Asia Pacific Oil Storage Market Size By Product (Fixed Roof, Floating Roof, Spherical), By End Use (Crude Oil, Gasoline, Aviation Fuel, Middle Distillates, LNG, LPG) & Forecast, 2023 - 2032

Asia Pacific Oil Storage Market Size By Product (Fixed Roof, Floating Roof, Spherical), By End Use (Crude Oil, Gasoline, Aviation Fuel, Middle Distillates, LNG, LPG) & Forecast, 2023 - 2032

Asia Pacific Oil Storage Market is projected to record substantial growth from 2023 to 2032, driven by the ongoing government efforts to establish strategic petroleum reserves across the region.

Governments in the APAC countries recognize the critical importance of energy security. As a result, they are investing heavily in building and expanding SPRs to ensure a stable supply of crude oil and petroleum products during emergencies or disruptions. Citing an instance, in August 2023, India announced plans to construct two commercial/strategic oil storage facilities with a total capacity of 6.5 million tons through public-private partnerships. Increasing strategic focus on energy resilience has propelled the demand for storage infrastructure, including tanks and facilities. Consequently, this trend is fueling the growth of the oil storage market as governments work to secure their energy needs and maintain economic stability.

The Asia Pacific oil storage market is categorized as per product, application, and region.

Based on the product, the fixed roof segment generated substantial revenue in 2022 and is expected to gain tremendous traction from 2023-2032. Fixed roof storage tanks are witnessing high demand due to their cost-effectiveness and suitability for storing crude oil and other petroleum products. Additionally, stricter environmental regulations have led to increased adoption of fixed roof tanks due to their ability to prevent emissions and reduce evaporation losses. Investments in these storage facilities are expected to drive the Asia Pacific oil storage market growth.

Regarding end-use, the crude oil segment is anticipated to record substantial revenue between 2023 and 2032. The segment growth is attributed to the surging demand for crude oil, largely propelled by rapid industrialization and urbanization, which necessitates greater storage capacity. Crude oil storage facilities are crucial for ensuring a stable supply chain, accommodating fluctuations in demand, and serving as strategic reserves. Furthermore, ongoing investments in crude oil exploration activities will further fuel the demand for efficient oil storage facilities. To cite an instance, In May 2022, ONGC ramped up its exploration efforts with investments of around Rs.31,000 crore in capital expenditure over the fiscal years 2022 to 2025. In addition, the company disclosed plans to utilize international collaboration with reputable global giants for this initiative.

Considering the regional landscape, Indonesia is estimated to account for a sizable revenue share of the Asia Pacific oil storage market by the end of 2032. Indonesia, as an oil-producing country, necessitates a robust storage infrastructure to store its own production as well as imports and exports. For instance, in January 2023, Indonesia announced plans to auction ten oil and gas working areas, including a block in the South China Sea, as a part of the country’s efforts to increase energy production and find new discoveries. Moreover, Indonesia intends to reach crude oil lifting of one million barrels per day by the end of this decade. Such favorable government initiatives to boost energy security and foreign investments in storage facilities are further propelling regional market revenue.