Oil Storage Market is projected to grow at a compound annual growth rate (CAGR) of 3.4% from 2019 to 2024, according to a new report from gminsights.com.

The International Energy Agency estimates that petrochemicals will consume an additional 56 billion cubic meters of natural gas by the end of 2030. The product has a wide variety of applications ranging from cosmetics, furniture, medicines, solar power panels to plastics. Rising demand for petrochemicals to fulfill various needs entails a reliable, safe and strong storage requirement. Several leading manufacturers are expanding the storage facilities beyond their own region to meet the burgeoning demand.

In a bid to expand its presence across the rapidly rising South-East Asian market, South Korea based Petroleum industry company- Hyundai Oilbank had established a petroleum storage base in Vietnam with a holding capacity of 200,000 barrels.

Growth Drivers: Global · Low crude oil prices North America · Increasing energy production rate · Middle East & Africa · Ongoing expenditure toward O&G projects Asia Pacific · Requirement of additional oil storage capacity Europe · Increasing oil product trade movement

Crude oil serves as the base for several products. This includes transportation fuels such as diesel, gasoline and jet fuel. They also include fuel oils for electricity generation and heating purposes. The robust automobile sector is driving the demand for crude oil, globally. Automotive production in the U.S. is estimated to cross 11.5 million vehicles annually through 2021 and reach 12 million by the end of 2025.

Competitive Market Share

· CST Industries

· ZCL Composites

· Synder Industries

· Denali Incorporated

· Synalloy Corporation

· LF Manufacturing

· Superior Product Company

· Tianjin Anson International Co. Ltd.

· Elixir

· Roth Industries Company

· Ergil

· Vopak

· Waterford Product & Fabrication

· Sri Ranga Industries

Hydrotherm Engineering ServicesIn emerging economies such as India, rise in disposable income has led to the growth in automobile and construction industry, propelling the demand for crude oil. In 2018, the Indian auto industry recorded sales of nearly 4 million passenger cars. The consistent performance of the automobile sector is propelling the demand for crude oil, positively influencing oil storage market size.

Boom in industrial development has steered the demand for a reliable source of energy across the globe. Surging disposable income among the people along with rising demand for products is supporting the growth in industrial sector globally.

Rising concerns to mitigate short term supply fluctuations of crude oil and other related products has led to the establishment of oil storage tanks and reserves. The Strategic Petroleum Reserve in the United States is the world’s largest supply of emergency crude oil, with a capacity to hold more than 713 million barrels making it an integral deterrent to oil import cutoffs and a prominent tool of foreign policy.

With changing lifestyles and urbanization, today, increased number of people travel for work, leisure or medical treatments across borders. In 2018, the global airline passenger traffic increased to 4.3 billion in the year 2018 as compared to 4 billion in 2017. Additionally, in order to enhance their revenue-scale, airlines are offering partnerships and alliances such as annual subscriptions and frequent flyer programs giving them the right to avail premium services and onboard duty-free sales.

The improvement in aviation infrastructure in several countries to develop the trade and tourism relations between countries is complementing the aerospace sector, in turn driving oil storage industry forecast. An upsurge in military spending will also fuel the industry. During 2019, U.S. defense spending was estimated at USD 649 billion. Growing dependence on aerospace sector will evidently boost the demand for aviation fuel.

Production of natural gas from shale formation is one of the growing trends in the U.S. domestic exploration and production sectors. In 2018, the total dry shale gas production in the U.S. was approximately 20.95 trillion cubic feet, equivalent to nearly 69% of the total dry natural gas production in the country.

High refining capabilities in the U.S. will bolster oil storage market share in the coming years. As of January 1, 2019, the crude oil distillation capacity in the country was a record-high 18.8 million barrels per calendar year and the total number of operable refineries recorded in the region was close to 135.