CRYOGENIC PUMP MARKET ANALYSIS

The global cryogenic pump market size was valued at USD 1,954.32 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 20.09% from 2023 to 2030. The metallurgy industry is also expected to experience a rise in the demand for cryogenic pumps. Increasing demands for petrochemical products and rising demand from refining and fertilizer industries will also support the growth of this sector. Growing urbanization in the Asia-Pacific region and an increased demand for liquefied natural gas are projected to increase the demand for cryogenic pumps, which is likely to drive the market growth.

Global Cryogenic Pump Market: Regional Insights

Among regions, North America is anticipated to witness substantial growth in the global cryogenic pump market over the forecast period. This is attributed to low cost of natural gases, and rise in number of gas plants in the U.S. Moreover, increasing LNG infrastructure and growing LNG industry in Canada is also aiding in rapid growth of the market in North America region. Thus, the region will witness strong growth in the coming future.

Furthermore, Asia Pacific is also expected to show robust growth in the global cryogenic pump market over the forecast period. This is due to rise in demand for electricity, owing to growing industrialization, urbanization, and infrastructural developments along with subsequent investments in development of large gas-fired power generation. These factors in turn are creating demand for cryogenic pumps in the region, which in turn is expected to propel growth of the global cryogenic pump market over the forecast period.

Figure 1: Global Cryogenic Pump Market Share (%), By Region, 2022

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Global Cryogenic Pump Market Drivers:

Rise in demand from petrochemical and chemical sector to boost the market growth

Chemical and petrochemical sector are one of the major users of cryogenic pumps. In chemical and petrochemical sector, these devices are used in various applications such as sulfur recovery units, oxidation process, coal gasification, regenerate catalysts, and cool reactors. The chemical industry across the globe is witnessing a stable growth for a long time as the demand for chemicals from developing countries around the world is constant. These factors are further driving the adoption and demand of cryogenic pumps. This in turn is expected to augment growth of the global cryogenic pump market over the forecast period.

Rise in consumption of LNG to fuel the market growth

Cryogenic pumps are utilized for converting gas to LNG for storage, transportation, and usage of natural gas in liquid form. The LNG trade around the world increase in 2019 to 354.7 metric tons which was an increase of 40.9 metric tons from 2019, according to Coherent Market Insights. This was due to rise in exports from countries such as Australia, the U.S., Russia, and Egypt and Algeria. Thus, growing LNG industry is creating substantial demand for cryogenic pumps, which in turn is expected to drive growth of the global cryogenic pump market over the forecast period.

Global Cryogenic Pump Market Opportunities:

Growing use of cryogenic pumps at hydrogen refueling stations is expected to create several growth opportunities in the global cryogenic pump market over the forecast period. Hydrogen sources continue to diversify and a zero-carbon source of hydrogen production is nuclear. Moreover, renewable feedstocks are environment-friendly hydrogen sources, the use of which has grown in recent times significantly. Traditionally, hydrogen refueling stations utilize hydrogen compressors for storing gas, however, now the use of cryo pumps has increased for storing the gas in the liquid form. This is further creating several growth opportunities in the market.

Rise in demand for liquefied natural gas is expected to offer multiple lucrative opportunities in the global cryogenic pump market over the forecast period. Due to the efficiency of liquefied natural gas in safety and transport, it is considered a fuel for the future. The infrastructure of pipeline is developing rapidly along with favorable government policies, and demand from natural gas. These factors are leading to rise in adoption of liquefied natural gases, which is expected to create various business opportunities in the global cryogenic pump market over the forecast period.

Global Cryogenic Pump Market Trends:

Rise in demand from pharmaceutical industry is a growing trend

Pharmaceutical industry currently makes use of cold storage for safely transporting its products around the globe. These shipments are moved from the site of manufacturing through storage depots, planes, trucks, and ships for reaching the ultimate destination, usually a clinic, hospital, or pharmacy. Due to increased transport, the demand to maintain the product at cryogenic temperatures is high in pharmaceutical industry around the world. This is thus creating demand for cryogenic pumps in pharmaceutical industry, which is expected to propel growth of the global cryogenic pump market over the forecast period.

Increase government investments in natural gas extraction is a major trend

Several governments around the world are investing in natural gas extraction for domestic use. Along with this, the consumer awareness regarding extraction of natural gas is also increase all over the world. The demand for natural gas has further increased due to which liquefaction of gases is increasingly being adopted for purposes such as power plants, transportation, and medical gas supply. This is in turn is creating demand for cryogenic pumps, and thus, the trend is likely to continue in the market over the coming future.

