Cryogenic Equipment Market Size, Share & Industry Analysis, By Product (Tank, Valve, Vaporizer, Pump, Actuator, Bayonet Connection, and Others), By Cryogen Type (Nitrogen, Oxygen, Argon, Liquefied Natural Gas, Hydrogen, Helium, and Others), By End User (Oil & Gas, Metallurgy, Power Generation, Chemical & Petrochemical, Marine, and Others), and Regional Forecast, 2024-2032

The global cryogenic equipment market size was USD 22.32 billion in 2023 and is expected to grow from USD 24.45 billion in 2024 to USD 42.23 billion by 2032 at a CAGR of 7.07% over the forecast period (2024-2032). The cryogenic equipment market in the U.S. is projected to grow significantly, reaching an estimated value of USD 6.64 billion by 2032, driven by the growth in LNG industry and rising demand from healthcare sector.The Asia Pacific dominated the cryogenic equipment market with a share of 36.74% in 2023.

Cryogenic equipment is mostly used in the oil & gas industry for transportation and storage of Liquefied Natural Gas (LNG) and industrial gases in industrial operations. The expansion of the manufacturing industry plays a vital role in economic growth and the increasing awareness for generating clean energy resources. These factors majorly contribute to the growth of the market. Additionally, increasing investments in LNG-based power plants and the growing demand for transportation & storage industries are driving the market.

The outbreak of COVID-19 affected several industries around the world. Almost every country reported infected cases and significant measures were adopted to curb the transmission of coronavirus. Petroleum products are mainly used in the transportation sector and power generation plants among various applications for industrial purposes. The spread of coronavirus posed a threat to the demand and transportation of the LNG across the major consuming countries.

The oil demand was anticipated to fall by a record of 9.3 million barrels per day (mbd) year-on-year in 2020. As per the International Energy Agency, the demand for the 2nd quarter was expected to be 23.1 mbd, lower compared to the previous year. The automotive, aviation, manufacturing and processing industry, food & beverage, and oil & gas, recorded a negative impact on their business.

Cryogenic equipment is also used in the food & beverage industry, which had witnessed unprecedented challenges and changes in the wake of the COVID-19 pandemic. For instance, in April 2020, Starbucks rolled out a plant of food and beverage-based menu in China across its 4,300 stores. In addition, the supply chains have been largely affected by COVID-19, due to various roadblocks in logistics and transportation. For instance, Coca-Cola Co. experienced delays in its raw material supply from China as a result of the industrial stall due to the spread of COVID-19 in the country. However, it has flagged the Chinese suppliers to experience delays in production and export. Hence, COVID has hampered the consumer behavior and oil & gas industry, which, in turn, shall dramatically impact the market.

Cryogenic Equipment Market Trends

Increasing Focus on Manufacturing & Processing Industries to Boost the Product Demand

The increasing investments in mining and metal, food & beverage, metallurgy, and electronics industry in the developing economies will fuel the product demand. According to the World Investment Report 2018, Asia Pacific received investments worth USD 476 billion of foreign direct investments in 2017, which were primarily focused on China and Singapore. In addition, governments are focusing on improvising industrial policies and regulations to bring a conducive environment for exploring new industries and improve sustainability amongst competitors.

Strategic investment policy priorities, entry and establishment of foreign investors, and promotion and facilitation of investment policies are some of the supportive regulations which help to increase the application of industrial gases, resulting in the growth of the market.

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Cryogenic Equipment Market Growth Factors

Growing Demand for LNG to Boost Market Growth

In light of the increasing concerns about climate change and air pollution, the world is significantly inclining toward clean energy solutions such as solar energy, wind energy, and LNG, among others. Liquefied natural gas (LNG), is one of the cleanest fossil fuels, which is gaining traction as an alternative to coal and oil for power generation, industrial processes, and transportation. The government of the countries across the globe have been prioritizing the LNG and encouraging investments to increase the share of natural gas in the energy mix and limiting oil & coal sources. For instance, in July 2023, China National Petroleum Corporation (CNPC) and QatarEnergy entered into an agreement for liquefied natural gas (LNG) supply. Under this agreement, CNPC will procure 4 million tons of LNG annually from Qatar for a duration of 27 years.

The rising spending in LNG infrastructure, which comprises liquefaction plants, LNG carriers, regasification terminals, and storage facilities, have been expanding significantly to meet the growing energy demand. Further, the cyrogenic equipment market is positively impacted by the rising demand for LNG as cryogenic equipment is required for cooling the natural gas to ultra-low temperatures and transforming into LNG.

