Pressure Vessel Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Pressure Vessel Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The pressure vessel market is expected to rise at a CAGR of more than 1.5% during the forecast period of 2020-2025. Factors such as a constant increase in the total power generation capacity and refining capacity of oil and gas are likely going to drive the pressure vessel market. However, renewable energy sources that rarely require pressure vessels are expected to restrain the pressure vessels market.

• The processing vessel segment, due to the increasing population and consumption of utilities, is expected to be the fastest-growing market segment and is likely going to dominate the pressure vessel market during the forecast period.
• Technological development in pressure vessels such as pressure boilers, which can be used to combust different types of fuels, thus are used under the availability and cost-effectiveness of the fuel is expected to create several opportunities for the pressure vessel market in the future.
• Asia-Pacific, due to increasing energy demand and several projects, is expected to dominate the pressure vessel market during the forecast period. In 2018, the total electricity generation in the Asia-Pacific region was about 46% of the world's electricity generation, which uses a significant number of pressure vessels for operation.

• Processing vessel is a category of pressure vessels that are used to remove, combine, agitate, or break down products in a controlled environment. Few examples of processing vessels include boilers and separators. These processing vessels are made up of materials such as carbon steel and a wide variety of alloys, which do not react with processing substance.
• Regions such as Middle-East and Africa and the Asia Pacific have many developing countries. Many of these countries in the region are unable to provide energy to a significant percentage of their population. These countries are working to increase their power generation capacities, which are expected to drive the pressure vessel market.
• In 2019, the global electricity generation was about 26614 Terawatt-Hour (TWh), which was higher than what the world produced in 2017, 25676 TWh. The increase in electricity generation depicts the worldwide increase in the number of power plants, which are expected to drive the utility drone market.
• In 2019, KNM Group signed a contract with Single Buoy Moorings Inc to supply PME-Pressure Vessels Separators for the Liza Unity-FPSO EPCI Project in the Starbroek block in Guyana, South America amounting to USD 6.487 million.
• In 2019, Babcock & Wilcox Enterprises, Inc. announced today that it had been awarded a contract for more than $12 million to refurbish a recovery boiler for a U.S. manufacturing facility. Company scope includes the design and manufacture of a steam drum, furnace, super-heater, generating bank, air system, economizer, and other components for one of the plant's recovery boilers. Delivery is expected for the second half of 2020.
• Hence, owing to the above points, the processing vessel segment is likely to be the fastest growing segment in the pressure vessel market during the forecast period.

• Asia-Pacific region, due to the constant increase in the energy demand in the region, is likely to be the fastest-growing and the largest market for the pressure vessel market. Many governments and companies in the region are investing a significant amount in power and refining sectors, which include the usage of several pressure vessels.
• Countries such as China and India have ongoing projects and upcoming projects in the sectors that use pressure vessels. The motive behind these projects is to fill the gap between energy demand and energy consumption in the region. Power generation from thermal energy sources such as coal, natural gas, oil, and nuclear, require a considerable number of power vessels. In 2018, the electricity generation of Asia-Pacific from thermal energy was 9491.2 terawatt-hours (TWh), which was higher than what was generated in 2017, 9067.2 terawatt-hours (TWh).
• In 2019, MODEC won the engineering, procurement, construction and installation (EPCI) contract issued by the ConocoPhillips Australia Barossa Ltd for its floating production storage and offloading (FPSO) unit in the Barossa Field. The field is expected to produce gas and condensate for which an oil-gas separator is being built in the FPSO unit and is expected to be operational by 2023.
• In 2018, Sumitomo SHI FW (SFW) was awarded a contract by Hyundai Engineering & Construction Co for design and supply of the Daesan Biomass Power Plant boiler island. Commercial operation of the new biomass circulating fluidized bed (CFB) power plant is expected to start by the end of 2020. SFW got a contract to design and supply the 109 megawatts (MW) CFB steam generator and auxiliary equipment for the boiler island. The CFB boiler is expected to be designed to burn wood pellets while meeting applicable environmental regulatory requirements.
• In 2019, Andritz received an order from Toyo Engineering Corporation, Japan, to deliver a PowerFluid Circulating Fluidized Bed boiler with a flue gas cleaning system for a new biomass power plant to be built in Kamisu, Japan for Obayashi Kamisu Biomass Power Generation Corporation. The biomass power plant fired by wood pellets as primary fuel is expected to have power generation capacity around 50 megawatts (MW). The operation of the power plant is expected to be started by 2021.
• Hence, owing to the above points, Asia-Pacific is expected to dominate the pressure vessel market during the forecast period.

The pressure vessel market is moderately consolidated. Some of the key players in this market include Babcock & Wilcox Enterprises Inc, Doosan Heavy Industries & Construction, Alfa Laval AB, Andritz AG, and Larsen & Toubro Limited.

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