Rapid Industrialization will Drive Growth in the Cryogenic Tanks Market

The cryogenic tanks market plays a vital role in enabling secure transportation and storage of gases like oxygen, nitrogen, argon, and hydrogen at extremely low temperatures. Cryogenic tanks are double-walled, vacuum-insulated vessels capable of maintaining cryogenic liquids in their liquid state for extended periods. They find widespread applications across industries such as healthcare biomedical, metallurgy, energy power, electronics, shipping, and others. Rising demand for medical equipment requiring storage of gases like oxygen and focus on renewable energy production will spur demand for cryogenic tanks over the forecast period.

The global cryogenic tanks market is estimated to be valued at US$ 6.51 Bn in 2024 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023 to 2030. Cryogenic tanks provide an efficient method of storing industrial gases and liquefied gases through advanced vacuum insulation and cryogenic-resistant materials. Their double-walled construction with a vacuum insulation layer in between minimizes heat ingress to maintain extremely low temperatures. This makes cryogenic tanks invaluable for supply chain operations involving transportation and storage of medical oxygen, liquid natural gas, liquid hydrogen, and other gases.

Key Takeaways
Key players operating in the cryogenic tanks market are ArcelorMittal, China Baowu Group, Nippon Steel Corporation, POSCO, Shagang Group, Ansteel Group, Glencore, Sumitomo Metal Mining Company, Linde, INOX India Pvt., Cryofab, FIBA Technologies, Air Products and Chemicals, Inc., M1 Engineering, Chart Industries, Wessington Cryogenics, Isisan, Lapesa, Auguste Cryogenics, and Hoover Ferguson Group, Inc.

The rising demand from the healthcare sector for storage of medical gases like oxygen is a major growth driver for cryogenic tanks. Growing healthcare expenditure and pandemic preparedness increased focus on medical infrastructure development globally.

Technological advancements in vacuum insulations, coatings, and materials enable better heat transfer management. Cryogenic tanks can now offer superior insulation for longer durations with thin walls. This eases transportation and reduces material costs.

Market Trends
Customizable design options: Manufacturers offer customizable cryogenic tank dimensions, shapes, and features to meet industry-specific storage and transportation demands better.

Digitization of operations: Players incorporate sensors and IoT technologies in cryogenic tanks to enable remote monitoring of fill levels, temperatures, and leakages. This aids predictive maintenance.

Market Opportunities
Renewable energy projects: Expanding renewable energy infrastructure like wind and solar farms will escalate demand for cryogenic storage and transportation of liquid hydrogen and other gases.

Transportation of LNG: Growth of the maritime LNG fleet and bunkering stations via cryogenic tankers presents opportunities for cryogenic cylinder manufacturers.

Impact of COVID-19 on Cryogenic Tanks Market

The COVID-19 pandemic has impacted the growth of the Cryogenic Tanks market. During the initial phase of the pandemic, lockdowns imposed worldwide disrupted the supply chains and halted manufacturing operations across various end-use industries such as healthcare, food processing, chemicals etc. This led to a steep decline in demand for cryogenic tanks globally which affected the market growth negatively.

However, as the pandemic intensified, demand increased from the healthcare sector for medical oxygen. Increased requirements for oxygen therapy in hospitals for COVID-19 patients boosted the need for cryogenic tank transportation and storage in the short term. Pharmaceutical manufacturers also required cryogenic tanks for vaccine development and distribution. This provided opportunities for growth.

As restrictions are lifted gradually post pandemic, end use industries are reviving production. Demand from food processing and chemical plants is expected to rise significantly from the pre-COVID levels. Emerging technologies in liquefied natural gas are also expected to propel market expansion.

While short term disruptions were experienced, key players are focusing on innovations, strategic partnerships and collaborations to cater to the evolving needs and leverage growth opportunities. Government policies supporting healthcare capacity development and vaccine rollouts worldwide will aid market recovery from pandemic impacts and drive faster than expected growth prospects in the coming years.

Geographical regions with higher concentration:

The Cryogenic Tanks market in terms of value is highly concentrated in North America and Europe. Both regions collectively accounted for more than 60% of the global market value in 2024 led by developed healthcare and chemical industries demand in U.S., Canada, Germany, U.K., France etc. Availability of advanced cryogenic transportation and storage infrastructure as well as prominent industry players presence has established these as lucrative regional markets.

Fastest growing region:

Asia Pacific region is poised to be the fastest growing market for Cryogenic Tanks during the forecast period. Rapid industrialization and economic development of countries like China, India and Southeast Asia is driving the need for reliable cryogenic logistics across manufacturing sectors. Government initiatives for expanding healthcare access and LNG sector growth are further expanding the regional market size. Investments in RD by Asian players to develop innovative and cost-effective cryogenic technologies will accelerate future market prospects.