Storage Tank Market Size, Share & Trends Analysis Report By Type (Aboveground Storage Tanks, Underground Storage Tanks), By Product (Hazardous, Non-Hazardous, By Material , Steel, Concrete, Polyethylene, Others), By Industry Vertical (Oil and Gas, Chemicals, Water, Food and Beverage, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Storage Tank Market Size and Trends

The global storage tank market size was valued at USD 20 billion in 2023 and is anticipated to reach from USD 21.3 billion in 2024 to USD 35.5 billion by 2032, registering a CAGR of 6.7% during the forecast period (2024-2032). 

Market growth is being enhanced by increasing infrastructure investments, rising adoption of industrial chemical fuels, and petrochemical industry expansion.

Storage tanks are vessels designed to store compressed gases, liquids, or substances used for the temporary or extended storage of cold or heat. Storage tanks are extensively utilized to contain petroleum, water, chemicals, waste matter, and other dangerous substances while adhering to rigorous industry rules and requirements.

The global market is expanding rapidly due to the widespread implementation of concentrated solar power (CSP) technology, which offers more power-generating capacity and is driven by the growing global energy demand. Moreover, the increasing utilization of high-manganese steel in LNG storage tanks to cater to global LNG projects and the energy sector is propelling the growth of the worldwide market. The market size is influenced by rapid urbanization and industrialization, increasing demand for CNG cars, and the rapid development of food and beverage and petrochemicals.

Highlights

• Aboveground storage tanks generate the highest revenue share based on installation type.
• Hazardous accounts for the largest market share by product.
• Steel accounts for the largest market share by material.
• Oil and gas of action generates the highest revenue share based on industry vertical.

Storage Tank Market Growth Factors

Growing Oil and Gas Industry

The sales of storage tanks have experienced a substantial increase in recent years due to many factors, such as the growth of the petrochemical industry, the increasing demand for oil and gas, and the rise in expenditure on infrastructure projects. Storage tanks are vital for ensuring the safety of various substances such as petroleum, chemicals, water, and renewable energy sources. They provide a dependable method for storing these materials, guaranteeing their availability when required. The increasing need for petrol and oil propels the demand for storage tanks. Due to the rising global energy consumption, there is a requirement for adequate storage facilities to accommodate crude oil, refined commodities, and natural gas. Storage tanks provide efficient and secure storage of these resources, ensuring a reliable supply to meet global energy needs.

Consequently, the oil and gasoline sector consistently seeks out novel reservoirs of oil and gas, often located in isolated areas. Subsequently, efficient transportation methods are required to distribute the produced resources worldwide. The oil and gas industry’s need to transport large quantities of products has increased the utilization of storage tanks for temporary storage before transportation. According to a report issued by India Brand Equity Foundation, the demand for crude oil consumption is projected to increase at a compound annual growth rate (CAGR) of 5.14% to reach 500 million tons by FY40, up from 202.7 million tons in FY22. India’s oil consumption is projected to increase from 4.05 million barrels per day (MBPD) in FY22 to 7.2 MBPD in 2030 and 9.2 MBPD in 2050. The estimate predicts that the consumption of Natural Gas will grow at a Compound Annual Growth Rate (CAGR) of 12.2% to reach 550 Million Cubic Meters per Day (MCMPD) by the year 2030, compared to 174 MCMPD in 2021. The storage tanks are intermediaries for the crude oil and natural gas production pathways. Hence, the expanding oil and gas sector will drive the need for the storage tank market in the foreseeable future.

Technological Advancements

Technological progress in storage tanks' design, materials, and construction procedures enhances efficiency. The most innovative insulation materials reduce energy loss and help maintain stored chemicals at ideal temperatures. The improvements in tank designs maximize storage capacity and optimize space use. Implementing these efficiency enhancements has been crucial in reducing costs and enhancing productivity. Technological progress has led to the creation of sophisticated safety features and monitoring systems for storage tanks. These encompass sophisticated leak detection systems, automated fire suppression systems, and continuous monitoring of pressure and temperature in real-time.

Additionally, long-duration energy storage (LDES) solutions are presently being developed and marketed in essential areas. These technologies are expected to have a lower cost per kilowatt-hour (kWh) than Li-ion batteries, possibly because they utilize less expensive materials and incorporate designs that enable the separation of energy and power.

Furthermore, GlobalData’s study on Innovation in oil and gas: gas storage vessel fabrication reveals that the oil and gas business has witnessed the filing and granting of more than 523,000 patents in the past three years. These developments have helped to reduce the likelihood of accidents, spills, and leaks, ensuring the safety of individuals, surrounding environments, and stored chemicals. Technological breakthroughs have facilitated the creation of materials resistant to corrosion and coatings for storage tanks. Advanced materials such as fiberglass, epoxy-coated steel, and reinforced concrete enhance corrosion resistance corrosion resistance and prolong the storage tanks' lifespan. Technological advances are the driving force behind the growth of the global market.

