Cryogenic Tanks Market Analysis

Cryogenic Tanks Market Analysis

Cryogenic tanks market from the liquid oxygen segment valued at over USD 1 billion in 2022. The COVID-19 pandemic created a massive demand for medical oxygen supplies across healthcare facilities. Investments in the renovation of healthcare facilities and rapid expansion of hospitals, primary care centers, and small clinics may boost demand for cryogenic tanks. In December 2022, the Ministry of Health and Wellness announced a $2 million LOX Expansion Project at the Kingston Public Hospital and the Annotto Bay Hospital, which includes installing LOX cryogenic tanks and pipe infrastructure upgradation for easy access to liquid oxygen.

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Based on application, the storage segment is estimated to hold a substantial market share by 2032, owing to the increasing product use to store and transport medical supplies such as vaccines, organs, plasma, and other biopharmaceuticals. These tanks can also store huge amounts of LNG at extremely low temperatures. Expansion of production capacity by companies is likely to complement the demand for cryogenic storage tanks. For instance, in April 2022, Cryospain announced the beginning of production of two new flat-bottom cryogenic tanks for the storage of huge volumes of liquid oxygen and LNG in Egypt and Morocco. With these initiatives, the company aims to solidify its market reputation.

In terms of raw material, the cryogenic tanks market from nickel alloy segment will grow at a CAGR of nearly 5.5% through 2032. Steel alloyed with nickel are widely utilized in cryogenic equipment production as nickel enhances the quenching ability and notch toughness at colder temperatures. The construction of new terminals and the expansion of LNG trade globally is likely to contribute to segment growth.

In terms of end-user, the cryogenic tanks market from chemicals segment is anticipated to surpass approximately USD 800 million by 2032. Widespread use of cryogens for dry freezing, medicines, and intermediate synthesis along with ongoing research on cryogen storage and distribution capacities is set to drive this growth. For instance, in June 2021, Lockheed Martin, Omni Tanker, and the University of New South Wales (UNSW) partnered to develop two operational-scale propellant tanks for cryogenic liquid fuels storage for commercial and civil satellite programs.

North America cryogenic tanks market is poised to observe more than 5% gains over the forecast period. Strict government mandates to effectively utilize clean energy resources will complement the demand for cryogenic tank across North America. Favorable regulatory policies pertaining to the development of low emission systems and presence of renowned companies specializing in the deployment of cryogenic tank would offer considerable impetus to regional business progression. Asia Pacific Cryogenic Tanks industry is expected to showcase over 6% CAGR in the coming years driven by the growing demand for LNG along with robust investments toward healthcare establishments.