CRYOGENIC TANKS MARKET ANALYSIS

The global cryogenic tanks market size was valued at US$ 6.51 Billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 5.0% from 2023 to 2030. The growing demand for gaseous and liquid materials in several end use industries including medical, chemical, and aerospace is largely augmenting the growth of cryogenic tanks market. Moreover, increasing industrialization and booming healthcare sector in the developing economies is further expected to boost the market growth.

Global Cryogenic Tanks Market: Regional Insights

Based on geography, the global cryogenic tanks market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

At present, North America is expected to dominate the global cryogenic tanks market over the forecast period owing to the presence of well-established manufacturing industries and stricter energy efficiency policies. According to the Coherent Market Insights analysis, in 2019, the U.S. accounted for the largest market share in the North America cryogenic tanks market and is projected to record the highest CAGR over the forecast period.

Europe is expected to witness fastest growth in the global market over the forecast period owing to the growing demand from food & beverages, healthcare, electronics, and other industries, including petrochemicals. In Europe, Germany holds the largest share in the European cryogenic tanks market, followed by, Russia, UK, and Italy.

Figure 1. Global Cryogenic Tanks Market, By Region, 2023

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Global Cryogenic Tanks Market Drivers:

Growing demand from end user industries to propel cryogenic tanks market growth

Increased demand for liquefied natural gas (LNG) globally coupled with improving healthcare food, and manufacturing industries in developing economies is driving growth for this market. In addition, rising research & development spending in pharmaceutical industry is also anticipated to foster market growth. Moreover, the increasing demand for industrial gases in healthcare industry for cryotherapy purposes will further propel market growth. In addition, restoration of the oil & gas sector is again boosting the cryogenic tanks market growth.

Increasing consumption of LNG is expected to foster market growth

According to Shell LNG Outlook 2019, global LNG demand increased by 12.5% in 2019, reaching 358 Billion tons. However, in the short term, the overall LNG demand is projected to slow down due to the coronavirus outbreak in 2020, resulting in sharp demand and supply cuts. The growing role of natural gas in shaping a lower carbon economy is projected to double the long-term LNG demand to reach 700 Billion tons. This is expected to positively influence the cryogenic tanks market growth over the forecast period.

Global Cryogenic Tanks Market Opportunities:

Growing awareness regarding the advantages of cryogenic tanks is expected to bring bright market opportunities. A key advantage of cryogenic tanks is that they can be used for both liquid oxygen and liquid nitrogen storage. Both of these industrial gases are used extensively in manufacturing processes that require low temperatures. Moreover, cryogenic tanks are more convenient to maintain than other types of storage containers. The tanks are made from stainless steel and have an insulating layer that can be easily cleaned. They are rust-resistant and durable, making them suitable for long-term use. As a result, there is substantial demand for these tanks around the world.

Increasing number of partnership among key players for geographical expansion is expected to offer significant market opportunities for key players. For instance, in April 2021, ITC Ltd announced that has tied up with Linde India, an industrial gases company, to air freight 24 cryogenic ISO containers of 20 tonne each to help with the transportation of medical oxygen to hospitals which are facing acute shortage of the essential item.

Global Cryogenic Tanks Market Trends:

Increasing investment in cryogenic tanks is a recent trend

Increasing investments by key players in the market is a recent trend observed in the market and this is expected to continue in the near future as well. For instance, in March 2023, InoxCVA has set up a manufacturing facility in Vadodara with an investment of Rs 200 crore. The 20,000 tonne per annum plant will come up at Savli. The project follows a MoU signed by the company with the Gujarat government.

Growing popularity of stationary and trailer-type cryogenic tanks

Stationary and trailer-type cryogenic tanks are widely used for the storage of various industrial gases including liquid oxygen, liquid nitrogen, and liquefied natural gas (LNG). Nitrogen is majorly used in production processes for the manufacturing of steel and other metallic products. Oxygen is required for various applications in the pharmaceuticals, food & beverages, and energy & power sectors. Liquid hydrogen is another crucial industrial gas that is stored in the cryogenic tanks for usage in power generation plants and water treatment.

Global Cryogenic Tanks Market Restraints:

High price of tank to hamper market growth

Cryogenic tank storage comes with high price technology. This is due to the complex construction process that is required to produce these tanks and the high costs of raw materials needed for the manufacturing process. In addition, the fact that the tanks must be insulated and the raw materials used to make cryogenic tanks is highly susceptible to volatility are another factor that contributes to their high cost.

