Cryogenic Pump Market

Market Overview

The global cryogenic pump market size was worth USD 1.7 Billion in 2022. It is expected to reach USD 3.1 Billion by 2031, growing at a CAGR of 6.8% during the forecast period (2023–2031).

A cryogenic pump, also known as a vacuum pump, is a device that traps gases and vapors by condensation through a cold surface. These cryogenic pumps hold and sustain gases with a boiling point below -150 degrees Celsius, such as oxygen, nitrogen, hydrogen, helium, etc. A cryogenic pump uses compressed helium, dry ice, or liquid nitrogen for cooling purposes. The increase in the demand for cryogenic pumps from the chemical and petrochemical industry to extract gases proves to be a significant driving factor for the global cryogenic pump market.

Considering the types of cryogenic pumps, the dynamic pump is the most popular and widely used in the industry owing to its advantages like fewer moving parts and high efficiency with minimal installation and maintenance costs. The global cryogenic pump market is primarily segmented on the basis of type and end-use to study the overall market scenario in an easy-to-understand manner. That is why the global cryogenic pump market is said to be one of those few industrial segments that are growing at a constant pace and will always be present in the positive quadrant of the profit graph, considering its applications in various end-use industries. 

Market Dynamics

Drivers: High Demand for Cryogenic Pumps from Chemical and Petrochemical Industries

The cryogenic pumps are widely used in the chemical and petrochemical sectors. These pumps find vast applications, including sulfur recovery units, coal gasification, oxidation process, cool reactors and regenerate catalysts, etc. The chemical industry has been on a path of stable growth for a long time and will continue its dream run with the current market situation. This is accredited to the increased demand for chemicals and chemical solutions from economies of Asia-Pacific, the Middle East, and North and South America. These regions have high sales, production volume, and production capacity. Hence, they show considerable growth.

Furthermore, the petrochemical industry is projected to grow at an impeccable rate over the forthcoming years with an increase in demand for petrochemical products like rubbers, dyes, pesticides, etc. The need for cryogenic pumps arises the most for the said processes in the petrochemical industry. Also, according to some reports, global petrochemical production is likely to get a mega boost in the coming years, primarily in Asia and Middle-East regions. 

Drivers: Widescale Consumption of LPG

Cryogenic pumps are used to convert gasoline to LPG for transportation, storage, and usage of natural fuel in liquid form. In 2019, the international LPG exchange expanded to 354.7 metric tons, a boom of 40.9 metric tons on account of 2018. This is accredited to extended exports from America, Russia, Australia, Algeria, and Egypt. LPG intake has witnessed extensive growth worldwide because of the factors like favorable government policies to reduce carbon footprint.

Furthermore, governments worldwide released numerous guidelines concerning the development of LPG infrastructure and utilization regarding the increasing carbon emission. Such policies are providing an extensive boost to the increase of the LPG marketplace globally and, in turn, are probable to power the cryogenic pump market share.

• Growing Industrial Sector Investment

The demand is anticipated to increase due to expanding investments in the industrial sectors of metallurgy, healthcare, food & beverage, and electronics in developing nations. The applications of cryogenic gases like nitrogen, argon, oxygen, and LNG for transportation, storage, and regasification have significant growth potential. The highest portion of FDI inflow is from Asia, according to the World Investment Report 2020, which was released by United Nations publications. In 2019, this amount decreased by 4.95% to USD 473.8 billion.
In addition, China has 141 billion USD in FDI investment, making it the largest developing economy in Asia. Additionally, 3% of FDI investments totaling USD 45 billion are in Africa. Therefore, growing industrial sector investment requires pump deployment across various end-use sectors, driving the market's expansion throughout the anticipated timeframe.

Restraint: Increase in the Raw Material Prices

The cryogenic pump consists of various parts, including moving and stationary parts, which, when assembled, make the pump perform efficiently. However, the modifications in the cryogenic pump according to its applications in end-use industries depending upon the work conditions and desired output have made several changes to the end product.

The product needs continuous development, hugely dependent on the quality of the essential raw materials, like reinforced Steel, glass, or epoxy composites. However, the fluctuations in steel prices owing to the regulations for greenhouse gas emissions have reduced the steel production, leading to inflation in the steel prices, which is hampering the production of cryogenic pumps and, in turn affecting the growth of the Cryogenic Pump.

What Are Future Growth Opportunities in Cryogenic Pump Market

• Supportive Government Policies Create Myriad Opportunities for Cryogenic Pumps

With the need for gas extractions in the chemical and oil and gas industries, cryogenic pumps are the need of the hour. In terms of efficiency, cryogenic pumps are considered a more viable option. Therefore, industries mostly prefer cryogenic pumps for their needs in the chemical and petrochemical sectors. Taking into consideration the need for gas extraction in the chemical and petrochemical plants and the efficiency of cryogenic pumps, the government is supporting the use of cryogenic pumps.

Various governments across the globe have understood the importance of gas extraction and have devised new policies to encourage the factories to incubate cryogenic pumps. Along with this, the government has also declared subsidies and other financial benefits to the manufacturers and distributors of cryogenic pumps. This is proving to be an excellent step by the governing authority to cater to the needs of the chemical and petrochemical industry. With this, there arises plenty of opportunities for manufacturers, distributors, and vendors of cryogenic pumps on the global platform.

