Rising demand for LNG is Estimated to boost the growth of the Global Cryocooler Market

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Rising demand for LNG is Estimated to boost the growth of the Global Cryocooler Market

The global Cryocooler Market is estimated to be valued at US$ 2540.58 Mn in 2023 and is expected to exhibit a CAGR of 5.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Cryocoolers are equipments or devices that produce low temperatures well below ambient temperatures (the freezing point of water) by cooling cryogenic fluids such as liquid nitrogen or liquid helium. They are used in several applications such as electrical power generation, renewable energy systems, astronomy and space applications, medical technologies, transportation, food & beverages and more. Cryocoolers provide efficient, environment-friendly and cost-effective cooling solutions for temperatures ranging from 40 K to 300 K.

Market key trends:
One of the key trends in the cryocooler market is the rising demand for liquefied natural gas (LNG). LNG requires extreme cryogenic conditions of -162°C for storage and transportation. Thus, cryocoolers play a vital role in the LNG production process as they are used for reliquefaction of boil-off gases from LNG storage tanks as well as pre-cooling of natural gas. According to the International Gas Union, global LNG trade reached around 380 million tons in 2021 and is expected to grow at an annual rate of 3-4% till 2030. The increasing LNG trade and demand is expected to positively influence the cryocooler market over the forecast period.
Porter's Analysis:

Threat of new entrants: New entrants face high costs for R&D, manufacturing, and establishing distribution channels in this market. Well-established players enjoy economies of scale and product differentiation advantages.

Bargaining power of buyers: The Cryocooler market has few large buyers such as government space organizations and semiconductor companies. These buyers have significant bargaining power over suppliers.

Bargaining power of suppliers: Key components such as magnets, rare earth materials and cryogenic pumps are specialized and supplied by few customized component makers. This gives them significant bargaining power over cryocooler OEMs.

Threat of new substitutes: There exists no close substitute for cryocoolers as of now. Technologies like magnetic refrigeration are still under development and not commercially viable.

Competitive rivalry: The cryocooler market is highly consolidated with few global players holding majority share. Market players compete based on product performance, reliability, and pricing.

Key Takeaways

The Global Cryocooler Market Size is expected to witness high growth, exhibiting CAGR of 5.8% over the forecast period, due to increasing demand from research laboratories, medical devices, semiconductors, and space applications.

The North American region is expected to dominate the cryocooler market during the forecast period owing to high demand from the defense andaerospace industries in the US. The Asia Pacific region is anticipated to grow at the fastest pace due to increasing research activities in China and India.

Key players operating in the cryocooler market are Northrop Grumman Corporation, Sumitomo Heavy Industries Limited, Stirling Cryogenics BV, Sunpower Inc. (AMETEK Inc.), Superconductor Technologies Inc., RICOR, Advanced Research Systems Inc., Cobham PLC, Janis Research Company LLC, Cryomech Inc., and Chart Industries Inc.