The global pressure vessel market size was USD 138.7 billion in 2015. Key factors expected to drive the volumes include expanding power generation capacities in Asia Pacific coupled with increasing chemical projects in the Middle East. Trends are changing in the energy sector mainly in developing regions including Asia Pacific and the Middle East.
In addition, developed regions such as North America and Europe have adopted renewable energy as their source in order to follow stringent environmental regulations and minimize harmful emissions in the air.
U.S. pressure vessel market revenue by end-use, 2014 - 2024 (USD Billion)
Such changing energy patterns across the world are expected to augment global industry growth over the forecast period. Aging power plants in developing regions including North America and Europe is expected to restrain the industry volumes in near future.
In addition, decreasing oil and gas projects on account of falling crude oil prices have also hindered the revenues in the recent years. Low growth in the mining industry is anticipated to negatively impact overall market demand over the forecast period.
Pressure vessels are mainly made up of steel alloys and composites. Over the forecast period, composites are expected to grow at the highest CAGR of 5.9% from 2016 to 2024 on account of technological innovation coupled with the shift in focus towards high-quality products.
Steel alloys are widely used as a material and is anticipated to continue accounting for maximum revenue share in the global industry owing to its excellent strength characteristics which help in carrying high-pressure liquids and gasses.
Boilers accounted for a revenue share of approximately 33.0% in 2015 and are expected to develop at significant growth rates on account of increasing power plants in Asia Pacific as boilers are used in these plants for electricity production.
Separators are also anticipated to drive at a high CAGR of 5.7% from 2016 to 2024 on account of increasing demand for chemicals and petrochemicals. Nuclear reactors are also a pressure vessel type which to produce steam for electricity generation.
The chemical segment is expected to augment at the highest CAGR from 2016 to 2024 on account of continuously increasing chemicals and petrochemicals demand across the world. Raw material processing in order to obtain finished product requires pressure vessels which in turn is anticipated to enhance its demand in the end use industries including chemical, petrochemicals, oil & gas and power plants.
The decrease in oil prices in the recent years has negatively impacted the production projects as well as industry revenues. The prices are projected to recover in next two years which is expected to positively impact market volumes.
Asia Pacific pressure vessel market led the global industry and accounted for over 35% of total revenue in 2015. Developing renewable sector mainly in China, India, South Korea, and Australia is expected to drive the regional market. In addition, increasing government initiatives to expand power generation capacities is anticipated to significantly contribute towards regional market development.
Enhancing investment activities to develop nuclear power plants coupled with growing energy demand is also expected to drive Asia Pacific product volumes. The Middle East & Africa is also a developing industry and is anticipated to drive at a significant CAGR of 5.8% from 2016 to 2024. A key factor influencing the regional demand includes well-established oil & gas infrastructure.
The global pressure vessel market comprises of a high number of manufacturers including Abbott, Bharat Heavy Electricals, Larsen & Toubro, Samuel Pressure Vessel, Barton Firtop, Pressure Vessel, Babcock & Wilcox, Doosan, and Mitsubishi.
Other companies are Dongfang Electric Machinery Co. Ltd, IHI Corporation, General Electric, Westinghouse Electric Company LLC, and Halvorsen. Over the forecast period, the high degree of forward integration is anticipated to be witnessed by producers in order to maximize their profits and expand their regional presence across the world.
In addition, manufacturers are expected to tie up with the engineering solution providers in order to deliver high-quality product solutions to their customers at an affordable price. In the recent past, companies across the value chain have suffered fall in revenues on account of drastic decrease in crude oil prices.
Avail customized purchase options to meet your exact research needs:
Get your queries resolved from an industry expert.
Design an exclusive study to serve your research needs.
A testimonial for service in the form of BBB "A" Accreditation.
Your personal and confidential information is safe and secure.
"The quality of research they have done for us has been excellent..."