Lng Storage Tank Market

Increasing liquefied natural gas demand for steel, energy, power, and other industries are expected to open new avenues for LNG storage tanks manufacturers to increase their manufacturing in order to cater increasing industry requirement. The global liquefied natural gas demand in 2019 was valued at 359 million tons; 12.5% increased as compared to 2018.

Over the past few years, increasing energy demand followed by rising greenhouse gas emission have created need for green energy solutions. Government initiatives, favorable policies towards clean energy solutions, and increasing adoption of renewable energy sources are expected to open new opportunities for liquefied natural gas over the coming years; which in turns is expected to increase demand for LNG storage tanks.

Increasing population, rising energy demand & emission, rising industrialization, and unsafe air quality is expected to increase liquefied natural gas market concentration over the coming years. Additionally, natural gas and renewable energy sources are expected to replace coal in the global energy mix in coming years. Currently, China, India, USA, Brazil, Indonesia, Japan, South Korea, Thailand, Kazakhstan, and Vietnam are leading coal and solid fuel using countries in industrial sector. Increasing government regulations in these countries governing low carbon emission and renewable sources of energy will open new opportunities for LNG industry.

Type Segment

Based on the type, the market is segmented into self-supporting and non-self-supporting. The self-supporting type segment leads the market growth in 2019 and it is anticipated to hold its position during the forecast years. The market growth of this segment is mainly attributed to the growing liquefied natural gas demand in power and energy industry followed by increasing LNG trade over the past few years. Moreover, increasing transportation of liquefied natural gas through ships are expected to further drive self-supporting type LNG storage tank market over the coming years. Furthermore, as compared to other traditional LNG storage tanks, the construction period for self-supporting LNG storage tanks are less.

Material Segment

Based on the material type, steel, 9% nickel steel, aluminum alloy, and others are the key segments of the global storage tanks market. In 2019, steel material segment accumulated the major market share and it is expected to do so over the forecast years. Excellent toughness, durability, low thermal conductivity, and resistance to corrosion properties make steel ideal material for LNG storage tanks. Additionally, steel adoption has increased for creating extremely cold temperature condition and refrigeration for liquified natural gas.

Apart from steel, 9% nickel steel is also expected to contribute significant market share in coming years. Maximum safety of storage tanks is achieved by using nickel steel. Nickel steel alloys material meet all the necessary conditions for low temperature followed by temperature resistance and reduced wall thickness properties are expected to increase its market concentration over the coming years. However, manufacturing of LNG storage tanks from nickel steel alloys can be expensive.

2019 was record break year for liquified natural gas; 40 million tons of additional LNG supply was recorded in 2019. The Asia Pacific region dominated the overall market in 2019 and it is projected to keep its position during the forecast years 2018-2028. Additionally, the region is anticipated to gather the highest growth over the forecast years. The market growth in this region is mostly ascribed to the growing urbanization and industrialization in China, India, Japan, and Southeast Asia. Besides, increasing liquified natural gas adoption in different end user industries such as power, energy, and steel industry is expected to further propel the market growth.

North America and Europe will also be expected to see remarkable market opportunities over the coming years. Initiatives taken by Europe countries to reduce dependence on nuclear power by 2040 is expected to open new avenues for liquified natural gas over the coming years; which in turns is expected to add LNG storage tank market growth.

The major players of the global LNG storage tank market are Vijay Tanks and Vessels Ltd., Corban Energy Group, Luxi New Energy Equipment Group Co. Ltd., Vinci Construction, MHI Engineering and International Project India Ltd., Lloyds Energy, Transtech Energy Llc., Cryocan, Cryogas Equipment Pvt. Ltd., and Whessoe. Moreover, the market comprises several other prominent players in the LNG storage tank market that are Bechtel, Karbonsan, Sener Group, Maverick Engineering Inc., and Cryoteknik. The LNG storage tank market consists of well-established global as well as local players. In addition, the previously recognized market players are coming up with new and advanced strategic solutions and services to stay competitive in the global market.