CRYOGENIC PUMP MARKET ANALYSIS

Market Challenges And Opportunities

Global Cryogenic Pump Market Drivers:

Rise in demand from petrochemical and chemical sector to boost the market growth

Chemical and petrochemical sector are one of the major users of cryogenic pumps. In chemical and petrochemical sector, these devices are used in various applications such as sulfur recovery units, oxidation process, coal gasification, regenerate catalysts, and cool reactors. The chemical industry across the globe is witnessing a stable growth for a long time as the demand for chemicals from developing countries around the world is constant. These factors are further driving the adoption and demand of cryogenic pumps. This in turn is expected to augment growth of the global cryogenic pump market over the forecast period.

Rise in consumption of LNG to fuel the market growth

Cryogenic pumps are utilized for converting gas to LNG for storage, transportation, and usage of natural gas in liquid form. The LNG trade around the world increase in 2019 to 354.7 metric tons which was an increase of 40.9 metric tons from 2019, according to Coherent Market Insights. This was due to rise in exports from countries such as Australia, the U.S., Russia, and Egypt and Algeria. Thus, growing LNG industry is creating substantial demand for cryogenic pumps, which in turn is expected to drive growth of the global cryogenic pump market over the forecast period.

Global Cryogenic Pump Market Opportunities:

Growing use of cryogenic pumps at hydrogen refueling stations is expected to create several growth opportunities in the global cryogenic pump market over the forecast period. Hydrogen sources continue to diversify and a zero-carbon source of hydrogen production is nuclear. Moreover, renewable feedstocks are environment-friendly hydrogen sources, the use of which has grown in recent times significantly. Traditionally, hydrogen refueling stations utilize hydrogen compressors for storing gas, however, now the use of cryo pumps has increased for storing the gas in the liquid form. This is further creating several growth opportunities in the market.

Rise in demand for liquefied natural gas is expected to offer multiple lucrative opportunities in the global cryogenic pump market over the forecast period. Due to the efficiency of liquefied natural gas in safety and transport, it is considered a fuel for the future. The infrastructure of pipeline is developing rapidly along with favorable government policies, and demand from natural gas. These factors are leading to rise in adoption of liquefied natural gases, which is expected to create various business opportunities in the global cryogenic pump market over the forecast period.

Global Cryogenic Pump Market Restraints:

Volatility in prices of raw materials to impede market growth

Materials such as bronze, stainless steel, specialized alloys, and carbon steel are used for making cryogenic pumps. Over the years, the cost of iron along with other ores are increasing rapidly and this has led to a steady rise in cost of stainless steel and other metals all over the world. China is the largest producer and exporter of steel and it has witnessed volatility in cost of processed metals. The cost of such raw materials has increased intensely, and this is further hampering growth of the global cryogenic pump market.

Regulatory implications to hamper growth of the market

Governments of various countries around the world are implementing regulations to control emissions of toxic greenhouse gases. These gases cause depletion of the essential ozone layer, which leads to different health-related concerns and problems. These emissions are caused due to steel manufacturing. Thus, stringent regulations implemented by regulatory bodies and government authorities on steel industries are expected to directly impact growth of the global cryogenic pump market over the forecast period.