LNG Storage Tank Market Analysis | 2023-2028

Market Insights

The LNG storage tank market was estimated at USD 14.5 billion in 2022 and is likely to grow at a CAGR of 6.8% during 2023-2028 to reach USD 21.7 billion in 2028.

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Market Dynamics

Introduction

LNG storage refers to the storage of liquefied natural gas (LNG), which is a form of natural gas that has been cooled to extremely low temperatures to convert it into a liquid state. Natural gas is primarily composed of methane, and when it is liquefied, it becomes more compact, making it easier and more economical to transport and store.

Market Drivers

The major factors driving the growth of the LNG storage tank market are:

• Surge in Demand: Liquefied natural gas (LNG) demand surged to 360 million tons in 2020, despite the COVID-19 pandemic's global lockdowns. The market's growth, including new proposals for production and receiving facilities and increased LNG shipbuilding, suggests its significant role in the future global energy market.
• Alternative to Various Fuels: Vessel owners are increasingly considering LNG as a replacement fuel for marine diesel and heavy fuel oil, driven by increased demand in industries like power, fertilizer, and petrochemicals. This demand is expected to boost LNG carriers' market growth.
• Growing Population and Industrial: The increasing population growth and industrial growth have increased the demand for LNG, which is expected to be used extensively in various industrial applications. Factors such as the availability of natural gas reserves, efficiency, and low carbon footprint have further increased the use of LNG, leading to a demand for LNG storage tanks.
• Surge in Number of Buyers and Suppliers: The industry has evolved to cater to changing needs with an increasing number of buyers and suppliers, necessitating further innovation to meet Net Zero Emissions targets and provide a cleaner energy supply.
• Increasing trade in LNG: The US is the world's largest producer of natural gas, providing nearly one-third of primary energy and heating fuels for half of its households. LNG is transported through sea routes, loaded onto double-hulled ships, and off-loaded to storage tanks. It is later re-gasified for pipeline distribution. Small-scale LNG shipments are also common, often using containers with cryogenic tanks. Shell predicts that the Asian demand for LNG will drive market growth in 2021, with the LNG trade expected to reach around 12 Mt in 2022 and 15 Mt in 2023. This growth is driving the growth of the LNG storage tank market.

Segment Analysis

By Product Type

Based on the product type, the market is segmented as self-supporting and non-self–supporting. The self-supporting segment held the larger share of the market in 2022 and is expected to remain dominant during the forecast period. The significant share of the self-supporting segment is attributed to the growing demand for LNG in the power and energy end-use industries.

By Material Type

Based on the material type, the market is segmented as steel, 9% nickel steel, aluminum alloys, and others. The steel segment accounted for the largest share in 2022 owing to its properties, such as corrosion resistance and durability. The steel segment is estimated to expand at a promising CAGR during the forecast period due to the rising demand for storage of liquefied natural gas as steel offers low thermal conductivity at cryogenic temperatures.

Regional Insights

In terms of regions, Asia-Pacific is projected to be the largest and fastest-growing market for LNG storage tanks during the forecast period. The Asia-Pacific market is expected to grow with a lucrative CAGR due to the rising demand from various end-use industries, such as energy, power, and steel. High adoption from developing economies such as China and India is expected to boost the market in the Asia-Pacific region.

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Key Players

Some of the top LNG storage tank manufacturers are-

• Linde Plc
• Mcdermott International Inc.
• Wärtsilä
• IHI Corporation
• Air Water Inc.
• Cimc Enric
• Chart Industries
• Isisan A.S.
• Cryolor
• Inox India.

Note: The above list does not necessarily include all the top players in the market.

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Research Methodology

This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s LNG storage tank market realities and future market possibilities for the forecast period of 2023 to 2028. After a continuous interest in our LNG storage tank market report from the industry stakeholders, we have tried to further accentuate our research scope to the LNG storage tank market to provide the most crystal-clear picture of the market. The report segments and analyses the market in the most detailed manner to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors

Market Segmentation

This report studies the market, covering a period of 12 years of trends and forecasts. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The LNG storage tank market is segmented into the following categories:

By Product Type

• Self-Supporting
• Non-Self–Supporting Tanks

By Material Type

• Steel
• 9% Nickel Steel
• Aluminum Alloys
• Others

By Region

• North America (Country Analysis: the USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, the UK, Russia, Spain, and Rest of Europe)
• Asia-Pacific (Country Analysis: China, Japan, India, South Korea, and Rest of Asia-Pacific)
• Rest of the World (Sub-Region Analysis: Latin America, the Middle East, and Others)

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to 3 players)
• SWOT analysis of key players (up to 3 players)

Market Segmentation

• Current market segmentation of any one of the product types by material type.

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to [email protected].