Global Oil Storage Market Grows Steadily at a CAGR of 3.87%

Introduction

The global oil storage market is experiencing significant growth, largely fueled by the expansion of refining capacities and increasing energy consumption in emerging economies. As industrialization accelerates in nations such as China, India, and various Southeast Asian countries, the demand for refined oil products is rising, thereby driving the need for expanded crude and fuel storage infrastructure.

In parallel, the adoption of advanced technologies, like IoT-based monitoring and AI-powered inventory systems, is improving efficiency and safety across storage facilities. This technological shift is encouraging oil companies to upgrade and modernize their storage operations.

Additionally, fluctuations in oil supply and demand across seasons and regions are heightening the demand for temporary storage solutions, especially during times of surplus. Infrastructure development in oil-rich areas, notably in the Middle East and Africa, is also boosting the construction of new export hubs and storage terminals, reinforcing the global demand for strategically positioned oil storage assets.

Market Dynamics

Volatility in crude oil prices drives the global market

Volatile crude oil prices remain a key driver of growth in the global market. Price fluctuations encourage companies to utilize storage facilities for both strategic reserves and commercial trading. By storing oil when prices are low and selling during price surges, firms can enhance profit margins and ensure supply continuity.

• The International Energy Agency (IEA) reported that in June 2025, crude oil prices ranged between $65 and $80 per barrel, driven largely by geopolitical tensions such as the Israel–Iran air strikes. Prices briefly spiked above $80 before settling between $65 and $72, highlighting the market's continued sensitivity.

This moderate yet impactful volatility creates favorable conditions for storage-based trading strategies and drives investment in storage infrastructure, especially near major refineries and trading hubs.

Emerging biofuel and LNG storage needs create tremendous opportunities

The increasing global shift toward cleaner energy solutions is driving a heightened demand for specialized storage infrastructure for biofuels and liquefied natural gas (LNG). As nations intensify efforts to cut carbon emissions, biofuels are being more widely incorporated into national energy strategies, creating a growing need for purpose-built storage systems that preserve fuel integrity and ensure a consistent supply.

• According to the International Energy Agency (IEA), global biofuel production rose by 6% in 2023, spurred by regulatory mandates in countries like the U.S., Brazil, and across the EU. Furthermore, data from the International Gas Union (IGU) shows that global LNG trade increased by 2.4% in 2024, reaching 411.24 million tonnes, with the Asia-Pacific region leading in both imports and exports.

This growth underscores the rising potential for the development of LNG storage terminals and biofuel tank farms, particularly in emerging economies prioritizing clean energy investments.

Regional Analysis

The Middle East & Africa region holds a strategic position in the global oil storage market due to its vast production capacity and export-oriented infrastructure. Countries like the UAE and Saudi Arabia are expanding their storage capabilities to support crude trading hubs and enhance energy security. In 2023, the UAE’s Fujairah oil terminal, one of the world’s largest, saw further investments for expanding storage to over 14 million cubic meters.

Saudi Aramco is also enhancing its storage facilities near key ports to strengthen global supply resilience. Meanwhile, African nations like South Africa and Nigeria are upgrading their storage systems to reduce dependency on imports and prepare for demand surges. Angola and Ghana are exploring public-private partnerships to build strategic reserves, reflecting a broader regional push to modernize oil logistics amid growing energy demand and market volatility.

Key Highlights

• The global oil storage market size was valued at USD 14.98 billion in 2024 and is projected to grow from USD 15.56 billion in 2025 to reach USD 21.08 billion by 2033, growing at a CAGR of 3.87% during the forecast period (2025–2033).
• By product, the global oil storage market is segmented into open top, fixed roof, floating roof, and others.
• By material, the market is categorized into steel, carbon steel, fiberglass-reinforced plastic (FRP), concrete, and others. The carbon steel segment dominated the market.
• By application, the market is divided into crude oil, middle distillates, gasoline, aviation fuel, and others. The crude oil segment contributed the largest market share.
• The Middle East & Africa is the highest shareholder in the global market.

Competitive Players

1. Royal Vopak
2. Kinder Morgan Inc.
3. Buckeye Partners L.P.
4. Oiltanking GmbH
5. NuStar Energy L.P.
6. Magellan Midstream Partners L.P.
7. Saudi Aramco
8. Cushing Hub
9. Koole Terminals
10. China Petroleum & Chemical Corporation (Sinopec)

Recent Developments

• In June 2025, SBM Offshore initiated the construction of a new Floating Production Storage and Offloading (FPSO) hull at Shanghai Waigaoqiao Shipbuilding (SWS), marking the sixth unit under its Fast4Ward program. This standardized hull, measuring 333 meters in length and 60 meters in width, is designed to accommodate 2.3 million barrels of oil and 240 personnel. The project aims to expedite delivery timelines and reduce costs, aligning with SBM Offshore's strategy to enhance efficiency in deepwater oil field developments.

Segmentation

1. By Product
   1. Open Top
   2. Fixed Roof
   3. Floating Roof
   4. Others
2. By Material
   1. Steel
   2. Carbon Steel
   3. Fiberglass-Reinforced Plastic (FRP)
   4. Concrete
   5. Others
3. By Application
   1. Crude Oil
   2. Middle Distillates
   3. Gasoline
   4. Aviation Fuel
   5. Others
4. By Regions
   1. North America
   2. Europe
   3. Asia-Pacific
   4. Latin America
   5. The Middle East and Africa