Global cryogenic tank market is estimated to grow at a CAGR of over 7% in the next seven years owing to growing requirement for low temperature operations in chemical and food & beverages industries.
Globally, over 250,000 tank units are consumed for storage and transportation of industrial gases, which remains a major application segment for the industry. Cryogenic tanks are specially designed tanks for storage and transportation of liquefied gases such as liquefied natural gas (LNG), liquid nitrogen, liquid oxygen, and liquid argon.
These gases are stored at extremely low temperatures and high pressures. High demand for these specialty gases in various industries including petrochemical, pharmaceuticals, and food & beverages is estimated to steer market growth over the forecast period. Cryogenic tank demand for storage and transportation of industrial gases is estimated to grow at a CAGR of over 6% in future.
Increasing applications of cryogenics in chemical plants and laboratories coupled with increasing usage of liquid nitrogen and carbon dioxide for transportation of frozen food as well as fruit juices for long distances are the key drivers of cryogenic tanks market. High operating cost involved in fabrication of cryogenic tanks along with rising raw material cost is estimated to hinder industry growth.
Growing LNG demand coupled with rapidly expanding fleet owing to high natural gas consumption particularly in economies including Qatar, Oman, Japan, China, and India is estimated to expand the industry. Cryogenic tank demand in LNG is anticipated to witness high growth over the next seven years on account of improving trade and upcoming facilities in aforementioned nations.
On the basis of storage type, the market is segmented into stationary and trailer-type cryogenic tanks. Both the product categories have their own significance. Stationary tanks usually have applications in petrochemical or chemical plants for long-term storage of liquefied gases, which usually include liquid nitrogen, oxygen, argon, and carbon dioxide.
On the basis of their design, stationary product segment is further segmented into elliptical bottom and flat bottom. Trailer-type cryogenic tanks are usually used for transportation and may differ according to the type of trailer used or the type of gas carried. Various types of trailer tanks include cryogenic truck tanks, semi-trailer tanks, and container tanks.
Cryogenic trucks are the most commonly used trailer-type tanks employed for short distance and are a cost-effective transport of liquefied gases. For longer and larger quantities, container tanks are the safest and the most efficient mode of transportation of cryogenics.
Consistent innovation and improving design of these tanks may provide industry participants sufficient impetus for expanding the target application scope. Rapid industrialization and increasing scope of cryogenics in food and beverage, health care, and refrigeration industries are anticipated to provide sufficient growth opportunities for the industry participants in future.
Asia Pacific cryogenic tanks market dominated the global demand accounting for over 35% of the total volume share in 2014. Large-scale development in LNG infrastructure especially in economies including Japan, China, Indonesia, and India may be attributed for high demand.
North America and Europe markets had significant demand in 2014 and are estimated to witness slacked growth in future on account of stable demand from downstream industries. Middle East & Africa and Latin America together accounted for just over 15% of total market volume share in 2014 and are estimated to observe above average growth rates.
Escalating LNG and industrial gases demand in economies including Qatar, Brazil, Australia, India, and China along with expanding frozen food storage requirement in BRICS nations is estimated to steer cryogenic tank demand in the near future.
The industry is moderately consolidated with major companies including INOX (India) Ltd., Linde AG, Cryogas Equipment Private Ltd., and FNF Gas Technology Products Private Ltd., that accounted for over 50% of the market revenue share. Companies are constantly involved in expanding their product offerings and increasing target industries’ scope.
M&A and strategic collaborations along with backward integration are some of the other key strategies employed by the industry participants to enhance market penetration. Other companies having significant stake in cryogenic tank industry include FIBA Technologies, Cryoquip Australia, Gardner Cryogenic, Cryogenic Vessel Alternatives, Suretank Group Ltd., and Eden Cryogenic LLC.
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