Pressure Vessels Market Size, Share & Trends Analysis Report By Material (Titanium, Nickel and Nickel Alloys, Tantalum, Steel, Carbon Steel, Stainless Steel, Others), By Product (Boiler, Nuclear Reactor, Separator, Others), By End-use (Chemicals and Petrochemicals, Oil and Gas, Power Generation, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Pressure Vessels Market Size and Trends

The global pressure vessels market size was valued at USD 24 billion in 2023 and is estimated to reach from USD 25.1 billion in 2024 to USD 38.2 billion by 2032, registering a CAGR of 4.8% during the forecast period (2024-2032).

The market is experiencing significant expansion due to increasing demand for highly efficient pressure vessels that consume less electricity and have reduced corrosive chemicals.

Pressure vessels are engineered to safely gather and retain fluids at elevated pressure levels. They are offered in many forms and sizes, including conical, spherical, and cylindrical designs. Within processes involving the production, preservation, and conveyance of substances at high pressures and temperatures, they play a vital role in ensuring the materials' integrity. These vessels possess advantageous attributes such as cross-contamination resistance and corrosion resistance. Therefore, they are employed in several chemical processes.

The increase in this industry can be ascribed to the substantial growth of the chemical and petrochemical industries and the increasing usage of supercritical power generation technologies. The investment in production and exploration operations across industries such as oil and gas, power generation, chemicals, and other sectors has experienced a significant increase in recent times. This is projected to contribute to the market's growth in the future.

Highlights

• Steel generates the highest revenue share based on material.
• Boiler accounts for the largest market share by product.
• Chemical and petrochemicals generate the highest revenue share based on end users.

Pressure Vessels Market Growth Factors

Increasing Thermal Energy Demand

The primary catalyst for the growth of the worldwide pressure vessel industry market is the increasing global need for thermal energy, leading to a higher use of pressure vessels. Thermal energy is the energy present in a system that regulates its temperature. Various pressure vessels are used in manufacturing to generate thermal power using nuclear energy. These containers act as a protective barrier to prevent the release of radioactive substances into the atmosphere.

• Furthermore, the International Atomic Energy Agency (IAEA), an intergovernmental agency based in Austria, predicts that global nuclear power capacity will increase to 873 gigawatts net electrical (GW€) by 2050, more than doubling the current level of roughly 390 GW€ in 2021. Hence, the critical catalyst driving market growth is the escalating worldwide need for thermal energy, leading to a higher utilization of these vessels.

Industrial Expansion and Infrastructure Projects

The significant growth in industrial activity and infrastructure projects worldwide is a primary catalyst for the pressure vessel industry. With the rapid growth of urbanization and the corresponding increase in infrastructure development, there is a rising demand for pressure vessels. These vessels are needed to support the construction of highways, bridges, and high-rise structures. According to the Asian Development Bank (ADB), Asia requires around USD 1.7 trillion per year in infrastructure investment until 2030. This expansion encompasses the manufacturing and construction industries, where these vessels are crucial in storing and manipulating resources.

Additionally, constructing new refineries, chemical plants, and power production facilities further enhances the demand for pressure vessels. Investments by governments and private organizations in infrastructure and industrial growth support the market's increasing trend. This phenomenon demonstrates the crucial role of the pressure vessel market within the more significant industrial ecosystem, as it supplies vital components necessary for the advancement and functioning of various projects and facilities.

Restraining Factors

Frequent Corrosion of Metal Parts

Due to the increasing need for advanced products, manufacturing companies worldwide are increasingly widely adopting and using pressure vessels. A highly advanced and hermetically sealed pressure vessel is designed to withstand significant pressure. Significant industries such as civil, military, chemical, and petrochemical rely extensively on it. Due to its ability to mitigate hydraulic shocks within the system, it is an essential component of scientific research facilities.

Moreover, various external environmental factors, including the kind and concentration of the substances employed, significantly impact pressure vessels' structural integrity and durability. Combining these compounds with alkaline and acidic substances accelerates the corrosion process. Corrosion significantly impacts pressure vessels, and an elevation in internal pressure acts as a catalyst, accelerating the corrosion reaction.

Volatility in the Raw Material Price

The volatile prices of primary resources, specifically metals like steel and stainless steel that are essential for manufacturing pressure vessels, provide a substantial obstacle to the expansion of the market. These variations might result in unforeseeable production costs, reducing profit margins and making pricing strategies more complex for producers. Economic instability, trade conflicts, and supply network disruptions exacerbate the market's profitability volatility.

