CRYOCOOLER MARKET ANALYSIS

The global cryocooler market size was valued at USD 2,401.3 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 5.8 % from 2023 to 2030.  The major drivers of this market include growing demand for liquefied natural gas, high adoption of cryocoolers in superconducting magnets, and the rising investment in defense technology support. The thriving healthcare industry, technological advancements in the military and defense sector, and the increase in R&D activities in space is also expected to drive growth of the market in the coming future.   

Global Cryocooler Market: Regional Insights

North America among regions is anticipated to show significant growth in the global cryocooler market during the forecast period. This can be attributed to the increasing demand for cryocoolers in this region due to its extensive use in proton therapy, MRI systems, cryosurgery, and liquification of oxygen in hospitals. As the region is on top of the list of developer of novel cancer drugs and evolving technologies such as cryocooler devices, the market is likely to grow rapidly in this region. Along with this, increasing cases of cancer in the region is also expected to drive the market growth in North America region.

Moreover, Europe is also expected to witness substantial growth in the global cryocooler market during the forecast period. The use of proton therapy as a treatment is extensive by advanced cancer treatment centers and hospitals in Europe. This in turn is creating strong demand for cryocoolers in the healthcare sector of this region. Moreover, growing cancer burden in the region is also expected to fuel growth of the global cryocoolers market in Europe. For instance, as per the Joint Research Centre (JRC) of the European Commision, the burden of cancer in Europe is expected to increase with 2.7 million new cases and 1.3 million deaths in 2020.

Figure 1: Global Cryocooler Market Share (%), By Region, 2022

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Global Cryocooler Market Drivers:

Increasing medical and healthcare services in emerging countries to drive the market pace

Healthcare sector among emerging countries has been witnessing constant growth in past years. The demand for cryocoolers across this sector is increasing due to the extensive use of this technology in various healthcare applications such as cryosurgery, proton therapy, and MRI systems among others. Cryocoolers have ability of cooling its interior environment, this ability depends on different thermodynamic properties of the circulating gas. The increasing technological development in healthcare sector thus, is expected to drive growth of the global cryocooler market during the forecast period.

Rise in production of liquefied natural gas to boost the market growth

Growing production of liquefied natural gas and rise in penetration of cryocoolers in semiconductor industry is driving the market growth. The distribution stations of small liquid natural gas (LNG) need compact, highly efficient cryocoolers for reliquifying boil-off gas in the LNG tank. Thus, the liquefied natural gas or compressed natural gas as well as liquid hydrogen are playing an important role for the adoption of cryocoolers. Along with this, these gases are likely to be the viable alternative energy resources in the future, which in turn will create demand for cryocoolers. Thus, this factor is expected to boost growth of the global cryocooler market during the forecast period.

Global Cryocooler Market Opportunities:

Various organizations around the world are adopting strategic partnership for the development of novel cryocooler technologies. This is expected to create growth opportunities in the global cryocooler market during the forecast period. Mechanical cryocoolers that have long-life, efficiency, and are lightweight having low exported vibrations are important to enable technology for future X-ray and cosmic microwave background space missions. Thus, organizations are forming partnership to develop such technology. For instance, NASA has a close partnership with all suppliers of space cryocoolers as well as academic institutes that are involved in cryogenics research. Thus, the market is likely to witness multiple growth opportunities in the coming future.

Growing initiatives by market players to cater the future needs of cooling various technologies is expected to offer significant lucrative opportunities in the market. In future, the cooling requirement for technologies such as IR detector of remote sensing, meteorological payloads to cryogeneic temperatures will increase substantially. In response to this, for instance, Thermal Systems Group ISAC has begun the development work on Low Mass Pulse Tube Cryocooler, which comprises a low mass compressor and a cold head having U-type cryotip. Therefore, factors like these are expected to drive growth of the market in the coming future.

Global Cryocooler Market Trends:

Growing adoption of cryocoolers for quantum computing is a major trend

The adoption of cryocoolers for quantum computing is growing, as one of the major challenges in scaling of quantum computers is difficulties in regulation of temperature. This is due to quantum computers require to be kept at cryogenic temperature in order for them to actually work. Thus, companies such as Oxford Instruments NanoScience are developing solutions to overcome this problem. In March 2021, for instance, the company mentioned above came up with solutions for the quantum computing market, in the mold of ColdQuanta and Delft Circuits. Thus, the growing adoption of cryocoolers for quantum computing is expected to drive the market growth in the forecast future.

