Oil Storage Market size was valued at USD 14.3 billion in 2024 and is projected to reach USD 28.8 billion by the end of 2037, rising at a CAGR of 5.5% during the forecast period, i.e., 2025-2037. In 2025, the industry size of oil storage will be valued at USD 15.1 billion.
The rise in energy security and increasing demand for crude oil storage are some primary factors anticipated to drive the adoption of oil storage. Strategic stockpiling by large nations decreases disruption risk and uncertain supply, which leads to unstable pricing. This focused strategy has thus catalyzed a rise in the level of investments being directed toward oil storage infrastructures, with both governmental bodies and private sector entities increasing storage capacity levels. Given the energy consumption rise observed across the world, the increasingly critical role that oil storage must play is underlined as one of the factors of resilience and stability for international supply chains.
In September 2024, India and UAE came to an agreement to expand the crude oil storage infrastructure. The deal represents full alignment with the strategic priority of building large intellectual long-term supplies of oil, especially in view of the indeterminate global supply chain climate. Further, such international collaborations are likely to encourage more developments in the oil storage market since countries will be looking forward to increasing energy resilience due to sustained geopolitical tension and unstable energy requirements. This not only contributes to national energy security but also provides a contribution to the stability of global oil storage market.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
5.5% |
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Base Year Market Size (2024) |
USD 14.3 billion |
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Forecast Year Market Size (2037) |
USD 28.8 billion |
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Regional Scope |
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Product Type (Crude Oil, Gasoline, Aviation Fuel, Middle Distillates, LPG, Diesel, Others)
The crude oil segment is set to hold over 50.5% oil storage market share by the end of 2037. This is driven by strategic interests such as large-scale oil importation against risk aversion of market turbulence between countries and companies. For instance, in December 2021, Magellan Midstream Partners revealed new commitments for crude oil volume transportation on its Texas pipeline, emphasizing the pressing need for solid infrastructure to keep pace with rising storage demand. The expansions are indicative of the continuous investments being made toward strengthening crude oil storage capacity to help meet global energy needs and strengthen supply chain resilience amidst a more unpredictable market.
Storage Type (Open Top Tanks, Fixed Roof Tanks, Floating Roof Tanks, Other Storage Facilities)
By the end of 2037, fixed roof tanks segment is estimated to dominate around 47.5% oil storage market share. This is driven by their proven reliability and efficient use in the storage of crude oil and petroleum products in large volumes. The fixed roof tanks are simply designed, and their construction costs are relatively lower; hence, they are attractive options for companies to scale up their storage capabilities without excessive costs. In addition, fixed roof tanks have operational advantages, such as smaller evaporation losses, thereby making them more popular in the market. Continuous improvement in tank technologies also contributes to better safety, efficiency, and environmental compliance, hence making it a favorable option for expanding the oil storage infrastructure.
Our in-depth analysis of the oil storage market includes the following segments:
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Product Type |
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Storage Type |
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Material |
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Reserve Type |
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Asia Pacific Market Analysis
Asia Pacific oil storage market is expected to account for revenue share of around 40% by 2037. The growth in oil storing capacity has its origin in rapid industrialization and high energy requirements arising from developing economies such as China, India, and Japan. Regional governments are developing strategic petroleum reserves to ensure energy security in the face of volatile international oil prices and geopolitical conflicts.
India is one of the leading players in Asia Pacific oil storage market due to an SPR capacity of 5.33 million metric tonnes, which is enough to meet about 9.5 days of net oil import. Beyond the SPR, national oil companies also possess total crude oil and petroleum product storage facilities that will last for 64.5 days of all net imports, thus making great contributions to the country's energy security. The country is taking concrete steps in the field of extending oil storage facilities in India, thus furthering the overall energy strategy with regard to reducing import needs and supplying the chains on a regular basis, especially under conditions of volatility in the global market. These initiatives align with the country's ambition to build more resiliency in the supply chain of India's energy.
China is also witnessing rapid growth in Asia Pacific oil storage market, with the increasing oil importation ratio and rising refinery processing capacity. In March 2023, ETRI from China National Petroleum Corporation said that oil imports jumped 6.2% compared with 2020, reaching 540 million tonnes. In addition, refinery processing capacity similarly increased by 7.8% to 733 million tonnes. This indicates the increasing energy requirement in China and how the country is putting in place mechanisms to ensure these needs through increases in both strategic storage of oil and refining capacity.
Middle East and Africa Market Analysis
Middle East and Africa oil storage market is estimated to capture revenue share of over 32% by 2037. Most countries in the region are particularly keen on developing their petroleum storage capacity to meet the growing demand from the international market. Geographically, this strategic location along key oil trade routes solidifies its position as a critical hub for oil storage and logistics operations. This sector attracts investments because of an improving need for storage infrastructure that ensures better management and distribution of the oil resources available globally.
UAE is also an active participant in the oil storage market and has been actively pursuing projects for crude oil and petroleum product storage capacity. In September 2021, UAE completed the second phase of its storage facility in Fujairah, which it claims will firmly place the company as the second-biggest oil storage operator in the region. Such a development further indicates that the UAE is strategically positioned in the global oil logistics supply chain, with the capacity to handle greater volumes of its strategic stockpile of oil. These growing trends underline the position of the UAE as a center for the storage of oil, making it a crucial, strategic facilitator of efficiency in distribution and stability in world oil storage markets.
Saudi Arabia is building strategic onshore and offshore oil storage facilities to secure its chains of oil supplies. Domestically, strategic facilities have cropped up in places such as Medina, part of a chain across the kingdom designed to store emergency oil supplies outside the oil-rich Eastern Province. These altogether have the capacity to store an estimated 12 million barrels of oil products, including jet fuel, diesel, and gasoline.
Furthermore, companies in Saudi Arabia are expanding their storage presence across the globe. For example, Aramco signed a joint storage agreement with Korea National Oil Corporation of South Korea in 2023 to store 5.3 million barrels of crude oil at KNOC's Ulsan storage base. This deal will help in the development of energy resilience and supply energy stably to meet the demand. These strategic investments further enhance the capability of Saudi Arabia to manage market volatility and strengthen its competitive position in the oil storage market.
The oil storage market is considered to be highly competitive, as it involves a number of key players who move the industry forward by offering advanced solutions for storage and having strong infrastructures. Key players in the industry include Belco, CST Industries, VTTI, Containment Solutions, Inc., Shawcor, and Superior Tank Co., Inc. Companies like DELTA OIL TANKING BV, Royal Vopak, Oiltanking GmbH, and Buckeye Partners have established strong footholds by entering into strategic partnerships and developing infrastructure projects.
For example, in November 2022, Oiltanking decided to divest its shares in Indian Oiltanking Limited to Adani Ports and Special Economic Zone. The decision was part of the overall strategy adopted by Oiltanking during the period, which involved streamlining operations and concentrating company resources in key growth markets that offered higher returns and greater long-term potential. The move underlines the rising competitiveness in the oil storage business, where players must be agile through portfolio adjustments to meet the dynamics of the changing oil storage market and emerging opportunities.
Here are some leading players in the oil storage market:
Author Credits: Dhruv Bhatia
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