Competitive Landscape of the Cryogenic Tanks Market: Key Players and Strategies

Competitive Landscape of the Cryogenic Tanks Market: Key Players and Strategies

The cryogenic tanks market has been growing significantly over the past decade owing to the increasing demand and consumption of liquefied natural gas globally. Cryogenic tanks are specifically designed storage vessels used for storing liquefied gases at temperatures lower than -150 degree Celsius. The main liquefied gases stored using cryogenic tanks include liquefied natural gas (LNG), oxygen, nitrogen, argon, and liquefied hydrogen. Cryogenic tanks provide an efficient, safe and economical solution for storage and transport of liquefied gases over long distances via ships, railcars or trucks. The burgeoning LNG industry has been the primary growth driver for cryogenic tanks considering its increasing usage in power generation, industrial processes and transportation fuel.

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 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.. Key players are focusing on capacity expansions and investments in research and development to develop improved and more durable cryogenic tank materials.

The growing demand for LNG as a cleaner alternative fuel for power generation and transportation has been driving increased consumption of cryogenic tanks globally. Countries like China and India have emerged as high growth markets for LNG and cryogenic storage infrastructure.

Technological advancements in cryogenic tank materials including 9% nickel steels and composite materials have enhanced durability and reduced maintenance costs of cryogenic storage and transportation systems. Development of vacuum insulated and modular cryogenic tank designs have also optimized storage capacity.

Market Trends

Thinner tank walls: Tank manufacturing companies are developing tank designs with thinner and lighter tank walls through advanced material engineering while maintaining required strength and integrity at cryogenic temperatures.

Modular construction: Modular construction techniques allow cryogenic tanks to be assembled on-site with pre-fabricated sections reducing construction timelines significantly. This helps meet the rapidly growing demand.

Market Opportunities

Reusable cryogenic tanks: There is scope for reusable cryogenic tank designs that can be returned, refilled and redeployed to improve cost efficiencies over the life cycle.
On-site storage: With growing decentralized energy needs, there exists opportunities for scaled-down on-site stationary cryogenic storage for industrial applications.

Impact of COVID-19 on Cryogenic Tanks Market

The outbreak of the COVID-19 pandemic had a significant impact on the growth of the cryogenic tanks market initially. During the lockdown period of 2020-2021, production facilities and manufacturing plants were temporarily shut down due to strict social distancing norms. This led to disruptions in the supply chain and a drop in demand across end-use industries such as oil & gas, metallurgy, power generation and others which use cryogenic tanks. However, with vaccination drives and easing of lockdowns from mid-2021, production and supply chain activities have resumed while following necessary safety protocols. The demand from power generation and healthcare sectors increased significantly driven by the need for medical oxygen which boosting the cryogenic tanks market again. Going forward, the pandemic has highlighted the need for reliable and flexible gas supply infrastructure which is expected to drive investments towards building new liquefaction plants and expanding gas transportation facilities using cryogenic tanks.

Geographical Regions with High Concentration in Cryogenic Tanks Market

Asia Pacific region dominates the global cryogenic tanks market in terms of value owing to high demand from China, India and other developing countries. This is attributed to rapid industrialization, growing demand for LNG and medical oxygen along with government initiatives towards gas-based economy and clean energy. North America is the second largest market for cryogenic tanks driven by increasing production of shale gas and its transportation/storage requirements in the region. Europe also holds significant share in the market supported by ongoing energy transition initiatives towards replacing coal/oil with cleaner natural gas and hydrogen.

Fastest Growing Region for Cryogenic Tanks Market

Asia Pacific region is projected to be the fastest growing market for cryogenic tanks during the forecast period of 2023-2030. This is because majority of planned investments and capacity addition of gas liquefaction, regasification and gas-based power plants are concentrated in emerging economies of China, India and ASEAN countries. Additionally, rising LNG trade activities between Asia and other regions increases the requirements for tanker transportation of gas using cryogenic technology. Government policies supporting gas utilization over other fuels as well as expanding industrialization will further augment the demand for cryogenic tanks from various end-use industries in Asia Pacific.