Regional Analysis

The Dominance of Asia-Pacific in the Cryogenic Pump Market

The global cryogenic pump market share is primarily segmented into three major regions, namely North America, Europe, and Asia-Pacific.

Asia-Pacific, with emerging economies like China, India, and Japan, commands the largest position in the global cryogenic pump market share and is expected to grow at a CAGR of 6.8% during the forecast period. This is accredited to the growing end-use industries in Asia-Pacific, catering to the enormous market demands. China is the most significant contributor to the region, driving the manufacturing sector. Further, rapid urbanization, industrialization, infrastructure development, and subsequent investments in building new gas-fired combined cycle power generation plants are expected to increase the demand for natural gas and, in turn, the need for cryogenic pumps in Asia-Pacific.

Europe holds the second-largest market share and is expected to be worth USD 752 million in 2030, growing at a CAGR of 6.9%. The European region is likely to witness an increase in the construction of gas-based power plants in the near future, which is expected to drive the demand for cryogenic pumps in newly built LNG terminals in the region. The United Kingdom will be the biggest contributor in Europe, which can significantly boost the market size during the forecast period.

The North American region, with the presence of major economies like the US and Canada, has achieved the highest level of development. The increase in the demand for cryogenic pumps in the region is anticipated mostly from the pharmaceuticals and fertilizers industry. Apart from this, the reliance on natural gas has increased the demand for cryogenic pumps required for the LNG terminals in the region. Hence, with the increasing number of natural gas-fired power plants, the need for cryogenic pumps is expected to increase during the forecast period.

Due to new investment strategies and innovations, government and corporate investment assignments on the construction, development, and transformation of LNG regasification and LNG production plants, Latin America has the potential to increase its LNG demand.
As it engages more in natural gas transactions and production, the Middle East and Africa is the region most actively involved in the oil and gas industry. Middle Eastern nations have the fastest-growing energy needs due to rising power consumption, seasonal fluctuations, and brisk industrial growth.

Segmental Analysis

The global cryogenic pump market share is segmented by type and end-user.

• On the Basis of Type

Type-wise, the global cryogenic pump market is segmented into Dynamic Pump and Positive Displacement Pump.

Dynamic Pumps acquire the largest market share and are expected to grow at a CAGR of 4.8% during the forecast period. They are popular and widely used in various end-use industries. Dynamic or cryogenic centrifugal pumps are classified as axial or radial based on their design. Further, the pump can be divided into single-stage (with one impeller) and multi-stage (with several impellers) based on the impeller. Impeller assists the pump in releasing the absorbed liquefied gases radially.

In addition, these pumps are deemed appropriate for large gas flow, low gas temperature, and stable operating conditions. Therefore, they are widely used in the liquefaction process throughout the natural gas industry. Natural gas exporting nations with liquefied natural gas (LNG) terminals use cryogenic centrifugal pumps to convert natural gas from a gaseous to a liquid state so that it can be stored and transported on LNG carriers. These pumps lower the temperature of natural gas to -162 degrees, transforming it into a liquid. These pumps are also utilized in CNG and LNG refueling stations.

Positive Displacement Pumps are the second-largest shareholder. Positive displacement or reciprocating cryogenic pumps are designed to convert the motor's mechanical energy into the pumped fluid's mechanical energy. The fundamental operation of this pump is to restore and displace a fixed volume of liquid in a cylindrical manner. They are primarily used for filling cryogenic cylinders and industrial and medical bottles with gaseous products. In addition, these pumps are utilized in a variety of other industrial applications involving LNG and CO2. For instance, Ampco Pumps debuted cryo-pump technology for low-temperature industrial applications in January 2020. For processing at temperatures as low as -70°F or -56°C, the ZP3 series positive displacement has been built with highly specialized internal seals.

• On the Basis of End-User

End-user-wise, the global cryogenic pump market is segmented into Oil & Gas, Healthcare, and Chemicals.

The Oil & Gas industry accounts for the highest market share and is expected to grow at a CAGR of 5.8% during the forecast period. Both positive displacement and dynamic pumps have numerous applications in the oil and gas industry, including the upstream, midstream, and downstream industries. In the oil and gas industry, high-pressure compressors serve various functions, including gas transportation, gas storage, gas separation, and gas processing, among others. Furthermore, these pumps are required in high-temperature, sandy, corrosive, and marine environments, both onshore and offshore.

The second category in this segmentation is the Chemical industry. Chemicals are a significant consumer of cryogenic pumps. Typically, the dynamic pump is utilized in this industry because it protects processes from contamination. They are used to produce various chemical products that are increasingly utilized in the ink additives, textiles, construction, wastewater treatment, oil and gas, and cosmetics industries.

Furthermore, several processing industries, including food and healthcare, use cryogenic pumps with positive displacement. Cryogenic pumps are also utilized in other settings, including fertilizer plants, chemical units, rubber and plastics factories, etc.

Recent Developments

• In December 2022, a German producer of portable industrial vacuum and blower equipment will be acquired by Atlas Copco.
• In December 2022, Atlas Copco will expand its foothold in the US by building new semiconductor manufacturing facilities.
• In October 2022, the Elliott Group released a CO2 compressor pump solution.
• In November 2022, SHI Cryogenics Group released the Highest Capacity 77K Cryocooler.