Oil Storage Market Size, Share & Trends Report

Oil Storage Market Size, Share & Trends Analysis Report By Product (Open Top, Fixed Roof, Floating Roof), By Application (Aviation Fuel, Gasoline, Middle Distillates, Crude Oil), By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Sep, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-1-68038-132-0
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 150

Report Overview

The global oil storage market size was valued at 1682 million cubic meters in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 5.3% from 2020 to 2027. Increasing oil & gas production activities along with the growing demand for crude oil in several end-use sectors are expected to drive the market over the forecast period. Suppliers are focusing on inventories and infrastructure development owing to rising crude oil demand and to store crude oil in large quantities. In addition, fluctuating crude oil prices have resulted in oil-importing countries safeguarding their energy security through enhanced oil storage. Moreover, the growing trend for strategic petroleum reserves across several countries will positively influence the industry landscape.

The U.S. oil storage market size

The U.S. market is estimated to witness a prominent growth on account of the continuous rise in the exploration of unconventional oil & gas resources. According to the U.S. Energy Information Administration, in June 2020, net crude oil inventories in the country were at 64% storage capacity utilization. The storage facilities are mainly present in the Gulf Coast region as it is a key exporting area for crude oil and houses major refining facilities.

Crude oil supply outpaced crude oil demand due to the COVID-19 pandemic. This resulted in an increasing share of oil storage capacity across several countries, thereby propelling the market demand over the forecast period. However, the presence of stringent regulations associated with oil stockpiling in below- and above-ground tank installations are expected to hamper the industry growth.

For instance, the Water Environment Regulations 2006 (Scotland) and Control of Pollution Regulations 2001 (England) are some of the key legislations that require adherence by the market participants in Europe. In addition, storage equipment vendors are investing in advanced technologies used for fabricating steel tanks to prevent any oil leakages during storage.

Application Insights

The crude oil segment occupied the largest market share of over 51% in 2019. Rising production of crude oil along with declining demand from downstream and midstream sectors are expected to enhance crude oil storage over the forecast period. According to the U.S. Energy Information Administration, in June 2020, commercial crude oil inventories in the U.S. utilized 62% of the total storage capacity available.

Middle distillates accounted for the second-largest market share in 2019. The growth can be attributed to the development of advanced refining facilities along with proliferating demand for low sulfur distillates. Growing refining investments in the Asia Pacific are expected to result in the installation of upgraded units, which will enhance the productivity of middle distillates, thereby bolstering its storage market growth.

Gasoline application is anticipated to be the fastest-growing segment over the forecast period owing to its usage as an automobile fuel due to its high combustion energy. It is further used in equipment for construction, forestry, landscaping, and farming. However, growing demand for Electric Vehicles (EVs) is expected to hamper the segment growth in the near future.

Product Insights

Floating roof oil storage is anticipated to attain the fastest CAGR of 6.5% over the forecast period. The growth can be attributed to the efficient design of the floating roof, which helps in minimizing the evaporative losses and corrosion. In addition, rising demand for storage of medium and low flash point hydrocarbons is anticipated to propel the segment growth over the forecast period.

Global oil storage market share

Fixed roof oil storage occupied the largest market share in 2019 and will retain the dominant position throughout the forecast period. The growing penetration of the segment can be credited to the high degree of containment of these products that minimize risks of a fire incident. Moreover, declining installation costs of fixed roof designs are expected to boost the segment growth. The open tank storage is prone to fire incidents and product contamination, thus it is used to store liquids with negligible evaporative losses.

Regional Insights

Middle East & Africa accounted for the largest market share of over 34% in 2019 and will retain the leading position throughout the forecast years. Efficient refinery throughput and proliferating oil production are estimated to drive the market in countries, such as UAE, Saudi Arabia, and Kuwait. Demand for petroleum and distillates in the commercial and industrial sectors is expected to further drive the regional market.

The Asia Pacific is estimated to witness the second-fastest growth rate over the forecast period, with China accounting for the largest market share of the regional market. Growing oil and gas demand from major economies including China and India along with rising investments in offshore and onshore operations is likely to drive the APAC market.

North America also occupied a significant market share in 2019 owing to the high demand for oil stockpiling across the region. Rising exploration and production activities associated with shale gas reserves directly influence the oil storage market demand. The presence of major U.S. strategic petroleum reserve is anticipated to further bolster the regional growth.

Oil Storage Market Share Insights

The oil storage market is consolidated with the presence of multinational companies. Industry participants are investing in research and development activities to manufacture technologically advanced storage tanks and thus, gain a competitive edge over others. Some of the prominent players in the oil storage market include:

  • Vitol Tank Terminals International BV (VTTI)

  • Koninklijke Vopak NV

  • Oiltanking GmbH

  • Shawcor Ltd.

  • Buckeye Partners, L.P. 

Oil storage Market Report Scope

Report Attribute

Details

Market size in 2020

1791.4 Million Cubic Meters

Volume forecast in 2027

2550.8 Million Cubic Meters

Growth Rate

CAGR of 5.3 % from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Volume in Million Cubic Meters and CAGR from 2020 to 2027

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Application, product, region

Regional scope

North America; Europe; Asia Pacific; South America; MEA

Country scope

The U.S.; Canada; Mexico; Germany; Russia; The Netherlands; Belgium; China; Indonesia; Malaysia; Australia; Brazil; Argentina; Saudi Arabia; UAE

Key companies profiled

Vitol Tank Terminals International BV (VTTI); Koninklijke Vopak NV; Oiltanking GmbH; Shawcor Ltd.; Buckeye Partners, L.P.; Containment Solutions, Inc.; ZCL Composites; Belco Manufacturing; Zepnotek Storage; and Columbian Steel Tank

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global oil storage market report on the basis of application, product, and region:

  • Application Outlook (Volume, Million cubic meters, 2016 - 2027)

    • Crude Oil

    • Middle Distillates

    • Gasoline

    • Aviation Fuel

    • Others

  • Product Outlook (Volume, Million cubic meters, 2016 - 2027)

    • Open Top

    • Fixed Roof

    • Floating Roof

    • Others

  • Regional Outlook (Volume, Million cubic meters, 2016 - 2027)

    • North America

      • The U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • Russia

      • The Netherlands

      • Belgium

    •  Asia Pacific

      • China

      • Indonesia

      • Malaysia

      • Australia

    • Central & South America

      • Brazil

      • Argentina

    • Middle East & Africa

      • Saudi Arabia

      • UAE

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