Cryogenic Equipment Market

Cryogenic Equipment Market Size, Global Industry Share Forecast

[307 Pages Report] The global Cryogenic Equipment Market size was valued at $11.9 billion in 2023 to reach $16.6 billion by 2028; it is expected to record a CAGR of 6.9% from 2023 to 2028. The rising adoption of liquefied natural gas (LNG) as a clean and efficient energy source, along with the increasing use of industrial gases in metallurgy, oil & gas, and energy & power sectors, is fueling the expansion of the cryogenic equipment market.

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Cryogenic Equipment Market Dynamics

Driver: Increasing utilization of industrial gases in metallurgy, oil & gas, and energy & power industries

In the metallurgy industry, processes such as metal forming/smelting, fabrication, welding, and combustion require industrial gases such as oxygen, nitrogen, argon, and hydrogen, wherein oxygen and nitrogen are the most used industrial gases. These gases are required in their cryogenic liquid forms to provide precise temperature control and enhanced process efficiency. Different types of cryogenic equipment, such as storage tanks and distribution systems, are indispensable in handling and supplying these gases in their liquid state. The superior performance and cost-effectiveness of cryogenic systems make them the preferred choice in metallurgical applications. Further, steel is expected to witness a significant rise in demand across the world, especially in the developing economies. According to the World Steel Association (WSA), ~73% of global steel production is produced using the oxygen process (Basic Oxygen Process). In steel production and processing, oxygen gas is often used in conjunction with cryogenic equipment to enhance the efficiency and quality of operations. In the steelmaking process, oxygen is injected into the molten iron in blast furnaces to promote combustion and accelerate the removal of impurities, resulting in improved steel quality. Cryogenic equipment is employed to store and supply liquid oxygen, ensuring precise control over the injection process. In addition to the aforementioned factors, researches and innovations associated with the development of high-strength and high-conductivity alloys for non-rare-earth induction motors that can be deployed in EVs, metals with high rigidity and stiffness for use in industrial applications, new composites such as highly conducting carbon nanotubes to enhance the efficiency of electrical energy transport and new corrosion protection systems for marine and offshore applications are also likely to drive the demand for cryogenic equipment from the metallurgy industry. The growth of industry fuels the demand for industrial gases, which consequently drives the demand for cryogenic equipment necessary for handling, storing, and transporting  industrial gases.

Restraint: Volatile raw material and metal prices and significant competition from gray market players

Cryogenic equipment is constructed using a variety of materials, including stainless steel, bronze, carbon steel, and specialized alloys. In recent years, there has been a substantial increase in the prices of raw materials like iron ore and other ores, leading to a consistent upward trend in global prices for metals, particularly stainless steel. China, being the largest steel producer and exporter, has experienced fluctuations in processed metal prices, impacting various industries. The production of cryogenic equipment demands top-quality raw materials, and the rising cost of these materials has created intense competition among leading cryogenic equipment manufacturers. The surge in cryogenic equipment prices has also prompted a preference for smaller-scale manufacturers in the informal market, especially in countries like China and India. Consequently, the fluctuating prices of metals have become a significant obstacle for the market. In addition to major raw material suppliers, the presence of numerous local and regional providers who can offer materials meeting international standards at competitive prices provides manufacturers with procurement options. This, in turn, gives rise to the existence of unregulated gray market players, which further impedes the market's growth.

