Global Cryogenic Tanks Market Is Estimated To Witness High Growth Owing To Increasing Demand for LNG and Industrial Gases

Cryogenic Tanks Market

 

The global cryogenic tanks market is estimated to be valued at US$ 6.51 billion in 2022 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023 to 2030.

A) Market Overview:

Cryogenic tanks are used for the storage and transportation of liquefied gases, such as LNG (liquefied natural gas), oxygen, nitrogen, and argon, among others. These tanks are designed to maintain extremely low temperatures, ranging from -150°C to -273°C, in order to keep the gases in their liquid state. Cryogenic tanks find applications in various industries including healthcare, food and beverage, electronics, energy, and manufacturing.

B) Market Dynamics:

The increasing demand for LNG and industrial gases is one of the major drivers for the growth of the cryogenic tanks market. LNG is a cleaner-burning fuel compared to other fossil fuels and is being widely adopted as a substitute for coal and oil in power generation and transportation. This has led to an increased demand for cryogenic tanks for the storage and transportation of LNG.

Moreover, the growing industrial gas industry is also driving the demand for cryogenic tanks market. Industrial gases such as oxygen, nitrogen, and argon are widely used in various industries for gas welding and cutting, metal fabrication, chemical processing, and food preservation, among others. These gases are typically stored and transported in cryogenic tanks to maintain their low temperatures and prevent evaporation.

C) Market Key Trends:

One key trend in the cryogenic tanks market is the increasing adoption of cryogenic tanks for small-scale LNG applications. With the growing demand for LNG as a fuel source, there is a need for small-scale LNG terminals and distribution networks. Cryogenic tanks are being used to store and transport LNG in small volumes, enabling the development of decentralized LNG infrastructure and reducing transportation costs.

For example, in remote areas or islands where there is no access to pipeline or grid infrastructure, cryogenic tanks can be used to store and distribute LNG for power generation and heating. This trend is likely to drive the demand for cryogenic tanks in the coming years.

D) SWOT Analysis:

Strengths:

1. High demand for LNG as a cleaner-burning fuel.

2. Increasing use of industrial gases in various industries.

 

Weaknesses:

1. High initial investment cost for cryogenic tanks.

2. Limited infrastructure for small-scale LNG distribution.

 

Opportunities:

1. Growing demand for LNG in emerging markets.

2. Technological advancements in cryogenic tank design and materials.

 

Threats:

1. Stringent regulations and safety concerns related to cryogenic tank storage and transportation.

2. Volatility in LNG and industrial gas prices.

 

E) Key Takeaways:

1.       The global cryogenic tanks market is expected to witness high growth, exhibiting a CAGR of 5.0% over the forecast period, due to increasing demand for LNG and industrial gases.

2.       In terms of regional analysis, Asia Pacific is the fastest-growing and dominating region in the cryogenic tanks market. The region has a significant demand for LNG and industrial gases, primarily driven by countries like China, India, and Japan.

3.       Key players operating in the global cryogenic tanks market include 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.

 

Overall, the cryogenic tanks market is expected to witness significant growth in the coming years, driven by the increasing demand for LNG as a cleaner-burning fuel and the growing industrial gas industry. The adoption of cryogenic tanks for small-scale LNG applications is also emerging as a key trend in the market.