Asia Pacific Oil Storage Market Size

Asia Pacific Oil Storage Market Size

Asia Pacific Oil Storage Market size crossed for 372.2 million cubic meter in 2023 and is anticipated to expand at 3.2% CAGR from 2024 to 2032  due to the volatile oil prices and fluctuations in supply chain. Oil prices are still highly volatile, with sharp spikes and sudden drops expected due to global supply shortages. Initiatives to offset facility shutdowns and reduce supply risks will boost the Asia Pacific oil import & production, thereby contributing to the industry by 2032.

Frequent fluctuations in oil prices and oil supplies along with rising crude import owing to increasing energy need will lead to the development of essential Asia Pacific oil storage facilities across the region. For instance, in March 2023, as per China National Petroleum Corporation's Economics and Technology Research Institute (ETRI), import rose to 6.2% when compared to 2020 to 540 million tonnes along with refinery processing gained 7.8% to 733 million tonnes. In addition, China relies heavily on imported oil to fuel its economy and having adequate storage capacity helps such countries to manage its oil imports and maintain a stable supply of energy by end of 2023.
 

Growing emphasis on sustainability and environmental concerns in the APAC oil storage market along with active participation of key companies including Royal Vopak are adopting eco-friendly practices, such as using renewable energy sources, to reduce their carbon footprint and minimize the environmental impact of their operations, thereby significantly contributing to the industry growth.
 

The construction of oil storage tanks, however, involves high costs associated with installation and deployment. Extensive forays into the renewable fuel sector may also limit capacity additions across the industry. Moreover, renewable energy prices are decreasing rapidly, making them more economical than fossil fuels including oil. Such factors may create roadblocks to oil capacity additions and hinder the oil storage industry progress to some extent.