Cryogenic tanks, also known as cryotanks or cryogenic vessels, are highly engineered equipment designed for storing cryogenic fluids such as liquefied natural gas (LNG), oxygen, nitrogen, hydrogen, etc. at very low temperatures. Cryogenic fluids require special storage tanks that can maintain their low temperatures and resist cracking or leaking. Cryogenic tanks with multi-layer insulation system ensure safe storage and transport of cryogenic fluids over long distances. The growing demand for LNG as a cleaner alternative fuel and oxygen for medical applications is fueling the need for advanced cryogenic tanks with improved thermal insulation and safety systems. The global cryogenic tanks market is estimated to be valued at US$ 6.51 Bn in 2024 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023 to 2030.
Key Takeaways
Key players operating in the 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.
The growing demand for LNG as a marine fuel and increasing deployment of small to mid-scale LNG terminals worldwide presents huge opportunities for cryogenic tank manufacturers. Technological advancements in material science are leading to development of more durable and cost-effective cryogenic tanks made of advanced materials like 9% nickel steel and aluminum-lined steel. Manufacturers are also developing vacuum jacketed and float type cryogenic tanks for efficient storage in limited space.
Market Drivers
The primary driver for the cryogenic tanks market is the increasing consumption of LNG globally. LNG is rapidly replacing conventional fuels in power generation and heavy transport industries due to its lower emissions and competitive pricing. The rising seaborne trade of LNG between countries is boosting the demand for specialized LNG carriers with advanced cryogenic storage tanks. Growing industrial gas production is also propelling the need for reliable transport and storage tanks for gases like oxygen and nitrogen. Stringent safety regulations regarding the handling and transport of hazardous cryogenic fluids are pushing manufacturers to integrate advanced monitoring and insulation systems in cryogenic tanks.
Current challenges in Cryogenic Tanks Market
The cryogenic tanks market is facing challenges like high research and development costs associated with innovative technologies. Several advances are still needed in materials optimization, insulation techniques, and safety mechanisms to further enhance performance, durability, efficiency and reduce costs of cryogenic tanks. Leakages also pose a major issue due to extremely low temperature operations and stringent containment requirements. Maintaining steady supply chains and logistics networks to facilitate smooth transportation of cryogenic tanks remains a challenge.
SWOT Analysis
- Strength: Cryogenic tanks have critical applications in sectors like healthcare, space technology, food processing requiring advanced materials and design.
- Weakness: High costs involved with specialized manufacturing, inspection and maintenance of cryogenic tanks. Risk of leakages and equipment failures.
- Opportunity: Growing demand for LNG globally is opening new expansion avenues. Rising investments in biomedical research and space applications offer opportunities.
- Threats: stringent regulations around safety and environmental compliance increase compliance costs. Substitutes like metal hydride storage pose competition.
Geographical regions with high market concentration in terms of value include North America and Europe owing to advanced healthcare and biotech industries. The Asia Pacific region is emerging as the fastest growing market for cryogenic tanks led by countries like China and India experiencing rising demand from industries like electronics manufacturing, healthcare and oil & gas. Countries are undertaking massive infrastructure investments around LNG terminals and upgraded transportation networks which will boost regional cryogenics market.
The European region currently accounts for the second largest share in the global cryogenic tanks market. Countries like Germany, UK, France, Russia are industrial powerhouses with robust manufacturing sectors driving cryogenic tank adoption across semiconductor, pharmaceutical, metallurgy industries. Government initiatives to expand the LNG fuelled transportation network across major economies supplements regional market growth.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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