LNG Storage Tank Market Size, Trends and Growth Analysis by 2027

The LNG storage tank market was valued at approximately US$ 8,346.93 million in 2021 and is anticipated to grow to US$ 14,224.27 million by 2028, reflecting a compound annual growth rate (CAGR) of 7.9% from 2022 to 2028.

The increasing availability of liquefied natural gas (LNG) provides access to one of the least carbon-intensive hydrocarbons globally, particularly along coastal regions. A crucial component of the LNG value chain is the floating storage and regasification units (FSRU) terminal, which serves as a bridge between local gas supply systems and LNG carriers. FSRUs are advantageous due to their flexibility and ability to deliver natural gas to markets more rapidly than traditional land-based facilities. These vessels can be installed on ships or offshore, depending on their design. FSRUs can be configured in two primary ways: either as converted gas carriers that function as independent units at offshore locations or as dedicated units installed on LNG carriers. When integrated into a ship, the FSRU's design aligns with that of standard LNG vessels, adhering to international marine safety regulations and undergoing regular dry-docking. A key benefit of this setup is that the heating and liquefaction processes occur onboard, eliminating the need to offload the fuel in a semi-frozen state. Consequently, the rising utilization of FSRUs is significantly boosting the LNG storage tank market.

In terms of configuration, the non-self-supporting tank segment dominated the global LNG storage tank market during the forecast period. Non-self-supporting tanks, also known as integral tanks, are integral to the ship's hull structure, sharing the load stresses with the surrounding hull. These tanks consist of a thin membrane supported by insulation from the adjacent hull, designed to accommodate thermal expansion and contraction without imposing excessive stress on the membrane. This design allows the inner hull to bear the loads transmitted to the tank, effectively managing thermal fluctuations. As a result, non-self-supporting tanks are primarily used for LNG cargo and represent the largest segment in the LNG storage tank market due to their enhanced visibility and superior carrying capacity. The market is also segmented by material, including stainless steel, aluminum alloy, 9% nickel steel, invar alloy, and C-Mn steel. Additionally, it is categorized by type into LNG carriers and LNG-fueled vessels. Geographically, the Asia-Pacific (APAC) region was identified as the fastest-growing market in 2020.

The COVID-19 pandemic has had a profound impact on the supply chain and manufacturing processes of mechanical equipment, including components for LNG storage tanks. The global outbreak of the COVID-19 virus, coupled with widespread lockdowns, has led industry analysts to predict a significant delay in the supply chain for mechanical equipment, with disruptions expected to last at least until mid-2021. However, as governments gradually lift containment measures to stimulate economic recovery, the mechanical equipment and shipping sectors are projected to regain momentum. Production of tanks and ships is expected to accelerate starting in 2022, which will positively affect the manufacturing of mechanical components for LNG storage tanks.

The overall size of the LNG storage tank market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data relevant to the market. This approach also aimed to provide a comprehensive overview and forecast of the LNG storage tank market across all segments and regions. Furthermore, numerous primary interviews were conducted with industry stakeholders and experts to validate the findings and gain deeper analytical insights. Participants in this research included industry professionals such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the LNG storage tank sector. Key players in the market include Air Water Inc., CIMC Enric Holding Ltd., IHI Corporation, India Inox Pvt. Ltd., MHI Engineering, Punj Lloyd Group, and POSCO ENGINEERING & CONSTRUCTION, LTD..