The global market for cryogenic tanks has witnessed a significant rise in demand owing to the increased array of application of a number of industrial gases and the vast rise in production and consumption of liquefied natural gas (LNG). In the next few years as well, the rising production of LNG will remain a key driver of the global cryogenic tanks market. According to Transparency Market Research, the market was valued at US$740.2 mn in 2015 and is expected to reach US$1,433.0 mn in 2024, expanding at a CAGR of 7.7% between 2016 and 2024.
Usage of Cryogenic Tanks for Storage Application to Rake in Bulk of Revenue
On the basis of application, the has been examined for storage and transportation. Of these, the storage application dominated the global cryogenic tanks market, accounting for a more than 80% of the overall market in 2015. Cryogenic tanks are utilized for short term as well as long term storage of industrial gases and LNG among others. Increasing on-site production of industrial gases and planned (strategic) storage of LNG are some of the factors expected to boost the demand for cryogenic tanks for storage purposes during the forecast period.
The transportation segment witnessed an increased demand for liquefied industrial gas and LNG cryogenic tanks in the past few years owing to the vast rise in production volumes across established and emerging oil and gas producing countries and the fast pace of industrialization across emerging economies. Considered to be the best option for the transportation and distribution of a variety of liquefied gases and LNG, the demand for cryogenic tanks across the transportation sector is expected to exhibit a promising rise in the next few years as well.
Asia Pacific to Retain Dominance, Thanks to Promising Pace of Industrialization
On the basis of geography, Asia Pacific dominated the global cryogenic tanks market in terms of cryogenic tanks sales volume and revenue contribution of the regional market to the global market in 2015. The region accounted for more than 30% of the total number of cryogenic tanks sold across the globe in 2015. In terms of revenue, North America and Europe collectively accounted for more than 45% of the global market in the same year.
Asia Pacific is expected to remain the dominant regional market for cryogenic tanks throughout the forecast period as well. Expanding at a promising CAGR of 8.4% in terms of value between 2016 and 2024, the Asia Pacific market for cryogenic tanks is expected to account for a larger share in the pie by 2024. A promising pace of industrialization and the presence of manufacturing facilities of some of the market’s most prominent players have augmented the sales of cryogenic tanks for liquid industrial gases in the region. A significant rise in the consumption of LNG has also boosted the sales of LNG cryogenic tanks in the region in the past few years.
The cryogenic tanks market in Middle East & Africa will also exhibit 8.4% CAGR over the period between 2016 and 2024. The rising production of LNG in Middle East countries and increased production in Africa will boost the sales of LNG cryogenic tanks in the MEA region over the said period.
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Notable players operating in the global cryogenic tanks market include Cryogas Equipment Private Ltd., VRV S.p.A, Cryoquip Australia, Eden Cryogenics LLC, Cryofab Inc., FNF Gas Technology Products Private Ltd., Gardner Cryogenics, INOX India Pvt. Ltd., Linde AG, and Suretank Group Ltd.