Increasing demand from steel, energy, growing transportation of LNG on ships, and power end-use industries mean the LNG storage tank market is expected to grow from USD 12.5 billion in 2020 to USD 17.5 billion by 2025, at a CAGR of 7.0 per cent, according to the LNG Storage Tank Market by Type, Material, Region – Global Forecast to 2025 report.
The growth of the above industries “is expected to further propel the growth of the market during the forecast period. However, the high construction cost, and installation cost of LNG storage tank are likely to hinder the growth of the market”, it said.
In the report, the LNG storage tank market has been separated into self-supporting and non self-supporting. Of the two, the self-supporting segment accounted for the larger share of the market during the forecast period.
The report attributes market growth in the self-supporting segment to growing LNG trade and increase in LNG liquefaction and regasification facilities – these factors are expected to drive demand during the forecast period.
It said the steel segment expected to account for the largest market share during the forecast period: “the steel segment is growing rapidly owing to the various properties of steel such as durability, resistance to corrosion, excellent toughness, and low thermal conductivity at cryogenic temperatures, which will drive the demand for steel. Furthermore, steel is used for applications requiring refrigeration or the creation of low-temperature conditions for the storage of liquefied natural gas.”
It also said APAC is expected to record the highest growth rate during the forecast period: “APAC is expected to have the highest growth rate during the forecast period due to significant developments in energy and power end-use industries, and the growing trade of LNG, which drives the LNG storage tank market in the region. On the other hand, North America is projected to have the second-largest market size during the forecast period.”
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