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Cryogenic Pump Market Size, Share & COVID-19 Impact Analysis, By Type (Positive Displacement Pump, Centrifugal Pump), By Cryogen Type (Nitrogen, Oxygen, Argon, Liquefied Natural Gas, Other), By End-User (Oil & Gas, Metallurgy, Power Generation, Chemical & Petrochemical, Marine, Others), and Regional Forecast, 2022-2029
Report Format: PDF | Latest Update: Feb, 2024 | Published Date: Jan, 2024 | Report ID: FBI100824 | Status : PublishedThe global cryogenic pump market size was USD 3.41 billion in 2021. The market is projected to grow from USD 3.62 billion in 2022 to USD 6.64 billion in 2029 at a CAGR of 9.06% during the forecast period. The global impact of COVID-19 has been unprecedented and staggering, with cryogenic pumps experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market had exhibited a decline of -3.9% in 2020 compared to 2019.
Cryogenic pumps are used to create, withstand and operate in temperatures of -1200 C. They are also used for refrigeration purposes. The major factors include growing demand for LNG sectors, which provide power generation and domestic & commercial fuel. Furthermore, the growing demand for medical gases in healthcare facilities, and electricity generation from renewable resources.
COVID-19 IMPACT
Disruptions in Natural Gas Sector Affected Cryogenic Pump Market Growth amid COVID-19
The COVID-19 pandemic affected nearly every end-use vertical, including the natural gas sector, leading a major impact on demand for cryogenic pumps. Stringent measures enforced by the respective regulatory bodies led to lower production and demand. During the pandemic, several manufacturers witnessed a fall in demand. For instance, the Nikkiso Co. Ltd, has seen a decline in revenue of -4.5% in 2020, when compared to 2019. The lower demand and excess supply of natural gas forced major oil & gas companies to temporarily halt production, causing fluctuations in oil & gas prices, and thereby impacting the market dynamics.
LATEST TRENDS
Increasing Demand for Liquefied Natural Gas to Augment Market Growth
Liquefied natural gas is considered a fuel for the future due to its efficiency in transport and safety. The rapid development in pipeline infrastructures, favorable government policies, and growing demand for LNG from natural gas are key factors driving the adoption of liquefied natural gases. These gases can be stored in non-peak demand times in liquid form and then used when there is a rise in demand for energy by the gasification of liquid natural gas. Recent times have seen massive growth in liquefied natural gas production, further pushing its market.
With the rising demand for liquefied natural gas, the market for equipment to control, transport, and handle liquefied natural gas has seen a surge in demand. According to the World LNG Report 2022, global trade in liquefied natural gas (LNG) set a record high, averaging 51.7 billion cubic feet per day (Bcf/d), a 5% increase compared with 2021. Liquefaction capacity additions, primarily in the United States, drove growth in global LNG trade. At the same time, increased LNG demand in Europe also contributed to trade growth as LNG continued to displace natural gas imports from Russia via pipeline. The increasing trade of LNG across various industries propels the demand for the market.
Increased Utilization of Liquefied Natural Gas in Power Generation to Bolster Market Growth
The growing industrialization and urbanization have given rise to power demand globally. The rising functions of the digitization world require a lot of electrical power, which cannot be solely fulfilled using crude oil and coal. The non-renewable sources are fast depleting and need a quick substitute of equal potential for continued power generation in the future. Though there has been a growing inclination towards renewable energy sources like hydro and solar, liquefied natural gas has the highest potential at very low switching costs, making it a viable fuel for power generation.
The growing demand for power from LNG-based power plants is one of the key factors expected to drive the market. Furthermore, the rising focus towards solar-based power generation and the development of solar photovoltaic infrastructure is growing, creating huge potential opportunities for these types of pumps as these pumps are majorly used in the manufacturing of solar panels.
DRIVING FACTORS
Growing Investment from Industrial Sector to Aid Market Dynamics
Growing investments from the industrial sector such as metallurgy, healthcare, food & beverage, and electronics in the developing economies are expected to accelerate the demand. The transportation, storage, and regasification applications of cryogenic gases such as nitrogen, argon, oxygen, and LNG, hold a strong potential for the market's growth. According to the World Investment Report 2020, Asia has the largest share for FDI inflow, USD 661,807 Million, which increased by 28% from USD 516,465 Million in 2020. The recovery showed significant rebound momentum with booming merger and acquisition (M&A) markets and rapid growth in international project finance because of loose financing conditions and major infrastructure stimulus packages.
Globally, China is the largest developing economy, with USD 189,132 Billion FDI investment in Asia. Additionally, FDI flows to developing economies grew by 30%, and the increase was mainly the result of strong growth performance in Asia, a partial recovery in Latin America, and an upswing in Africa. In global flows, the share of developing countries remained above 50%. FDI flows to Africa reached $83 billion, from $39 billion in 2020. Hence, increasing investment from the industrial sector raises the need to deploy the pumps in various end-use industries, propelling market growth during the projected period.