For example, a sudden increase in steel costs can compel businesses to swiftly modify their budgets and pricing patterns, posing difficulties in sustaining competitiveness and profitability. The fluctuation in prices affects not only the financial strategies of companies but also the accessibility of these vessels for consumers, perhaps causing delays or reductions in investments in industries that depend on these crucial elements.

• Similarly, SteelMint reported that the price of hot rolled coil (HRC) from steel mills decreased from Rs 60,900 per tonne on February 1 to Rs 59,800 per tonne on February 8. During the previous six to eight months, prices have experienced fluctuations ranging from above Rs 55,000 per tonne to Rs 60,000 per tonne. Therefore, the fluctuation in the cost of raw materials presents a significant obstacle to expanding the worldwide pressure vessel market.

Market Opportunities

Technological Advancement

Technological innovation is a significant and growing trend in the pressure vessel business. To enhance design and analysis capabilities and achieve a competitive edge in the market, prominent industry leaders increasingly prioritize integrating more secure and intelligent safety systems. In January 2021, Hexagon, a Swedish company specializing in sensors, software, and automated systems, launched PV Elite 23. This advanced software offers a comprehensive solution for designing, analyzing, and evaluating vessels and heat exchangers. Users can quickly, lucratively, and effectively modify vessel designs using automatic design options, saving time.

Similarly, Enervenue's September 2023 article reports that EnerVenue has unveiled the latest iteration of its energy storage containers. Enervenue is the pioneering company that introduced metal hydrogen batteries to the sustainable energy movement, which can undergo more than 30,000 cycles. The most recent iteration of Enervenue's batteries offers extended operational flexibility and cost-efficiency benefits for stationary storage projects in a wide range of applications.

Therefore, the increasing technological improvements are anticipated to offer profitable prospects for market expansion.

Pressure Vessels Market Regional Analysis

Asia-Pacific: Dominant Region with 4.6% Growth Rate (CAGR)

Asia-Pacific is the most significant global market shareholder and is estimated to grow at a CAGR of 4.6% over the forecast period. The Asia-Pacific area is expected to experience the highest growth and become the largest market for pressure vessels, primarily due to the continuous rise in energy demand in the region. Numerous governments and enterprises in the area are making substantial investments in the power and refining industries, including utilizing multiple pressure vessels. Countries like China and India are engaged in existing and prospective developments in industries that utilize these vessels. These initiatives aim to bridge the disparity between the region's energy demand and energy usage. Generating electricity from thermal energy sources, such as coal, natural gas, oil, and nuclear, necessitates a significant quantity of power vessels.

In addition, in 2021, the Asia-Pacific region generated 10299.6 terawatt-hours (TWh) of electricity from thermal sources, representing an 8% increase compared to the previous year. This accounted for around 73.6% of the total electricity generated in 2021. Sumitomo Heavy Industries, Ltd. Received an order from Tosoh Corporation in May 2022 for a 74 MW-class wood biomass and recycled fuel-fired boiler. The order was based on an EPC (engineering, procurement, and construction) contract. The boiler is a highly efficient biomass-fired boiler that uses wood-based fuel as its primary energy source and incorporates a reheating technology. In August 2021, Thermax Babcock and Wilcox Energy Solutions (TBWES), a subsidiary of Thermax, completed a contract worth INR 2.93 billion. The contract involved supplying three oil and gas-fired boilers on an Engineering, Procurement, and Construction (EPC) basis for a refinery and petrochemical complex in Western India. Therefore, due to the factors above, the Asia-Pacific region is projected to have the highest market share in the pressure vessel industry throughout the forecast period.

Europe: Fastest Growing Region with 5.1% Growth Rate (CAGR)

Europe is estimated to grow at a CAGR of 5.1% over the forecast period. Europe is projected to maintain the second-highest market share over the predicted timeframe. The increasing apprehension regarding emissions of industrial pollutants such as sulfur dioxide and metal dust has dramatically stimulated the development of high-performance pressure vessels that effectively minimize emissions.

