Cryogenic Tank Trends and Forecast
The future of the global cryogenic tank market looks promising with opportunities in the metal processing, energy generation, and electronic markets. The global cryogenic tank market is expected to reach an estimated $11.1 billion by 2030 with a CAGR of 5.5% from 2024 to 2030. The major drivers for this market are high demand for LNG and increasing government initiatives for clean energy across the world.
• Lucintel forecasts that, within the cryogenic liquid category, liquid nitrogen will remain the largest segment due to its wide application in metal processing, food & beverage, electronics, and healthcare industries.
• Within the end-use category, metal processing will remain the largest segment due to the growing adoption of cryogenic gases, such as nitrogen, oxygen, and argon.
• In terms of regions, APAC is expected to witness the highest growth over the forecast period due to easy availability of raw materials and low-cost labor.
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Emerging Trends in the Cryogenic Tank Market
The growing focus on technology, the quest for cleaner energy, and innovations in medicine and industry are making a substantial impact on the cryogenic tank market. These tanks are critical in the containment and storage of gases at very low temperatures. The ongoing globalization is altering the business landscape. Improving healthcare infrastructure around the world will also aid in the further development of the market. The following are five key observations regarding changes in the market.
• Expansion of Infrastructure for Liquefied Natural Gas (LNG): There is an increased global demand for LNG because it is comparatively less harmful than coal and oil. There is also substantial investment in storage and cryogenic transportation infrastructure. The global supply and demand for LNG increases with each cryogenic tank that is built. The construction of these tanks facilitates the storage and shipment of liquefied natural gas at low temperatures. As nations strive toward more environmentally friendly forms of energy, the demand for cryogenic tanks will continue to grow, leading to ample opportunities for the market.
• Enhancing Tank Design Efficiency With Technological Advancements: Improvements in materials and cryogenic tank designs are increasing the performance and efficiency of tank operations. These innovations focus on constructing lighter, stronger, and cheaper tanks. The creation of tanks with greater insulation ensures that the gaseous material is retained in a liquid state longer, minimizing evaporation losses. Additionally, newer technologies are making cryogenic tanks more energy-efficient and safer to operate, making them more appealing to a wider range of industries. This drives the market toward higher-quality and lower-cost storage alternatives.
• Increasing Medical Uses for Cryogenic Tanks: The role that cryogenic tanks play in the healthcare industry was especially noted during COVID-19 when oxygen and other medical gases required careful transportation and storage. As healthcare systems around the globe continue to modernize and expand, the need for units capable of storing medical gases is increasing. Tendering institutions, including hospitals, clinics, and research facilities, need proper storage for highly volatile gases necessary for treatment and medical manipulations, such as oxygen and nitrogen. This creates new opportunities for growth and development in the field of medicine.
• New Opportunities in Asia and Africa: The industrial growth and energy demands of developing economies in Asia and Africa are creating new avenues for the cryogenic tank sector. As these regions adopt cleaner energy sources like LNG and grow their industrial activities, the need for cryogenic tanks will increase. Moreover, the advancement of healthcare infrastructure in these regions will drive the consumption of medical gases. There is significant potential for cryogenic tank manufacturers in emerging markets in Asia and Africa, which will drive economic growth in these regions.
• Emphasis on Sustainability and Green Tech Development: As industries move toward greener solutions, sustainability is emerging as a major factor influencing the cryogenic tanks industry. New designs of cryogenic tanks are more energy-efficient, lead to lower emissions, and increase the use of renewable energy. Additionally, companies are increasing their focus on green materials used in tank construction. The move toward sustainability is enabling and increasing opportunities for cryogenic tank manufacturers as more industries look for green solutions for energy storage and transportation.
The new developments in the market for cryogenic tanks are being propelled by the rising need for LNG facilities, changes in tank design technology, and the increasing use of cryogenic medicine and other cryogenic industries. The cryogenic tanks market is expanding strongly due to the switch to clean fuel energy sources, improved tank technologies, and growing demand for advanced medical care facilities. These trends are changing the dynamics of the cryogenic tank industry, making it more competitive in both developed and developing economies.
