The Growing Demand From Transportation Sector Set To Bolster The Cryogenic Tanks Market

Cryogenic Tanks Market



The Cryogenic Tanks Market is estimated to be valued at US$ 6.84 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 Overview

Cryogenic tanks are vacuum insulated closed containers used to store cryogenic liquids such as liquid oxygen, liquid nitrogen, and liquid natural gas at very low temperatures. They are majorly used in healthcare, transportation, metal processing, energy, and research and development industries. In healthcare industry, cryogenic tanks are used to preserve cells, tissues, blood, stem cells and other biological products. In transportation sector, cryogenic tanks are utilized to transport liquefied natural gas over long distances via ships, trucks and trailers.

Market Dynamics

Surging demand for LNG as a transportation fuel is a major driver for the cryogenic tanks market growth. LNG has lower greenhouse gas emissions as compared to diesel and petrol, which is promoting its adoption in transportation sector. Various countries are investing heavily in building LNG fueling infrastructure including LNG terminals and stations, which is expected to accelerate the demand for cryogenic tanks for transportation of LNG over the forecast period. Additionally, increasing research activities in biomedical sector coupled with rising spending on tissue engineering and regenerative medicine is fueling the need for cryogenic storage of biomolecules and stem cells. This is positively impacting the sales of cryogenic tanks. However, high costs associated with cryogenic tanks due to usage of costly vacuum insulation and stainless steel in manufacturing poses a challenge to market growth.

Segment Analysis
The cryogenic tanks market can be segmented into storage tanks and transportation tanks. Storage tanks are further segmented into integrated and portable tanks. The storage tanks segment dominates the cryogenic tanks market as these tanks have wide applications across various industries such as metal manufacturing, oil & gas, chemicals, energy & power, electronics, healthcare, and food & beverage for storing liquefied gases such as oxygen, nitrogen, argon, and hydrogen on-site. Within storage tanks, the integrated tanks sub-segment dominates as these tanks are stationary vessels installed at manufacturing plants with large storage capacities.

PEST Analysis
Political: Fluctuations in crude oil prices impact the demand for cryogenic equipment from oil & gas industries. Stringent regulations regarding the transportation and storage of hazardous gases support market growth.
Economic: Investments in metal manufacturing, healthcare, food processing, and electronics industries drive the demand for industrial and medical gases which boost the cryogenic tanks market.
Social: Increasing population and urbanization increase demand for energy which necessitates liquefaction of natural gas for transportation and storage, fueling market growth.
Technological: Advancements in materials and insulation methods help manufacturers provide more efficient cryogenic tanks with reduced evaporation losses. Double wall vacuum insulation technology garners more adoption.

Key Takeaways
Global Cryogenic Tanks Market Size is expected to witness high growth, exhibiting a CAGR of 5.0% over the forecast period due to increasing investments in industries such as metal manufacturing, oil & gas exploration, healthcare, food processing, and electronics which utilize large volumes of industrial gases. The market size is expected to reach $8.13 billion by 2030 from $6.84 billion in 2023.

Regional analysis: Asia Pacific dominates the global cryogenic tanks market and is expected to maintain its lead through 2030. This is attributed to rapidly growing manufacturing and process industries in China, India, Indonesia, and Vietnam which demand more cryogenic equipment for storage and transportation of gases.

Key players: Key players operating in the cryogenic tanks market include 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. Major players are focusing on capacity expansions and new product launches to consolidate their position. 



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