The global cryogenic equipment market size was valued at USD 12.6 billion in 2021, is anticipated to reach USD 17.5 billion by 2030 and expanding at a CAGR of 6.9% during the forecast period, 2021–2030. The growth of the market is attributed to the growing demand for cryogenic equipment across entire LNG value chain.
Cryogenic systems are units that are widely utilized for generating temperatures below 120k or 1530C. Various gases are used as a coolants liquid nitrogen, oxygen, hydrogen and helium. Cryogenic systems aid in liquification of different gases and their durability in the liquefied form, as well as the division of gas mixtures at lower degree temperatures. Once a gas begins to liquify, the environment is considered a cryogenic one. Materials' chemical characteristics are altered by extremely low temperatures.
Cryogenics is used in several industries. Cryogenic machines are effectively used in daily operations by sectors including oil & gas, chemicals, storage and transportation, medicine, the food & beverage industry, mechanical engineering, biology, metallurgy, chemistry, the space sector, and agriculture. It is used to create cryogenic fields for rockets, in liquid helium-using MRI machines that need cryogenic cooling, to store enormous amounts of food, create special effects fog, recycle materials, freeze blood and tissue samples, and even chill superconductors.
Cryogenic system includes pressure vessels, containers, cold traps, purifiers, and piping. The performance of cryogenic components depends on proper insulation since it guarantees that the equipment’s internal temperatures are maintained. Technology has improved significantly, and materials can now be frozen at extremely close ranges to absolute zero. Despite this, scientists are still unable to overcome the thermodynamic rule that states that every particle has zero energy.
COVID-19 Impact
The COVID-19 pandemic has significantly impacted supply chains as a result of different logistical and transportation bottlenecks. However, it has warned that manufacturing and export delays will affect Chinese supply. Petroleum products are mostly utilized in the transportation industry and in power plants, among other industrial uses. The transportation of LNG across the key consuming countries are at risk due to the coronavirus outbreak. The food and beverage business also uses cryogenic equipment, which faced unimaginable difficulties and adjustments in the aftermath of the COVID-19 pandemic. For instance, Starbucks launched a China-based menu of food and beverages across its 4,300 shops in April 2020.
Cryogenic Equipment Market Dynamics
The report presents a complete market overview about market dynamics by focusing on the current market trends, existing drivers, growth opportunities, and emerging challenges that can shape the outcome or overall performance of the market during the forecast period, 2022 to 2030.
Major Trends: Increasing demand for cryogenic systems
The research report finds that it is essential to provide consistent cryogenic temperatures for the use of superconductivity in accelerators. Cryogenic systems have evolved from modest laboratory devices to extremely big industrial scale systems employing numerous refrigeration units and storing over 100 tonnes of liquid helium in the century since the discovery of superconductivity.
Growing investments in the mining, metal, food & beverage, metallurgy, and electronics industries in developing countries will increase demand for the commodity. China and Singapore received the majority of the USD 476 billion in foreign direct investments made in Asia Pacific in 2017, according to the World Investment Report 2018. Governments are focusing on changing industrial laws and regulations in order to provide a favourable environment for the discovery of new industries and to enhance sustainability among competitors.
Key Drivers: Growing demand for cryogenic gases from several sectors
The growing demand for cryogenic gases for medical applications during the forecast period. Large bulk cryogenic liquid oxygen tanks that are periodically replenished by a truck from a supplier is installed in healthcare facilities. Tatas are importing 36 cryogenic vessels and it supply over 600 metric tonnes medical oxygen from its plants. Hospital sector demand oxygen gas, due to the increasing incidence of respiratory illnesses.
There is a significant need for cryogenic systems in sectors including transportation, aviation, and railroads, and this trend is anticipated to persist in the years to come. The development of cryogenic systems' insulation techniques is actively fostering market expansion.
Current Restraints: Rising prices of stainless-steel
Cryogenic system includes an intermediate static support tube made from stainless steel and outer pressure containment tube. However, by changing and replacing the stainless-steel driving shaft and the concentric static stainless-steel components with components composed of a glass/epoxy composite, the efficiency of this equipment may be increased. The main causes of the volatility in steel output and pricing are strict laws for the emission of harmful greenhouse gases (GHGs) by the steel sector and the regular rise and fall in crude oil supply due to demand. This element will probably slow the market's expansion.
The entire cost of the cryogenic plant rises significantly as a result of the use of expensive specialty materials for the building of cryogenic equipment and the high energy costs linked to temperature maintenance. The initial CAPEX involved with setting up the infrastructure for a cryogenic facility is projected to cost roughly USD 300 million, according to the US Department of the Interior (DOI).
Cryogen leaks and losses are a significant issue for equipment makers. The risk of greenhouse emissions and cryogen leaks grows along with the expansion of modular cryogenic processing facilities. It's possible that the equipment won't be able to stop a leak or release cryogen into the environment even after adequate and routine examinations. These cryogens are not eco-friendly, and if they are discharged in a confined space, they may cause a lack of oxygen in the area. Long-term contact with cryogen can harm the lungs and result in frostbite. Better leak detection technology must be used by manufacturers to identify any leaks or emissions that occur during operations so that prompt remedial action may be done.
Market Opportunities: Increasing space and satellite missions
Space specimens are stored and handled using cryogenic equipment. The qualities of the asteroid’s specimen are preserved since cryogenic industrial gases are inert. A vital resource for space missions is cryogenic fluid. Sustaining space scientific missions and supporting the space transportation infrastructure are the two main categories under which space cryogenics applications may be divided. Additionally important for satellite operations are cryogenic gases. These can act as a coolant to keep the machinery aboard a spaceship functional. Additionally, if these gases are utilized to refuel a satellite, the lifespan of its instruments can be increased.