Recent Developments in the Cryogenic Tank Market
The market for cryogenic tanks is rapidly growing due to advancements in technology, the need for cleaner forms of energy, and the increasing utilization of cryogenic tanks in medical and industrial fields. There is a growing need for reliable and efficient cryogenic tanks in the LNG, healthcare, and manufacturing sectors.
• Improving the Storage Facilities for LNG: The world is investing heavily in LNG storage infrastructure due to the rapid increase in demand for it. Various countries are constructing new LNG import terminals and expanding existing ones alongside cryogenic tank storage docks. Recent innovations in cryogenic tank design have allowed for safety improvements, greater insulation, and higher storage capacity. Advanced tanks help reduce evaporation loss, improving the operational efficiency of LNG regasification plants. As the energy sector continues to transition to cleaner fuels, the number of cryogenic tanks needed will increase, fueling market growth.
• Growth in Use of Medical Gas Storage Cryogenic Tanks: The healthcare industry is using more cryogenic tanks to store and transport medical gases such as oxygen, nitrogen, and argon. The pandemic highlighted the importance of quality storage systems, driving the demand for efficient medical gas storage facilities. Cryogenic tanks ensure safe, reliable, and durable storage of gases that need to be held for extended periods, especially in hospitals and other medical institutions. With the rising need for oxygen in various medical fields, this trend will contribute to market growth as hospitals modernize their structures and expand the use of medical gas.
• Development in Insulation Cryogenic Tank Design Technology: Recent developments in the industry aim to improve the efficiency, safety, and durability of cryogenic tanks. For example, replacing foam board cryogenic tanks with vacuum insulation panels for storing foamed lithium silicate cryogenic tanks significantly improves energy efficiency while reducing thermal losses. Additionally, the creation of high-strength advanced polymer materials and improved welding techniques help produce low-weight tanks that endure extreme conditions. These developments enable industries to meet growing demand while increasing the sustainability of cryogenic tanks.
• Development of Hydrogen Infrastructure and Storage Solutions: With hydrogen being a vital component in the transition to renewable energy, the demand for cryogenic tanks used in the storage and transportation of liquid hydrogen has surged. Hydrogen is stored in a liquid state, requiring cryogenic temperatures, so its storage and transportation are carried out in specialized cryogenic tanks. Increasing investments in hydrogen as a clean energy source are boosting the development of hydrogen infrastructure, particularly in cryogenic storage solutions. As the global market for hydrogen production and usage expands, manufacturers of cryogenic tanks are positioning themselves to handle the demand for hydrogen storage, creating new growth opportunities in this market segment.
• Eco-friendly Focus and Sustainability: The need for environmental sustainability has become more prominent in the cryogenic tanks market, making eco-friendly materials a crucial factor. Manufacturers are adopting energy-efficient and low-emission designs when creating tanks. The manufacturing process of cryogenic tanks has become highly advanced, with efficient methods significantly reducing carbon emissions. While the energy and healthcare industries lead the way in seeking sustainable alternatives, this shift is set to transform decades of contemporary cryogenic tank designs, making them more effective and sustainable.
The recent changes in the cryogenic tank market are catalyzing significant transformations across sectors such as energy, healthcare, and manufacturing. Innovations in tank design, the high demand for LNG and medical gas storage, and the focus on hydrogen infrastructure and sustainability are reshaping the market. These developments are improving the effectiveness, safety, and environmental aspects of the cryogenic tank industry.
Strategic Growth Opportunities for Cryogenic Tank Market
The marketing growth of cryogenic tanks is highly competitive due to the variety of applications for systems in energy storage, healthcare services, and manufacturing. The quest for cleaner energy and better capture of these sources is broadening the marketÄX%$%Xs perspectives. The following sections enumerate five key areas of application that are driving the prospects of cryogenic tank market development.
