The cryogenic market comprises a wide array of companies, all in the business of operating in extremely low temperatures: from businesses manufacturing the necessary equipment, to those helping transporting and storing substances at cryogenic temperatures.
The growing demand for operations on a low temperature in diverse industries is driving the rising interest in the cryogenic equipment industry and the cryogenic market at large. All cryogenic market trends point towards a firm growth in the following years and decades, as the applications of cryogenic technical gases expand and the cryogenic industry advances technologically, becoming more efficient and optimized.
The cryogenic market until 2020: a steady increase
Different consultant and market research firms confirm the thriving of the cryogenic market, specially focusing on the global cryogenic equipment market and cryogenic tanks:
- The global cryogenic tanks market size, valued at USD 5.7 billion in 2019, is forecasted to expand at a compound annual growth rate (CAGR) of 4.9% from 2020 to 2027 by Grand View Research.
- The global cryogenic tanks market was valued at USD $6.32 billion in 2019 according to Global Newswire, while it is expected to reach USD $11.27 billion by 2027, growing at a CAGR of 7.5%.
- Fortune Business Insights, on the other hand, projects that the global cryogenic equipment market size will reach USD 31.68 billion by 2026, exhibiting a CAGR of 7.1%. cry
Gases that lead the industry
While the use of technical gases continues growing across industries, there are at least four main gases that are leading the cryogenic market growth:
- Liquefied nitrogen, which accounted for the largest revenue share in 2019 and is expected to lead the cryogenic market. This substance is used extensively in diverse manufacturing processes (such as electronic products) in order to prevent oxidation, while also proving to be extremely useful for the healthcare sector (for instance, in cryotherapy for cancer and different surgeries).
- Liquefied Natural Gas (LNG) is also expected to lead the cryogenic industry’s growth. This widening is mainly originated in the growing demand for natural gas in rapidly developing countries, while LNG also presents diverse applications for industries such as manufacturing, metallurgy, transportation and power generation. A steady improvement in storage technologies for LNG will also facilitate the expansion of this substance and, as a consequence, of the cryogenic equipment industry.
- Liquid oxygen plays a substantial part in the aerospace, gas and submarine industries, as well as being essential for some manufacturing and healthcare applications.
- Liquid Hydrogen is often used for hydrogen storage, while also playing a key role for the aerospace industry, fueling rocket engines and submarines.
- Argon is also contributing to the cryogenic market’s growth, with their many applications in the healthcare and steel industry.
Top services on the cryogenic market
The cryogenic market comprises transportation, storage and equipment. There are many industries that may require the services provided by the cryogenic industry:
- Manufacturing: the development of manufacturing has been and will continue to be critical for the growth of the cryogenic market, as it accounted for the largest segment of revenue share in 2019. Industrial gas suppliers require cryogenic tanks to store industrial gases, while the electronic industry is also boosting cryogenic market trends.
- Food industry: cryogenics are increasingly applied across the food industry, from the creation of artificial atmospheres to the preservation of food and the transportation of beverages and frozen products.
- Healthcare: liquid nitrogen leads the application of low-temperature substances in the healthcare sector, including powerful cancer treatments that are expanding the cryogenic market’s growth.
- Electronics: this industry is expected to be the fastest-growing market until 2025, and cryogenics present multiple applications in the sector, including safety protocols and extending the life of products.
Global cryogenic tanks market by geography
The U.S. has been leading the cryogenic equipment industry and will continue to do so in the following years, due to expanded industrial and technological development, with European countries not far behind.
However, it’s the advancements in regions such as the Asia Pacific that is forecasted to provoke the biggest growth in the near future, both in terms of demand and production. In fact, Grand View Research cites the Asia Pacific as the largest market share of over 30% in terms of revenue in 2019 and projects the region will present the fastest CAGR until 2027. Availability of raw materials, growing industries (metal processing, electronics and automobile sectors) and low-cost labour are the key factors driving this development.
This area’s increasingly developed healthcare and metallurgy sectors will also be at the front of this growth, while imports of LNG in Japan, South Korea and India will continue to be meaningful.
The market research firms cited above also refer to countries such as Russia and Qatar, which are developing their LNG production and thus are in need of cryogenic tanks, helping the cryogenic equipment industry grow.
How has COVID-19 affected the cryogenic market?
COVID-19 has brought unprecedented efforts and attention to the healthcare industry. An important sector that continuously finds new uses for cryogenics, every market research firm confirms the pandemic outbreak and its consequences will propel the healthcare sector’s demand for liquid nitrogen and cryogenic tanks.
Future prospects for the cryogenic market: what does the future hold?
As many other industries disrupted by continuous technological developments and the COVID-19 crisis, the cryogenic market is set for a paramount transformation that will be rooted in a continuous growth projected for this sector.
On the one hand, advancements in the healthcare services of developing countries and a growing demand for LNG and the electronic sector’s needs will propel the cryogenic industry’s growth. It’s the tank sector that will exhibit the highest growth, as its storage and transportation properties are exploited by diverse industries.
On the other hand, rising demands for clean energy sources will also be looking towards the cryogenic market, as the different applications to generate clean energy necessitate diverse cryogenic technologies.
All of these new applications will redeem the cuts for cryogenics made by a decrease in global steel production, which could have otherwise had important consequences on the cryogenic market.
Holding a promising future, the cryogenic industry must provide safe and efficient solutions for clients, aided by increasingly exact technologies and knowledge.