3 Drivers Influencing Global Cryogenic Equipment Market Outlook
In line with the growing Industrialization and the need for cryogenic products, players offering the equipment have been extensively investing in the expansion of capacity and the development of new facilities. A rise in the requirement of power along with the escalating involvement of energy companies towards the generation of power to meet the increasing demand has amplified the demand for the equipment.
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The rapid increase in the carbon emission levels across the globe has gained the attention of the governments as well as other recognized international authorities. This has coerced the authorities to impose stringent regulations towards the use of sustainable sources of energy. Natural gas has gained considerable adoption along with use of renewable sources of energy and investment made towards the advancement of prevailing manufacturing facilities.
Moreover, an increase in the number of gasification and coal and gas to liquid projects will support the growth in the industry. Explained below are some of the pivotal factors likely to impact cryogenic equipment market size over the coming years.
Increasing realization towards the use of natural gas
A rise in investment made towards the exploration and procurement activities along with the wide consumption of natural gas especially in the industrial sector in recent years has supported growth in the U.S. cryogenic equipment market. Additionally, expansion in natural gas liquefication capacity has complemented regional growth. As per EIA, in the year 2017, the consumption of natural gas in the U.S. stood at 7.9 million cubic feet in the industrial sector.
The natural gas-based cryogenic equipment industry has registered robust growth due to the growing demand for energy along with the ability of the product to produce various industrial gases like helium, methane, and hydrogen. According to IEA, the demand for natural gas is projected to witness a rapid growth of more than half by the end of 2040 due to the growing demand for feedstock and fuel from various industries.
Wide adoption of nitrogen-based cryogenic equipment
Nitrogen-based cryogenic equipment market has gained extensive application in oil and gas applications such as injection and pressure testing, EOR, well stimulation, inert gas lift, reservoir pressure maintenance, and nitrogen floods. Extensive use of gas in the start-up preparation and during the maintenance of the plants has intensified the demand for cryogenic equipment.
Robust cryogenic application in the healthcare sector
In terms of the end-user application, healthcare cryogenic equipment market has witnessed considerable gains over the years due to the modernization and refurbishment of the prevailing healthcare infrastructure. The developing nations such as India have witnessed an exponential rise in the healthcare expenditure over the years. According to reports, the Indian healthcare industry is likely to reach USD 372 billion in value by the end of 2022.
The coronavirus outbreak has propelled developments in the global healthcare sector to meet the increasing medical needs of the people. Cryogenic equipment is being used in hospitals to preserve potentially life-saving tissues, organs, and other crucial biological specimens. The use of cryogenic liquid/gas plays an important role in the day to day performance of hospitals, medical centers, and research institutes such as for medical oxygen, cooling of MRI magnets, and in research institutes for HIV and Tuberculosis.