Opportunities: Evolving applications of cryogenic electronics

Cryogenic gases play a pivotal role in semiconductor manufacturing and testing processes. Liquid nitrogen is a widely employed coolant for dissipating heat generated during the manufacturing phase. The use of extremely low temperatures, often approaching absolute zero, can facilitate the creation of electronics with heightened performance, reduced noise, and enhanced efficiency. Furthermore, subjecting electronics to cryogenic treatment can minimize gaps within the metallic components of their structure. This, in turn, enhances the reliability of electronics by improving both thermal and electrical conductivity and reducing operating power requirements. The applications of cryogenic electronics are on the rise. Cryogenic electronics find applications in the development of quantum computers. Quantum bits (qubits) are incredibly sensitive and require temperatures close to absolute zero to minimize environmental interference. Cryogenic electronic systems are used to control and readout qubits, enabling the advancement of quantum computing technology. Similarly, cryogenic electronics are crucial for LNAs in radio astronomy and astrophysics, as well as in medical imaging equipment like magnetic resonance imaging (MRI). Extremely low temperatures reduce electronic noise, improving the sensitivity of these devices and enhancing the quality of data acquisitiont. Power-conversion circuits can be applied at superconducting power generation, management, and distribution applications. Moreover, as investments in the renewable energy sector continue to grow, there will be an increasing demand for cryogenic signal-processing systems and sensors used in instrumentation for wind tunnels. Additionally, the expanding use of cryogenic electronics in various research endeavors, superconducting magnet systems, low-temperature detector systems, and infrared array systems is expected to create opportunities for providers of cryogenic equipment.

Challenges: Supply chain disruptions due to Russia–Ukraine war

The Russia–Ukraine war has had a significant impact on the global LNG market, leading to soaring prices and disrupting supply chains. Europe, in particular, has been hit hard, as it has traditionally relied heavily on Russian pipeline gas. In response to the war, European countries have scrambled to diversify their gas supplies, with LNG playing a key role. Prior to the war, Europe imported around 40% of its natural gas from Russia. However, in the wake of the invasion, European countries have moved to reduce their reliance on Russian gas, and LNG imports have surged. In 2022, European LNG imports increased by 60% than the previous year. The increase in European LNG demand has had a knock-on effect on global LNG prices, which have soared to record highs. In March 2022, the benchmark European LNG price reached over USD 80 per million British thermal units (MMBtu), more than four times higher than the level at the start of the year. The war also had an impact on Asian LNG demand. As European countries have competed for LNG supplies, Asian buyers have faced higher prices and reduced availability. This has led to some demand destruction in Asia, as buyers have switched to other fuels, such as coal and oil. However, Asian LNG demand is expected to rebound in the coming months, as the region's economies recover from the COVID-19 pandemic. In addition, the war in Ukraine is likely to accelerate the transition to cleaner energy sources in Asia, and LNG is expected to play a key role in meeting this growing demand. The war has also disrupted LNG supply chains. The closure of the Black Sea has made it more difficult and expensive to transport LNG from the region. In addition, there have been concerns about the security of LNG supplies from Russia and other countries in the region. It is likely to have a significant impact on the global LNG market in the medium and long term. The war has accelerated the transition to cleaner energy sources in Europe and other parts of the world, and LNG is expected to play a key role in meeting this growing demand. In addition, the war has highlighted the importance of diversifying energy supplies. European countries are now looking to secure LNG supplies from a wider range of sources, and LNG producers are looking to expand their markets..

Cryogenic Equipment Market Ecosystem

In this market, prominent companies stand out as well-established and financially stable providers of cryogenic equipment products and services. With years of experience, these companies boast a diverse product portfolio, cutting-edge technologies, and robust global sales and marketing networks. Their proven track record in the industry positions them as reliable and trusted partners for customers seeking cryogenic equipment solutions. These companies have demonstrated their ability to adapt to market dynamics and consistently deliver high-quality products and services, making them leaders in meeting the demands of the oil and gas sector. Prominent companies in this market include as Linde plc (Ireland); Air Liquide (France); Air Products and Chemicals, Inc. (US); Chart Industries (US); Parker Hannifin Corp. (US); Flowserve Corporation (US); Nikkiso Co., Ltd. (Japan); and INOX India Limited (India).

The elctronics segment, by end-user industry, is expected to be the fastest growing market during the forecast period.

This report segments the cryogenic equipment market based on end-user industry into different types: metallurgy, energy & power, chemical, electronics, transportation, and other end-user industries. The electronics segment is expected to grow at the highest CAGR during the forecast period. The use of cryogenic equipment is critical in testing and characterization of electronic components such as fiber optics, flat-panel displays, integrated circuits, LED devices, photovoltaics, printed circuit boards (PCBs), and semiconductors. The market for the electronics industry is expected to grow due to increasing development of superconducting electronics.

