The Cryogenic Equipment Market Projected to Grow at a CAGR of 7.0% and Generate a Revenue of $39,005.3 million by 2032Download Sample Reports Overview
The global cryogenic equipment market is predicted to be valued at $39,005.3 million by 2032, surging from $19,890.0 million in 2022, at a noteworthy CAGR of 7.0%.
Impact Analysis of COVID-19 on the Cryogenic Equipment Market
The COVID-19 pandemic has had both positive and negative impacts on the cryogenic equipment market. Industries including healthcare and pharmaceuticals have seen a rise in demand for cryogenic freezers and storage tanks for the delivery of vaccines and other medicinal needs. On the contrary, several research fields and the aircraft industry experienced a decline in demand, which affected production patterns. Some makers of cryogenic equipment also faced shortage of labor due to contaminated workers or quarantine regulations.
Cryogenic equipment was required as widespread immunization efforts against COVID-19 were launched in several countries across the world. To safely store and deliver vaccines, vaccination facilities, hospitals, and research facilities needed specialized freezers and containers. Certain vaccines, such as those made with mRNA technology (such as the Pfizer-BioNTech and Moderna vaccines), that required extremely cold temperatures for stability were stored and preserved using cryogenic equipment, such as ultra-low temperature freezers.
Global Cryogenic Equipment Market Analysis
The increase in need for sustainable energy generation technologies like LNG and metallurgical processes, as well as the rise in usage of natural gas is anticipated to boost the demand for cryogenic equipment, comprising vaporizers, tanks, and other products. Liquefied natural gas (LNG) is expected to witness rise in demand in the upcoming years owing to its optimistic environmental benefits and adaptability as a cleaner alternative to conservative fossil fuels. Conferred that LNG needs specialized equipment for transportation, storage, and regasification, the increase in demand for the fuel is expected to lead to an increase in cryogenic equipment demand. Cryogenic equipment such as liquefaction plants, LNG storage tanks, and cargo vessels assist as a crucial link in the LNG supply chain. These equipment components need to be made to withstand extremely low temperatures since natural gas is preserved in its liquefied state via cryogenic operations.
Equipment designed to work at very low temperatures uses cutting-edge technology and materials, which leads to significantly higher price than that of traditional systems. Smaller or financially low organizations may be impacted by this economic burden if they invest in cryogenic applications. To ensure the effectiveness and safety of the linked processes, cryogenic equipment need to maintain stable and exact temperatures. Advanced manufacturing and engineering procedures, which can be pricey, are needed to achieve this level of precision. It also takes a lot of energy to maintain cryogenic temperatures. This may affect the overall cost of the device by increasing the running costs for insulation and cooling.
Several space missions need the use of cryogenic technologies, which also present several prospects for advances and scientific discoveries in space exploration. In contemporary rocket engines, cryogenic fuels such as liquid oxygen (LOX) and liquid hydrogen (LH2) are used. Propulsion systems are effective owing to the high specific impulse that these fuels offer. These propellants are stored, handled, and delivered to the rocket engines using cryogenic equipment. This equipment can also be utilized to liquefy gases found on the Moon or Mars, such as water ice, to manufacture propellants locally. This would make colonization and a sustained human presence on these asteroids more possible by greatly reducing the expense and logistical difficulties associated with transporting propellants from Earth. As the advancement in technology continues, it is expected to create further opportunities for improvement and innovation in cryogenic equipment, leading to more versatile and efficient solutions for a wide range of applications. In addition, as the demand for cryogenic processes and storage advances progressively, there is a scope for entrepreneurs and businesses to provide specialized cryogenic services and equipment to fulfill industry needs.
Global Cryogenic Equipment Market, Segmentation
The cryogenic equipment market is segmented on the basis of product, gas type, application, and region.
The product segment is classified into tanks, valves, vaporizers, pumps, vacuum jacketed piping, and others. Among these, the valves sub-segment is anticipated to be the fastest growing during the forecast period. The demand for valves would grow progressively owing to rising chemical and oil & gas industries primarily. In addition, the overall industrialization and increasing setup of industries in the developing nations like China, India, Brazil, and others would support the market growth during the forecast years.
The gas type segment is classified into nitrogen, oxygen, argon, LNG, and others. Among these, the LNG sub-segment is anticipated to be the fastest growing during the forecast period. Different industrialized and developing countries are heading toward cleaner energy sources due to the rising awareness about the need to protect against climate change and minimize carbon emissions. When used to produce power and for other industrial processes, LNG is considered to be a notably cleaner fossil fuel than coal and oil as it emits minimal greenhouse gas emissions.
The application segment is further classified into storage and distribution. Among these, the storage application sub-segment is predicted to have the fastest growth during the forecast period. Cryogenic storage is frequently utilized in order to preserve biological samples such stem cells, organs, blood components, vaccines, and other biomaterials. The samples are preserved for upcoming use in studies, medical treatments, and diagnostics owing to the low temperatures' ability to slow down biological activity and chemical reactions. In addition, the surging industrial production has also increased the demand for cryogenic storage tanks for proper maintenance of finished products and for production of certain chemicals.
The cryogenic equipment market in LAMEA is projected to show the fastest growth during the forecast period. The Middle East and Africa have witnessed rapid industrial and economic growth, which is expected to increase the need for cryogenic equipment in a variety of settings, including oil & gas industries and hospitals. As the majority of the nations in the Middle East are the major exporters of LNG, the region is a considerable player in the global LNG market. Particularly in terms of LNG export and production, Qatar is dominating and is expected to gain its share by 2025. Other nations have also been increasing their LNG production capabilities, including Oman and the United Arab Emirates (UAE). This is anticipated to boost the demand for cryogenic equipment in the region during the forecast years.
Key Players in the Global Cryogenic Equipment Market
Some of the leading cryogenic equipment market players are LAPESA GRUPO EMPRESARIAL, Linde plc, Cryolor, Auguste Cryogenics, Cryofab, Inc., Emerson Electric Co., Chart Industries, NIKKISO, INOX India Limited, and MAN Energy Solutions.