Restraining Factors

High Initial Investment and Volatile Raw Material Prices

The installation and development of storage tanks require substantial financial resources. The expenses related to engineering, procurement, construction, and commissioning (EPCC) have been significant, especially for storage tank projects of a considerable magnitude. The substantial upfront cost is a barrier for potential purchasers and constrains market expansion, particularly for smaller enterprises.

Additionally, the expenses associated with acquiring raw materials such as steel, concrete, and coatings have substantially influenced the overall production expenses of storage tanks. The volatility in raw material costs has generated uncertainty for manufacturers and has the potential to impact project feasibility and profitability. The unforeseen price hikes have resulted in budget overruns, rendering storage tank projects less financially feasible.

Market Opportunities

Sustainability and Environmental Considerations

Due to growing environmental concerns and more stringent regulations, there has been a greater focus on storage tank systems that comply with environmental standards. Numerous companies have been implementing sustainable techniques to mitigate the environmental impact of storage tank operations. This entails implementing strategies to reduce leaks and spills, minimize emissions, and manage the disposal of hazardous chemicals. The incorporation of renewable energy technology with storage tanks provides incentives.

Furthermore, energy storage devices, including batteries and storage tanks, store excess energy generated from renewable sources like solar and wind. This integration enhances the effective exploitation of renewable energy and encourages a more environmentally friendly energy combination. There has been an increase in the usage of sustainable materials in storage tanks. This entails the utilization of materials that are resistant to corrosion and have an extended lifespan. In addition, environmentally friendly coatings, paints, and insulation materials are employed to minimize their influence on the environment. The expansion of the global market is expected to be driven by emerging trends in sustainability and environmental considerations.

Storage Tank Market Regional Analysis

Asia-Pacific: Dominant Region with 6.2% Growth Rate (CAGR)

Asia-Pacific is the most significant global market shareholder and is estimated to grow at a CAGR of 6.2% over the forecast period. The Asia Pacific region is expected to experience the highest growth rate during the forecast period due to rapid industrialization, a rising population, and urbanization. The surge in the storage tank business in the Asia-Pacific region can be attributed to the growing demand for oil and gas products. Due to the solid economic expansion in the area, there has been a proportional surge in the energy market. Consequently, there has been a significant surge in the area's exploration and production of oil and gasoline.

Consequently, there has been a proportional surge in the need for storage tanks to store the extracted oil and gasoline. Furthermore, the region has also become a leading producer of chemical compounds and petrochemicals. The industry's growth, particularly in the plastics, pharmaceuticals, and cosmetics sectors, has increased the need for storage tanks to hold chemicals and petrochemicals. China is the foremost global user of chemicals, representing over 40% of the total global demand. Consequently, the country has experienced a significant surge in the storage tank business. The manufacturing sector in the Asia Pacific region has experienced considerable expansion. Due to the emergence of China and India as significant manufacturing centers, there has been an increase in demand for storage tanks to house raw materials, finished goods, and industrial waste. Chemical manufacturers in the area necessitate large-scale storage tanks to contain primary materials, such as methanol and polyethylene.

North America: Fastest Growing Region with 6.9% Growth Rate (CAGR)

North America is estimated to grow at a CAGR of 6.9% over the forecast period. The primary catalyst for expanding the regional storage tank business is the rising demand for storage tanks from various sectors, such as oil and gas and chemicals. Canada and the United States play a significant role in the global market due to the growing demand for storage tanks in the oil and gas industry. This is a result of the exploration and production of shale gas. The regional Storage Tank market is growing due to increased investments in infrastructure development, refinery expansion, and demand for petroleum products. The demand for improved storage tank technologies has increased because of environmental regulations and worries over leakages. This is an additional factor contributing to the expansion of the market.

Europe holds a significant market share. Various crucial variables are responsible for driving the storage industry in Europe on a global scale. One of the main factors leading to this change is the increasing adoption of renewable energy sources. This necessitates the development of effective energy storage systems to manage the fluctuating supply and demand, especially for solar and wind power. Moreover, the market is greatly enhanced by government policies and incentives throughout Europe, including subsidies and support schemes. Countries like Germany, the U.K., and Italy are in the lead because of strong market conditions and the implementation of large-scale energy storage projects. Technological advancements and the decreasing costs of batteries accelerate the market expansion.

