Cryogenic Equipment Market Growth to Result in Higher Oil & Gas Demand
Stringent government regulations and new and emerging markets in various countries are contributing to an increase of cryogenic equipment worldwide. According to a new report by Grand Research, Inc., the global cryogenic equipment market is expected to grow to $25.05 billion by 2022.
The report lists a number of factors contributing to the market’s increasing value. Here are a few of the top factors.
More Natural Gas Production
Liquefied natural gases (LNGs) have been one of the biggest factors of market growth. Cryogenic equipment is mainly used to store, transport, and supply LNG.
According to the report, natural gas was a dominant segment in the market and accounted for 40% of the overall revenue share in 2014. It also states that high natural gas production has contributed largely to global cryogenic equipment market growth.
In the coming years, investments in new markets in countries such as Brazil and India as well as stricter government regulations will lead to higher natural gas production as more and more global companies opt to use low emissions fuel like LNG. As a result, demand for cryogenic equipment will rise worldwide, ensuring market growth.
Increased Transportation and Storage of LNG
Increased LNG transportation and storage will also help to boost cryogenic equipment market value.
LNG is considered a cryogen and must be kept at very low temperatures to maintain its liquid state. Cryogenic equipment works to maintain the temperature during storage and transportation if the pressure remains constant inside.
One type of cryogenic equipment is vacuum jacketed pipes. They’re described as high-performance, low-heat-leak vacuum-insulated pipes specifically designed to transport cryogenic liquids. Vacuum jacketed pipes are forecasted to help increase market value by more than $1.5 billion by 2022.
Cryogenic tanks are used to store LNG. In 2014, tanks were valued at $6.5 billion—55% of the overall market revenue share. The report expects that increased trade and production will lead to higher demands for storage tanks within the next six years.
North American Food and Beverage Industry
The cryogenic equipment market isn’t limited to the oil and gas industry. The North American food and beverage industry is also expected to help boost overall market value by 2022.
With increased awareness about energy usage, waste, and carbon emissions, more companies have been adopting eco-friendly methods and are using cryogenic equipment for chilling and freezing.
In fact, Grand View Research, Inc.’s report states that cryogenic equipment in the North American food and beverage industry was valued at over $1 billion in 2014 and will continue to grow over the next six years.
On top of that, industry trends are leading to the rise of frozen foods and, as a result, a rise in cryogenic equipment in North American food and beverage companies.
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