Pressure Vessels Market Size, Share & Analysis

The global pressure vessels market in terms of revenue was estimated to be worth $50.3 billion in 2023 and is poised to reach $62.7 billion by 2028, growing at a CAGR of 4.5% from 2023 to 2028.

The increasing global energy demand, driven by population growth, urbanization, and industrialization, is a significant driver for the pressure vessel market. Pressure vessels are integral components of power generation systems, including fossil fuel power plants, nuclear power plants, and renewable energy installations, such as geothermal power plants.

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Pressure Vessels Market Dynamics

Driver: Growing chemical production world-wide

The chemical and petrochemical industry is a significant consumer of pressure vessels. As this industry continues to grow, driven by factors like increasing demand for chemicals and plastics, pressure vessels are required for various processing operations, including chemical reactions, distillation, mixing, and storage of chemicals. This shift is driven by the need for innovative and customized chemicals that offer enhanced functionalities and meet specific requirements.

Moreover, stricter safety regulations and quality standards imposed by governments and industry bodies further drive the demand for reliable and compliant pressure vessels in the chemical sector. Industries must ensure that pressure vessels meet the necessary standards to ensure the safety of workers, communities, and the environment.

Restraint: High manufacturing and maintenance costs

Pressure vessels require specialized design and engineering to meet stringent safety standards and regulatory requirements. Designing a pressure vessel involves complex calculations, material selection, and ensuring structural integrity. These design complexities can contribute to higher manufacturing costs. These products are constructed using high-strength materials such as stainless steel, carbon steel, or alloy metals. These materials have excellent mechanical properties and can withstand high pressures and temperatures. However, they tend to be more expensive compared to standard structural materials. Once the pressure vessels are manufactured, they need to undergo rigorous inspection and testing procedures to ensure their safety and compliance with regulatory standards. These inspections involve non-destructive testing techniques and may require third-party certification, which adds to the overall manufacturing costs.

Opportunities: Increase in the nuclear power generation worldwide

As existing nuclear power plants age, there is a need for replacement and refurbishment of certain components, including pressure vessels. Over time, pressure vessels may experience wear, corrosion, or fatigue, and their replacement or refurbishment becomes necessary. The increase in nuclear power generation can drive the need for such replacements or refurbishments, creating opportunities for the pressure vessel market.

Challenges: Stringent standards in manufacturing of pressure vessels

Stringent standards play a crucial role in the manufacturing of pressure vessels to ensure their safety, reliability, and compliance with regulatory requirements. Standards majorly concentrate on parameters such as Design Codes and Standards, Material Selection and Specifications, Design and Engineering Calculations, Fabrication and Welding Procedures, Inspection and Testing Requirements, Certification and Compliance, Compliance with Regulatory Authorities.

Pressure Vessels Market Ecosystem

Prominent companies in this market include well-established, financially stable manufacturers of Pressure vessels  systems and components. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Prominent companies in this market include Bharat Heavy Electricals Limited (India), Mitsubishi Hitachi Power Systems (Japan), IHI Coproration (Japan), Babcock & Wilcox (US), LARSEN & TOURBO LIMITED (India).

The boilers segment, by type, is expected to be the largest market during the forecast period.

This report segments the pressure vessels market size based on types into five types: boilers, seperators, reactors, and other which include heat exchangers, and flash drums. Pressure vessels are an integral part of boilers used in power plants. They contain water or steam under high pressure, which is heated to generate steam that drives turbines for electricity generation. The trends such as growing chemical production, new technologies such as super critical boilers are pushing the demand for this segment.

By Heat Source, the unfired pressure vessels segment is expected to be the fastest during the forecast period

This report segments the pressure vessels market based on components into heat source segments: fired pressure vessels and unfired pressure vessels. Unfired pressure vessels are utilized in a wide range of industries, including chemical processing, pharmaceuticals, food and beverage, power generation, and many more. They are designed to store or process liquids, gases, or vapors without the need for direct firing or heating elements. These vessels are constructed to withstand high-pressure conditions, ensuring the safety of personnel and equipment

“Asia Pacific”: The largest in the pressure vessels market”

Asia Pacific is expected to largest region in the pressure vessel market size between 2023–2028, followed by the North America, Europe. The Asia Pacific region is witnessing robust industrial growth, including sectors such as oil and gas, chemical and petrochemical, power generation, food and beverage, pharmaceuticals, and more. These industries require pressure vessels for various processing, storage, and transportation applications, thereby driving the demand for pressure vessels in the region.

Key Market Players

The pressure vessel market is dominated by a few major players that have a wide regional presence. The major players in the pressure vessels market are Bharat Heavy Electricals Limited (India), Mitsubishi Hitachi Power Systems (Japan), IHI Coproration (Japan), Babcock & Wilcox (US), LKARSEN & TOURBO LIMITED (India). Between 2018 and 2022, Strategies such as product launches, contracts, agreements, partnerships, collaborations, alliances, acquisitions, and expansions are followed by these companies to capture a larger pressure vessels market share.

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Scope of the Report

This research report categorizes the pressure vessel market by component, power source, application, and region.

On the basis of by type, the pressure vessels market has been segmented as follows:

• Boilers
• Seperators
• Reactors
• Other types

On the basis of heat source, the pressure vessel market has been segmented as follows:

• Fired Pressure Vessels
• Unfired Pressure Vessels

On the basis of application, the pressure vessel market has been segmented as follows:

• Storage Vessels
• Processing Vessels

On the basis of end-user Industry, the pressure vessel market has been segmented as follows:

• Power
• Oil & Gas
• Food & Beverages
• Pharmaceuticals
• Chemicals
• Others

On the basis of region, the pressure vessel market has been segmented as follows:

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

Recent Developments

• In December 2022, Bharat Heavy Electricals Limited (BHEL) has entered into a long-term Technology License Agreement (TLA) with Sumitomo SHI FW, Finland (SFW) for design, engineering, manufacturing, erection, commissioning and sale of subcritical as well as supercritical Circulating Fluidised Bed Combustion (CFBC) Boilers in India and in overseas territories except select countries.
• In May 2021, IHI Corporation (IHI) has decided to enter the Small Modular Reactor (SMR) market by investing in NuScale Power, LLC (NuScale), a U.S.-based developer of SMR technology, with JGC Holdings Corporation.
• In February 2021, The industry has experienced sweeping changes in the market demand for coal-fired power generation that have led to a sharp contraction in new plant construction. Addressing the market situation, Mitsubishi Power which is a parent company of Mitsubishi Hitachi Power Systems will consolidate the boiler manufacturing function of new construction and after-sales service, as well as the new facility design and the construction function, at the Nagasaki Works. At the Kure Works, management resources will be shifted to the boiler design and engineering services business and Air Quality Control System (AQCS) business, with the objective of strengthening competitiveness in both businesses.
• In January 2023, LARSEN & TOUBRO LIMITED announced the signing of a Memorandum of Understanding (MoU) with the Norway-based H2Carrier (H2C) to co-operate towards developing floating green ammonia projects for industrial-scale applications with an aim to decarbonise the global economy. H2C has proven expertise in developing and integrating Power-to-X (PtX) projects based on affordable, often stranded, non-commercial renewable power. Under the terms of the MoU, L&T will become a partner for EPCIC of the topsides for H2C’s floating process plants.

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