Asia-Pacific Oil Storage Tank Service Market: Current Analysis and Forecast (2022-2028)

Oil storage tanks are widely used in the oil & gas industry for the bulk transportation of liquid fuels at different stages within the refinery and around the continent. Oil storage tanks are used for the storage, transportation, and distribution of different types of fuel. The oil storage tank service is primarily used to facilitate these services along with the cleaning, periodic inspection, and storage protection among other services. In recent times, the oil storage tank service market witnessed significant demand in the continent owing to the increasing demand for liquid fuel coupled with the increasing demand from various industry verticals such as automotive. Additionally, the increasing demand for crude oil in the continent to meet the end-user industry requirement forces the government to the strategic reservoir which in turn increases the demand for the storage, transportation, and distribution facility and subsequently creates the demand for the oil storage tanks services.

The Asia-Pacific Oil Storage Tank Service Market is expected to grow at a steady rate of around 4% owing to the increasing demand for crude oil coupled with the rapid industrialization and increasing demand from the automotive industries, power generation & nuclear power industries along with the increasing disposable income. Major companies in the market are focusing to provide oil storage tank services with technologically advanced features along with product launches, collaboration, and mergers & acquisitions. For instance, MISTRAS Group Inc. provides the oil storage tank protection solution with tank-specific inspection data management software and non-destructive testing inspection solution along with a 3D laser scanner, edge settlement, and 3D magnetic flux leakage mapping service.

Based on the product, the market is segmented into floating roofs, fixed roofs, spherical, and others. The fixed roof segment is expected to witness significant demand during the forecast period owing to the lower installation cost and high level of contamination tolerance of the fixed roof tanks which minimize the risk of the fire accident. Additionally, the fixed roof tank has the additional vent or hatches which makes them suitable to work under critical conditions such as excessive pressure flow and could be operated for both underground and above-ground services. Moreover, the lower manufacturing and operational cost compared to the floating roof and the spherical roof is expected to support market growth in the coming time.

Based on the end-use, the market is segmented into gasoline, crude oil, aviation fuel, and others. The crude oil segment is expected to register a significant CAGR during the forecast period owing to the increasing demand for crude oil by the end-use industry for energy generation. Also, the increasing production of crude oil and fluctuation in crude oil prices force the refineries to facilitate storage capacity. For instance, in the year 2021, China imports crude oil worth USD 229.3 billion whereas India and Japan imported USD 106.4 billion, and USD 63.1 billion worth of crude oil respectively.

Based on service, the market is segmented into cleaning, periodic inspection, storage protection, and others. The cleaning segment is expected to witness significant growth during the forecast period attributed to the sludge associated with the crude oil, for say, crude oil consists of 67% oil, solid 25%, and 8% water and requires extensive cleaning services. Also, the cleaning services ensure hydrocarbon recovery along with less wastage and identify leak detection, recover storage capacity, coat the floor, and inspection which is expected to support the market. Additionally, the oil storage tank cleaning service ensures lower air emissions, reduces labor costs, and provides an oil-free surface & gas-free environment for operational activity, and propels the growth of the market in the future ahead.

For a better understanding of the market adoption of the Asia-Pacific oil storage tank service industry, the market is analyzed based on its continental presence in the countries such as China, India, Malaysia, Singapore, Thailand, South Korea, Indonesia, and the Rest of Asia-pacific. China is expected to witness significant market growth during the forecast period owing to the increasing demand for oil & gas in the region coupled with the rapid expansion of oil & gas refineries along with the increase in the production capacity. For instance, the oil production was 5 million barrels per day in China, 771,000 barrels per day in India, and 743,000 barrels per day in Indonesia for the year 2021. Also, the rapid industrialization and demand from the end-user industries such as automotive, aviation, railways, and others are expected to propel the demand for oil storage tank services in the region. Additionally, the increasing investment in the oil & gas field for exploration & production activities and technological advancements such as robots, corrosion detection services, and guided drones for cleaning and inspection services is expected to support the market growth during the forecast period.

Some of the major players operating in the market include: SP Nanibame, John Wood Group PLC, Matrix Service, Veolia, HANGZHOU ZAOPINST CO., LTD., MISTRAS Group, China Oil HBP Group, NCH Corporation, System Kikou Co., Ltd., and Oil Field Warehouse & Services Limited.