The spherical tank market has witnessed significant growth in the past decade due increasing global demand for liquefied natural gas (LNG). Spherical tanks are widely used for the storage and transportation of liquefied gases such as LNG, liquefied petroleum gas (LPG), ammonia and ethylene at cryogenic temperatures. A spherical tank offers advantages such as maximum volume-to-surface area ratio, ability to withstand high internal pressures and virtually non-existent secondary stresses.
The global spherical tank market is estimated to be valued at US$ 3.85 billion in 2024 and is expected to exhibit a CAGR of 4.2% over the forecast period of 2024-2031.
Rapid industrialization and urbanization, especially in Asia Pacific are major demand drivers for liquefied gases which is priming the spherical tank market for significant growth. Some key industries utilizing spherical tanks include oil & gas, chemical and power generation.
Key Takeaways
Key players operating in the spherical tank market are Chart Industries, Linde Engineering, Air Products and Chemicals, Inc., Cryogenics, Groupe Charles André, Technip Energies, Toyo Engineering Corporation, McDermott International, Saipem, EagleBurgmann, Messer Group, SABIC, Worley, JFE Engineering Corporation, BASF.
Spherical Tank Market Demand include capacity expansions by industry players to meet rising liquefied gas demand from end-use sectors. For instance, JFE Engineering recently completed the expansion of an ethylene storage facility in Japan.
European and North American players are focussing on expanding presence in high growth markets such as Asia Pacific and Middle East regions through partnerships and joint-ventures. For example, Germany based Messer group has partnered with Indian player Avaada Energy to set up an air separation unit in India.
Market Drivers
Growing global natural gas demand especially in developing Asian economies is a key factor driving the spherical tank market. Countries such as China and India are heavily investing in LNG import infrastructure such as regasification terminals and interconnectivity pipelines.
Increasing petrochemical capacities across major economies also necessitate new spherical tank installations for storage and transportation of gases. Key players are expanding propylene and ethylene production facilities which will favor market growth during the forecast period.
Market Restraints
Fluctuations in raw material prices can negatively impact equipment pricing for spherical tank manufacturers. Stainless steel is a key raw material and its volatile price trends may restrain market revenues.
Strict quality certifications and safety regulations associated with cryogenic spherical tanks increase capital expenditure for industry players. High costs of transportation and installation of large tanks also pose challenges.
Segment Analysis
The Spherical Tank Market Size And Trends accounting for over 35% of revenue share in 2024. These tanks are widely preferred for LNG storage applications due to their compact size, large storage capacity, ease of installation, and reliability. The demand for spherical tanks in offshore and land oil & gas projects will continue to rise over the forecast period owing to the increasing investments in LNG import and export terminals globally.
The horizontal tanks segment will exhibit strong growth at over 5% CAGR through 2031 on account of rising applications in oil refineries, regasification terminals, and petrochemical facilities. Horizontal tanks offer lower installation costs than vertical counterparts due to reduced space requirements, making them viable for storage of liquid hydrocarbons like LPG, petrochemicals, and biodiesel.
Global Analysis
The Asia Pacific region accounted for more than 35% of market share in 2024 owing to robust investments in developing LNG import infrastructure in China, India, and Southeast Asia. Countries like China are focusing on import LNG to cater to increasing energy demand from industrialization. North America is another fast-growing market for spherical tanks, driven by exports of shale gas-derived LNG. The demand is rising as countries seek to diversify energy import sources away from certain European nations. In Europe as well, the market is expected to grow on account of increasing regasification capacities and investments in liquefaction terminals to facilitate exports of natural gas to external markets. The rising commitments to develop clean energies will continue to drive regional markets for spherical tanks through 2031.
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
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