Cryogenic Insulation Market: Overview
The size of the world market for cryogenic insulation was evaluated at USD 2.3 billion in 2021 and is expected to grow at a CAGR of 7.9% during the projected period. The market for cryogenic insulation is expected to develop due to rising LPG/LNG demand from different industries, including transportation and storage, power generation, and the automobile industry. The need for cryogenic insulation is expected to increase due to the expanding industrialization and urbanization driving up energy and electricity demand globally. Over the projection period, it is also anticipated that the expanding aerospace and space exploration sectors would further fuel the demand for cryogenic insulation.
The demand for cryogenic insulation is anticipated to increase as gas exploration activities increase in the United States due to rising demand from various industries and market segments, including electric power, industrial, and residential. Additionally, it is anticipated that market participants would benefit from the growing need for thermal insulation in lines that carry liquids and gases. Similarly, cryogenic insulation films are expanding for storing liquid natural gas in low to high vacuum systems (10-6 Torr). It is anticipated that this will increase demand for cryogenic insulation films in the upcoming years.
Rising R&D expenditures will probably lead to the creation of new products and improvements in product quality. Major firms are also combining their technologies and resources to create highly effective products at reduced prices. In April 2021, Airbus unveiled the ASCEND initiative to demonstrate electric or hybrid-electric propulsion, combining liquid hydrogen with superconductive technology. The ground demonstrator will be built by UpNext (Ottobrunn, Germany), an Airbus company, with a minimum 50% reduction in powertrain weight and electrical losses and a 5- to 6-percent increase in efficiency over current technology. Composite materials are being studied for cryogenic insulation. Over the forecast period, this is anticipated to spur market expansion for cryogenic insulation.
Cryogenic Insulation Market: COVID-19 Impact
The multi-national population dispersed around the globe that fled to their hometowns in response to the increase in cases is to blame for the spike in instances. This caused the disease to spread globally and presented significant difficulties for the world's healthcare systems and departments. The cryogenic insulation market has also seen a variety of losses as a result of functional issues. People were afraid to leave their homes and alter their way of life because of the infection. With a lack of reliable inputs, such as resources, which would affect the global market throughout the projected period ending in 2028, production and manufacturing units have been struggling to satisfy market demand and supply. Manufacturing facilities and production firms are removing the lockout and restrictions that prevent the cryogenic insulation market from producing following industry norms as they recognize the need for things to get back to normal. The market is expected to prosper in the next years.
Cryogenic Insulation Market: Drivers
Rising Demand for LNG to Fuel Product’s Demand
Over the coming years, the demand for LNG will grow due to the rising demand for electric power produced from sustainable energy sources. The growth is to be aided by an increased focus on distributed power & utility projects. With the predicted rise in natural gas consumption in the power generating sector, there will be an increase in demand for liquefied natural gas (LNG) in several different countries. The main energy source used to generate electricity around the world is coal, but as coal supplies are depleted, and coal use has a negative impact on the environment, natural gas and other renewable energy sources are being used more frequently, leading to an increase in the number of renewable energy plants. Heat exchange must be effectively prevented by cryogenic insulation in the plants between the pipes, tanks, and plant structure. This is crucial for effectively running the facilities along the LNG value chain. Cryogenic insulation also prevents excessive temperature changes, preventing unintended plant component expansion and the stress that would ensue for connecting parts.
Rising Need for Energy and Power Worldwide due to Growing Urbanization
Living in an urban area is associated with better opportunities for employment and education, better health, greater access to social services, and more social and cultural opportunities. People go to towns and cities for a higher standard of living. As of 2021, 4.46 billion people lived in metropolitan areas worldwide. By 2050, there will be 2.22 billion more people living in cities worldwide, bringing the total number of people who call cities home to 6.68 billion. Therefore, as urbanization grows and the quality of life rises, so will the demand for energy and the market it serves.
Cryogenic Insulation Market: Restraints
Increasing Final Product Costs due to Volatile Raw Material Costs to Hamper Market’s Growth
The insulation is made of expensive raw materials that are accessible at excessive rates, raising the cost of the final product overall. Insulation Using Cryogens contains a glass cloth and an epoxy resin system that has been particularly created. The Covid-19 outbreak has impacted resin production all over the world. The main cause of the increase in resin prices is reportedly the disruption of domestic and foreign suppliers. Domestic manufacturers must immediately raise their prices by 7 to 10%, depending on the company. Producers predict that the disruption in manufacturing will raise the price of PVC resin even further.
Cryogenic Insulation Market: Segment Overview
With Excellent Properties, PIR and PUR to Dominate Market
The PUR and PIR segment held the biggest market during the projected period. The category growth is anticipated to be aided by the rising demand for liquefaction and regasification. Cryogenic insulation made of PUR and PIR frequently stores gases at very low temperatures. The demand for insulating pipelines, storage tanks, and valves is also anticipated to increase as the transportation of these liquefied gases expands. The demand for PUR and PIR cryogenic insulation is expected to increase as there are more LNG facilities, LNG transport ships, and storage tanks. Products that act as insulators include bulk fill, foam, blankets, and multi-layers. These materials are helpful in various businesses that employ high-temperature insulation or LNG transportation infrastructure because of their lightweight, flexibility, and robustness. With the goods' high insulation effectiveness, demand is anticipated to increase over the projection period.
