Water Storage System Market Size, Share & Industry Analysis, By Material (Concrete, Steel, Plastic, Fiberglass, and Others), By Application (Hydraulic Fracture Storage & Collection, Onsite Water & Wastewater Collection, Potable Water Storage System, Fire Suppression Reserve & Storage, Rainwater Harvesting & Collection, and Others), By End-User (Municipal, LNG, Upstream, Midstream, Downstream/Petrochem, Hydrogen, Ammonia, Biofuels, Nuclear, Aerospace, Agriculture, Residential, Data Centers, and Others), and Regional Forecast, 2024-2032

The global water storage system market size was valued at USD 18.11 billion in 2023. The market is projected to grow from USD 19.43 billion in 2024 to USD 36.32 billion by 2032, exhibiting a CAGR of 8.13% during the forecast period.

Water storage tanks are specialized containers that are used to store water for various purposes, such as drinking water, irrigation, agriculture, fire suppression, industrial processes, and municipal water supply. They are designed to ensure the efficient storage of water, maintaining its quality and availability when needed. As the global population grows and cities expand, the demand for water increases. This leads to a need for more efficient and reliable water storage systems to meet the growing demand.

The global water storage systems market has experienced several shifts and challenges due to the COVID-19 pandemic. The pandemic led to disturbances in global supply chains, distressing the production and distribution of these systems. Lockdown measures, restrictions on transportation, and workforce shortages contributed to delays in manufacturing and delivery timelines. Various industries, including agriculture, industrial, commercial, construction, and municipal sectors, rely on these systems for irrigation, firefighting, and municipal water supply. The pandemic-induced economic slowdown influenced the demand for water storage systems within some of the sectors, with some experiencing fluctuations in demand depending on the pace of economic recovery.

Water Storage System Market Trends

Rising Concerns Regarding Climate Change is Fueling the Need for Water Storage Infrastructure

There is rising worry regarding water in the world due to climate change. Climate change is being witnessed in every region of the world. The traditional patterns of weather are changing, and the rains are getting delayed, consequently increasing the demand for water storage.

For instance, in March 2024, CAF, the Development Bank of Latin America and the Caribbean, approved USD 240 million in funding for Bolivia to ensure the accessibility of water for agricultural production and social progress. This loan is anticipated to enhance the area under irrigation by ~13,600 hectares and enhance productivity and efficient water utilization, helping 15,000 families in the country.

According to Sergio Diaz-Granados, executive president of CAF, this initiative aims to optimize and manage Bolivia's water resources more effectively through strategic storage projects that regulate water availability for irrigation and other productive uses sustainably. The goal is to foster development and social cohesion in the country's rural areas, support the productive sector and food security, and enhance communities' adaptation to climate change.

Water Storage System Market Growth Factors

Growing Awareness about Water Conservation is Driving Market Growth

As the effects of climate change, including altered precipitation and increased incidence of extreme weather events, become more apparent, the need for effective water management and water protection strategies increases. Excessive extraction of groundwater and surface water sources has led to the depletion and deterioration of these resources. Sustainable water storage systems help mitigate these problems by collecting and storing rainwater and runoff, reducing dependence on natural sources.

For instance, in 2024, around 100 free water tanks built resilience for remote Northland rural communities. The new tanks have been installed in response to the region’s 2019-20 drought, which exposed substantial water poverty through Te Tai Tōkerau in rural populations without access to public water supply. This resulted in the New Zealand Army being brought in to provide water to communities deprived of town water supply.

Technological Advancements in the Water Storage System to Impel Market Growth

Sensors and IoT devices enable real-time monitoring of water levels, quality, and usage patterns. This data approach enables efficient water management and early detection of problems such as leaks or contamination. Advanced control systems can automate filling and distribution processes, ensuring optimal water use and reducing waste. The development of new materials, such as high-density polyethylene (HDPE) and composites, has led to more durable and longer-lasting storage solutions. These materials are resilient to corrosion and can endure extreme weather conditions. Innovations in biodegradable and recyclable materials make water storage systems more sustainable and meet global environmental goals.

For instance, in 2019, Picoty deployed Tekelek LoRa tank monitoring technology in France. The TEK766 LoRaWAN Monitor has key features and benefits such as real-time data analytics, remote reconfigurability, 14-year battery life, and flexible liquid level measurement solution, i.e., fuel oil, water, chemicals, lubricants, liquid fertilizer, and others.