Global Cryogenic Pump Market Restraints:

Volatility in prices of raw materials to impede market growth

Materials such as bronze, stainless steel, specialized alloys, and carbon steel are used for making cryogenic pumps. Over the years, the cost of iron along with other ores are increasing rapidly and this has led to a steady rise in cost of stainless steel and other metals all over the world. China is the largest producer and exporter of steel and it has witnessed volatility in cost of processed metals. The cost of such raw materials has increased intensely, and this is further hampering growth of the global cryogenic pump market.

Regulatory implications to hamper growth of the market

Governments of various countries around the world are implementing regulations to control emissions of toxic greenhouse gases. These gases cause depletion of the essential ozone layer, which leads to different health-related concerns and problems. These emissions are caused due to steel manufacturing. Thus, stringent regulations implemented by regulatory bodies and government authorities on steel industries are expected to directly impact growth of the global cryogenic pump market over the forecast period.

Figure 2: Global Cryogenic Pump Market Share (%), By Type, 2022

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Global Cryogenic Pump Market Segmentation:

The global cryogenic pump market report is segmented into Type, Gas, and End User

Based on Type, the market is segmented into Dynamic Pump, Positive Displacement Pump. Out of which, Dynamic Pump is expected to dominate the global market over the forecast period and this is attributed to the various advantages of dynamic cryogenic pumps such as fewer moving parts reducing installation and maintenance cost. Moreover, these pumps offer higher efficiency compared to others. Thus, demand for dynamic pumps is increasing, which is driving growth of the segment.

Positive Displacement Pump segment is also expected to witness significant growth in the near future and this is owing to the sudden increase in sales of these pumps during the COVID-19 pandemic, as the demand for medical oxygen was high in many countries. These pumps offer several benefits, due to which they are highly adopted.

Based on Gas, the market is segmented into Nitrogen, Oxygen, Argon, LNG, and Other Gases. Out of which, Nitrogen is expected to dominate the global market over the forecast period and this is attributed to the growing need for liquid nitrogen to maintain low temperatures. As liquid nitrogen is highly useful in medical sector, its demand is increasingly continuously. This in turn is driving growth of the segment.

Oxygen segment is also expected to witness significant growth in the near future and this is owing to the growing demand for oxygen in various applications, especially in medical and health applications. This is leading to rise in adoption cryogenic pumps, which is further fueling growth of the segment.

Based on End User, the market is segmented into Oil and Gas, Healthcare, Chemicals, and Other End Users. Out of which, Oil and Gas is expected to dominate the global market over the forecast period and this is attributed to the growing use in oil and gas industry due to various applications such as gas storage, gas transportation, gas processing and more.

Healthcare segment is also expected to witness significant growth in the near future and this is owing to the multiple applications of cryogenic pumps such as preservation packaging, manufacturing capsules and tablets, and molding of tubes or cans. Moreover, due to its several benefits, these pumps are widely used in healthcare industry. These factors hence are expected to augment growth of the segment in the coming future.

Global Cryogenic Pump Market: Key Developments

In April 2022, Trillium Flow Technologies announced the acquisition of Termomeccanica Pompe, an Italian manufacturer of highly engineered vertical turbine and split case pumps.

In November 2021, Elliot Group, announced completion of new US$ 60 million state-of-the-art cryogenic pumps testing facility in Pennsylvania, U.S.

In April 2021, Nikkiso Co., Ltd. opened a new facility adjacent to their primary production test site for increasing the efficiency and capability of producing cryogenic submerged electric motor pumps, especially for the LNG market.

In January 2021, Fives SAS, received a contract for supplying 13 Cryomec cryogenic centrifugal pumps in China. This supply resulted in installation of a new air separation unit in China. The company will be providing eight Cryomec LABS pumps and five Cryomec NLL pumps.

Global Cryogenic Pump Market: Key Companies Insights

The global cryogenic pump market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global cryogenic pump market are KSB SE & Co. KGaA, SHI Cryogenics Group, Nikkiso Co. Ltd., Ebara Corporation, and Fives SAS.

*Definition:

Cryogenic pumps are used in the energy industries. They are used for gas-to-liquid and gas-to-gas activities, including power generation. Typically, these pumps are used in oil and gas fields. Moreover, they are utilized in LNG terminals. Moreover, they are also used in compressed natural gas refueling stations.