The global Oil Storage market was worth around USD 12,185.40 million in 2021 and is estimated to grow to about USD 15507.58488 million by 2028, with a compound annual growth rate (CAGR) of approximately 4.10 percent over the forecast period.
The global Oil Storage market was worth around USD 12,185.40 million in 2021 and is estimated to grow to about USD 15507.58488 million by 2028, with a compound annual growth rate (CAGR) of approximately 4.10 percent over the forecast period. The report analyzes the Oil Storage market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the Oil Storage market.
Petroleum products require the use of oil storage tanks during the production, refining, and distribution processes. The tank selection process can be influenced by product operating conditions, storage capacity, and specific design issues. The types of products used to feed the world's refineries have undergone significant changes in the petroleum industry. Because of the increased use of petroleum products, the industry has been forced to look for alternative supply sources. Product, physical, and chemical property changes present new challenges to the storage tank industry. Environmental and safety concerns are still a major consideration in the selection and design of petroleum storage tanks industry.
Open-top tanks (OTT), fixed-roof tanks (FRT), external floating-roof tanks (EFRT), and internal floating-roof tanks (IFRT) are the most common types of atmospheric storage tanks (AST) in use (IFRT). A closed floating-roof tank (CFRT) may be chosen depending on the product. Over the forecast period, the market is expected to be driven by an increase in oil and gas production activities and a surge in demand for crude oil in several end-use sectors. Due to rising crude oil demand and the need to store large amounts of crude oil, suppliers are concentrating on inventories and infrastructure development. Furthermore, fluctuating crude oil prices have resulted in oil-importing countries bolstering their energy security by increasing oil storage.
COVID-19 has had a significant influence on the world economy, wreaking havoc on global trade and affecting households, businesses, financial institutions, industrial facilities, and infrastructure corporations all at the same time. The new coronavirus has had an impact on numerous economies and has triggered lockdown in many nations, limiting market growth. The closure of an industrial manufacturing resulted in a drop in demand for fossil fuels in the transportation and aviation sectors, which slowed the growth of the oil storage industry. The production operations at both offshore and onshore locations have been halted due to a drop in demand for oil and oil products. As a result of the industrial shutdown, development and upgrade projects for oil storage tank terminals are projected to be put back even more.
Driver: Demand for Various Crude Oil derived products is supporting the growth of Terminals
A petroleum refinery's outputs include petroleum products obtained from crude oil, such as diesel, petroleum, aviation fuel, lubricants, and others. Every barrel of crude oil processed at a typical refinery yields a diverse range of products. Propane and butane are the most often produced refined products that are used as feedstock for ethylene cracking and then mixed into Liquefied Petroleum Gas (LPG) for use as a fuel. In industrial facilities and commercial/residential heating, industrial gasoline is utilized as a furnace fuel. Remaining oil is also used as a bunker fuel in power plants and huge ocean-going ships. These reasons have increased demand for diesel, petroleum, oils, and other products, all of which directly drive the demand for more crude oil.
Restraint: Emphasis on Adoption of Renewable Energy Resources to Alter Oil Industry Growth
The increased adoption of renewable energy sources for electricity generation is a major restraint on the oil storage terminals market. Because renewable fuels are often less polluting, environmental concerns have surpassed energy security as the primary motivation of government efforts to encourage them. Oil and natural gas-based fuels, biofuels generated from vegetable matter such as ethanol or biodiesel, electric vehicles (EVs), and hydrogen-based fuel cells have all been the focus of alternative automotive-fuel research and development in recent years. Another factor limiting the growth of the oil storage terminal industry is the high cost of construction and maintenance necessary during the terminal's operational lifetime.
Opportunity: Difference between crude oil demand and supply
Crude oil is used as a raw material in the production of refined products, hence demand for crude oil is closely related to demand for petroleum products. The demand for crude oil has been impacted by a decrease in the use of refined products. As a result, the volume of oil stored increased, necessitating the construction of crude oil storage facilities. As a result, during the projected period, a mismatch between crude oil demand and supply is expected to provide profitable prospects for the global oil storage market.
Challenge: Investments are decreasing, mostly in the energy and power sectors
The market saw a major drop in investment, particularly in the energy and electricity sectors. Investments in the energy and electricity sectors are expected to fall by 10% in 2021, according to the International Energy Agency's estimates. This reflects the current state of the global marketplace as well as the significant challenges that it faces.
The global Oil Storage market is segregated based on Application Outlook and Product Outlook.
By Application Outlook, the market is classified into Crude Oil, Middle Distillates, Gasoline, Aviation Fuel and Others. This category had a significant share in 2021 and is expected to maintain its dominance throughout the forecast period. The global oil storage market is dominated by the crude oil segment. Crude oil is the raw material for many of the goods that are created and utilized around the world, including diesel, gasoline, aviation fuel, kerosene, and others. In recent years, the vehicle sector has experienced exponential growth, and new goods such as liquefied natural gas have applications in this field. The demand for storage terminals has risen as LPG has become more widely adopted in emerging countries.