RESTRAINING FACTORS

Fluctuation in Raw Material Prices May Hinder Market Growth

The prices of raw materials are volatile, creating challenges for water storage tank manufacturers across the world. The volatility in the price of crude oil creates uncertainty in the prices of polymers/plastics. In addition, steel is also one of the raw materials whose prices are considerably volatile.

The prominent reasons for the volatility in the prices of raw materials are uncertain geopolitical events, supply chain problems, supply-demand gaps, and others.

According to the Organization for Economic Cooperation and Development (OECD), broad indices of both rebar and flat steel prices were relatively steady and, as of June 2022, stood correspondingly 7% higher and 6% lower than six months prior. Flat steel product prices trailed comparable dynamics across regions throughout the first semester of 2023: an upsurge (although less than their 2021 jump) followed by a drop. Despite their recent decrease, flat steel product prices remain much dispersed, with, on the one hand, the prices of flat steel in the U.S., Europe, and Japan having been quite high historically.

The volatile nature of the raw materials creates challenges for water storage system market growth.

Water Storage System Market Segmentation Analysis

By Material Analysis

Concrete Segment Dominates Owing to its Physical Properties, Giving Strength and Durability for Better Performance

Based on material, the market is segmented into concrete, steel, plastic, fiberglass, and others.

Concrete segments is the dominating segments in the market. Water storage tanks are constructed using concrete as the primary material. Concrete tanks are renowned for their robustness and ability to survive harsh environmental circumstances. For example, in April 2024, Abyan constructed the world’s first on-site 3D-printed large water tanks in Kuwait, utilizing a COBOD 3D construction printer. This method cuts 25% of concrete and reinforcement usage compared to traditional casted tanks. The speed and design flexibility of 3D construction printing can be produced more quickly, economically, and sustainably than with traditional formwork.

Plastic and steel are also significant materials. The steel is the second leading segment in the global market based on material. These tanks are widely used in industrial sectors such as manufacturing, processing, and chemical plants to store large volumes of water. Plastic is also one of the major materials in the market. They are much lighter than their counterparts, making them easier and inexpensive to transport and install. This ease of installation is particularly beneficial in remote or hard-to-reach areas.

By Application Analysis

Onsite Water & Wastewater Collection Segment Dominates Due to the Rising Importance of Sustainable Wastewater Management Practices

By application, the global market has been broadly categorized into hydraulic fracture storage & collection, onsite water & wastewater collection, potable water storage system, fire suppression reserve & storage, rainwater harvesting & collection, and others.

The onsite water & wastewater collection segment holds a dominant water storage system market share. The growth of this segment is being driven by regulatory pressures, urbanization, and the imperative for sustainable water management practices, especially in areas lacking centralized wastewater treatment infrastructure.

The potable water storage system is the second leading segment. It is experiencing a surge in demand due to the growing need for a reliable, safe drinking water supply amidst climate change-induced water scarcity challenges. According to the U.S. Intelligence Community Assessment of Global Water Security, by 2030, global annual water requirements will surpass current sustainable water supplies by ~40%.

The hydraulic fracture storage & collection segment expansion is fueled by the escalating demand for water in hydraulic fracturing operations within the oil and gas sector, driven by increasing exploration activities in significant oil-producing countries and areas.

By End-User Analysis

Municipal Sector has High Dependency for Water Supply, Leading to Its Dominance

By end-user, the global waste storage system market has been broadly categorized into municipal, LNG, upstream, midstream, downstream / petrochem, hydrogen, ammonia, biofuels, nuclear, aerospace, agriculture, residential, data centers, and others.

The municipal segment has the dominant share in the global market. The segment growth is primarily propelled by increasing demand for potable water and the aging water infrastructure, necessitating robust storage solutions to ensure reliable water supply, distribution, and management within cities and municipalities. In March 2023, the Biden-Harris Administration announced over USD 49 billion in domestic and global initiatives to guarantee that equitable access and climate-resilient water and sanitation infrastructure remain prioritized at home and globally.

