CRYOGENIC TANKS MARKET ANALYSIS

Market Challenges And Opportunities

Global Cryogenic Tanks Market Drivers:

Growing demand from end user industries to propel cryogenic tanks market growth

Increased demand for liquefied natural gas (LNG) globally coupled with improving healthcare food, and manufacturing industries in developing economies is driving growth for this market. In addition, rising research & development spending in pharmaceutical industry is also anticipated to foster market growth. Moreover, the increasing demand for industrial gases in healthcare industry for cryotherapy purposes will further propel market growth. In addition, restoration of the oil & gas sector is again boosting the cryogenic tanks market growth.

Increasing consumption of LNG is expected to foster market growth

According to Shell LNG Outlook 2019, global LNG demand increased by 12.5% in 2019, reaching 358 Billion tons. However, in the short term, the overall LNG demand is projected to slow down due to the coronavirus outbreak in 2020, resulting in sharp demand and supply cuts. The growing role of natural gas in shaping a lower carbon economy is projected to double the long-term LNG demand to reach 700 Billion tons. This is expected to positively influence the cryogenic tanks market growth over the forecast period.

Global Cryogenic Tanks Market Opportunities:

Growing awareness regarding the advantages of cryogenic tanks is expected to bring bright market opportunities. A key advantage of cryogenic tanks is that they can be used for both liquid oxygen and liquid nitrogen storage. Both of these industrial gases are used extensively in manufacturing processes that require low temperatures. Moreover, cryogenic tanks are more convenient to maintain than other types of storage containers. The tanks are made from stainless steel and have an insulating layer that can be easily cleaned. They are rust-resistant and durable, making them suitable for long-term use. As a result, there is substantial demand for these tanks around the world.

Increasing number of partnership among key players for geographical expansion is expected to offer significant market opportunities for key players. For instance, in April 2021, ITC Ltd announced that has tied up with Linde India, an industrial gases company, to air freight 24 cryogenic ISO containers of 20 tonne each to help with the transportation of medical oxygen to hospitals which are facing acute shortage of the essential item.

Global Cryogenic Tanks Market Restraints:

High price of tank to hamper market growth

Cryogenic tank storage comes with high price technology. This is due to the complex construction process that is required to produce these tanks and the high costs of raw materials needed for the manufacturing process. In addition, the fact that the tanks must be insulated and the raw materials used to make cryogenic tanks is highly susceptible to volatility are another factor that contributes to their high cost.

Risk associated with the usage of cryogenic tanks to hinder market growth

The risks associated with use of cryogenic tanks for transportation of liquified gases are projected to pose a huge challenge for the market growth. For instance, accidental leakages of cryogenic liquids can cause several health hazards such as toxicity hazard, extreme cold hazard, and asphyxiation hazard. Also, cryogenic tanks can cause flammability hazards including fire or tank explosion. This factor is expected to hamper the market growth.