Cryogenic Tanks Market to hit US$ 1,700 MN BY 2027
Cryogenic Tanks Market: Key Highlights
- In terms of value, the global cryogenic tanks market was stood around US$ 900.0 Mn in 2018 and is anticipated to expand at a CAGR of more than 7% from 2019 to 2027
- LNG product segment accounted for the largest share of the cryogenic tanks market in terms of volume and value with more than 35.0% share in 2018. Nitrogen was the second largest product segment of cryogenic tanks followed by oxygen and argon
- Based on application, storage was the major application of cryogenic tanks and accounted for more than 80% of the total cryogenic tanks usage in 2018.It is projected to exhibit significant growth rate during the forecast period 2019 to 2027
- Based on region, Asia Pacific held major share in 2018 and is expected to grow at significant rate of more than 7% compared to other region between 2019 to 2027. Increasing in consumption of LNG and industrial gases in Asia Pacific is expected to be major factor driving the demand for cryogenic tanks in Asia Pacific.
- The cryogenic tanks market in North America is expected to exhibit moderate growth rate during the forecast period. Increase in production of natural gas in U.S. is the major factor which propel the demand for cryogenic tanks for storage and transportation application
- Rise in production of LNG followed by increase in application of industrial gases is the major factor that drives the market
High Manufacturing Cost and Lack of Skilled Manpower May Hamper Overall Demand of Cryogenic Tanks
- The manufacturing costs of cryogenic tank is relatively high as compared to other general tanks
- Furthermore, construction, manufacturing, and engineering of cryogenic tanks is a highly skilled and technical job which requires technically expert employees to carry out the job. There is a dearth of employees with such skills and technical expertise. Shortage of skilled manpower has increased the wages of available manpower
- This is also major factor which may hamper the overall demand for cryogenic tanks during the forecast period 2019 to 2027
- In terms of volume and value, Asia Pacific accounted for major share of more than 30.0% of the global cryogenic tanks market in 2018. It is likely to remain the dominant market during the forecast period 2019 to 2027. China’s LNG consumption has grown rapidly in 2018 and is considered as one of the world’s most robust natural gas and LNG (Liquified Natural Gas) market. Also, import of LNG has been increased from other Asian countries which makes Asia Pacific highly lucrative region for cryogenic tanks market.
- Apart from Asia Pacific, North America is expected to grow at moderate rate compared to other region. North America is expected to grow at CAGR of more than 6.0% between 2019 and 2027.
Global Cryogenic Tanks Market -Key Developments
- In 2018, Chart Industries, Inc. global manufacturer of highly engineered equipment for the industrial gas, energy, and biomedical industries has acquired VRV S.r.l. and its subsidiaries to achieve significant cost synergies related to operational efficiencies and sourcing
- To meet the design goal for lightweight vehicles, carbon fiber composite are being explored by manufacturers for cryogenic tank application. NASA and Boeing has already built and test all-composite cryogenic tank to reduce cost
Global Cryogenic Tanks Market: Competition Landscape
- The cryogenic tanks market is global market but most of the companies in this market operate at regional level. 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.