Increasing Demand for Oxygen in Medical Sector during COVID-19 to Drive Market Demand
The rising cases in the global COVID-19 pandemic have given rise to the demand for oxygen cylinders in hospitals and homes for patients severely suffering from the disease. This rise in oxygen demand has boosted the oxygen production and transportation market. To support this demand, oxygen production has increased manifold, leading to a growing need for pumps for cryogen-type oxygen. The second wave of the COVID-19 pandemic is seeing a greater demand for oxygen cylinders and is expected to grow the demand these types of pumps worldwide. According to World Health Organization estimates, during COVID-19, more than half a million people in low- and middle-income countries needed 1.1 million cylinders of oxygen per day in more than 25 countries reporting increase in demand, the majority in Africa.
RESTRAINING FACTORS
Increase in Raw Material Prices to Restrain Market Growth
The cryogenic pump has parts like a drive shaft, an outer pressure containment tube, and an intermediate static support tube of stainless steel. However, the need for improvement in the productivity of the pump is increased by modifying and replacing the material of the components with glass/epoxy composite. The fluctuation in steel prices owing stringent regulations for greenhouse gas emission has reduced the steel production which has increased the production cost of the pump.
The cryogenic liquids or refrigerants are expensive, that usually, only high-speed pump systems can be justified economically, which are costlier. This economic factor is considered to be adversely affecting the market growth rate. Furthermore, the declining production of steel owing to an economic slowdown in China and fluctuation in oil and gas prices have led to dwindling investment in the steel industry. This has led to the declining investment in new steel plants, is also restraining the market, as these pumps are utilized for transporting cryogenic gases.
SEGMENTATION
By Type Analysis
Centrifugal Cryogenic Pumps Segment to Dominate Owing to Maximum Technical Advantages
Based on the type, the global market is segmented into positive displacement pumps and centrifugal pumps.
Currently, centrifugal pumps hold the maximum share due to technical advantages such as few moving parts, low maintenance costs and longer life. A centrifugal pump transports fluid by converting rotational energy driven by an external motor or engine into energy moving the fluid. The centrifugal pump can only operate with a two-phase (gas-liquid) fluid during pump priming. They have a simple design that produces the same output levels as a positive displacement pump. It has a high capacity and relatively low head and can be designed as per the needs, and it can be made out of several different materials, including plastic, cast iron, and stainless steel. These advantages have led to an increasing application of centrifugal pumps in oil & gas, food & beverage, steel industry, and metal & mining.
A positive displacement cryogenic pump carries fluid by catching a permanent amount of the liquid and compelling it inside the discharge pipe. These pumps are specifically used to move the cryogenic liquid from one place to another. They are used to pump high viscosity fluids and are preferred in any application where accurate dosing or high-pressure output is required.
By Cryogen Type Analysis
Rising Gas-To-Liquid Activities Will Drive Liquefied Natural Gas Segment Growth
Based on cryogen type, the global market can be primarily split into nitrogen, oxygen, argon, liquefied natural gas, and others.
The maximum portion of the market is currently employed in the liquefied natural gas sector due to the massive usage in various end-user applications.
However, with the rising energy demand for argon by industries like refractory and welding, the argon segment is anticipated to grow.
The demand for nitrogen is also growing as these gases are used in several industries, such as plastics, food & beverage, and others. Furthermore, nitrogen is also being used to produce LNG.
With the rising gas-to-liquid activities all over the globe, the other cryogen-type segments are indirectly expected to grow at a very high rate.
By End-User Analysis
Oil & Gas to Capture Substantial Share owing to Increase in GTL Activities
Based on the end-user, the global market is divided into oil & gas, metallurgy, power generation, chemical & petrochemical, marine, and others.
The oil & gas segment, which involves pumps for oil and gas activities involving cryogenic liquefied natural gas, accounts for the maximum share in the market due to the full utilization of these pumps in the gas-to-liquid activities across the oil & gas sector.
In the metallurgy industry, cryogenic gases such as nitrogen and other gases are used in huge quantities during metals manufacturing. Nitrogen is considered the most consumed cryogenic gas in the industry as this gas is used as high-pressure gas for laser cutting of steel and metals.
The marine industry is primarily used for the transportation & storage of cryogenic liquid from one location to another. Hence, the growing LNG demand from various regional parts brings the demand for cryogenic liquid storage tanks & vessels in the maritime industry.
REGIONAL INSIGHTS
The market has been analyzed across major regions, including North America, Asia Pacific, Europe, Latin America, and Middle East & Africa.
The Asia Pacific dominates the global market. The demand for these type of pumps is rising from gas-based power plants owing to depleting energy resources and stringent regulations for emissions. Furthermore, the growing awareness and increasing government policies to develop clean power generation from the gas-based power plant and the increasing investment from healthcare, food & beverage, and steel will propel the regional growth.
