Cryogenic tanks are highly specialized cryogenic containers used to store cryogenic liquids such as liquefied natural gas, industrial gases, and more at ultra-low temperatures. These liquids are stored at temperatures as low as -240°C. Cryogenic tanks enable safe storage and transportation of such media over long distances. With the rising demand for LNG from marine and power generation industries, the cryogenic tanks market is expected to grow substantially in the coming years.
The Cryogenic Tanks Market is estimated to be valued at US$ 6.51 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 key trends:
One of the key trends driving the growth of the cryogenic tanks market is the rising demand for liquefied natural gas (LNG). LNG is a cleaner alternative to conventional fossil fuels and is primarily used in shipping, power generation, and industrial applications. With growing global energy demands and focus on reducing emissions, the demand for LNG is increasing rapidly which is consequently fueling the sales of cryogenic tanks for its storage and transportation. Moreover, the market is witnessing rise in demand for better insulated cryogenic tanks to minimize product evaporation during storage and transport. Leading manufacturers are focusing on developing double-walled, vacuum-insulated cryogenic tanks providing improved thermal insulation.
Porter's Analysis
Threat of new entrants: The high capital requirements and the need for extensive technical expertise pose high entry barriers for new players. Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of alternatives and substitutes. Bargaining power of suppliers: The presence of a large number of component suppliers globally gives buyers bargaining power over suppliers. Threat of new substitutes: Substitutes like non-cryogenic tanks offer competition but cannot replace cryogenic tanks fully due to their limited capabilities. Competitive rivalry: Established players compete intensely on the basis of technical competence, product quality, and pricing.
SWOT Analysis
Strengths: Cryogenic tanks offer optimal storage and transport solutions for industrial gases and liquefied natural gas. Technology leadership of key players ensures product and service reliability.
Weaknesses: High dependency on energy and raw material prices increases production costs. Significant maintenance requirements add to the overall costs.
Opportunities: Growing industrial gas demand from end-use industries like healthcare, electronics, and aerospace offers new growth avenues. Adoption in new applications like hydrogen fuel cells market presents opportunities.
Threats: Stringent safety regulations surrounding cryogenic operations increase compliance costs. Supply chain disruptions due to geopolitical issues impact production.
Key Takeaways
The global Cryogenic Tanks Market is expected to witness high growth, exhibiting CAGR of 5.0% over the forecast period, due to increasing demand for industrial and medical gases from end-use industries. North America dominates the cryogenic tanks market currently due to high demand from oil & gas industries in the US. However, Asia Pacific is expected to witness highest growth during the forecast period with China and India emerging as high growth countries.
Regional analysis
Asia Pacific is anticipated to witness the fastest growth in the cryogenic tanks market during the forecast period. This is attributed to the rapidly growing manufacturing sector and increasing oil & gas production activities in major economies like China and India. The increasing investments by leading cryogenic tank manufacturers to tap into opportunities in the region further support the regional market growth.
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, Wessington Cryogenics, Isisan, Lapesa, Auguste Cryogenics, and Hoover Ferguson Group, Inc. The intense competition among these players has compelled them to adopt strategies like new product development, partnerships, and acquisitions to strengthen their market position.
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