"Actionable Insights to Fuel Your Growth"
The global oil storage terminal market size was valued at USD 27.40 billion in 2019 and is projected to reach USD 37.52 billion by 2027, exhibiting a CAGR of 4.9% during the forecast period.
The oil storage tank terminals are on the most critical part of the oil and gas supply chain across the globe. These terminals are the heart of the oil and gas trading between countries. The nations majorly dependent on their oil imports and nations producing oil in surplus amount all have the presence of oil storage terminals. The storage of crude oil and its products is done for strategic reserve purposes or commercial purposes. There are different types of storage tanks that are used for storing crude oil. A floating roof tanks and fixed roof tanks are the types that are majorly being used.
The novel COVID-19 pandemic has heavily impacted the global oil and gas industry, which has further led to a shortage of storage capacities. The oil-producing nations and major exporters are the worst affected by the blockade of the oil and gas supply chain. This situation has compelled major oil and gas companies to revise their expenditures for the current year. Projected investments have declined, and therefore, this market is expected to have a slow recovery rate in the coming years.
The decrease in demand for oil and oil products has halted the production processes at both offshore and onshore locations. Therefore, the oil storage tank terminal construction and up-gradation projects are expected to be pushed further due to the slowdown in the industry. This will undoubtedly impact the yearly investments in the market for a specified period.
Asia Pacific market includes China and India, will witness a shutdown of about 250,000 b/d of production in the coming months owing to the global pandemic. In the post–lockdown period, these countries are set to witness a rise in demand and will focus on carrying out the projects which would help in fulfilling the demand for oil products in their country. Similarly, the US, which is also one of the leading oil refining countries, will witness a short term backlog for exportation of its refined products.
Request a Free sample to learn more about this report.
Expansion of the Application Sector for Various Crude Oil Products Will Drive the Market
Crude oil is used as a raw material in many of the products that are manufactured and used worldwide. The automobile industry has risen at an exponential rate in recent years, and new products such as liquefied natural gas are increasingly used in this field. The adoption of liquefied petroleum gas was in a very small percentage in the last decade. Still, the utilization of the same has increased at a very healthy rate in developing nations. Therefore, the demand for storage terminals at high-pressure conditions has also increased.
Rising Investments for SPR and Increasing Oil Trade between Countries to Aid Growth
The requirement of the strategic petroleum reserves (SPR) has compelled countries to prioritize their storage capacity expansion to suffice the oil demand in case of import failure or crisis. For instance, every country under the European Union is obliged to have a strategic petroleum reserve equal to 90 days of average domestic consumption. Also, the oil trade between countries is expected to increase in the forecast period, which will certainly require countries to invest more in storage terminals.
Growing Demand for Energy Will Surge the Growth of Oil Storage Terminal Market
The increasing demand for energy owing to the rising population and rapid urbanization is a primary reason that has influenced the construction of new oil storage terminals. According to a report by the Department of Economic and Social Affairs, the world population is expected to be approximately 9.8 billion in 2050 and 11.2 billion in 2100. This will surely drive the construction of these terminals by countries to suffice the country’s demand for oil or generating revenue by commercial use of the same.
Increasing Demand for Various End Products of Crude Oil
The various products obtained from crude oil include diesel, petrol, aviation fuel, kerosene, and others. In recent years the automobile industry has expanded rapidly; the marine operations have also increased. The aviation sector has gained pace with growing air traffic, and the chemical industry has also grown by introducing new products. This all factors have led to increased demand for diesel, petrol, lubricants, and others, which directly drive the need for more crude oil and, therefore, the construction of these terminals.
Rising Adoption of Renewable Energy Poses Threat to Oil and Gas Industry
One of the key market restraints for this market is the rising adoption of renewable sources for power generation. This has resulted in the shutting down of many industries that used fossil fuels and were considered major contributors to the cause of global warming. Also, green energy targets are being set up by countries and unions across the globe to have maximum power using green energy sources. The other factor hampering the growth is the high cost required for the construction of the terminal and the required maintenance during its lifetime.
Increasing Oil Trade Will Surge the Demand for Commercial Terminals
Based on the type, this market is segmented into the strategic reserve and commercial reserve. The commercial reserves have dominated the market over the past few years as a significant portion of the constructed terminals is for commercial use of the crude oil. The strategic reserves of a country are only kept to suffice the energy demand for a nation in case of emergency or import failures. Therefore, the capacity of these types of terminals is limited, and on the other hand, commercial storage expansions take place regularly with fluctuating demand for energy and imports.
To know how our report can help streamline your business, Speak to Analyst
Floating Roof Tanks Will Dominate the Market Owing to Their Operational Advantages
Based on tank type, the global market is segmented into the floating roof, fixed roof, spherical tanks, and bullet tanks. Currently, the fixed-roof tanks segment dominates the market, but with the introduction of new technology and with certain advantages, floating roof tanks are expected to dominate the oil storage terminal market share during the given forecast period. The no-gap space between the floating roof deck and oil level helps in reducing the evaporation losses of the stored crude oil. The floating roofs also help to maintain a better quality of the stored liquids.
Application of Diesel Across Various Sectors Will Lead to Its Domination in The Market
In terms of product, the market is segmented into diesel, petrol, aviation fuel, kerosene, crude oil, and others. Diesel is expected to lead the market as it is widely used in the automotive sector, marine fuels, and also in manufacturing of aviation fuel. The majority of the heavy load vehicles today are still running on diesel. Petrol and aviation fuel will also have healthy growth with increasing automobiles being run on petrol and increasing air traffic.
Asia Pacific Oil Storage Terminal Market Size, 2019 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
The oil storage terminal market size in the Asia Pacific stood at USD 9.22 billion in 2019. The demand for energy and petroleum products has increased in countries like China and India. A major portion of power and energy supply in these countries is still being done by crude oil. South Korea and Singapore are a hub for oil storage in this region. In Europe, the market is expected to witness healthy CAGR owing to increasing production capacities from several key players. Many countries in the region are dependent on oil imports to fulfilling the energy demands. And following the increase in demand for energy, the storage capacity expansion is expected to be carried out. In North America, the recently started export of oil products holds numerous growth opportunities for oil storage terminals construction. Latin America and the Middle East and Africa being the major oil-exporting nations, the presence of these storage terminals in these regions are limited.
Royal Vopak and Oil Tanking GmbH are Among the Leading Players in the Market
The competitive landscape of this market depicts a market dominated by Royal Vopak and Oiltanking Gmbh. These companies hold a major portion of the market covered with storage terminals spread across Europe, North America, and Asia Pacific. The market also has the presence of local players such as HMT Tanks, Containment Solutions, Superior Tank, and others that have storage terminals in their active regions. The widespread customer reach in various parts of the world, along with higher brand value as compared to other players, has been the prominent factor for companies like Royal Vopak to establish a strong footprint in the global market.
The oil storage terminal market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several growth factors that have contributed to the market growth over recent years.
To gain extensive insights into the market, Request for Customization
Value (USD Billion)
By Tank Type
Fortune Business Insights says that the global oil storage terminal market size was USD 27.40 billion in 2019 and is projected to reach USD 37.52 billion by 2027.
In 2019, the market value stood at USD 27.40 billion.
Growing at a CAGR of 4.9%, the market will exhibit healthy growth in the forecast period (2020-2027).
Floating roof tanks are expected to be the leading segment in this market during the forecast period.
Increasing demand for crude oil products is fueling the demand for oil storage terminals.
Royal Vopak and Oiltanking GmbH are among the leading players in the global market.
The Asia Pacific dominated the market share in 2019.
Expansion of application sectors for crude oil products will drive the market growth.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry