July 19, 2024
Cryogenic Tanks Market

Cryogenic Tanks Market Is Estimated To Witness High Growth Owing To Rising Need For Storing LNG And Cryogenic Gases

The Cryogenic Tanks market is estimated to be valued at US$ 6.84 Bn in 2023 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Cryogenic tanks are vacuum insulated vessels used for storing liquefied gases at cryogenic temperatures, which are below 123 kelvin or −150°C. They are primarily used for storing liquefied natural gas (LNG), liquid nitrogen, liquid oxygen, and liquid argon. These tanks find applications across various industries such as metals, oil & gas, chemicals, healthcare, food and beverages.

Market Dynamics:
The cryogenic tank market is driven by the growing demand for LNG as a cleaner alternative fuel source for transportation and power generation. According to the International Gas Union, China, the United States, and Japan accounted for over 70% of the total import of LNG in 2020. Furthermore, rising need for liquid gases such as liquid nitrogen and liquid oxygen in healthcare and manufacturing sectors is also expected to fuel the demand for cryogenic tanks over the forecast period. Additionally, rapid expansion of industrial gas producers and increasing seaborne trade of LNG across geographies is anticipated to augment the market growth. However, high capital investment required to set up cryogenic tanks and stringent regulations pertaining to material specifications may hamper the growth of cryogenic tanks market.

SWOT Analysis

Strength: Cryogenic tanks market has strong demand from industries such as oil & gas, chemicals, metallurgy, gas processing among others. Cryogenic tanks have very low failure rates and ensure safe storage and transportation of gases. Advanced materials used in manufacturing cryogenic tanks makes them durable and long-lasting.

Weakness: High initial investments are required for setting up cryogenic tank manufacturing facilities. Transportation of cryogenic tanks requires special vehicles which increases logistic costs.

Opportunity: Growing demand for LNG is expected to boost the cryogenic tanks market. Use of advanced materials for cryogenic tanks provides opportunities to reduce costs and improve efficiencies.

Threats: Stringent regulations regarding transportation and storage of industrial gases pose challenges. Substitutes such as gas cylinders and on-site gas generation can pose threats to cryogenic tanks market.

Key Takeaways:

Global Cryogenic Tanks Market Size is expected to witness high growth, exhibiting CAGR of 5.0% over the forecast period, due to increasing demand from oil & gas industries. Growing trade of LNG across regions and expanding manufacturing sector is boosting the need for cryogenic tanks.

Regional analysis

The Asia Pacific region dominates the cryogenic tanks market with over 30% share assisted by rapid industrialization and establishment of gas processing plants in China and India. North America and Europe are other major regional markets supported by development of oil & gas infrastructure and chemical facilities.

Key players

Key players operating in the cryogenic tanks market are ArcelorMittal, China Baowu Group, Nippon Steel Corporation, POSCO, Shagang Group, Ansteel Group, Linde, INOX India Pvt., Cryofab, FIBA Technologies, Air Products and Chemicals, Inc., Chart Industries. These companies are focusing on capacity expansion and new product launches to cater to the growing end-use demand.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it