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The global cryogenic equipment market size stood at USD 18.42 billion in 2018 and is projected to reach USD 31.68 billion by 2026, exhibiting a CAGR of 7.1% during the forecast period.
The expansion of manufacturing industry plays a vital role in the economic growth, which comprises competition among giant and small players, spending capability of consumers, partnership & collaboration, investments, mergers & acquisitions, and expansion of new projects. These factors majorly contribute to the growth of the cryogenic equipment market. Additionally, increasing investments in liquefied natural gas (LNG)-based power plants and growing demand for transportation & storage industries are also booming. Hence, significant growth in industries and increasing LNG based power plants are the major factors attributed to the growth of the cryogenic equipment market during the projected period.
Asia-Pacific is one of the growing regions in every prospect owing to the growth in the oil & gas sector and the rising rate of industrialization. Investments in the oil & gas sector and chemical & petrochemical industries are holding a growth potential during the forecast period. According to the World Investment Report 2018, developing economies had poised a growth in foreign direct investment worth USD 671 billion in the year 2017.
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Additionally, an increase in the usage of LNG and growth in the metallurgy industry in developing countries from Asia-Pacific would further propel the growth of the cryogenic equipment market during the forecast period. According to the India Brand Equity Foundation report, India is the fourth largest importer of LNG after Japan and South Korea. China accounts for 5.8% of the total global trade. In India, LNG demand is expected to grow at a CAGR of 16.89% to 306.54 million metric standard cubic meters per day (mmscmd) by 2021. Japan is the largest LNG buyer in the world, which imported 83 million tons of LNG in 2018. Hence, the growing use of LNG and the booming oil & gas sector would fuel the demand for cryogenic equipment in the coming years.
“Growing Demand For LNG to Boost the Market Growth”
There has been an abrupt increase in the demand for LNG owing to a rise in gas-based power plants and the trend of adopting LNG fuel in locomotives and marine transport applications. The growing demand for energy from LNG based power plant are the major factors attributed to the cryogenic equipment market growth. Thereby, the usage of oil tankers, valves, vaporizers, pumps, refrigerators, and other equipment in the oil & gas sector is growing the market share. Hence, rise in LNG demand from various industrial applications, upsurge the demand for cryogenic equipment during the forecast period.
“Rising Need for Clean Energy Source to Augment Market Dynamics”
The rising need for clean energy upticks the market growth of cryogenic equipment. The transportation, storage, and regasification applications for generating clean energy hold a strong potential for the growth of the market. Development in the healthcare industry from developing economies and significant investment into metallurgical and chemical & petrochemical sectors would also propel the demand for cryogenic equipment. Hence, growing awareness for adopting clean energy sources across the globe, propels the market for cryogenic equipment during the projected period.
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“Tank Segment to Exhibit Highest Share Backed by its Wide Application”
Based on product, the cryogenic equipment market is segmented into tank, valve, vaporizer, pump, and others. The tank segment is projected to hold the largest cryogenic equipment market share owing to its wide application in oil & gas and chemical & petrochemical industry for storage and transportation of oxygen, nitrogen, hydrogen, argon, and LNG cryogens. Valve segment holds the second largest share due to wide applications in freezing such as production, transportation, and storage of liquefied gases. It is mostly used in LNG liquefaction plants, gas production plants, receiving terminals, and cargo system. Increasing usage of vaporizers for vaporization of LNG in base-load and peak shaving in regasification facilities across vertical of end-use industries are set to drive the growth of this segment during the projected period. The pump segment is growing at a faster pace owing to the high and ultra-high vacuum applications from oil & gas, metallurgy, and chemical industry. Hence, the growing application of cryogenic equipment across vertical industries would propel the demand for cryogenic equipment during the forecast period.
“LNG Segment to Generate High Share Fueled by Usage in Metallurgy Industry”
Based on cryogen type, the market is segmented into nitrogen, oxygen, argon, liquefied natural gas (LNG), and others. The LNG segment is exhibiting the largest market share owing to its wide application area, such as storage, transportation, fueling, processing, and others. It is also used in power generation, metallurgy, manufacturing, locomotives, ships, and other industries extensively. The nitrogen segment is also projected to hold the second-largest market share among the cryogenic type which is majorly attributable to a wide variety of applications in oil & gas, metallurgy, and chemical industries. It is used in the packing of medicines and freezing blood in the healthcare industry, purge equipment, tanks, and pipelines in chemicals, pharmaceuticals, and food & beverage industry. The argon & oxygen segments are also experiencing growth owing to a wide application in the healthcare and steel industry. Hence, increasing demand for LNG across industries, coupled with the growth in industrialization, would drive the growth of the cryogenic equipment market during the forecast period.
“Oil & Gas Segment to Grow Rapidly Stoked by Applications in LNG Transportation”
Based on end-user, the market is segmented into oil & gas, metallurgy, power generation, chemical & petrochemical, marine, and others. The oil & gas segment holds the largest market share among all the end-users due to wide applications for refining, refueling, LNG transportation, regasification, and other applications. Cryogenic liquid cylinders, transport vessels, LNG vessels, valves, and pumps are some of the major equipment used in the oil & gas industry. The chemical & petrochemical industry would also drive the market for cryogenic equipment owing to application in oxidation processes, coal gasification, Sulphur recovery units, regeneration of catalysts, cooling reactors, and other applications. The extensive use of argon and nitrogen gases in the metallurgy industry would also drive the demand for cryogenic equipment during the forecast period. LNG based power plant is increasing the market share which results in transportation and storage of LNG at a large scale. Hence, an increase in the application of cryogenic equipment from the oil & gas and chemical & petrochemical industry, upticks the market for cryogenic equipment during the forecast period.