In addition, the European Union (EU) and national governments implemented various regulations and norms to mitigate industrial emissions, which ultimately replaced traditional heating methods. For example, the Ecodesign Directive of the European Union encourages the adoption of energy-efficient heating technology and aims to minimize the environmental impact of energy-related products. Furthermore, the increasing need for space heating in commercial and industrial buildings also contributes to the growth of the pressure vessel market in this area.

The North American region is experiencing substantial growth throughout the projected timeframe. The highest regional share was attributed to the United States and Mexico, owing to the existence of prominent market players and the increasing urbanization. Furthermore, throughout the projected timeframe, increasing focus on utilizing natural gas for electricity production is expected to drive the rise of market revenue.

Pressure Vessels Market Segmental Analysis

By Material

The market is segmented based on material into Titanium, Hastelloy, Tantalum, Steel, Nickel and Nickel Alloys, and Others. The steel segment dominated the market in 2023. Carbon steel and stainless steel are widely favored materials due to their affordability, exceptional resistance to corrosion, impressive tensile strength, ability to withstand vibrations and shocks, ease of recyclability, and capacity to endure humid conditions and high temperatures.

The nickel and nickel alloys segment is the fastest growing. This is due to its significant properties, including heat resistance, resistance to carburization and oxidation, reliability, and appropriateness for severe environments. The many nickel alloys consist of Hastelloy, Incoloy, Monel, and Carpenter alloy 60. Nickel and its alloys are extensively utilized in the production of nuclear reactors.

By Product

The market is segmented based on products such as nuclear reactors, boilers, separators, and others. The boiler segment dominated the market in 2023. This can be attributed to the exceptional performance of boilers in a wide range of industrial processes. Boilers come in different types, including utility, industrial, superthermal power plants, and supercritical parameter boilers, with a maximum unit size of 1,000 MW. Boiler manufacturers prioritize the design and provision of products that are tailored to specific applications.

The nuclear reactor segment is the fastest growing. The growing worldwide energy demand is anticipated to boost the proliferation of nuclear power plants, leading to the expansion of this sector in the foreseeable future. A nuclear reactor is a device that initiates and regulates a self-sustaining nuclear chain reaction. Nuclear reactors are placed at nuclear power facilities to generate electricity and for nuclear marine propulsion.

The separator segment is the second largest. A separator is a specific container that divides fluids extracted from oil and gas wells into distinct liquid and gaseous constituents. The separator utilized in petroleum production is a spacious container designed to segregate production fluids into their constituents, namely water, oil, and gas. The product's versatility, combined with the availability of different separators, is expected to increase the demand for the product in the projection term.

By End Use

Based on end-use, the market is segmented into Chemicals and Petrochemicals, Oil and Gas, Power Generation, and Others. The chemical and petrochemical segment dominated the market in 2023. This dominance can be ascribed to the growing demand for chemicals and chemical products across various applications. The exponential growth of chemical facilities in many economies worldwide is a significant catalyst for increasing product demand. The rising number of oil and gas projects in different economies is expected to contribute positively to market growth throughout the projected period. The market demand is predicted to increase due to the rise in shale gas exploration operations, driven by technological developments in exploration methods, including horizontal and hydraulic drilling, and the growing use of shale gas in manufacturing and energy.

Power generation is the fastest growing. Pressure vessels are extensively utilized in diverse power generation facilities, encompassing nuclear, hydro, and thermal power plants. They are also used in various other industries such as mining, pulp & paper, water treatment, HVAC & refrigeration, submarine & space ship habitats, and pharmaceuticals. The increased acceptance of products in the specified industries can be ascribed to the wide availability of many product variations, including storage tanks, heat exchangers, boilers, and reactors.

Recent Developments

• February 2024– The latest revision of PD 5500: 2024, which specifies the requirements for unfired pressure vessels, were released by the British Standards Institute (BSI). The introduction of PD 5500:2024 is a significant achievement in developing this essential industry benchmark, highlighting its significance for mechanical engineers, pressure vessel designers, producers, and inspectors in diverse sectors.
• May 2024- A successful collaboration occurred between Pixargus GmbH, the Fraunhofer Institute for Production Technology (IPT) in Aachen, Germany, and Taniq, a company specializing in robotized winding systems in Rotterdam, Netherlands. The collaboration aimed to monitor the quality of laser-assisted tape winding (LATW) in manufacturing fiber-reinforced polymer (FRP) pressure vessels. The project introduced a new measuring head developed by Pixargus GmbH, which proved highly effective in this monitoring process.