The LNG Storage Tank Market is projected to be worth USD 16.7 bllion in 2024. The market is anticipated to reach USD 36.3 billion by 2034. The market is further expected to surge at a CAGR of 8.1% during the forecast period 2024 to 2034.
Key Market Trends and Highlights
Continuous innovations and advancements in LNG storage tank design, materials, and construction techniques are improving safety, efficiency, and reliability, attracting investments in new storage facilities.
| Attributes | Key Insights |
|---|---|
| LNG Storage Tank Market Estimated Size in 2024 | USD 16.7 billion |
| Projected Market Value in 2034 | USD 36.3 billion |
| Value-based CAGR from 2024 to 2034 | 8.1% |
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The LNG storage tank market expanded at a 10.6% CAGR between 2019 and 2023. The global market is anticipated to grow at a moderate CAGR of 8.1% over the forecast period 2024 to 2034.
The historical period witnessed a steady increase in global LNG demand driven by factors such as urbanization, industrialization, and a shift towards cleaner energy sources.
Growing investments in LNG liquefaction plants, export terminals, and regasification facilities led to increased demand for storage tanks to support the storage and transportation of LNG.
Innovations in LNG storage tank design, materials, and construction techniques enhanced safety, reliability, and efficiency, driving market growth. Countries sought to diversify their energy sources and enhance energy security, leading to investments in LNG infrastructure, including storage tanks, to ensure a stable supply of natural gas.
Increasing focus on reducing carbon emissions and mitigating climate change is expected to drive the transition towards cleaner energy sources, including LNG, supporting market growth during the forecast period.
Integration of LNG storage facilities with renewable energy sources and hybrid energy systems will support grid stability and promote the adoption of sustainable energy solutions.
Supportive government policies, incentives, and regulatory frameworks aimed at promoting LNG as a cleaner fuel and enhancing energy security will play a crucial role in driving market growth.
Continued investment in LNG infrastructure, including storage tanks, terminals, and transportation networks, will be necessary to meet growing demand and ensure reliable supply chains.
The global demand for LNG continues to rise due to its cleaner burning properties compared to other fossil fuels, and its increasing use in power generation, transportation, and industrial applications.
The construction of LNG storage tanks requires significant upfront investment, including costs associated with materials, engineering, and safety features, which can deter new entrants and project development.
The below table showcases revenues in terms of the top 5 leading countries, spearheaded by Korea and Japan. The countries are expected to lead the market through 2034.
| Countries | Forecast CAGRs from 2024 to 2034 |
|---|---|
| The United States | 8.3% |
| The United Kingdom | 9.2% |
| China | 8.7% |
| Japan | 9.6% |
| Korea | 10.0% |
The LNG storage tank market in the United States expected to expand at a CAGR of 8.3% through 2034. The United States has become a major LNG exporter due to the shale gas revolution and the development of LNG export terminals along the Gulf Coast.
The expansion of LNG export capacity drives the need for additional LNG storage infrastructure to support loading, storage, and distribution operations.
There is increasing domestic demand for LNG in the United States, particularly in sectors such as power generation, industrial applications, and transportation. The growing demand necessitates investments in LNG storage facilities to ensure adequate supply and storage capacity.
The LNG storage tank market in the United Kingdom is anticipated to expand at a CAGR of 9.2% through 2034. The United Kingdom is transitioning towards cleaner energy sources and reducing its reliance on traditional fossil fuels. LNG serves as a flexible and cleaner alternative, driving demand for LNG storage infrastructure, including storage tanks.
The country relies on LNG imports to meet its energy needs, especially during peak demand periods and to supplement declining domestic gas production. The expansion of LNG import terminals and storage capacity stimulates growth in the LNG storage tank market.
LNG storage tank trends in China are taking a turn for the better. An 8.7% CAGR is forecast for the country from 2024 to 2034. LNG is used in various industrial processes and residential applications, such as heating and cooking.
The expanding use of LNG in industry and households increases the demand for storage infrastructure to ensure reliable supply and distribution.
Ongoing advancements in LNG storage tank design, materials, and construction techniques improve safety, efficiency, and reliability. Technological innovations drive the adoption of advanced storage solutions to meet stringent safety and environmental standards in China.
The LNG storage tank market in Japan is poised to expand at a CAGR of 9.6% through 2034. Japan, with the prolonged shutdown of nuclear power plants, has been investing in alternative energy sources, including LNG, to fill the gap in electricity generation. The transition away from nuclear power increases the demand for LNG and storage capacity to support power generation.
The country is investing in modernizing its energy infrastructure and enhancing its resilience to natural disasters, including earthquakes and tsunamis. Robust LNG storage infrastructure plays a critical role in ensuring energy supply stability and resilience during emergencies.
