LNG Storage Tank Market to Grow at a CAGR of 7.9% to reach US$ 14,224.27 million from 2021 to 2028

The LNG storage tank market was valued at US$ 8,346.93million in 2021 and is projected to reach US$ 14,224.27 million by 2028; it is expected to grow at a CAGR of 7.9% from 2022 to 2028.

The accentuating liquefied natural gas (LNG) trade across the world and rising number of floating storage and regasification units are anticipated to boost the LNG storage tanks market. Moreover, rising infrastructure development across different economies such as China, Southeast Asia, India, and Brazil creates enormous opportunities for marine transport to grow during the forecast period. Further, the rapid population growth globally is one of the driving factors supporting the increase in demand for LNG as a fuel, thus propelling the LNG carrier's demand for transportation. In addition, several governments of the countries are proposing different regulations for reducing emissions; therefore, the adoption of LNG is expected to rise prominently.

The LNG storage tank can store LNG at a very low temperature efficiently, i.e., -260 ˚F. It comprises insulation materials in the outer container and LNG in the inner container. LNG storage tanks encompass different design types such as spherical metal, buried concrete, and in-ground frozen storage. In the recent past, the membrane type/double wall type LNG storage tank has gained momentum. Further, different materials are used to manufacture LNG storage tanks, such as stainless steel, aluminum alloy, invar alloy, and 9% Nickel. The stainless-steel segment is proliferating due to its significant features such as resistance to corrosion, excellent toughness, durability, and low thermal conductivity at cryogenic temperatures. Also, steel is used where refrigeration is required and the formation of low-temperature conditions for the storage of LNG.
APAC dominated the LNG storage tank market in 2020, Factors such growing application of LNG in a variety of end-use sectors, including steel, power, and energy. Increasing investments in LNG bunkering facilities as well as increased LNG regasification would help boost the market in this area during the forecast period. Further, In APAC, companies such as Air Water Inc., CIMC Enric Holding Ltd., IHI Corporation, India Inox Pvt. Ltd., MHI Engineering, Punj Lloyd Group, and POSCO ENGINEERING & CONSTRUCTION., LTD. are the leading manufacturers of LNG storage tanks. China accounts for the largest sea trade business in the region, holding nearly 60% of the sea trade business in APAC. Additionally, the ship building industry in China is enormous, thus the Chinese LNG storage tanks market players observe continuous demand for their products. Apart from China, Japanese and South Korean LNG storage tanks manufacturers also enjoy sufficient order volumes year-on-year, which supports the growth of the LNG storage tanks market in APAC.

Impact of COVID-19 Pandemic on LNG Storage Tank Market

The COVID-19 outbreak has severely disrupted the supply chain and manufacturing of mechanical equipment’s, including the hardware component of LNG storage tanks. The emergence of COVID-19 virus across the globe, followed by lockdown scenarios, has led the industry experts to analyze that the industry would face at least a quarter of lag in mechanical equipment supply chain. This disruption is expected to create tremors through till mid-2021. The mechanical equipment and shipping industry is likely to pick up pace soon after the governments across the globe lift the various containment measures steadily in order to revive the economy. The production of the tanks and ships is anticipated to gain pace from 2022, which is further foreseen to positively influence the mechanical and ships manufacturing, including hardware components of LNG storage tanks.

Lucrative Regions for LNG Storage Tank Market

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Market Insights

Rising LNG Trade across the Globe

At present, the US is the largest producer of natural gas across the world. In the US, natural gas supplies nearly one third of the primary energy and is one of the key heating fuels for almost half of US households. A large volume of LNG is transported through the sea route, where LNG is loaded onto double-hulled ships and the gas is off-loaded to well-insulated storage tanks. Later it is re-gasified for admission into the pipeline distribution network. Moreover, LNG is also shipped in smaller quantities, generally for shorter ocean distances. The growing LNG trade in small-scale shipments is commonly transported in the same containers used on trucks for international trade, particularly outfitted with cryogenic tanks. As per the Royal Dutch Shell PLC's latest annual LNG outlook, published on February 25, 2021, the LNG trade across the world is expected to rise by about 10 million tonnes in 2021, or increase by 2.8% compared to the record of 2020, to bring total trade to 370 Mt. According to outlook, the LNG trade growth would reach around 12 Mt in 2022 and ~15 Mt in 2023.

Further, Shell announced that the Asian requirement for LNG was anticipated to drive the growth of the market in 2021, as the LNG trade is expected to recover from the COVID-19 impact. Shell also notified about the lack of final investment decisions last year for new natural gas liquefaction capacity; therefore, this is anticipated to fill the supply-demand gap in the mid-2020. Additionally, Shell published that the global LNG trade will be increased to 360 Mt by 2021 from 358 Mt in 2020. Therefore, this rise in the international LNG trade is driving the growth of the LNG storage tanks market.

Configuration-Based Market Insights

Based on configuration, the global LNG storage tank market is segmented into self-supporting tank and non-self-supporting tank. The demand for LNG storage tank is boosting mainly due to increasing demand for LNG in energy, power, and steel end-use industries. The growing LNG trade globally to meet the requirement of end-use industries, these tank configurations are being used for efficient transportation of LNG from one place to other.

Type-Based Market Insights

Based on type, the LNG storage tank market is segmented into LNG carrier and LNG fueled vessel. The growing transportation of LNG through ships is projected to drive the demand of LNG carriers and LNG fueled vessel during the forecast period. Also, the manufacturing of LNG carrier is boosting due to increasing production and export of natural gas.

Materials Type-Based Market Insights

Based on material, the LNG storage tank market is segmented into stainless steel, aluminum alloy, 9% nickel steel, invar alloy, and C-MN steel. These materials are constantly being used for the manufacturing of LNG storage tanks due to its exceptional properties, such as excellent toughness, resistance to corrosion, durability, and low thermal conductivity at cryogenic temperatures. Moreover, steel is used across different applications, which demands refrigeration or the creation of low-temperature conditions for the storage of LNG.

Strategic Insights

Product development is the commonly adopted strategy by companies to expand their product portfolio. AIR WATER INC.; Chart Industries, Inc.; CIMC ENRIC HOlDINGS LIMITED; Cryolor (Air Liquide S.A); IHI Corporation; INOX India Pvt. Ltd.; ISISAN A.S.; Linde plc; McDermott International Inc.; and Wartsila Corporation are among the key players implementing strategies to enlarge the customer base and gain significant share in the global LNG storage tank market, which, in turn, permits them to maintain their brand name. A few of the recent key developments are:

• In 2021, INOXCVA commissions the first ever Multifunctional Mini LNG Terminal in UK for MOWI Scotland.
• In 2021, Wärtsilä finalises commissioning of its first two Energy Storage projects in the Philippines.

LNG Storage Tank Market Segmentation:

By Configuration

• Self-Supporting Tank
• Non-Self-Supporting Tank

By Type

• LNG Carrier
• LNG Fueled Vessel

By Material

• Stainless Steel
• Aluminum Alloy
• 9% Nickel Steel
• Invar Alloy
• C-MN Steel

Company Profiles

• AIR WATER INC.
• Chart Industries, Inc.
• CIMC ENRIC HOlDINGS LIMITED
• Cryolor (Air Liquide S.A)
• IHI Corporation
• INOX India Pvt. Ltd.
• ISISAN A.S.
• Linde plc
• McDermott International Inc.
• Wartsila Corporation