• LNG Storage and Infrastructure Development: The increased demand for liquefied natural gas (LNG) is one of the key factors driving the economic growth of the cryogenic tanks market. LNG is generally stored at cryogenic temperatures, requiring specialized tanks. There is also a global need for cryogenic tanks due to the development of LNG infrastructure, such as import terminals and export facilities. New safe and efficient methods have been developed to increase the volume of LNG that can be stored. The growth opportunity increases significantly for manufacturers of cryogenic tanks, as many countries are adopting LNG as a substitute for high-fuel energy sources in favor of cleaner fuels.
• Hydrogen Storage and Infrastructure Expansion: Hydrogen is emerging as a clean energy source, and the hydrogen economy uses cryogenic storage tanks as liquid hydrogen needs to be stored and transported. The use of hydrogen by industries like transportation and power generation is increasing, along with the need for its storage, which makes the use of cryogenic tanks more common.
• Adoption in the Healthcare Sector: The healthcare sector has increasingly adopted the use of cryogenic tanks for gas storage, which, alongside the ongoing pandemic, has led to an increase in demand. Hospitals and medical institutions rely on cryogenic tanks for storing medical gases such as oxygen, nitrogen, and argon. Upgraded healthcare infrastructure, along with the need for more medical gases, further supports the expansion of the cryogenic tank market. Providing reliable storage for oxygen and other medical gases for emergencies will help hospitals meet rising demands.
• Storage and Production of Industrial Gases: Cryogenic tank usage is growing in gas storage facilities, such as nitrogen and oxygen storage, and in industries involved in the production of metals, chemicals, and other crucial products. These tanks are used to store industrial gases that are necessary for various manufacturing processes. As industries focus on productivity and enhanced operational efficiency, the demand for more sophisticated gas storage solutions is rising. This calls for the creation of fortified cryogenic tanks with improved insulation and higher storage capacity to meet this demand.
• Rocket Fuel Inventory and Space Mission Backup Targets: Cryogenic tanks are essential for space activities, particularly in storing rocket liquid hydrogen and oxygen fuels. As public space agencies and private companies allocate resources for exploratory tasks, satellite launches, and interplanetary operations, the need for tougher and more efficient cryogenic tanks continues to rise.
Multiple growing avenues in LNG cryogenic tanks, hydrogen cryogenic tanks, medical gas cryogenic tanks, industrial gas-liquid oxygen nitrous cryogenic tanks, and space exploration markets are driving the growth of the tanks. As the world seeks greater efficiency in energy storage and strives toward cleaner energy solutions, the market for cryogenic tanks will continue to grow. Growth in emerging sectors like energy, healthcare, and space, combined with technological innovation, is transforming the market and creating ample opportunities for future development.
Cryogenic Tank Market Driver and Challenges
The growth and development of the cryogenic tank industry are influenced by several macro factors, including transportation and inflation. Below are five main challenges and three determinants affecting the future of the cryogenic tank market.
The factors responsible for driving the cryogenic tanks market include:
• Expanding Interest in Clean Energy: The increasing adoption of clean energy technologies is one of the reasons why the market for cryogenic tanks is growing rapidly. With the cryogenic tank market experiencing new developments for liquefied natural gas (LNG), cryogenic hydrogen storage, deep ocean energy, and even space energy development possibilities, the market will continue to rise.
• Investment in Engineering Ideas: The integration of better designs and materials into cryogenic tanks benefits the market significantly. The development of lightweight cryogenic tanks with insulation technology increased durability, and other modern innovations show promise in the international cryogenic tank market. These innovations lower energy consumption, boost safety and enhance overall storage capacity.
• Increasing Demand in the Healthcare Sector: Few healthcare processes remain untouched by cryogenic tanks, as oxygen, nitrogen, and even argon are stored and transported in the tanks. The global demand for medical resources is driven by a growing population, aging societies, and healthcare facilities. The COVID-19 pandemic stressed the oxygen storage needs and greatly increased the demand.
