Oil Storage Market Outlook - 2030
The global oil storage market size was valued at $12.2 billion in 2020, and is projected to reach $18.4 billion by 2030, growing at a CAGR of 4.3% from 2021 to 2030. Oil storage tanks are required in the production, refining, and distribution of petroleum products. Small bolted tanks are ideal for production fields while larger, welded storage tanks are used in distribution terminals and refineries throughout the world. Product operating conditions, storage capacities, and specific design issues can affect the tank selection process. The petroleum industry has experienced significant changes in the types of products used to feed the refineries around the world. Increased use of petroleum products has prompted the industry to turn to other sources for supply. Changes in product, physical, and chemical properties impose new challenges to the storage tank industry. Environmental and safety requirements continue to be a significant factor in the selection and design of storage tanks used by the petroleum industry.
The general types of atmospheric storage tanks (AST) in use may be open top tanks (OTT), fixed-roof tanks (FRT), external floating-roof tanks (EFRT), or internal floating-roof tanks (IFRT). Depending on the product, a closed floating-roof tank (CFRT) may even be selected. Increase in oil & gas production activities and surge in demand for crude oil in several end-use sectors are expected to drive the market over the forecast period. Suppliers are focusing on inventories and infrastructure development owing to rising crude oil demand and to store crude oil in large quantities. In addition, fluctuating crude oil prices have resulted in oil-importing countries safeguarding their energy security through enhanced oil storage. Moreover, the growing trend for strategic petroleum reserves across several countries will positively influence the growth of the market. The global oil storage market is segmented into type, material, product design, and region.
Depending on type, the global oil storage market is categorized into crude oil, gasoline, aviation fuel, naphtha, diesel, kerosene, and liquefied petroleum gas. In terms of value, the crude oil segment accounted for the largest share in 2020. By material, the market is segregated into steel, carbon steel, and fiberglass-reinforced plastic. In terms of value, the carbon steel segment accounted for the largest share in 2020. On the basis of product design, the market is fragmented into open top tank, fixed roof tank, floating roof tank, and others. In terms of value, the floating roof tanks segment accounted for the largest share in 2020.
Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. LAMEA accounted for the largest share of the market in 2020, with Asia-Pacific being the fastest growing region. The major companies profiled in this report include Belco manufacturing co., Inc., Brooge Energy, Containment Solutions, Inc., LBC Tank Terminals, L. F. Manufacturing, Inc., Oiltanking GmbH, Odfjell SE, Puma Energy, Royal Vopak, and Vitol.
In addition to the above mentioned companies, Energy Transfer Partners, LP (Sunoco Logistics Partners), Synalloy Corporation, Columbian TecTank, Inc., Poly Processing Company, Inc., Red Ewald Inc., and ZCL Composites Inc. are competing for the share of the market through product launch, joint venture, partnership, and expanding the production capabilities to meet the future demand for the oil storage.
Oil Storage Market, By Region
LAMEA occupies the largest part of the oil storage market and consists of countries such as Brazil, Nigeria, KSA, and rest of LAMEA. The presence of huge fossil fuel resources in this region and the most of the country GDP depends on the production of crude oil and refineries. In addition, increase in the demand for petroleum products such as diesel, petrol, kerosene and other fuels in developing countries has led to the demand for the oil storage facilities. Furthermore, surge in demand for fossil fuels from developing countries led to the investment of the Middle East companies to develop oil storage facilities across the sea ports.
LAMEA holds a dominant position in 2020
Oil Storage Market, By Type
The crude oil segment dominates the global oil storage market. Crude oil is the raw material used in many of the products such as diesel, petrol, aviation fuel, kerosene, and others are manufactured and used worldwide. The automobile industry has witnessed exponentially growth in past few years, and new products such as liquefied natural gas has applications in this field. The adoption of LPG across developing countries has led to the demand for storage terminals. National policies of developed and developing countries related to strategic petroleum reserves have compelled countries to prioritize their storage capacity expansion to suffice the oil demand in case of import failure or crisis. Development of transportation infrastructure related to aviation due to ever-growing air traffic has created demand for aviation fuel, which has positive impact on the demand for crude oil.
