street Journal – Oil market volatility and storage demand dynamics
• Financial Times – Strategic petroleum reserve policies and investments
• Houston Chronicle – US Gulf Coast storage infrastructure developments
• Reuters Energy – Global oil storage capacity and trading activities
• Bloomberg Energy – Storage market trends and price impacts

Associations

• American Petroleum Institute (API) – Storage tank standards and safety guidelines
• International Association of Oil & Gas Producers (IOGP) – Industry best practices
• Liquid Terminals Association – Terminal operations and safety standards
• National Petroleum Refiners Association – Refinery storage requirements
• International Energy Agency (IEA) – Strategic reserve coordination

Public Domain Sources

• US Department of Energy – Strategic Petroleum Reserve management and capacity
• Environmental Protection Agency – Storage tank environmental regulations
• European Commission – Energy security and storage infrastructure policies
• International Maritime Organization – Marine terminal safety standards
• UNEP – Environmental guidelines for petroleum storage facilities

Proprietary Elements

• CMI Data Analytics Tool, Proprietary CMI Existing Repository of information for last 8 years