In the residential segment, factors such as increasing awareness about water conservation, water quality concerns, and the desire for self-sufficiency are fostering demand for residential water storage solutions, empowering households to augment their water resilience and mitigate dependence on centralized water supply systems.

The agriculture segment also holds the dominant share of the market. The notable growth of the segment is driven by the imperatives for efficient water management practices to enhance crop productivity, address water scarcity concerns, and ensure sustainable agricultural practices amidst changing climatic conditions and growing food demand.

REGIONAL INSIGHTS

By region, the market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Asia Pacific is one of the major regions in the market. The region is leading the water storage system market due to the increasing adoption of modular and scalable water storage solutions, allowing for flexibility in expanding storage capacity as needed. Moreover, governments are investing in large-scale infrastructure projects such as reservoirs and dams to mitigate water scarcity and ensure water security. In 2021, India has attracted a significant share of private investment in water supply and sanitation infrastructure, representing 2% and 4% of GDP, respectively. China has attracted a significant share of private investment in water infrastructure, which is almost 48% since 2000, followed by Malaysia (8%), Philippines (6%), and India (6%) (AIIB, 2019).

North America has a strong presence of leading technology companies and research institutions. This raises innovation in technology, leading to more advanced water storage systems. The adoption of smart water storage technologies is rising, integrating Internet of Things (IoT) sensors and data analytics for real-time monitoring and management. In addition, there is a trend toward decentralized water storage solutions, such as rainwater harvesting systems, especially in regions prone to droughts, such as California. For instance, in May 2024, the U.S. government awarded USD 520 million to revitalize aging water delivery systems across the western U.S. The funding will support 57 projects across all six regions in the western U.S.

KEY INDUSTRY PLAYERS

AG Growth International's Ability to Cater to Different Applications is Reinforcing its Market Position

AG Growth International is one of the major companies in the market. It provides water storage tanks for rainwater collection and wastewater management and tailor-made products for different applications. In addition, its product comprises an above-ground water storage system, ring secondary containment, and others.

In June 2020, Balmoral has received approval from the Dubai Electricity and Water Authority (DEWA) to supply fire water tanks to the UAE's renewable energy projects. With this certificate the company can apply for fire water storage projects connected to grid stations, power plants and other DEWA projects. The company has two manufacturing facilities in the U.K. and a network of partners and distributors.

List of Top Water Storage System Companies:

• AGI - Ag Growth International (Canada)


• CST Industries, Inc. (U.S.)


• Containment Solutions (U.S.)


• DN Tanks (U.S.)


• Balmoral Tanks (Scotland)


• Caldwell Tanks (U.S.)


• Superior Tank Co., Inc. (U.S.)


• Tianjin Anson International Co., Ltd. (China)


• Wolf Systembau GesellSchaft m.b.H. (Germany)


• McDermott (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• October 2023- CST Industries signed a strategic partnership with Aquastore Canada East as the newest authorized dealer. This strategic alliance is aimed at expanding CST Industries’ presence and facilitating the delivery of its high-quality storage solutions to Eastern Canada.


• January 2023 - Beltecno India, one of the leading players in the manufacturing sector, launched the thermal water storage tanks developed to cater to the rising requirements of the industrial and commercial sectors. This advanced offering indicates a crucial leap forward in sustainable water storage solutions, setting a new standard for efficiency and dependability in the market.


• January 2021 -   CST Industries, Inc., announced a strategic territory expansion with Adams Brothers, Inc. Adam Brothers are located in Atlanta, Georgia, with expertise in process equipment to the dry bulk sector. The company represents CST’s epoxy-coated welded and bolted storage products.


• September 2020- Balmoral Tanks signed a distribution agreement with South Yorkshire-based A-Consult Group. The agreement covers the U.K. and Europe and aims to help A-Consult reinforce its portfolio of products and build on the company’s array of expertise within the tank sector.


• April 2020- Balmoral Tanks launched a new range of glass fused to steel (GFS) liquid storage tanks with an investment of USD 22.80 million in advanced manufacturing facilities at its South Yorkshire facility. This newest addition to the range of liquid storage solutions enhances the capabilities of the company to provide clients with the right product for every project.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects, such as prominent companies, product/service types, and leading applications of the product. Besides, it offers insights into the latest market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the growth of the market in recent years.

Report Scope & Segmentation