The LNG storage tank market in Korea is anticipated to expand at a CAGR of 10.6% through 2034. The Korean government has been actively promoting the use of LNG as a cleaner alternative to coal and oil for power generation and industrial applications. Supportive policies, incentives, and regulations drive investment in LNG infrastructure, including storage tanks.
Korea is investing in renewable energy sources such as solar and wind power. LNG complements intermittent renewables by providing reliable backup power generation. Integration with renewable energy drives the need for flexible LNG storage solutions to support grid stability and energy transition efforts.
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The below table highlights how self supporting segment is projected to lead the market in terms of product type, and is expected to account for a CAGR of 7.8% through 2034. Based on material type, the steel segment is expected to account for a CAGR of 7.6% through 2034.
| Category | CAGR through 2034 |
|---|---|
| Self Supporting | 7.8% |
| Steel | 7.6% |
Based on product type, the self supporting segment is expected to continue dominating the LNG storage tank market. Self supporting LNG storage tanks typically offer a cost effective solution compared to other types of tanks.
The tanks often require fewer support structures and foundations, resulting in lower construction and maintenance costs.
Self supporting LNG tanks are designed to support their weight without the need for additional external support structures. The simplified construction process can lead to shorter construction times and reduced project complexities, driving efficiency and cost savings.
In terms of material type, the steel segment is expected to continue dominating the LNG storage tank market, attributed to several key factors. Steel is known for its high strength and durability, making it a preferred material for constructing LNG storage tanks.
Steel tanks can withstand harsh environmental conditions, seismic events, and extreme temperatures, ensuring long term reliability and safety.
Steel has a long history of use in LNG storage tank construction and has been widely adopted in the industry due to its proven performance, reliability, and structural integrity. The extensive experience and knowledge base associated with steel tanks contribute to their continued popularity in the market.
The competitive landscape of the LNG storage tank market is characterized by the presence of several global and regional players, each striving to maintain market share, innovate, and meet the evolving demands of the LNG industry.
The market landscape is influenced by factors such as technological advancements, regulatory requirements, project economics, and strategic partnerships.
Company Portfolio
| Attribute | Details |
|---|---|
| Estimated Market Size in 2024 | USD 16.7 billion |
| Projected Market Valuation in 2034 | USD 36.3 billion |
| Value-based CAGR 2024 to 2034 | 8.1% |
| Forecast Period | 2024 to 2034 |
| Historical Data Available for | 2019 to 2023 |
| Market Analysis | Value in USD billion |
| Key Regions Covered | North America; Latin America; Western Europe; Eastern Europe; South Asia and Pacific; East Asia; The Middle East & Africa |
| Key Market Segments Covered | Product Type, Material Type, End User Industry, Business Type, Region |
| Key Countries Profiled | The United States, Canada, Brazil, Mexico, Germany, France, France, Spain, Italy, Russia, Poland, Czech Republic, Romania, India, Bangladesh, Australia, New Zealand, China, Japan, South Korea, GCC countries, South Africa, Israel |
| Key Companies Profiled | Vijay Tanks and Vessels Ltd; Corban Energy Group; Luxi New Energy Equipment Group Co. Ltd; Vinci Construction; MHI Engineering and International Project India Ltd; Lloyds Energy; Transtech Energy LLC; Cryocan; Cryogas Equipment Pvt. Ltd.; Whessoe |
The LNG storage tank market is projected to reach a valuation of USD 7.6 Billion in 2024.
The LNG storage tank industry is set to expand by a CAGR of 2.1% through 2034.
The LNG storage tank market is forecast to reach USD 9.4 Billion by 2034.
Korea is expected to be the top performing market, exhibiting a CAGR of 10.6% through 2034.
Self supporting segment is preferred, and is expected to account for a share of 7.8% in 2024.
| Market Estimated Size in 2024 | USD 7.6 billion |
|---|---|
| Projected Market Value in 2034 | USD 9.4 billion |
| Value-based CAGR (2024 to 2034) | 2.1% |
| Market Value for 2024 | USD 392.6 million |
|---|---|
| Market Value for 2034 | USD 20.8 billion |
| Market CAGR (2024 to 2034) | 48.7% |
| Market Estimated Size (2023E) | USD 1.8 billion |
|---|---|
| Projected Market Valuation (2033F) | USD 3.5 billion |
| Value-based CAGR (2023 to 2033) | 6.7% |
| Market Value in 2022 | USD 1.9 Billion |
|---|---|
| Market Value in 2032 | USD 2.9 Billion |
| Market CAGR (2022 to 2032) | 4.2% |
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LNG Storage Tank Market
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