Risk associated with the usage of cryogenic tanks to hinder market growth

The risks associated with use of cryogenic tanks for transportation of liquified gases are projected to pose a huge challenge for the market growth. For instance, accidental leakages of cryogenic liquids can cause several health hazards such as toxicity hazard, extreme cold hazard, and asphyxiation hazard. Also, cryogenic tanks can cause flammability hazards including fire or tank explosion. This factor is expected to hamper the market growth.

Figure 2. Global Cryogenic Tanks Market, By Application, 2023

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Global Cryogenic Tanks Market Segmentation:

The global cryogenic tanks market report is segmented into cryogenic liquid, application, end user, and region

Based on cryogenic liquid, the market is segmented into Liquefied Natural Gas, Liquid Nitrogen, Liquefied Liquid Oxygen, Liquid Hydrogen, and Others. Out of which, Liquefied Natural Gas is expected to dominate the global market over the forecast period and this is attributed to the growing demand for natural gas from various end-use sectors such as mining, energy power, transportation in emerging developed economies, coupled with reduced LNG prices and favorable government regulations. This is augmenting the demand for LNG across the globe, thereby driving the demand for cryogenic tanks to store the LNG

Liquid Nitrogen segment is also expected to witness significant growth in the near future. Liquid nitrogen accounted for the second largest market share of 28.29% in terms of revenue in 2019.

Based on application, the market is segmented into Storage and Transportation. Out of which, Storage is expected to dominate the global market over the forecast period. Storage application accounted for the largest market share in cryogenic tanks market in 2019, and this is projected to continue till 2027. Industrial gases and liquefied natural gas are generally stored in cryogenic tanks at various liquefaction facilities, trading terminals, and on-site industrial facilities.

Transportation segment is also expected to witness significant growth in the near future. They have a higher storage density and are capable of operating at lower temperatures, meaning that the liquefied gases can be transported further away from the point of production. This expands their use for applications where it is necessary to transport the gas over long distances and to multiple customers.

Based on end user, the market is segmented into Manufacturing, Healthcare, Food & Beverage, and Others. Out of which, Manufacturing is expected to dominate the global market over the forecast period. Manufacturing sector accounted for the largest revenue share of 35.42% of cryogenic tanks market and is expected to grow at a CGAR of 5.1% over the forecast period to reach US$ 2,016.8 Billion by 2027.

Healthcare segment is also expected to witness significant growth in the near future. Liquified natural gas is widely used in several healthcare application such as cell cryopreservation including blood & reproductive cells, storing animal gene resources by cry conservation, and preservation of tissue samples.

Global Cryogenic Tanks Market: Key Developments

In July 2020, M1 Engineering delivered high-payload CARRYMORE Oxygen trailers to its customers in light of the Coronavirus outbreak. Each trailer has a capacity of 3, 6500 liters and is equipped with a four-axle configuration that allows the trailer to deliver 30% more oxygen than the tri-axle configuration. Supply of oxygen trailers is expected to enable the company to enhance its share in additional end-use sectors such as medical infrastructure market.

In March 2020, INOX India Pvt. Ltd. partnered with Shell Energy India Pvt. Ltd. (SEI) for supplying LNG to customers who are not connected to natural gas pipeline. The company is expected to source LNG from SEI owned LNG terminal in Hazira, Gujrat, India and deliver it by trucks. The strategy will enable the company to enter the rapidly growing city gas distribution market, thereby enhancing its overall market position.

In September 2019, Chart Industries received a contract from LGM Engineering under which, the company will supply four LNG cryogenic tanks to LGM Engineering’s marine fuel gas systems. The fuel tanks comprise double stainless-steel shells with vacuum insulation, with a capacity of 300 m3 each. Such contracts are expected to enable the company to enhance its foothold in the global cryogenic tanks market.

Global Cryogenic Tanks Market: Key Companies Insights

The global cryogenic tanks 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 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, Lapesa, Auguste Cryogenics, and Hoover Ferguson Group, Inc.

*Definition: Cryogenic tanks are a popular choice for the storage of nitrogen gas. They offer a variety of advantages over other storage options such as gas cylinders. The most obvious benefit is that they are more cost-effective over the long term. They also offer a more reliable supply of the gas, eliminating the need to rely on external suppliers.