North America also contributes a significant share in the global cryogenic pumps market. The increasing investment in the oil & gas industry and growing industrial infrastructure sectors will propel the demand. Furthermore, in the region, U.S. & Canada holds a potential market for LNG exports, as the depleting coal resource propels the need for LNG-based power plants, which drives the market demand.
In Europe, the increasing focus on developing a clean energy source, which increases demand for LNG and decreases the number of reloading cargoes at European import terminals, drives the need for the market.
Latin America holds potential growth opportunities for LNG demand due to new investment schemes and innovations, governments, and corporations implementing investment assignments on construction, development, and transformation of LNG regasification and LNG production factories.
The Middle East & Africa is the prominent region indulged in the business of oil & gas as it is indulging more in natural gas dealings and production. Gulf countries in the Middle East are the fastest-growing in energy demand due to increasing power consumption, seasonal volatility, and rapid industrial growth.
KEY INDUSTRY PLAYERS
Ebara Corporation, Nikkiso Co., Ltd, and Fives Are the Key Players Expected to Lead the Way with Investments in R&D Activities and Wide Customer Reach
Among the present companies, very few have developed viable products for all segments. The market is fragmented market and seen several new technological advancements to keep pace with the top-performing manufacturers. Considering all the scenarios Ebara Corporation, Nikkiso Co., Ltd, and Fives are the major players and extensively invest in the research and development of pumps. They are expected to lead the market during the upcoming years.
LIST OF KEY COMPANIES PROFILED:
- Nikkiso Co., Ltd (Japan)
- SHI Cryogenics Group (Japan)
- Ebara Corporation (Japan)
- The Weir Group PLC (Scotland)
- Fives (France)
- Sulzer (Switzerland)
- Flowserve Corporation (U.S.)
- INOXCVA (India)
- Cryostar (France)
- Phpk Technologies (U.S.)
- Vanzetti Engineering (Italy)
KEY INDUSTRY DEVELOPMENTS:
- August 2023- Clean Energy & Industrial Gases Group of Nikkiso Cryogenic Industries, a part of Nikkiso Co., Ltd, signed a cooperation agreement with Neuman & Esser (NEA) Brazil. As per the agreement, NEA Brazil is to provide local solutions for Nikkiso products installed in Brazil, which include ACD cryogenic pumps and turboexpanders. The objective of the cooperation is to help reduce lead times for repairs, improve customer service in the field, and increase the number of service centers globally to support customers regionally.
- November 2022- SHI Cryogenics Group launched a CH-160D2 77K Cryocooler, adding a new model of cryocooler to its line of Gifford-McMahon (GM) Cryocoolers. This new model has the highest-capacity 77K Cryocooler to date, with a first-stage capacity of 525/630 W at 77 K (50/60 Hz). It utilizes Whisper technology and Displex pneumatic drive technology for quieter operation and for limiting the number of worn parts in the refrigerator. The CH-160D2 is ideal for many applications, including liquid nitrogen generation and liquefaction and clean energy technologies.
- January 2022 – The cryogenic solution specialist Cryostar announced that it had received NeoVP vertical pumps for the Chinese market. These pumps will be installed in air separation units. NeoVP vertical pumps are designed for easy installation and maintenance, and they also possess hydraulic efficiency, reducing the unit’s carbon footprint and energy costs.
- April 2021 - Nikkiso Co., Ltd. announced a new facility adjacent to their primary production test site to increase the efficiency and capability of producing cryogenic submerged electric motor pumps, especially for the LNG market. This facility is also expected to facilitate customer remote-site witness testing.
REPORT COVERAGE
The global cryogenic pump market research report highlights leading regions worldwide to better understand the user. Furthermore, the market research report provides insights into the latest market trends and analyzes technologies deployed at a rapid pace at a global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the industry.
Report Scope & Segmentation
ATTRIBUTE | DETAILS |
Study Period | 2018-2029 |
Base Year | 2021 |
Estimated Year | 2023 |
Forecast Period | 2022-2029 |
Historical Period | 2018-2020 |
Unit | Value (USD billion) |
Segmentation | By Type
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By Cryogen Type
| |
By End-User
| |
By Geography
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Frequently Asked Questions
How much is the global cryogenic pump market worth?
Fortune Business Insights says that the global market size was USD 3.65 billion in 2022 and is projected to reach USD 7.51 billion by 2030.
What was the value of the cryogenic pump market in Asia Pacific in 2022?
In 2022, the market value stood at USD 1.31 billion.
At what CAGR is the market projected to grow during the forecast period (2023-2030)?
The market will likely grow at a CAGR of 9.81%, exhibiting substantial growth during the forecast period (2023-2030).
Which was the dominating type segment in the market?
The centrifugal pump segment was dominating segment in the year 2022.
Who are the key participants in this market?
Ebara Corporation, Nikkiso Co., Ltd., and Fives are key participants in this market.
Which region held the highest share of the market?
The Asia Pacific dominated the market in terms of share in 2022.
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