Asia Pacific Cryogenic Tank Market Outlook to 2028

Asia Pacific Cryogenic Tank Market Overview

The Asia Pacific cryogenic tank market was valued at USD 2.8 billion in 2023. The market is driven by the rising demand for LNG as a cleaner energy source, the expanding healthcare industry, and rapid industrial growth. Investments in renewable energy projects and advancements in cryogenic technology are further bolstering market growth.

Major players in the Asia Pacific cryogenic tank market include Chart Industries, Linde PLC, Air Liquide, Cryofab, and INOXCVA. These companies are known for their extensive product portfolios, technological innovations, and strong regional presence. Their continuous investments in R&D and strategic collaborations support their leadership positions in the market.

In early 2024, Linde PLC announced the acquisition of Cryo Tech Solutions to enhance its product offerings and expand its market presence in the Asia Pacific region. Similarly, Chart Industries partnered with Shell to develop large-scale LNG and hydrogen storage solutions, with an initial investment of $300 million.

Shanghai and Mumbai are the dominant cities in the Asia Pacific cryogenic tank market. Shanghai's dominance is due to its robust industrial base and advanced infrastructure, while Mumbai benefits from significant energy sector investments and a growing demand for clean energy solutions.

The future of the market by 2028 looks promising with continued advancements in cryogenic technology, increased investments in clean energy projects, and growing applications in healthcare and industrial sectors. The market is expected to reach USD 8.2 billion by 2028.

Asia Pacific Cryogenic Tank Market Segmentation

By Product Type: The Asia Pacific cryogenic tank market is segmented by product type into stationary tanks, mobile tanks, and trailers. In 2023, stationary tanks dominated the market. due to their extensive use in industrial applications for storing large volumes of gases and liquids. These tanks are crucial for long-term storage solutions in the manufacturing and healthcare sectors, driven by increased industrial gas production and medical gas usage.

By End- User Industry: The market is segmented by end-user industry into energy, healthcare, and manufacturing. In 2023, energy sector held a dominant market share. The energy sector is the largest end-user of cryogenic tanks, driven by the extensive use of LNG and hydrogen as alternative fuels. The demand for clean energy solutions and storage capabilities propels the dominance of this segment.

By Region: The market is segmented by region into North, South, East, and West Asia Pacific. Dominated by China and Japan, this region has the highest market share due to significant industrial activities, technological advancements, and large-scale LNG projects.

Asia Pacific Cryogenic Tank Market Competitive Landscape

Company

Establishment Year

Headquarters

Chart Industries

1992

Ohio, USA

Linde PLC

1879

Guildford, UK

Air Liquide

1902

Paris, France

Cryofab

1971

New Jersey, USA

INOXCVA

1989

Gujarat, India

Chart Industries: In April 2024, Chart Industries entered into a partnership with Shell to develop large-scale LNG and hydrogen storage solutions in the Asia Pacific region. The partnership aims to enhance the infrastructure for clean energy storage, with an initial investment of $300 million.

Linde PLC: In March 2024, Linde PLC acquired Cryo Tech Solutions to expand its product portfolio and enhance its presence in the Asia Pacific cryogenic tank market. The acquisition, valued at $150 million, is expected to increase Linde's market share and revenue in the region.

Air Liquide: Air Liquide inaugurated a new production facility in India in January 2024, aimed at meeting the increasing demand for industrial gases. The facility, with a production capacity of 2,000 tons of oxygen per day, represents an investment of $120 million and is expected to strengthen Air Liquide's market position.

Asia Pacific Cryogenic Tank Market Analysis

Asia Pacific Cryogenic Tank Market Growth Drivers

Government Initiatives and Support for Clean Energy the Asia Pacific cryogenic tank market benefits significantly from government initiatives promoting clean energy. In 2023, China's 14th Five- Year Plan allocated $3 billion for developing cryogenic storage facilities to support LNG and hydrogen projects. Similarly, India's National Hydrogen Mission, launched in 2023, includes substantial funding for hydrogen infrastructure development.

Rising Demand for LNG as a Cleaner Fuel The increasing use of LNG as a cleaner alternative to traditional fossil fuels is a major growth driver. In 2024, LNG consumption in the Asia Pacific region reached 500 million cubic meters, driven by environmental regulations and energy security concerns. Countries like Japan and South Korea are major importers, further boosting the demand for cryogenic storage solutions.

Expansion of the Healthcare Industry The healthcare sector in the Asia Pacific region is expanding rapidly, driving the need for cryogenic tanks for the storage and transportation of medical gases. In 2024, the number of hospitals and healthcare facilities increased by 15% across major countries like China, India, and Japan. This growth necessitates advanced cryogenic storage solutions to support medical and research activities.

Asia Pacific Cryogenic Tank Market Challenges

High Initial Investment and Maintenance Costs The high initial investment and ongoing maintenance costs associated with cryogenic tanks are significant challenges for the market. In 2024, the average cost of installing a cryogenic tank system was around $500,000, making it a substantial financial commitment for companies, particularly small and medium enterprises.

Regulatory and Safety Concerns The stringent regulatory requirements and safety standards for the storage and transportation of cryogenic gases pose challenges for market players. In 2024, compliance with international safety standards and obtaining necessary certifications accounted for 20% of the overall project costs, impacting the profitability and operational efficiency of companies.

Asia Pacific Cryogenic Tank Market Government Initiatives

National Hydrogen Mission (India) Launched in 2023, India's National Hydrogen Mission aims to promote the production and utilization of green hydrogen, with significant investments in hydrogen infrastructure, including cryogenic tanks for storage and transport. The mission includes a budget allocation of $2 billion for the development of hydrogen infrastructure over the next five years.

China's Energy Development Plan China's 14th Five- Year Plan (2021-2025) includes a focus on increasing the use of LNG and hydrogen as part of its energy strategy. In 2024, the government allocated $3 billion for the development of cryogenic storage facilities to support the growing demand for these clean energy sources.

Asia Pacific Cryogenic Tank Market Future Outlook

Future Market Trends

Driven by continued advancements and government support, the Asia Pacific cryogenic tank market is expected to experience substantial growth over the next five years.

Integration of Smart Technologies By 2028, the integration of smart technologies, such as IoT and AI, in cryogenic tanks will revolutionize the market. These technologies will enhance the monitoring and management of cryogenic storage systems, reducing operational costs and improving safety. The adoption of smart technologies will drive efficiency and innovation in the market.

Expansion of Hydrogen Infrastructure the Asia Pacific cryogenic tank market will be significantly driven by the expansion of hydrogen infrastructure over the next five years. Governments and private companies are expected to invest over $5 billion in hydrogen production, storage, and transportation projects by 2028. This will create substantial demand for advanced cryogenic storage solutions.
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