SPHERICAL TANK MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Setting up spherical tanks requires high capital investment as these tanks are significantly more expensive than conventional tanks due to their complex shapes and robust engineering and manufacturing requirements. The production of spherical tanks involves advanced techniques like heavy welding, multi-axial rotations during fabrication, and stringent quality norms to ensure shape retention and withstanding high operating pressures. Transportation and installation of these large tanks also require specialized heavy lifting equipment, which further increases project costs. With stringent budgets, the high setup costs of spherical tanks pose significant challenges for end users especially in price-sensitive markets, which negatively impacts the demand for spherical tanks. Unless manufacturers find ways to optimize costs through innovative manufacturing processes and modular construction techniques, the high capital expenditure will continue to limit the growth potential of the global spherical tank market.

Market Opportunities: Growth of oil & gas industry

Global spherical tank market is expected to witness significant growth opportunities due to rising demand from the expanding oil and gas industry. Spherical tanks are increasingly being utilized by oil and gas companies for aboveground storage of liquified petroleum gases (LPG) like propane and butane. These are also used for large-volume storage of petrochemicals and crude/processed oil due to their efficient utilization of space. With growing energy needs worldwide, there has been increase in investments in oil and gas exploration and production activities. The expansion of refining capacities and the focus on developing shale reserves by major economies can boost the growth of the downstream petrochemical industry. This rising requirement for storage from these industries can boost demand for large spherical tanks during the forecast period. Manufacturers can leverage this opportunity by developing cost-effective and customized solutions to target the oil & gas segment.