By Product Outlook, the market is divided into Open Top, Fixed Roof, Floating Roof and Others. The global oil storage market is dominated by floating roof tanks. In pumping stations and terminals where crude oil is stabilized at vapour pressures less than 11.1 psia, floating roof tanks are commonly employed. The cylindrical floating roof tank is suspended above the ground. External floating roof tanks and internal floating roof tanks are the two types of floating roof tanks. A cylindrical steel shell with an open top serves as the exterior floating roof tank. The roof is afloat on the liquid's surface. Depending on the liquid level, the ceiling rises and falls.
|Historic Years||2016 - 2020|
|Forecast Years||2021 - 2028|
|Segments Covered||By Product Type, By Application, and By End Use|
|Forecast Units||Value (USD Billion), and Volume (Units)|
|Quantitative Units||Revenue in USD million/billion and CAGR from 2021 to 2028|
|Regions Covered||North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and Rest of World|
|Countries Covered||U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others|
|Number of Companies Covered||10 companies with scope for including additional 15 companies upon request|
|Report Coverage||Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis.|
|Customization Scope||Avail customized purchase options to meet your exact research needs.|
Due to the sheer strong demand for oil storage across the region, North America held a substantial market share in 2021. The need for oil storage is directly influenced by rising exploration and production operations linked with shale gas reserves. The presence of a substantial US strategic petroleum reserve is expected to boost regional growth even further.
Over the forecast period, Asia Pacific is expected to have the second-fastest growth rate, with China accounting for the greatest share of the regional market. The APAC market is expected to be driven by rising oil and gas demand from key markets such as China and India, as well as increased investments in offshore and onshore operations.
Some of the main competitors dominating the global Oil Storage market include – Vitol Tank Terminals International BV (VTTI); Koninklijke Vopak NV; Oiltanking GmbH; Shawcor Ltd.; Buckeye Partners, L.P.; Containment Solutions, Inc.; ZCL Composites; Belco Manufacturing; Zepnotek Storage; and Columbian Steel Tank.
By Application Outlook
By Product Outlook
The production of oil reaching its maximum level has lead to the increased requirement for oil storage containers. The continuous variation in oil prices has lead to large-scale storage of the crude oil which has forced the suppliers to develop high volume oil storage infrastructure. Oil storage containers are made up of welded metals and are available in various shapes such as cylindrical, spherical, and teardrop. These containers are used to store the petroleum products. Based on the sizes and shapes, the storage containers vary in holding capacities. These containers are manufactured in accordance with the high standard and qualities of manufacturing that obey the current regulations and safety standards. Small bolted and welded tanks are considered as a full proof solution in terms of refineries and production fields globally. The installation of oil storage systems depends on the location; it can be either above the surface or underground. Some of the parameters that are considered before manufacturing and designing the storage tankers include corrosion, handling fumes and ventilation, pressure handling capacity, and leakage free. In the oil and gas industry, storage tanks are required for various purposes such as refining, storing, distribution, and production of petroleum products. However, regular inspection of these tanks is necessary which minimizes the chances of adverse effects like environmental spills or fuel leaks.
Most of the companies purchase oil when the prices are low and store it until the price of oil increases. However, the oil can be stored for a short span of time as the oil could be transported for refinement or filtering process. In addition to this, oil storage also offers protection from the fluctuations of crude oil prices. Moreover, increased production of oil has encouraged suppliers to improve their infrastructure to store large quantities of oil. Such factors tend to positively impact the market growth.
Based on the reserve, the oil storage market is segmented into strategic and commercial. Based on the product, the market is classified into gasoline, middle distillates, crude oil, and aviation fuel. Based on the storage, the market is segmented into open top tanks, floating roof tanks, and fixed roof tanks.
Regionally, the Middle East region has ample oil reserves thus dominating the overall oil storage market. High demand for distillates and petroleum products in various commercial and industrial segments has created a huge demand for the storage vessel. North America on the other side is also considered among the leading region in oil producing. The region is at present focusing on stockpiling owing to which the demand for the huge reserve tanks is escalating. Moreover, the Asia Pacific region is witnessing a significant demand for the storage equipment and is anticipated to drive the growth of the oil storage market.
Some of the leading key players that have upheld the oil storage market are ZCL Composites, Columbian Steel Tank, Containment Solutions, Buckeye Partners L.P., Belco Manufacturing Company, Sunoco Logistics, Oiltanking GmbH, Synalloy Corporation, Red Ewald, Poly Processing, L.F. Manufacturing. While some of the other major players contributing their efforts in the oil storage market include Ziemann Holvrieka GmbH, Marquard & Bahls, Snyder Industries, Royal Vopak N.V, and Tuffa Tank.
The market is expected to be driven by an increase in oil and gas production activities and a surge in demand for crude oil in several end-use sectors. Due to rising crude oil demand and the need to store large amounts of crude oil, suppliers are concentrating on inventories and infrastructure development.
According to the Market Research report, the global market was worth around USD 12,185.40 million in 2021 and is estimated to grow to about USD 15507.58488 million by 2028, with a compound annual growth rate (CAGR) of approximately 4.10 percent over the forecast period.
Due to the sheer strong demand for oil storage across the region, North America held a substantial market share in 2021. The need for oil storage is directly influenced by rising exploration and production operations linked with shale gas reserves.
Some of the main competitors dominating the global Oil Storage market include - Vitol Tank Terminals International BV (VTTI); Koninklijke Vopak NV; Oiltanking GmbH; Shawcor Ltd.; Buckeye Partners, L.P.; Containment Solutions, Inc.; ZCL Composites; Belco Manufacturing; Zepnotek Storage; and Columbian Steel Tank.