Scope of Cryogenic Equipment Market Report
The report on the global cryogenic equipment market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Cryogenic System Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2021
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Historic Data
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2019–2020
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Forecast Period
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2022–2030
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Segmentation
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System Types (Supply, Handling, and Storage), Cryogens (Argon, Nitrogen, Oxygen, LNG, and Hydrogen), Equipment (Valves, Tanks, Pumps, and Vaporizers), and End-users (Metallurgy, Chemicals, Energy, and Transportation)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Nikkiso Co.; Taylor-Wharton.; Wessington Cryogenics; PHPK Technologies; INOX India Pvt Ltd; Acme Cryo; Fives SAS; Cryofab; Shell-n-Tube; Beijing Tianhai Cryogenic Equipment Co., Ltd.; Herose GmbH; Linde plc; Air Liquide; Air Products Inc; Chart Industries; PARKER HANNIFIN CORP; Flowserve Corporation; SHI Cryogenics Group; Emerson Electric Co.; and Sulzer Ltd
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Cryogenic Equipment Market Segment Insights
Storage segment to expand at a considerable CAGR
On the basis of system types, the cryogenic equipment market is segmented into supply, handling, and storage. The storage segment is projected to expand at a considerable CAGR during the forecast period. The storage system is anticipated to reach at CAGR of 7.6%. The cryogenic system is used for the large-scale storage of electricity. The supply segment is anticipated to account for a major market share during the forecast period, owing to government investments in gas generation. The cryogenic supplies are used to supply specimens and tissue samples in cold environment. This specimen is supplied in boxes, cryogenic vial and ice machines.
LNG segment to hold a significant share of the market
Based on cryogens, the market is divided into argon, nitrogen, oxygen, LNG, and hydrogen. The LNG segment is expected to hold a significant share of the market in the coming years, due to the increasing product demand from several industries. LNG stands for liquified natural gas is an odorless and colorless liquid fuel. LNG made by cooling natural gas to -1620C. The hydrogen segment accounts for a significant market share, due to the increasing demand for hydrogen fuels and clean energy.
Tanks segment to expand at a substantial CAGR
On the basis of equipment, the cryogenic equipment market is segregated into valves, tanks, pumps, and vaporizers. The tanks segment is anticipated to expand at a substantial CAGR during the forecast period. High demand for industrial gases and rising LNG production is projected to increase the demand for cryogenic equipment. The valves segment is expected to hold a significant share of the market. A cryogenic valve is often made to respond to high pressure by being pushed into the open position, which enables the flow of gas or other media through the valve with little resistance.
Metallurgy segment to register considerable market share
Based on end-users, the market is segmented into metallurgy, chemicals, energy, and transportation. The metallurgy segment is projected to register considerable share of the market in the coming years, owing to rising technological advancements. The metallurgy industry widely used nitrogen and argon gases. The chemicals segment is expected to hold substantial CAGR, due to applications in coal gasification, oxidation processes, regeneration of catalysts, sulfur recovery units and others. The oil & gas segment is estimated to drive the market growth owing to several applications for refueling, refining, LNG transportation, and regasification.
North America is anticipated to constitute a key market share
In terms of regions, the cryogenic equipment market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to constitute a key share of the market during the forecast period. Exports of LNG have a lot of potential in the United States and Canada. As coal supplies are depleted, LNG-based power plants are gaining market share, which presents a potential growth opportunity for cryogenic equipment, which fuels the market expansion. The US government is concentrating on the manufacturing and processing sector, which includes the production of raw metals and machinery. The market in is anticipated to expand at a rapid pace during the forecast period, due to rising E&P activities.
Segments
The global cryogenic equipment market has been segmented on the basis of
System Types
Cryogens
- Argon
- Nitrogen
- Oxygen
- LNG
- Hydrogen
Equipment
- Valves
- Tanks
- Pumps
- Vaporizers
End-users
- Metallurgy
- Chemicals
- Energy
- Transportation
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Nikkiso Co.
- Taylor-Wharton.
- Wessington Cryogenics
- PHPK Technologies
- INOX India Pvt Ltd
- Acme Cryo
- Fives SAS
- Cryofab
- Shell-n-Tube
- Beijing Tianhai Cryogenic Equipment Co., Ltd.
- Herose GmbH
- Linde plc
- Air Liquide
- Air Products Inc
- Chart Industries
- PARKER HANNIFIN CORP
- Flowserve Corporation
- SHI Cryogenics Group
- Emerson Electric Co.
- Sulzer Ltd
Competitive Landscape
Key players competing in the global cryogenic equipment market are Nikkiso Co.; Taylor-Wharton.; Wessington Cryogenics; PHPK Technologies; INOX India Pvt Ltd; Acme Cryo; Fives SAS; Cryofab; Shell-n-Tube; Beijing Tianhai Cryogenic Equipment Co., Ltd.; Herose GmbH; Linde plc; Air Liquide; Air Products Inc; Chart Industries; PARKER HANNIFIN CORP; Flowserve Corporation; SHI Cryogenics Group; Emerson Electric Co.; and Sulzer Ltd.
Key players in the market implementing new strategies including acquisitions and mergers, products development, and new product launches to increase the market share. HPCL Rajasthan Refinery Ltd (HRRL) awarded Chemie-Tech an EPCC contract in October 2020 for Cryogenic Double Wall Storage Tanks (DWST) and the related infrastructure at HPCL Rajasthan Refinery Ltd in Rajasthan, India. Moreover, Dalian Shipbuilding Industry, a division of China State Shipbuilding Corporation, stated in June 2021 that it had delivered a dual-fuel VLCC 2x3500m3 cryogenic storage tank for C-type LNG.
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