Upsurging use of industrial gases across various industries also thrives the market expansion.
The Cryogenic tanks market in terms of revenue was worth US$ 7,718.3 Million in 2023 and is expected to reach US$ 11,377.5 Million in 2030, growing at a CAGR of 5.7% from 2024 to 2030.
Cryogenic tanks are vital throughout various applications involving medical, industrial, space exploration, scientific research, and many more. The importance of cryogenic tanks lies in their ability to maintain the low temperatures required for materials to remain in a liquid state. Cryogenic tanks are high in demand due to their numerous advantages over other storage and transportation methods for materials that must be kept at low temperatures.
The market for cryogenic tanks is constantly evolving as new technologies and applications emerge. Automation and digitalization are revolutionizing the cryogenic tank industry. As manufacturers are incorporating more automation and digitalization features into cryogenic tanks, which enable remote monitoring and control, enhance safety, and improve overall efficiency. For instance, in September 2022, DeTech industrialized the first cryogenic tank monitoring solution with fault tolerance down to the sensor level. Besides, many other companies are focusing on automation and digitalization to leverage the ongoing benefits of the cryogenic tank industry. Moreover, the use of LNG as a ship fuel is becoming more widespread owing to several environmental protection measures from the government. Cryogenic tanks are now more in demand in the maritime sector as well. Governments are also encouraging businesses by providing financing to support LNG adoption and, hence, spur market expansion.
The healthcare sector is expected to grow with a significant CAGR during the forecast period. Over the next few years, market growth is anticipated to be aided by the extensive use of liquid nitrogen in the healthcare sector to treat cancer and a variety of other diseases. Compared to other procedures, including salvage prostatectomy, brachytherapy, and high intensity focused ultrasound, treatments and operations performed using liquid nitrogen have a more significant and long-lasting impact (HIFU). The demand for cryogenic storage and transportation tanks is also anticipated to increase with the growth of its pharmaceutical research and development applications.
The Asia Pacific region is projected to register the fastest CAGR during the forecast period, due to the rising demand for industrial gases from several end-use industries in economies such as China and India. The rising metal processing, electronics, and automobile industries in both developing and developed countries are predicted to drive demand in the manufacturing industry in this region within the forecast period. The increasing use of liquid nitrogen in the manufacturing process of electronic products is expected to drive the market in the coming years.
Due to the presence of major industrial gas providers like Linde, Air Liquide, Messer, and Air Products & Chemicals in the U.S., the country has emerged as one of the largest users of the commodity. Many businesses employ these tanks to store and move industrial gases from their production facilities to the final consumers. The demand for liquid nitrogen cryogenic tanks in the U.S. is anticipated to increase due to the country's expanding healthcare business and increased R&D in the healthcare field as a result of a recent pandemic outbreak.
Conclusion: - Emerging trends and technological advancements in the industry are expected to generate numerous opportunities in the global cryogenic tanks market, which is expected to generate a market size of US$ 11,377.5 Million by the end of the assessment period.
Rising Demand of LNG (Liquified Natural Gas) is a Key Contributor to the Global Cryogenic Tanks Market Growth
The growing demand for liquefied natural gas (LNG) is one of the key drivers of the cryogenic tanks market. LNG is a cleaner and more efficient form of fuel compared to traditional fossil fuels, and it is increasingly being used as an alternative energy source in various industries such as power generation, transportation, and industrial applications. Cryogenic tanks are an essential component of the LNG supply chain as they are used to store and transport LNG at very low temperatures, typically below -160°C, where it becomes a liquid. The tanks are designed to withstand the extreme low temperature and high-pressure conditions required to store and transport LNG. Thus, the increasing demand for LNG as an energy source is driving the growth of the cryogenic tanks market as it requires a large number of cryogenic tanks to store and transport LNG. For instance, according to the U.S. Energy Information Administration (EIA), the total U.S. LNG exports has reached a record high of 9.4 billion cubic feet per day (Bcf/d) in January 2021, which is a significant increase from the 2020. The EIA also predicts that the U.S. LNG exports will continue to grow over the next few years, driven by the expansion of LNG export facilities and the increasing demand from international markets. This will garner a lot of opportunities for the market players.
The growth in the LNG market is being driven by factors such as the increasing demand for natural gas, the shift towards cleaner energy sources, and the development of new LNG export facilities. As a result, the demand for cryogenic tanks is expected to continue growing in the coming years, providing opportunities for companies operating in this market to expand their business and increase their market share.
Upsurging Use of Industrial Gases Across Various Industries Also Thrives the Market Expansion
The demand for industrial gases has been increasing in recent years due to the growing use of these gases in various industries such as healthcare, food and beverage, metallurgy, electronics, and chemical manufacturing. Industrial gases such as nitrogen, oxygen, argon, carbon dioxide, and hydrogen are essential raw materials and process aids in these industries.
The healthcare industry is one of the major consumers of industrial gases, with medical gases such as oxygen, nitrogen, and carbon dioxide used for various medical applications such as anesthesia, respiration therapy, and cryotherapy. The demand for industrial gases in the healthcare industry is driven by factors such as the aging population, the increasing prevalence of chronic diseases, and the growing demand for healthcare services in emerging economies. For instance, in August 2021, Linde announced that it signed a long-term agreement with Shandong Runyin Bio-Chemical Industry Co., Ltd., to supply medical gases to the new Runyin Bio-Industrial Park in China. Under the agreement, Linde will supply medical oxygen, nitrogen, and argon to the park, which will produce pharmaceutical and biotech products.
The food and beverage industry are another major consumer of industrial gases, with gases such as carbon dioxide and nitrogen used for various applications such as carbonation, packaging, and freezing. The demand for industrial gases in the food and beverage industry is driven by factors such as the increasing demand for processed food and beverages and the need to extend the shelf life of food products.
The metallurgy industry also consumes many industrial gases, with gases such as oxygen, nitrogen, and hydrogen used for various applications such as metal cutting, welding, and heat treatment. The demand for industrial gases in the metallurgical industry is driven by factors such as the increasing demand for steel and other metals and the need to improve the efficiency of metallurgical processes.
Overall, the demand for industrial gases is expected to show a significant growth in the coming years, driven by the increasing use of these gases in various industries and the development of new applications for these gases. Hence, as cryogenic tanks are a suitable solution for the storage of various industrial gases, the intensifying demand for industrial gases will pave the path ahead for market growth.
Technological Advancements are the Prominent Element Behind the Growing Sale of Cryogenic Tanks Globally
There have been several technological advancements in cryogenic tanks in recent years, aimed at improving their performance, safety, and efficiency. Some of these advancements include:
Overall, these technological advancements in cryogenic tanks have improved the performance and safety, enabling the storage and transportation of cryogenic fluids more efficiently and reliably, and providing new opportunities for applications in various industries such as healthcare, food and beverage, and aerospace. Thus, the technological advancements from manufacturer’s end will escalate the market growth in coming years.
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