• Development of the Hydrogen Economy: As part of the clean energy shift, hydrogen is becoming more central, mainly as a source of energy in transportation, construction, and industry. Consequently, the use of cryogenic tanks to store and transport liquid hydrogen at extremely low temperatures has become critical.
• Positive Group Actions to Foster Competitive Strategies: Nations are enacting laws and regulations, along with incentives such as payments and tax breaks, to promote the adoption of clean technologies. These measures, aimed at reducing carbon emissions, are creating a strong demand for LNG and hydrogen scrubbers in cryogenic tanks. The storage, transport, and distribution of cryogenic fuels are driving expansion in the market.
Challenges in the cryogenic tanks market are:
• Increased Cost of Production: High manufacturing costs arise from the use of advanced materials, intricate designs, and stringent safety measures in the production of cryogenic storage tanks. These higher costs can be a major setback for small businesses in developing countries. These high costs are barriers to the entry of new players in specific markets. To mitigate these issues and offer competitive pricing, manufacturers must invest in new production techniques and materials.
• Operational Hazards and Regulatory Standards: Cryogenic tanks need to adhere to high standards of preservation and environmental protection, involving a highly controlled cryogenic temperature range for the storage of dangerous gases and liquids. Operating within specific jurisdictions presents challenges for manufacturers and users who operate in multiple regions. Balancing the need to meet safety standards with associated costs and regulatory procedures is challenging, potentially delaying product development and market entry. These issues pose significant obstacles for cryogenic tank producers.
• Powerful Barriers Leading to High Efficiency: Progress is being made in cryogenic tank design, but obstacles still exist in achieving greater tank efficiency. These obstacles stem from the need for improved materials for thermal insulation, substantial reductions in heat flux, and the creation of stronger, lightweight tanks.
The market for cryogenic tanks is driven by factors such as developments in healthcare, technological innovations, and increasing investments in the clean energy sector. While market prospects are promising, challenges such as high production costs, regulatory issues, and technological limitations need to be addressed to reach the market’s full potential. Nevertheless, the growing need for cryogenic storage facilities across sectors like energy, hydrogen infrastructure, and healthcare significantly cultivates market opportunities.
List of Cryogenic Tank Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies cryogenic tank companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the cryogenic tank companies profiled in this report include-
• Chart Industries
• Cryofab
• INOX
• Linde
• Air Products
• Cryolor
• Air Water
• Wessington Cryogenics
• FIBA Technologies
• ISISAN
Cryogenic Tank by Segment
The study includes a forecast for the global cryogenic tank market by raw material, cryogenic liquid, application, end use, and region.
Cryogenic Tank Market by Raw Material [Analysis by Value from 2018 to 2030]:
• Steel
• Nickel Alloy
Cryogenic Tank Market by Cryogenic Liquid [Analysis by Value from 2018 to 2030]:
• Liquid Nitrogen
• LNG
• Liquid Hydrogen
• Liquid Oxygen
• Others
Cryogenic Tank Market by Application [Analysis by Value from 2018 to 2030]:
• Storage
• Transportation
Cryogenic Tank Market by End Use [Analysis by Value from 2018 to 2030]:
• Metal Processing
• Energy Generation
• Electronics
• Others
Cryogenic Tank Market by Region [Shipment Analysis by Value from 2018 to 2030]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the Cryogenic Tank Market
All over the world, the cryogenic tank market is experiencing substantial developments as different countries focus on energy, industrial, and medical areas. Cryogenic tanks are essential in the storage of LNG, liquid oxygen, and liquid nitrogen on an industrial scale. The United States, China, Germany, India, and Japan are working on improving their cryogenic storage capacity to meet the rising market demand for liquefied natural gas (LNG), medicinal gases, and industrial gases. Highlighted below are the recent innovations for these countries.