Storage Tank Market Segmental Analysis

By Type

The market is segmented based on type into Aboveground Storage Tanks and Underground Storage Tanks. The Aboveground Storage Tanks segment dominated the market in 2023. ASTs offer cost savings in construction and faster installation, inspection, and maintenance processes than USTs. Tanks can be made from many materials, such as steel, fiberglass, and concrete. They are available in several sizes and forms, including horizontal and vertical cylindrical shapes.

The Underground Storage Tanks (USTs) segment is the fastest growing. They offer secure and space-saving options for keeping both hazardous and non-hazardous liquids. They contribute to reducing environmental pollution hazards and are extensively utilized in industries such as petroleum, chemical, and wastewater treatment. The increasing need for storage solutions that are both sustainable and efficient is driving their acceptance, which in turn is helping to the rise of the market.

By Product

Based on product, the market is segmented into Hazardous and Non-Hazardous. The hazardous segment dominated the market in 2023. Hazardous materials that threaten the environment and human health are housed in specialized tanks designed for this specific purpose. These substances could include toxic compounds, caustic chemicals, flammable liquids, or other hazardous elements. The dominance of certain subsegments may vary depending on the specific business and the kind of dangerous items being housed.

The non-hazardous segment is the fastest growing, as it effectively reduces costs associated with environmental and regulatory compliance. They provide secure and environmentally friendly storage solutions, which have attracted investments from many industries, such as food and beverage, medicines, and water treatment. The growing need for storage alternatives that are both environmentally friendly and safe is driving market expansion, indicating a shift towards more sustainable practices and increasing safety requirements.

By Material

Based on Material, the market is segmented into Steel, Concrete, Polyethylene, and Others. The steel segment dominated the market in 2023. One reason steel is prominent in the storage tank industry is its cost-effectiveness. Metal storage tanks are very economical compared to other materials. Moreover, metal is highly manageable and repairable, making it an exceptional material for extended usage and little maintenance expenses. An example of a metal storage tank is Kinder Morgan’s extended tank storage facility located in Houston, Texas. The project aimed to safeguard the advancement of metal storage tanks with a capacity of up to 10 million barrels of crude oil. This storage tank project was successfully finished within the estimated budget of USD 2.5 billion. The facility is expected to serve as a vital distribution center for enterprises in the refining and petrochemical industry.

The polyethylene segment is the fastest growing. Polyethylene tanks, also called plastic tanks, are cost-effective, versatile, and lightweight choices for storage. They commonly store non-hazardous substances such as water, chemicals, and other items. Polyethylene tanks offer advantages such as resistance to corrosion, ease of installation, and flexibility in design and size.

By Industry Vertical

The market is segmented into oil and gas, chemicals, water, food and beverage, and other sectors based on the industry vertical. The oil and gas segment dominated the market in 2023 due to the increasing energy outlook and growing concerns about meeting emergency crude oil supply needs. The increasing import-export operations within the petroleum industry are also driving the expansion of the market. The expansion of refineries in many countries worldwide is propelling the growth segment.

The chemicals segment is the fastest growing. Chemicals are essential for stimulating the expansion of the worldwide storage tank industry. Strict regulatory mandates require using durable, corrosion-resistant tanks to ensure the secure storage of chemicals, hence preventing any potential leaks or contamination. Using sophisticated composites and thermoplastics in technological breakthroughs enhances durability and chemical resistance, thus attracting increased expenditures.

In addition, digital technology, such as Internet of Things (IoT) sensors, improves surveillance and operational effectiveness, increasing market expansion. The growing demand for chemicals in different industries, such as petrochemicals and water treatment, propels the market.

The water segment is the second largest. Water is a critical factor in the growth of the worldwide storage tank market as it stimulates the need for water storage solutions in residential, industrial, and agricultural sectors. The market’s expansion is driven by increasing urbanization and industrialization, the growing water shortage, and the need for efficient water management, all contributing to the demand for reliable water storage infrastructure.

Recent Developments

• May 2024– CB&I, a subsidiary of McDermott, was granted a substantial contract by Marsa Liquefied Natural Gas LLC, a partnership between TotalEnergies and OQ, to handle the engineering, procurement, and construction (EPC) of a concrete liquefied natural gas (LNG) storage tank at Oman’s Port of Sohar.
• May 2024– Pennsylvania American Water revealed its 2024 tank infrastructure investment plan, coinciding with the commencement of Infrastructure Week. The proposal involves rehabilitating ten existing water storage tanks and constructing four new tanks. Pennsylvania American Water’s tank rehabilitation program involves thoroughly inspecting, sandblasting, and repainting tanks. This program aims to prolong the tanks’ service lives and safeguard water quality. The company’s water storage modifications for this year amount to around USD 28.3 million.