The global cryogenic tanks market features an increasingly fragmented landscape with intense level of competition, finds Transparency Market Research (TMR). However, several parts of the global landscape is fairly consolidated in some regions where globally established players have prominent presence. Some of the key players operating in the global market are FNF Gas Technology Products Private Ltd., Eden Cryogenics LLC, Cryofab Inc., Cryoquip Australia, Cryogas Equipment Private Ltd., and VRV S.p.A. A substantial number of original equipment manufacturers (OEMs) and raw material providers have secured a foothold over the market, which is expected to raise the intensity of the market competition.
TMR notes that a number of challenges have been hindering the steady growth of the cryogenic tanks market in recent times. This is on account of the lack of easy labor availability, substantially high cost of raw materials, and the rising manufacturing costs. These factors may make a dent in the profitability of the market, dissuading new entrants if the concerns are not addressed.
According to TMR, the global cryogenic tanks market is anticipated to touch a valuation of US$1,433.0 million by 2024 end by garnering CAGR of 7.7% during 2016–2024. The market stood at US$740.2 million in 2015.
The broad application areas of cryogenic tanks are for storing and in transportation. Of the two, the storage held the sway in 2015 by holding a mammoth share of 80% in the global market. The extensively rising demand for these tanks for storing industrial gases and their usage in planned storage of LNG are boosting the application segment.
On the geographic front, Asia Pacific leads and is expected to retain its dominance in the global market by rising at CAGR of 8.4% during 2016–2024. The growth of this regional market is primarily fueled by the swift pace of industrialization and the bold strides being experienced by the manufacturing sector over recent years.
Unique Design makes usage of Cryogenic Tanks Preferable in Storage Applications
The growth of the cryogenic tanks market is driven by the rising usage of the vessels in storage as well as transporting a variety of industrial gases, including argon, oxygen, nitrogen, and liquefied natural gas (LNG). The attractive drive for cryogenic vessels in these applications stems from the unique design specification they possess, which minimizes tank heat in-leak, thereby ensuring the safety in the transfer of the liquid gases.
The substantially rising application of cryogenic tanks for transporting gases in liquid form in offshore and inland areas is accentuating the growth of the market. The demand is also driven by the widespread application of these tanks in storing industrial gases for on-site and off-site storage.
Adoption of Gas Pipelines for Gas Storage and Transportation key Growth Hindrance
The vast strides that the oil and gas production has made in recent years in numerous developed economies has bolstered the uptake of cryogenic tanks, accounting for an attractive share of the market revenue.
However, the demand for these tanks is being constantly hindered by the high cost these have over their substitutes. The cost of producing these tanks is augmented by several factors, notably, stringent safety guidelines while producing and elaborate quality checkups before they can be used in application areas. In addition, the market is facing significant setbacks from the rising preference for robust gas pipelines for transportation, especially across economies of Europe, Central Asia, and North America. Nevertheless, the rapid pace of industrialization and burgeoning volumes of oil and gas generated in emerging economies world over are expected to create lucrative avenues for market players.