• United States: The US market has focused investments on developing LNG infrastructure, with the construction of new cryogenic tanks and LNG export terminals in response to the rising demand for liquefied natural gas as a cleaner energy source. There have also been expansions in cryogenic tank design modifications to improve energy storage capabilities, structural resilience, and safety, which boosted performance under extreme conditions.
• China: China is steadily improving in the cryogenic tank market, giving particular attention to natural gas storage and industrial uses. The development of its LNG infrastructure has been expanded to meet the new demand for clean energy, along with increasing storage facilities. In addition, China is focusing on newer technologies for more efficient cryogenic tank production to achieve lower operational costs and higher energy efficiency to meet its environmental goals. As the country addresses mounting healthcare issues, there has also been an increased domestic demand for medical-grade oxygen. As a result, cryogenic tanks are being utilized for medical purposes more frequently.
• Germany: The countryÄX%$%Xs fostered innovations in sustainability continue to push the need for cryogenic tanks, particularly for further investments in renewable energies. Germany is heavily investing in the construction of LNG terminals as part of the gradual switch to cleaner energy sources. Cryogenic tanks are needed for the storage and transport of LNG, making it possible for Germany to meet its energy needs with less coal and nuclear power.
• India: Due to the increasing need for oxygen in the medical field since the pandemic, cryogenic tanks are being developed in the country. The Indian government is now focused on importing LNG. This means that cryogenic fuel storage tanks are going to be built across the nation. This, along with an investment in terminal cryogenic furnaces, will propel cryogenic tank manufacturing.
• Japan: Investment and technological development continue in Japan, as does the demand for cryogenic tanks. The international market is still buying lower-quality medical equipment, along with the increasing need for LNG cryogenic tanks. These two factors are the main drivers of JapanÄX%$%Xs tank industry growth.
Features of the Global Cryogenic Tank Market
Market Size Estimates: Cryogenic tank market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2018 to 2023) and forecast (2024 to 2030) by various segments and regions.
Segmentation Analysis: Cryogenic tank market size by raw material, cryogenic liquid, application, end use, and region in terms of value ($B).
Regional Analysis: Cryogenic tank market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different raw materials, cryogenic liquids, applications, end uses, and regions for the cryogenic tank market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the cryogenic tank market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What is the cryogenic tank market size?
Answer: The global cryogenic tank market is expected to reach an estimated $11.1 billion by 2030.
Q2. What is the growth forecast for cryogenic tank market?
Answer: The global cryogenic tank market is expected to grow with a CAGR of 5.5% from 2024 to 2030.
Q3. What are the major drivers influencing the growth of the cryogenic tank market?
Answer: The major drivers for this market are high demand for LNG and increasing government initiatives for clean energy across the world.
Q4. What are the major segments for cryogenic tank market?
Answer: The future of the cryogenic tank market looks promising with opportunities in the metal processing, energy generation, and electronic markets.
Q5. Who are the key cryogenic tank market companies?
Answer: Some of the key cryogenic tank companies are as follows:
• Chart Industries
• Cryofab
• INOX
• Linde
• Air Products
• Cryolor
• Air Water
• Wessington Cryogenics
• FIBA Technologies
• ISISAN
Q6. Which cryogenic tank market segment will be the largest in future?
Answer: Lucintel forecasts that liquid nitrogen will remain the largest segment due to its wide application in metal processing, food & beverage, electronics, and healthcare industries.
Q7. In cryogenic tank market, which region is expected to be the largest in next 5 years?
Answer: In terms of regions, APAC is expected to witness the highest growth over the forecast period due to easy availability of raw materials and low-cost labor.
Q.8 Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the cryogenic tank market by raw material (steel and nickel alloy), cryogenic liquid (liquid nitrogen, LNG, liquid hydrogen, liquid oxygen, and others), application (storage and transportation), end use (metal processing, energy generation, electronics, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?