Oil Storage Tank Service Market size is projected to cross USD 23 Billion by the end of 2035, growing at a CAGR of 5% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of oil storage tank services was USD 13 Billion. The growth of the market can be attributed to the increasing need for storage tanks to prevent an energy crisis in the future. Also, the rising consumption of fossil fuels in industries is estimated to boost the market growth. The total fossil fuel consumption in the year 2020 was 129,000 terawatt-hours as per the estimations which were over 90 million barrels per day globally.
In addition, the increasing need for distribution channels and refineries around the world is estimated to rise the need for an oil storage tank market. As per the estimations, more than 3 billion barrels of crude oil are stored in oil tanks across the world as of 2020. The growing demand for petroleum products for various uses is also estimated to hike the market growth during the forecast period. The demand for crude oil across the world in 2020 was reduced to 90 million during the COVID-19 disruption but was projected to reach more than 96 million barrels per day in 2021 with rising demand.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~5% |
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Base Year Market Size (2022) |
~ USD 13 Billion |
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Forecast Year Market Size (2035) |
~ USD 23 Billion |
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Regional Scope |
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The market is segmented and analyzed for demand and supply by material into steel, carbon steel, and fiberglass-reinforced plastic. Out of these types, the carbon steel segment is estimated to gain the largest market share of about ~29% in the year 2035. The growth of the segment can be attributed to the increasing demand for carbon steel for the manufacturing of storage tanks across the world. Carbon steel is the most popular and widely used across the world for its wear resistance, stronger and harder compared to steel. The carbon steel tanks are lined and painted to enhance their resistance to chemicals and water making them a high preference for liquid and gas storage. These factors are estimated to hike the market segment growth in the coming years. The market segment growth is also attributed to the increasing oil storage tanks construction across the world with carbon steel to reduce cost and fulfill the requirements across the world. The carbon steel production and sales value in the year 2022 was estimated to be over USD 83 billion according to the statistics report.
The global oil storage tank service market is also segmented and analyzed for demand and supply by tank design into open-top, fixed roof, and floating roof. Amongst these three segments, the floating roof segment is expected to garner a significant share of around ~32% in the year 2035. The market segment growth is attributed to the rising oil and gas production and increasing demand for crude oil across the world. The growing awareness of safety and the wastage of oil in storage tanks caused by dust, fire, and other particulate matter is estimated to drive the market segment growth in the coming years. The storage capacity of crude oil and crude oil products in 2020 for onshore and on-floating vessels was nearly 7 billion barrels. The increasing use of floating roof tanks is high in petroleum reserves as it is a volatile oil and tends to evaporate more often compared to other fossil fuels and is estimated to propel the market segment growth.
Our in-depth analysis of the global market includes the following segments:
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By Product Type |
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By Material |
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By Tank Design |
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North American Market Forecast
The market share of oil storage tank service in North America, amongst the market in all the other regions, is projected to be the largest with a share of about ~35% by the end of 2035. The growth of the market can be attributed majorly to the increasing number of oil storage tanks in the region owing to rising government initiatives to prevent future crises. The past experiences of the U.S. in 1970 when the petrol supply from the Gulf cost is completely stopped as the U.S. supported Israel in the Yom Kippur War and this made Americans conscious about the fuel crisis to build many underground fuel tanks. Also, the U.S. is the largest oil storage region with Strategic Petroleum Reserve maintained for emergencies. The increasing presence of many inventories and refineries in the region during the forecast period is also estimated to fuel market growth. The increasing refinery capacity in the Gulf Coast of Mexico is estimated to hike the market growth. The rising industrial sector in the region that increases the consumption of oil for the working of machinery across the region is driving the market growth. According to the estimations, more than 6 billion barrels of crude oil reserves were located in Texas as of 2020.
APAC Market Statistics
The Asia Pacific oil storage tank service industry is estimated to be the second largest, registering a share of about ~27% by the end of 2035. The growth of the market can be attributed majorly to the increasing presence of huge petroleum reserves and crude oil resources in the region. The growing investment in petrol stations and pumps with increasing transportation in the region. The growing petroleum reserves in Saudi and other Gulf Nations are propelling the market growth. The presence of many oil-producing countries in the region along with growing fossil fuel demand is propelling the market growth in the region. As per the market analysis, the market growth is also attributed to the increasing imports and exports in the region. The rising transport to the marine industry to generate electricity and other power supply is driving the market growth during the forecast period. The increasing adoption of personal vehicles for transport is driving the use of oil in the region thereby propelling the market growth.
Europe Market Forecast
Further, the market in Europe, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growth of the market can be attributed majorly to the increasing initiatives to prevent environmental pollution caused by greenhouse gasses and prevent global warming. Also, the increasing oil storage industries in the region and increasing imports from across the world to meet the demands are projected to hike the market growth. The rising demand for petroleum products with the growing transportation sector is driving market growth in the region. The increasing use of oil in military and arm forces for manufacturing and production of weapons is estimated to propel market growth. Increasing investment in storage capacity construction and new pipelines in the region is fueling the market growth. Reducing the reliance on other countries such as Russia for oil and natural gas in coming years is estimated to increase the building of new storage tank facilities. The increasing consumption of oil for vehicles, power generation, and heating buildings is estimated to hike market growth.
Author Credits: Payel Roy, Dhruv Bhatia
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