cryogenic tanks in the field

Cryogenic Tanks: Positive Years Ahead

Cryogenic Tanks: Positive Years Ahead

What do food and beverages and pharmaceuticals have in common? They need cryogenic tanks. As these to lucrative markets grow, so will cryogenics.

The Growing Demand for Cryogenic Tanks

Cryogenic tanks are in high demand because of their unique ability to store gases at high pressure but low temperature. They are also mobile or portable, making logistics easier, faster, and doable.

The data from Transparency Market Research revealed that the global need for cryogenic tanks will increase between 2016 and 2024. Within this period, the compound annual growth rate (CAGR) is 7.7%.

This will then translate to a possible revenue of $1.43 billion by 2024. In 2015, the market value for these tanks was only $740 million. Grand View Research, meanwhile, pegged the global demand at more than 250,000 tank units. From 2015 to 2022, the CAGR could be over 6%.

The industry will enjoy a strong customer market in many continents. In Asia alone, the total volume share as of 2014 was 35%. Natural gas consumption is high in China, Japan, Oman, and Qatar. India is also a market. Areas such as Africa, Latin America, and the Middle East then comprised 15% of the total volume share during the same year.

Because of the worldwide need for cryogenic tanks, it becomes imperative for manufacturers and sellers to offer a variety of options. So far, the market has trailer type and stationary. Stationary tanks are more ideal for long-term storage of these gases while the design for the trailer-type cryogenic tank depends on the vehicle that will transport it.

Either way, these tanks might spend some time exposed to the environmental elements. If not, they will be on the road for long periods. To increase their durability, manufacturers can opt for industrial tank painting.

It can protect the outermost layer from environmental exposure, which can increase the risks of rust and corrosion. This can also provide a value-added benefit to the product, making it more attractive to clients.

Pharma, Food, and Beverage Also Drive Demand

pharmacist doing an inventory check

Pharmaceuticals will bolster the demand for cryogenic tanks significantly due to many factors. These include aging, higher spending for healthcare, broad market, and innovation.

According to IQVIA Institute for Human Data Science, the global demand for pharmaceuticals will grow by 4% to 5% CAGR until 2023. Within the same period, the revenue could be more than $1 trillion. (This depends on whether it’s net revenue or invoice price.)

Meanwhile, the United States prepares itself for higher healthcare spending in the next few years. In 2028, it will increase to nearly $3 trillion. That’s almost 10% of the economy.

Back in 2017, the spending was only $3.5 trillion, but it already doubles the average of other developed nations. Food and beverages also have a positive outlook. According to Statista, this industry will achieve a CAGR of 10.3% from 2019 to 2023. By the end of the forecast period, the market value might already be close to $98 billion.

User penetration will also go up from 20.8% in 2019 to 28.8% in 2023. This can be due to changing consumer preferences. While customers want something healthier, they also want convenience. With these excellent prospects, cryogenic tanks are in a win-win situation.

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