Global Cryogenic Tanks Market Is Estimated To Witness High Growth Owing To Rising Demand for LNG Storage Solutions

The global cryogenic tanks market is estimated to be valued at US$ 6.51 billion in 2022 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.

A) Market Overview: Cryogenic tanks are specialized storage containers used to store and transport cryogenic liquids such as liquefied natural gas (LNG), liquid nitrogen, and liquid oxygen. These tanks are designed to maintain extremely low temperatures, typically below -150 degrees Celsius, to keep the cryogenic liquids in their liquid state. They are utilized in various industries including energy, healthcare, food and beverage, electronics, and aerospace. The increasing demand for LNG storage solutions for energy production and the growing use of cryogenic gases in medical procedures are driving the growth of the cryogenic tanks market.

B) Market Dynamics:

Driver 1: Growing demand for LNG storage solutions

The rising demand for natural gas as a cleaner alternative to traditional fossil fuels is driving the demand for LNG storage solutions. Cryogenic tanks play a vital role in storing and transporting LNG, which is used extensively in power generation, industrial heating, and as a fuel for transportation. The growing adoption of LNG as a fuel for marine vessels and heavy-duty trucks is further fueling the demand for cryogenic tanks.

Driver 2: Increasing use of cryogenic gases in medical procedures

Cryogenic gases such as liquid nitrogen and liquid oxygen are widely used in medical applications, including cryosurgery, cryopreservation, and cryotherapy. These gases enable precise temperature control for medical procedures and facilitate the preservation of biological samples and tissues. The growing use of cryogenic gases in various medical treatments and research activities is contributing to the market growth of cryogenic tanks.

C) Segment Analysis:

The cryogenic tanks market is segmented based on product type, application, and end-use industry. In terms of product type, the flat-bottom cryogenic tanks segment is dominating the market due to its cost-effectiveness and high storage capacity. Among the applications, the storage segment holds the largest market share, as cryogenic tanks are primarily used for the storage of cryogenic liquids. In terms of end-use industry, the energy sector is the major consumer of cryogenic tanks, driven by the increasing demand for LNG storage solutions.

D) PEST Analysis:

1.       Political: Government regulations and policies regarding the safe handling and transportation of cryogenic liquids play a crucial role in the cryogenic tanks market. Compliance with safety standards and obtaining permits for the installation and operation of cryogenic tank facilities are essential for market players.

2.       Economic: The growing energy sector and increasing investments in LNG infrastructure are driving the demand for cryogenic tanks. Economic factors such as the availability of affordable and reliable energy sources and the need for efficient storage solutions are influencing the market growth.

3.       Social: The increasing awareness about environmental concerns and the need for cleaner energy sources are driving the adoption of LNG as a fuel. Moreover, advances in medical technology and the growing demand for cryogenic gases in healthcare facilities are contributing to the market growth.

4.       Technological: Technological advancements in cryogenic tank materials, insulation techniques, and safety features are improving the efficiency and reliability of cryogenic storage solutions. Innovations such as vacuum super insulation and advanced monitoring systems are enhancing the performance of cryogenic tanks.

E) Key Takeaways:

Market size related content: The global cryogenic tanks market is expected to witness high growth, exhibiting a CAGR of 5.0% over the forecast period, due to the increasing demand for LNG storage solutions and the growing use of cryogenic gases in medical procedures.

Regional analysis: The Asia Pacific region is expected to be the fastest-growing and dominating region in the cryogenic tanks market. The rapid industrialization and urbanization in countries like China and India, coupled with the increasing investments in energy infrastructure, are driving the market growth in this region.

Key players: Key players operating in the global cryogenic tanks market include ArcelorMittal, China Baowu Group, Nippon Steel Corporation, POSCO, Shagang Group, Ansteel Group, Glencore,