With Growing Need for LNG Storage, Demand for Tanks to Increase
During the projected period, the tank segment is anticipated to hold the biggest market share for cryogenic insulation. With the rising need for LNG storage and transportation from end-use sectors like energy & electricity, the tank segment's dominance is anticipated to last during the projection period. Additionally, governments all over the world are enacting rules that place a focus on greater fuel efficiency and emission control, which is accelerating the development of high-quality fuel tanks. Developing self-sealing gasoline tanks that can automatically seal in the event of damage or a leak is another example of a technological improvement accelerating the market's expansion. Additionally, manufacturers are increasingly using plastic instead of the more traditional steel and metal materials to create lightweight gasoline tanks. The market is also driven by other reasons like increased disposable incomes and improved living standards.
Cryogenic Insulation Market: Regional Landscape
Asia Pacific to Acquire Major Market Share due to Increase Demand for Energy
The Asian Pacific region accounts for the greatest portion of the global market premises due to several breakthroughs in space research, healthcare, and chemicals, as well as the ongoing rise in energy demand. The need for gas-based power plants is pushed by a considerable rise in energy demand and a rising knowledge of renewable energy generation, which fuels the demand for the good. As an illustration, the Asian Development Bank (ADB) announced in December 2019 that it would invest approximately USD 1 billion in energy projects in the Asia Pacific region from 2019 to 2021 to boost the production of renewable energy and increase access to affordable, sustainable electricity in the region. In addition, the increasing industrialization and rising LNG consumption are anticipated to fuel the expansion of the regional APAC market.
In contrast to China and India, which have experienced a marked increase in LNG imports over the past ten years, Japan is the largest LNG importer in the world. The world's top LNG importer and exporter are both in Asia-Pacific. A wide range of equipment is used due to the growing demand for LNG, from converting gas into LNG to its transportation, distribution, and storage. Fives was awarded a contract in January 2021 to supply 13 cryogenic centrifugal pumps from Cryomec (8 Cryomec LABS (single and multi-stage type) and 5 Cryomec NLL pumps) for a new Air Separation Unit (ASU) in China. The new ASU will be constructed in the Lingang Economic District of the Tianjin Port Free Trade Zone and will have an oxygen production capacity of more than 2,000 tonnes per day. The Asia-Pacific region is therefore anticipated to rule the cryogenic equipment market throughout the forecast period due to the aforementioned factors.
North America is expected to showcase significant growth in the cryogenic insulation market. The United States and Canada have a sizable potential for LNG exports in North America. When coal supplies run out, LNG-based power plants gain market share. This presents a potential growth opportunity for cryogenic equipment, which fuels the market's expansion. In the upcoming years, it is anticipated that gas demand will rise. The U.S. government had planned to add 18 GW of new gas-based power plants by 2020, and it is anticipated that they will be finished by 2022. Thus, this is mostly linked to expansion in the industrial and electricity sectors. The manufacturing and processing sector—which accounts for 11% of the US economy—includes businesses that produce machinery and primary metals. Additionally, during the projection period, the regional market is anticipated to develop due to the significant penetration of cryogenic insulation in the region's LNG industry.
Global Cryogenic Insulation Market: Competitive Landscape
In April 2022, BASF developed a cryogenic insulation system for transporting cryogenic liquid cargo, such as liquefied natural gas, using its patented Elastopor Cryo (Elastopor) technology (LNG). Shanghai Harvest Insulation Engineering Co., Ltd (Harvest) created the system, which was put into the first VLEC (Very Large Ethane Carrier) supplied to Jiangnan Shipyard, one of China's major shipbuilding enterprises. In March 2021, Qatar Petroleum entered into a multi-party agreement with LNT Marine, the American Bureau of Shipping (ABS), and Shanghai Waigaoqiao Shipbuilding (SWS) to collaborate on developing new medium and large LNG carrier designs with other notable LNG firms across the world. LNT Marine is a technology provider and developer in the LNG sector, developing LNG carriers and cryogenic insulation systems for marine applications.
Few of the players in the Cryogenic Insulation Market include Armacell International Holding GmbH, Lydall Inc., BASF SE, Cabot Corporation, Rochling Group, Johns Manville Inc., Dunmore Corporation, Pittsburgh Corning Corporation, Imerys Minerals, Aspen Aerogels, Isover (Saint Gobain), Hertel, Amol Dicalite Limited, and G+H Group.
Global Cryogenic Insulation Market is Segmented as Below:
By Cryogenic Equipment
By End-Use Industry
Key Elements Included In The Study: Global Cryogenic Insulation Market
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