Crude Oil segment is projected to create abundant $ opportunity till 2030
Oil Storage Market, By Material
The carbon steel segment dominates the global oil storage market. Carbon steel accounts for 90% of all steel produced worldwide. The demand for carbon steel in manufacturing of oil storage tanks is mostly because it is more affordable than stainless steel. It is wear resistant, contains as much as 2.1% of carbon, making it harder and stronger than steel. Tanks constructed from carbon steel can be lined or painted to improve their chemical and water resistance, allowing them to hold most types of fluid or gas. Carbon steels can be divided into three main categories, low carbon steel, medium carbon steel, and high carbon steel. Low-carbon, or mild, steel contains between 0.05% and 0.15% carbon. Thus, it is quite malleable and can be easily bent, rolled, and welded into desired shapes. This flexible quality makes it easy to form the basic “disc and donut” assemblies that are used to create many finished storage tanks from carbon steel plates. As a relatively inexpensive material that meets the requirements for most storage applications, mild carbon steel serves as an ideal option for tanks designed for chemical, fuel, oil, and water storage.
Carbon Steel segment is projected to create abundant $ opportunity till 2030
Oil Storage Market, By Product Design
The floating roof tank segment dominates the global oil storage market. Floating roof tanks are often used in pumping stations and terminals where crude oil is stabilized at vapor pressures below 11.1psia. The floating roof tank is cylindrical and is held above the ground. Floating roof tanks are further divided into two types, external floating roof tanks and internal floating roof tanks. The external floating roof tank is a cylindrical steel shell with an open top. The roof is floating on the surface of the liquid. The roof goes up and down depending on the liquid level. The floating roof consists of a deck and accessories. The tank is equipped with fittings used for operational functions. Internal floating roof tanks include both fixed and floating roofs. Fixed roof tank is supported by vertical columns within the tank. There are floating roofs that float in the tank, rise when the liquid level rises, and fall when the liquid level falls.
By Product Design
Floating Roof segment is projected as the most lucrative segment.
COVID-19 has severely impacted the global economy with devastating effects on global trade, which has simultaneously affected households, business, financial institution, industrial establishments, and infrastructure companies. The novel coronavirus has affected several economies ad caused lockdown in many countries, which limited effect on the growth of the market. The shutdown of industrial manufacturer led to the decline in the demand for fossil fuels in transportation and aviation sector, which led to decline in the development of the oil storage market. Decrease in demand for oil and oil products has halted the production processes at both offshore and onshore locations. Therefore, oil storage tank terminal construction and upgradation projects are expected to be pushed further due to the shutdown in the industry.
Key benefits for stakeholders
- This report provides a detailed quantitative analysis of the current oil storage market trends and estimations from 2020 to 2030, which assists to identify the prevailing opportunities.
- An in-depth oil storage market analysis across the globe is anticipated to provide a detailed understanding of the current trends to enable stakeholders formulate specific plans.
- A comprehensive analysis of the factors that drive and restrain the oil storage market share is provided.
- Region-wise and country-wise market conditions are comprehensively analyzed in this report.
- The projections in this report are made by analyzing the current trends and future market potential from 2020 to 2030 in terms of value and volume.
- An extensive analysis of various regions provides insights that are expected to allow companies to strategically plan their business moves.
- Key market players within the oil storage industry are profiled in this report and their strategies are analyzed thoroughly, which help to understand the competitive outlook of the global market.
Oil Storage Market Report Highlights
The global oil storage market is expected to gain high traction during the forecast period, owing to continuous increase in energy outlook coupled with rise in concern toward the fulfillment of emergency crude oil supply.
Increase in import and export activities within the oil industry is driving the market growth. Oil storage refers to terminals or tanks where processed or produced oil is stored above ground or underground. The material and structure of the tank will vary depending on the type and nature of the oil. Wooden storage tanks were used in the early 1980s and are now being replaced by stainless steel, plastic, carbon steel, or reinforced concrete. Downstream operations use huge storage tanks to assemble oil for further processing and marketing.
Increased oil and gas production activity associated with increased demand for crude oil across multiple end-use sectors is expected to drive the market during the forecast period. Supplier is focusing on warehousing and infrastructure development, due to increase in demand for crude oil and mass storage of crude oil. In addition, fluctuations in crude oil prices have helped oil-importing countries ensure energy security through improved oil storage. Due to the COVID19 pandemic, crude oil supply exceeded crude oil demand. This has increased the share of oil storage capacity in some countries, thereby driving market demand over the forecast period. The presence of strict regulations related to oil storage in underground and aboveground tank facilities is expected to impede industry growth.