Oil Storage Tanks Market Forecasts from 2023 to 2028

The global oil storage tanks market was valued at US$3,025.741 million in 2021 and is expected to grow at a CAGR of 4.32% during the forecast period.

Oil storage tanks serve as large-scale container that holds fluids at various stages of the refinery process. They are commonly classified into three types floating roof oil tanks, fixed roof oil tanks, and bunder oil tanks. Additionally, they come in three storage capacities such as up to 200 gallons, 200 to 500 gallons, and above 500 gallons. The rise in demand for oil and the expansion of oil refineries are the prominent drivers expanding the oil storage tanks market size.

Rising oil demand bolsters the oil storage tank market growth

As global energy consumption continues to increase due to population growth, urbanization, and industrialization, there is a corresponding surge in the need for oil and petroleum products. Hence, to meet this rising demand, significant quantities of oil need to be stored safely and efficiently, necessitating the construction and expansion of oil storage tank facilities, which is contributing to the growth of the oil storage tank market. According to International Energy Agency, world oil demand is predicted to rise by 2.2 mb/d in 2023 to an average of 102 mb/d. China's demand recovery has surpassed expectations, reaching a record high of 16 mb/d in March.

Government initiatives drive the oil storage tanks industry expansion

Oil refineries expand their operations to meet increasing energy demands, there is a heightened need for additional storage capacity with increasing energy demands and a focus on energy security, governments worldwide are actively supporting the expansion of storage infrastructure, through policies, funding, strategic initiatives, and government incentivize. For instance, as per the Indian Brand Equity Foundation, the Union Ministry of Petroleum & Natural Gas approved in October 2021 to increase the refining capacity of the Numaligarh Refinery Expansion Project from 3 to 9 MMTPA, with a revised project cost of US$ 3.8 billion (Rs. 28,026 crores).

Rising oil trade drives oil storage tank market growth

Oil storage tanks play a crucial role in storing and managing vast quantities of oil during transit, thereby ensuring a steady and secure supply. The growing engagement of countries in global oil trade has propelled the demand for storage infrastructure to accommodate larger volumes of oil traded. For instance, according to the report of the Census and Economic Information Center (CEIC), In December 2021, India witnessed a reported increase in crude oil imports, reaching 4,243.758 barrels/Day. This marks a growth compared to the previous 4,033.050 Barrels/Day th recorded in December 2020. Additionally, according to the Census and Economic Information Centre, In February 2023, the United Arab Emirates recorded a crude oil production of 3,042,000 barrels per day.

Middle East & Africa is anticipated to dominate the oil storage tanks market

The Middle East and Africa region is a major global contributor to oil production owing to the abundant reserves and a strong presence of oil-producing nations such as Saudi Arabia, Iran, Iraq, and the United Arab Emirates. The need for storage infrastructure to accommodate the large-scale production of oil has increased. According to the International Trade Administration, UAE ranks in the top ten oil producers globally, with Abu Dhabi holding 96% of its 100 billion barrels of proven reserves. It produces around 3.2 million barrels of petroleum and liquids daily. Also, according to the Census and Economic Information Centre, crude oil production for Saudi Arabia experienced growth from 10,215.000 barrels in March 2022 to 10,361.000 barrels in February 2023.

Shift towards renewable energy restrain the oil storage tanks industry growth

The ongoing global transition towards renewable energy sources, such as solar and wind power, is expected to have a significant impact on the demand for traditional fossil fuels. As renewable energy gains momentum, there is a growing consensus that the need for storage capacity for fossil fuels, primarily facilitated by oil storage tanks, will experience a decline. This shift towards renewables not only reflects a broader environmental consciousness but also signifies a potential transformation in the market dynamics of the oil storage tanks industry.

Key Developments

• November 2022: Adani Ports and Special Economic Zone Ltd, made a significant acquisition by obtaining a 49.38% equity stake in Indian Oiltanking Ltd (IOTL) for Rs. 1,050 crores. This strategic move has resulted in a remarkable expansion of APSEZ's oil storage capacity by a staggering 200% to reach an impressive 3.6 million KL. As a result of this acquisition, APSEZ has solidified its position as the leading third-party liquid storage company in India, boasting the largest storage capacity in the country.
• January 2022: Sri Lanka and India took a significant step by signing an official agreement to collaborate on the redevelopment of the strategically important oil tank farm in Trincomalee, an eastern port district. The oil tank farm holds historical significance as it dates back to the World War II era.

Company Products

• 800 BBL Storage Tanks: The Viro fluid storage tanks are innovative horizontal tanks with dual compartments. Each compartment features separate desanding piping, enabling efficient removal of produced sand using a vac-truck. The tanks' user-friendly hook-up system facilitates a streamlined process, resulting in time and cost savings.
• VITRIUM Glass-Fused-to-Steel: CST Industries' VITRIUM Glass-Fused-to-Steel product is specifically designed for liquid and gas applications. It boasts a high-specification 3-coat glass coating, ensuring excellent performance and durability. With its low maintenance requirements, VITRIUM™ offers a practical and long-lasting solution for various industrial needs in the gas zone.
• Condensate Tanks: TBailey Inc offers bulk storage condensate tanks that are specifically designed for natural gas liquids, condensates, and liquid waste products generated during oil production. These tanks serve as efficient storage solutions for these substances, allowing for safe and reliable containment.

Segmentation

By Type

• Floating Roof Tanks
• Fixed Roof Tanks
• Bunder Oil Tanks
• Others

By Material

• Plastic
• Steel
• Carbon Steel
• Stainless Steel
• Reinforced Concrete

By Storage Capacity

• Upto 200 gallons
• 200 to 500 gallons
• Above 500 gallons

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• UK
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• China
• Japan
• South Korea
• India
• Australia
• Other