Growing adoption of cryosurgery is another trend in the market

The fields such as proton therapy, cryosurgery, and microsatellite development among others are the industries likely to drive growth of the cryocooler market in the coming years. The demand for cryocoolers is expected to grow significantly in the future, as the adoption of cryosurgery over laser-based surgery is increasing in medical and healthcare sector, owing to the cost and efficiency of this surgery method. This trend is anticipated to continue in the market over the forecast period, which in turn is expected to augment the market growth.

Global Cryocooler Market Restraints:

Performance limitations of cryocoolers to hamper the market growth

The development of spacecraft thermal management systems depending on predictable cryocooler performance is one the major challenges of designing space thermal system. Many of the developers rely on the highly sparse cryocooler performance data when they conduct the system-level trade-offs. Off-design point performance mapping also faces challenges in terms of time constraints imposed either by system or follow-on cooler development schedules. These factors thus, are expected to hinder growth of the global cryocooler market during the forecast period.

High cost of cryocoolers to limit the market growth

The high cost of cryocoolers is further stressing the end user across sectors like transportation. Moreover, the instrument cost along with several costs, such as maintenance, staffing, laboratory expenses and others are linked to use of cryocoolers. This in turn is hindering adoption of cryocoolers among end-user verticals, which is expected to impede growth of the global cryocooler market during the forecast period. However, increasing research and development initiatives to create cost effective solutions is likely to support growth of the market.

Figure 2: Global Cryocooler Market Share (%), By End User Vertical, 2022

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Global Cryocooler Market Segmentation:

The global cryocooler market report is segmented into End-User Vertical.

Based on End-User Vertical, the market is segmented into Space, Healthcare, Military, Commercial, Transportation, and Other End-user Verticals. Out of which, Space is expected to dominate the global market over the forecast period and this is attributed to the various advantages of cryocoolers such as its capability of running on lower or higher temperatures with correspondingly high or lower heat lifts. This in turn is creating significant demand for cryocoolers in space sector, which in turn is expected to support growth of this segment.

Healthcare segment is also expected to witness significant growth in the near future and this is owing to the rise in healthcare and medical services in developing countries and lack of helium gas. With increasing technological advancements in cryocoolers in past years enabled new design for cooling methods for MRI systems. The end-user applications in this segment has continued to grow in recent years, which in turn is expected to drive growth of the market.

Global Cryocooler Market: Key Developments

In March 2021, Cryomech Inc. introduced the PT425, the new innovation in its long series of 4K Pulse Tube Cryocoolers, the PT425. PT425, having a combined 2.5W at 4.2K and 55W at 45K performance on an integrated motor platform, it is the biggest two-stage Pulse Tube Cryocooler offered by any manufacturer around the world.

In October 2020, Chart Industries Inc. acquired the Theodore, Alabama cryogenic trailer and hydrogen trailer assets of Worthington Industries, Inc. With this acquisition, Chart Industries Inc. gained the ownership of Theodore, Alabama manufacturing site, manufacturing capabilities, all intellectual properties related to trailer, repair backlog and equipment.

In November 2020, Stirling Cryogenics BV entered into partnership with AB, an Italian company on the construction, design, installation, and maintenance of liquid biomethane production plants having cryogenerators.

Global Cryocooler Market: Key Companies Insights

The global cryocooler market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global cryocooler market are Northrop Grumman Corporation, Sumitomo Heavy Industries Limited, Stirling Cryogenics BV, Sunpower Inc. (AMETEK Inc.), Superconductor Technologies Inc., RICOR, Advanced Research Systems Inc., Cobham PLC, Janis Research Company LLC, Cryomech Inc., and Chart Industries Inc.

*Definition: A cryocooler is a machine used to cool equipment, objects, or environments to very low temperatures.  It is a machine that consists of a heat exchanger, a gas reservoir, and a regenerator. The gas, which may be hydrogen or helium, expands when it flows from the high-pressure region to the low-pressure region, causing it to cool down. They can be found in science, medicine, and aerospace applications.