Rising Need for Clean Energy Source to Boost the Market

The rising demand for clean energy power is anticipated to boost the market in the near future. The transportation, storage, and regasification applications for generating clean energy hold substantial potential for the growth of the market. Development in the healthcare industry from developing economies and significant investment into metallurgical and chemical & petrochemical sectors would propel the demand for the equipment used in the cryogenic application. Hence, the growing awareness of adopting clean energy sources across the globe propels the demand for these equipment in the near future.

RESTRAINING FACTORS

Volatility in Prices of Stainless-Steel May Restrict Market Growth

Cryogenic equipment includes an outer pressure containment tube and an intermediate static support tube made from stainless steel. However, the efficiency of this equipment can be achieved by modifying and replacing the stainless-steel drive shaft, and the concentric static stainless-steel components with components made of a glass/epoxy composite. Stringent regulations for the emission of toxic greenhouse gases (GHGs) from the steel industry and the frequent rise and drop of crude oil supply owing to demand are the major factors attributed to the volatility in steel production and prices. This factor is likely to restrain the growth of the market.

Cryogenic Equipment Market Segmentation Analysis 

By Product Analysis

Tank Segment is Projected to Hold Larger Portion of Market Owing to Wide Scope of Application

Based on the product type, the market is segmented into the tank, valve, vaporizer, pump, and others. The tank segment is projected to hold the largest market stake owing to its wide application in the oil & gas and chemical & petrochemical industry for storage and transportation of oxygen, nitrogen, hydrogen, argon, and LNG cryogens.

The valve segment holds the second largest share due to wide applications in freezing such as production, transportation, and storage of liquefied gases. It is mostly used in LNG liquefaction plants, gas production plants, receiving terminals, and cargo systems. The increasing application of vaporizers for vaporization of LNG in base-load and peak shaving in regasification facilities across end-use industries is set to drive the growth of this segment during till 2028.

The pump segment is growing at a faster pace owing to the high and ultra-high vacuum applications from the oil & gas, metallurgy, and chemical industry. Hence, the growing application of these equipment across vertical industries would accelerate the demand in the near future.

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By Cryogen Type Analysis

LNG Segment is Projected to Hold Larger Portion of Market Owing to Growing Awareness for Clean Energy

Based on the cryogen type, the market is segmented into nitrogen, oxygen, argon, LNG, and others. The LNG segment is exhibiting the largest market portion owing to its wide application areas such as storage, transportation, fueling, processing, and others. It is also used in power generation, metallurgy, manufacturing, locomotives, ships, and other industries.

The nitrogen segment is projected to hold the second-largest cryogenic equipment market share among the cryogenic type, which is majorly attributable to a wide variety of applications in oil & gas, metallurgy, and chemical industries. It is used in the packing of medicines and freezing blood in the healthcare industry, purge equipment, cryogenic tanks, and pipelines in chemicals, pharmaceuticals, and food & beverage industries.

The argon & oxygen segments are experiencing significant growth owing to a wide application in the healthcare and steel industry. Hence, the increasing demand for LNG across industries, coupled with the growth in industrialization, would fuel the cryogenic equipment market growth.

By End User Analysis

Wide Scope Application of LNG in Oil & Gas Segment to Dominate the Market

Based on end-user, the market is segmented into oil & gas, metallurgy, power generation, chemical & petrochemical, marine, and others. The oil & gas segment holds the largest market share among all the end-users due to wide applications for refining, refueling, LNG transportation, regasification, and other applications.

The chemical & petrochemical industry is expected to experience considerable growth owing to application in oxidation processes, coal gasification, sulfur recovery units, regeneration of catalysts, cooling reactors, and other applications.

The extensive use of argon and nitrogen gases in the metallurgy industry would drive the demand for cryogenic equipment during the projected period. Increasing transportation and storage of LNG for the oil & gas industry and LNG-based power plants can boost the market growth. Hence, an increase in the application of cryogenics from the oil & gas and chemical & petrochemical industry upticks the market till 2032.

REGIONAL INSIGHTS

This market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.

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As per the world economic forum, Asia Pacific will hold the largest GDP (Gross Domestic Product) owing to rapidly changing consumer behavior, supportive policies to achieve sustainable development and investment in industrial infrastructure. A significant increase in power demand and the growing awareness of renewable power generation propels the need for gas-based power plants, which drives the demand for the product. For instance, in December 2019, The Asian Development Bank (ADB) had planned to invest around USD 1 billion worth of energy projects in the Asia Pacific region from 2019 to 2021 to increase renewable energy generation and improve access to affordable and sustainable electricity in the sub-region.

