Cryogenic Equipment Market Expected to Reach $39 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Cryogenic Equipment Market," The cryogenic equipment market size was valued at $19.9 billion in 2022, and is estimated to reach $39 billion by 2032, growing at a CAGR of 7% from 2023 to 2032. Cryogenic equipment market outlook comprises of different products such as tanks, valves, pumps, vaporizers, vacuum jacketed piping, and others.

Transporting liquefied industrial gases like oxygen, hydrogen, nitrogen, helium, and argon is done with the use of cryogenic equipment. In most cases, they are designed to store liquid gases at temperatures lower than -150°C. Horizontal, vertical, double-walled, and insulated configurations of cryogenic equipment are available. They can be moving or transportable as well as fixed or static. The equipment is used for storing LNG in LNG liquefaction terminals and on ships in the form of tankers. They also have several applications in a variety of industries including medical technology, food, electronics, and metal processing.

The increase in demand for LNG is expected to lead to a growth in the sales of cryogenic equipment as LNG requires specialized equipment for storage, transporting, and regasification. Cryogenic equipment including liquefaction plants, LNG storage tanks, and shipping boats work together as an important component of the LNG supply chain. These equipment components must be built to endure extremely low temperatures as natural gas is kept in its liquefied state via cryogenic processes.

Cryogenic applications typically require specialized infrastructures to handle low-temperature environments safely and efficiently. This includes the need for well-insulated containers, specialized storage facilities, and safety measures to prevent accidents or gas leaks. These infrastructural requirements can be costly and complex, making it difficult for many companies to implement cryogenic technologies. Moreover, cryogenic materials, such as liquid helium and liquid nitrogen, can be harmful to human health owing to their potential to displace oxygen and low temperatures. Specialized safety protocols, equipment, and facilities are necessary to handle and store cryogenic substances safely. Therefore, a team of trained professional is essential for the operation of these equipment for cryogenic equipment market growth.

Cryogenic equipment involves advanced technologies and materials to operate at extremely low temperatures. Therefore, the manufacturing and maintenance costs of such equipment can be considerably higher than conventional systems. This cost obligation can impact businesses and industries from investing in cryogenic applications, especially for smaller or financially constrained enterprises. Cryogenic equipment is required to uphold stable and precise temperatures to make sure the efficiency and safety of the processes involved. Achieving this level of precision requires advanced manufacturing and engineering techniques, which can be costly.

Furthermore, upholding cryogenic temperatures demands a significant amount of energy. This is expected to increase the operational costs associated with cooling and insulation, which can impact the equipment's overall cost and thus may impact the cryogenic equipment market forecast number.

Cryogenic equipment is used to store, handle, and deliver these propellants to the rocket engines and can be used to liquefy gases present on the Moon or Mars, like water ice, to produce propellants locally. This would significantly reduce the costs and logistical challenges of sending propellants from Earth, making colonization and sustainable human presence on these celestial bodies more feasible. Furthermore, continued advancements in cryogenic technologies for space applications can lead to innovations in materials science, superconductivity, and low-temperature electronics. These advancements can have broader applications beyond space exploration, and thus would simultaneously boost the product demand.

The cryogenic equipment market share is segmented on the basis of product, gas type, application, and region. By product, it is segmented into tanks, valves, vaporizers, pumps, vacuum jacketed piping, and others. By gas type, it is classified into nitrogen, oxygen, argon, LNG, and others. By application, it is diverged into storage and distribution. By region, the market is analyzed across North America, Europe, Asia-Pacific, and Latin America.

The key players profiled in the cryogenic equipment market analysis report include LAPESA GRUPO EMPRESARIAL, Linde plc, Cryolor, Auguste Cryogenics, Cryofab, Inc., Emerson Electric Co., Chart Industries, NIKKISO, INOX India Limited, and MAN Energy Solutions.

The report offers a comprehensive analysis of the global cryogenic equipment market trends by thoroughly studying different aspects of the market including major segments, market statistics, market dynamics, regional market outlook, investment opportunities, and top players working towards the growth of the market. The report also highlights the present scenario and upcoming trends & developments that are contributing toward the growth of the market. Moreover, restraints and challenges that hold power to obstruct the market growth are also profiled in the report along with the Porter’s five forces analysis of the market to elucidate factors such as competitive landscape, bargaining power of buyers and suppliers, threats of new players, and emergence of substitutes in the market.

Key Findings of the Study

• Based on product, the tanks sub-segment emerged as the global leader in 2022 and the valves sub-segment is anticipated to be the fastest growing during the forecast period.
• Based on gas type, the liquified natural gas (LNG) sub-segment emerged as the global leader in 2022 and is anticipated to be the fastest growing during the forecast period.
• Based on application, the storage sub-segment emerged as the global leader in 2022 and is predicted to show the fastest growth in the upcoming years.
• Based on region, Asia-Pacific registered the highest market share in 2022 and is projected to maintain its position during the forecast period.