LNG Storage Tank Market size was over USD 15.46 billion in 2023 and is set to cross USD 39.11 billion by the end of 2036, growing at more than 7.4% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of LNG storage tank is estimated at USD 16.38 billion.
The growth of the market can be attributed to the increasing demand for LNG in the energy, power and steel industries, coupled with the rise in the number of regasification and floating storage units around the world. In 2019, the global demand for LNG rose by more than 12%, amounting to a production value of almost 360 million tons. The demand is evaluated to double by the end of 2050. Along with these, growing cargo transportation and high usage of LNG as a fuel for heavy duty vehicles are also expected to drive market growth in the near future. Furthermore, the overall rise in the production of natural gas and escalating advancements in drilling technology are projected to offer lucrative opportunities to the market in the upcoming years.
Growth Drivers
Challenges
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2023 |
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Forecast Year |
2024–2036 |
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CAGR |
7.4% |
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Base Year Market Size (2023) |
USD 15.46 billion |
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Forecast Year Market Size (2036) |
USD 39.11 billion |
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Regional Scope |
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The LNG storage tank market is segmented by material into aluminum alloy, steel, and 9% nickel steel, out of which, the steel segment is anticipated to hold the largest share in the LNG tank market on account of the excellent properties of steel, such as distinguished durability, stiffness, corrosion resistance and low thermal conductivity. In addition, high usage of steel to produce applications requiring refrigeration is also expected to boost the growth of the segment in the forecast period. Moreover, on the basis of type, the segment for self-supporting LNG tanks, which can be credited to the rising import and export of LNG around the world and the increase in the number of bunkering facilities. Qatar was the largest exporter of LNG in 2019. The exporting value of the gas amounted to be more than 106 billion cubic meters that year.
Our in-depth analysis of the global market includes the following segments:
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Material |
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Tank Type |
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On the basis of geographical analysis, the LNG storage tank market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa. The market in the Asia Pacific industry is expected to account for largest revenue share by 2036, propelled by growing investments for the construction of LNG bunkering facilities and rising use of natural gas in several end-user industries. Apart from these, increasing manufacturing capacities of nations namely, China and India, is assessed to drive market growth in the region. High consumption of liquefied natural gas in Japan, China and South Korea is also estimated to fuel the expansion of market in the APAC. Additionally, Europe is also estimated to occupy a significant share in the market during the forecast period owing to the presence of major LNG importing countries in the region, including France, the U.K., Spain, Belgium and Italy. For instance, France and Spain were the two largest importers of LNG in 2019. In that year, the countries traded in approximately 23 and 22 billion cubic meters of the gas, respectively.
· April 14, 2021: McDermott International’s CB&I storage solutions business was awarded a contract by AG&P for the procurement and construction of Philippine’s first ever LNG import terminal, which will be located in Batangas.
· March 17, 2020: INOX signed an agreement with Shell India to deploy distribution infrastructure for LNG to provide access to those not connected to pipelines.
Author Credits: Dhruv Bhatia
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