In North America, the U.S. and Canada hold significant potential for LNG exports. In the event of depleting coal resources, LNG-based power plants are increasing their market share, and this holds a potential growth opportunity for cryogenic equipment, which drives the market growth. The demand for gas is projected to increase in the coming years. This is primarily attributed to growth in the industrial and power sectors, as the U.S. government had planned to add 18 GW of new gas-based power plants by 2020 and is expected to be completed by 2022. The U.S. is focused on the manufacturing & processing industry such as machinery and primary metals production industries, which accounts for 11% of the US economy.

Europe is expected to showcase a significant growth in power demand. The increasing application of industrial gases in the steel industry, oil & gas, metal & mining, and manufacturing & processing industries augments the demand for the market across Europe. As per the International Energy Agency (IEA), the average demand for natural gas is projected to grow by 1.5% per year from 2019 to 2025. According to the European Commission (EC) report on the gas market, Europe imported the largest volume of LNG in 2019 at 108 billion cubic meters (bcm), marking 27% of total gas imports. 22% of Europe's gas consumption is owing to the spot market and no capital expenditure from small players, which has fueled the demand for the market in the region.

The Middle East & Africa is the prominent region indulged in the business of oil & gas as it holds 50% of the world's proven conventional natural gas reserves. Countries in the Middle East & Africa, such as Qatar, Saudi Arabia, Oman, and Kuwait are the major exporter of LNG. The growth is majorly attributed to the offshore gas developments in the UAE and Qatar, which require cryogenic pumps & equipment for storage and transportation of LNG. For instance, In July 2019, Kuwait signed an offshore exploration contract worth USD 600 million with Halliburton to drill 6 high-pressure high-temperature (HP/HT) exploration wells.

List of Key Companies in Cryogenic Equipment Market

Key Players are Focusing on Acquisition Strategy to Strengthen Their Market Positions

Major players such as Nikkiso Co., Ltd, Fives, SHI Cryogenics Group, Parker Hannifin, The Weir Group PLC, Chart Industries, Inc., and Flowserve Corporation, hold a large portion of the market. Numerous other players operating in the industry are focused on delivering advanced cryogenic products for various end-use industries and looking to integrate by merger and acquisition strategy. For instance, in 2019, Chart Industries, Inc. completed the acquisition of the Industrial Air-X-Changers business from Harsco Corporation, a major supplier of custom-engineered air-cooled heat exchangers for the natural gas compression and processing industry and refining and petrochemical industry in the U.S.

LIST OF KEY COMPANIES PROFILED:

• Chart Industries, Inc. (U.S.)


• Cryofab, Inc. (U.S.)


• Linde (Germany)


• Nikkisso Cryoquip (U.S.)


• Nikkiso Co. Ltd (Japan)


• SHI Cryogenics Group (Japan)


• HEROSE GMBH (Germany)


• Wessington Cryogenics (U.K.)


• Cryo Pur (France)


• INOXCVA (INOX India Pvt Ltd) (India)


• Sulzer (Switzerland)


• Schlumberger (U.S.)


• Flowserve Corporation (U.S.)


• Fives (France)


• Phpk Technologies (U.S.)


• Marshall Excelsior Company (U.S.)


• ACME Cryogenics (U.S.)


• RegO (U.S.)


• Habonim Industrial Valves & Actuators LTD (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• June 2021 – TECO 2030 signed a Memorandum of Understanding with Chart Industries, Inc to jointly develop technological solutions that will capture carbon dioxide (CO2) emitted by ships and subsequently store it in liquid form. The agreement between TECO 2030 and Chart covers three years and involves the joint development of onboard carbon capture solutions for ships using the Cryogenic Carbon Capture (CCC) technology developed by SES, which was acquired by Chart in December 2020.


• July 2021 – Linde announced that the company has started its new on-site facility in Qinzhou, China, supplying oxygen and other industrial gases to Shanghai Huayi's new chemical complex. The new facility is comprised of three air separation units which will supply up to 7,500 tons per day of oxygen and 5,000 tons per day of nitrogen.


• November 2019 – Ampco Pumps introduced Cryo-pump technology for low-temperature processing applications that are designed with highly specialized internal seals for both centrifugal and positive displacement pumps for processing at temperatures as low as -70F / -56C.

REPORT COVERAGE

The global cryogenic equipment market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, products, and upcoming developments of the product. Besides this, the report offers insights into the key market trends, highlights key industry developments, and free sample can also be provided. In addition, the report encompasses several factors that have contributed to the market growth in recent years.

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