By system type, handling system is expected to be second-largest market during the forecast period.

This report segments the cryogenic equipment market based on system type into four segments: storage system, handling system, supply system, and others. The handling system segment is expected to be the second-largest market during the forecast period. Handling systems are used for transferring cryogenic fluids to the desired location. Handling systems facilitate the movement and transfer of cryogenic fluids for specific applications. These systems primarily comprises valves, regulators, and gauges and are used in tandem with other cryogenic systems. Cryogenic handling systems are integral to certain advanced manufacturing processes, such as cryomachining and cryogenic cooling. These processes improve machining precision and extend tool life, resulting in higher-quality products and cost savings.

“Asia Pacific: The largest in the cryogenic equipment market.”

Asia Pacific is expected to be the largest region in the cryogenic equipment market between 2023–2028, followed by Europe and North America. Asia Pacific has been leading the cryogenic equipment market. The cryogenic equipment market is experiencing growth due to the presence of leading solution providers like Linde plc (Ireland); Air Liquide (France); Air Products and Chemicals, Inc. (US);  Flowserve Corporation (US); Nikkiso Co., Ltd. (Japan); and INOX India Limited (India). Notably, in 2020, INOX India Limited partnered with Shell Energy for developing the market for LNG supply through roadways from Shell’s LNG terminal in Gujarat, catering to expanding market.

Key Market Players

The cryogenic equipment market is dominated by a few major players that have a wide regional presence. The major players in the cryogenic equipment market include as Linde plc (Ireland); Air Liquide (France); Air Products and Chemicals, Inc. (US); Chart Industries (US); and Parker Hannifin Corp. (US). Between 2018 and 2023, Strategies such as contracts, agreements, acquisitions, and expansions are followed by these companies to capture a larger share of the cryogenic equipment market.

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Scope of the Report

This research report categorizes the cryogenic equipment market based on type, mechanism, application, well type, and region.

On the basis of equipment:

• Tanks
• Valves
• Vaporizers
• Pumps
• Other Equipments

On the basis of cryogen:

• Nitrogen
• Oxygen
• Argon
• LNG
• Hydrogen
• Other Cryogens

On the basis of end-user industry:

• Metallurgy
• Energy & power
• Chemical
• Electronics
• Transportation
• Other End-user Industries

On the basis of application:

• CASU
• Non-CASU

On the basis of system type:

• Storage System
• Handling System
• Supply System
• Others

On the basis of region:

• North America
• Europe
• Asia Pacific
• South America
• Middle East
• Africa

Recent Developments

• In July 2023, Chart Industries opened a second facility at Alabama. This plant is expected to fabricate the largest shop-built cryogenic tanks ever manufactured globally—70% larger than the previous model—to begin in the first quarter 2024. The tanks manufactured at this site will be used as propellant storage solutions in the aerospace industry, hydrogen and LNG storage solutions in the marine industry and many other processes and technologies adopted in the sciences and decarbonization industries.
• In June 2023, INOX India Limited built an LNG facility in Tamil Nadu, which comprises 2 x 113 KL LNG tanks, regas system with a capacity of 5,000 SCMH @ 22 Bar pressure and associated equipment was supplied by INOXCVA on a turnkey basis in a record time.
• In April 2023, Linde signed an agreement with Evonik, a leading specialty chemicals company, to supply green hydrogen in Singapore. According to the agreement, Linde will build, own, and operate a nine-megawatt alkaline electrolyzer plant on Jurong Island, Singapore. The plant will produce green hydrogen, which Evonik will use to manufacture methionine, an essential component in animal feed.
• In March 2023, Air Products and Chemicals, Inc. and Shaanxi LNG Reserves & Logistics Company signed an agreement to supply its proprietary liquefied natural gas (LNG) process technology and equipment to Technip Energies for the Xi'An LNG Emergency Reserve & Peak Regulation Project with Shaanxi LNG Reserves & Logistics Company Ltd., in ShaanXi Province, China.

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