Asia-Pacific is one of the leading regions across the globe in terms of the growing rate of investments and building infrastructure, which helps to drive the industrial sector at heights. The industrial sector includes various industries such as manufacturing, processing, and construction where cryogenic equipment is deployed. Hence, the growing rate of industrialization and increasing demand for LNG from Asia-Pacific would drive the cryogenic equipment market revenue during the projected period. According to the World Investment Report 2019, FDI inflow from developing economies increased to 2% as compared to the previous year, that includes China with an increase of 4% which is USD 139 billion and a growth of 3% from South-East Asia. Hence, growing FDI into Asia-Pacific would propel the demand for cryogenic equipment during the forecasted period. The substantial potential of LNG and the growing application of cryogenic equipment in North America and the Middle East & Africa had held a significant growth prospectus to boost the market during the projected period. European countries have also experienced substantial growth in the metallurgy industry, which consequently contributes to the economic progress of the region. France, Italy, and Spain are the major countries involved in the growth of metallurgy, petrochemicals, and oil & gas sector in Europe. In Latin America, Brazil draws more investment for the oil & gas industry and chemical & petrochemical industry, which helps to propel the cryogenic equipment market during the forecast period.
Asia-Pacific Cryogenic Equipment Market Size, 2018
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Currently, Asia-Pacific is experiencing a strong economic growth due to rapid development in the oil & gas and metallurgy industry in China, India, Japan, Australia, and Indonesia. China is continuously looking forward to increasing its significance in the global economy. It is projected to increase its LNG receiving terminals which would help to augment the cryogenic equipment market in China. Japan and Australia have a growth potential owing to the oil & gas operations and power generation from LNG based power plants which upholds the cryogenic equipment industry. The high investments in the metallurgy, marine, and chemical industry, is the primary factor estimated to accelerate the growth of the market in Australia and South East Asia during the forecast period.
“Growing Developments by Leading Companies to Accelerate Demand for Products”
The cryogenic equipment market is highly dominated by Chart Industries, Inc., Cryofab, Inc., Linde, Cryoquip, Wessington Cryogenics, and SHI Cryogenics Group, among other players in the competitive market. Manufacturers are integrating cryogenic equipment with new developments. The SHI Cryogenics Group, for instance, introduced cryocoolers with a capacity of 4K, which increases the cooling performance by 20% without increasing the cryocooler’s physical size. Hence, growing development in technology holds the market players at an edge of competition, which would accelerate the cryogenic equipment market during the projected period.
An Infographic Representation of Cryogenic Equipment Market
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The growing demand for LNG, coupled with a significant rise in industrialization, are the major factors set to drive the cryogenic equipment during the forecast period. Additionally, significant investment from developing economies into energy, healthcare. and food & beverage industry would also propel the cryogenic equipment. The growth in the cryogenic equipment market is attributed to the increase in demand for such equipment across various end-users such as oil & gas, metallurgy, chemical & petrochemical, electronics, and other industries. Increasing investments in building automation and the development of infrastructure also hold a strong growth opportunity for the cryogenic equipment market. In the projected period, the global outlook for cryogenic equipment seems to be more favorable as leading players are making investments and incorporating new developments in technology, which is likely to drive the cryogenic equipment market.
The report provides qualitative and quantitative insights on the cryogenic equipment market and detailed analysis of the market size & growth rate for all possible segments in the market. The cryogenic equipment market is segmented by product, cryogen type, end-user, and region. By product, the market is divided into tank, valve, vaporizer, pump, and others. Based on cryogen type, it is categorized into nitrogen, oxygen, argon, and liquefied natural gas. Based on end-user, it is segmented into oil & gas, metallurgy, power generation, chemical & petrochemical, marine, and others. Geographically, the market is divided into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa.
Along with this, the report provides an elaborative analysis of the cryogenic equipment market dynamics and competitive landscape. Various key insights presented in the cryogenic equipment market report are the recent industry developments in this market, such as mergers & acquisitions, the regulatory scenario in crucial countries, macro and microeconomic factors, SWOT analysis, and key industry trends, competitive landscape, and company profiles.
Value (USD Billion)
By Cryogen Type
Fortune Business Insights says that the cryogenic equipment market was valued at USD 18.42 billion in 2018.
The global cryogenic equipment market is projected to reach USD 31.68 billion in 2026.
The market is projected to grow at a CAGR of 7.1% in the forecast period.
The cryogenic equipment market in Asia-Pacific was valued at USD 6.07 billion in 2018.
Based on cryogenic product, the tank segment will dominate the market during the forecast period.
The market is growing significantly due to the increasing demand for LNG across the globe and increasing investments from end-user industries, such as food & beverage and healthcare industry in developing economies. However, fluctuation in the prices of raw material may restrain market growth.
Chart Industries, Inc., Cryofab, Inc., Linde, Cryoquip, Nikkiso, Co. Ltd., SHI Cryogenics Group, Herose GMBH Armaturen und Metalle, and Wessington Cryogenics are some of the top companies in the market.
Cryogenic equipment is used to operate at extremely low temperatures. These equipment are designed to reach ultra-low temperatures range from -238 °F (-150° C, 123.2 K°) to absolute zero which converts gaseous cryogenics into liquid form. It is used for various applications such as freezing and cooling, chemical storage, metal processing, food preservation, cryosurgery, rocket fuels, superconducting electromagnets, electronics operations, and other applications.
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