Cryogenic trends

LNG is becoming an increasingly popular, clean, and efficient energy source, particularly for long-distance transportation and storage. According to Global Gas Outlook to 2050, the demand for LNG is expected to grow 3.4% annually through 2035, with 100 million t of additional capacity required to meet demand growth and decline from existing projects.¹ The strategic expansion of LNG infrastructure, including liquefaction plants, storage facilities, and regasification terminals, requires reliable and efficient cryogenic equipment to support the entire LNG value chain. As a result, companies involved in the manufacturing and supply of cryogenic equipment are experiencing increased opportunities for growth and innovation. Furthermore, the global energy crisis and market recovery post-COVID-19 have significantly boosted clean energy investments, outpacing fossil fuel investments (24% in 2023 vs 15% in 2021), according to the International Energy Agency World Energy Investment 2023 report.² The Ukraine conflict’s impact on fossil fuel markets has further accelerated investments in cleaner energy sources such as LNG and hydrogen. Consequently, the shift towards clean energy transforms the energy sector and increases the need for cryogenic equipment.

Market outlook

The cryogenic equipment market was valued at US$11.9 billion in 2023 and is projected to reach US$16.6 billion by 2028, growing at a compound annual growth rate (CAGR) of 6.9% during the forecast period. This growth can be mainly attributed to the increasing demand for cryogenic equipment from the metallurgy and energy and power industries. The increased adoption of LNG and hydrogen, owing to the intensifying sustainability concerns, is likely to contribute to market growth. The growing demand for industrial gases from rapid industrialisation in the developing economies of the Asia Pacific region has been fuelling the growth of the cryogenic equipment market. Chart Industries (the US), PARKER HANNIFIN CORP. (the US), Air Products and Chemicals, Inc. (the US), Flowserve Corp. (the US), Linde Plc (Ireland), Air Liquide (France), and Nikkiso Co., Ltd (Japan), are the key providers of cryogenic equipment. They have comparable strengths in terms of customer bases, diversified product portfolios, technological capabilities, and diversified regional presence.

Cryogenic equipment market potential by application, cryogen, and geography Cryogenic equipment is used for storage, transportation, or distribution of gases at extremely low temperatures. This equipment keeps industrial gases in liquid form at temperatures below -150°C. Typical equipment in this category includes tanks, pumps, vaporisers, heat exchangers, valves, pressure regulators, and pipes. They are used in various applications, such as the production, storage, and transportation of LNG; preservation of biological materials including human tissues, sperm, and embryos; long-term storage of biological samples such as stem cells, cord blood, and tissues; development of hydrogen fuel systems, particularly for the automotive and transportation industries; as well as cooling scientific instruments on space telescopes and maintaining extremely low temperatures for space probes and vehicles, satellite launch facilities, and air separation units.

By application

By application, the cryogenic equipment market has been segmented into a cryogenic air system unit (CASU) and a non-cryogenic air system unit (non-CASU). The CASUs are set up on-site of a manufacturing/production facility to produce industrial gases such as oxygen, nitrogen, and argon, among others. Whereas the non-CASU includes various applications such as the rail and road transport industry, LNG bulk carrier ships, LNG regasification, and liquefaction terminals, and other minor applications (such as, include small scale/temporary storage, cryopreservation, research studies, satellite launch facilities, cryogenic process technologies, and cryogenic electronics, such as superconducting magnet systems, low-temperature detector systems, and infrared array systems, among others). LNG bulk carrier ships and LNG regasification and liquefaction terminals accounted for a share of almost ~70% of the total non-CASU cryogenic equipment market in 2022.

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