The Global Storage Tank Market appraised at USD 12.56 billion in 2019 is expected to touch USD 16.87 billion by 2027, at a CAGR of 3.85 % during the projection period
Storage Tank is a vessel that holds liquids, compressed gases (gas tank), or a medium used for short- or long-term heat or cold storage. Storage tanks are often cylindrical and perpendicular to the ground with flat bases and fixed or floating roofs. There are usually many environmental specifications followed while designing storage tanks and using the same during operations. The specifications vary with the nature of the fluid contained in them. Aboveground Storage Tanks (AST) differ from Underground storage tanks (UST) in the types of specifications followed. Rapid population growth has led to magnified drinking water demand in urban and rural areas as well as nationwide enterprises and utilities. In some regions, people face water scarcity for many reasons and tend to store water for regular usage. They provide a lucrative opportunity for this market. The surge in water consumption by the industrial and commercial sectors has also stimulated the appeal of water storage tanks. Growing oil and gas examination activities worldwide have contributed significantly to the rising demand for water storage systems. It has influenced the global market for storage tanks. Besides, the increasing population has led to a higher demand for storage tanks from public and private utility services in urban and rural areas equally. On the other hand, it has been recognized that the installation of water storage systems needs substantial capital expenditure, which may slow down the growth of this market.
Oil and gas industry is playing a significant role in the growth of Storage Tank Market
In terms of application, the storage tank market can be classified as commercial, residential, municipal, and industrial. In terms of application, the worldwide market for water storage systems has noticed a significant number of requests from the oil and gas industry. It needs a large quantity of water in its hydraulic fracturing process. The water tanks are used to store clean water as well as contaminated water. The water effluence is stored and treated before discharging it into the environment. The surge in oil and gas exploration activities has advanced the requests for the water storage system. Apart from this, water storage tanks are used in several end-use industries such as the commercial, residential, municipal, and industrial sectors. The municipal sector is the foremost end-use sector in the market as it is responsible for meeting the demand for water with an adequate supply of drinking water in urban, semi-urban, and rural areas. Municipalities have an extensive network of water storage systems to store and allocate water according to community needs.
Water scarcity in several regions
Water shortage is the most dreadful consequence of global warming. According to the United Nations, about half of the world’s populace could face severe water scarcity by 2030, and the water demand may surpass its supply by 40%. Increasing anxiety over the conservative use of water due to lack of drinking water has led to the development of the global market for water storage tanks in numerous areas. The surge in water consumption in the industrial and commercial sectors has also stimulated the request for water storage tanks. Increasing oil and gas exploration activities around the world have also inflated the request for water storage systems. Eventually, all the developments influence the global market positively.
The demand for water storage tanks in different industries
The surge in water consumption in the industrial and commercial sectors has also stimulated the need for water storage tanks. Increasing oil and gas exploration activities around the world have raised the request for water storage systems. Overall, the market has an optimistic outlook globally. The development of metal manufacturing and chemical industries in both emerging and developed economies offers a lucrative opportunity to the global storage tanks market. Furthermore, increasing requests for storage tanks in different applications, such as health care, food & beverages, electronics, automotive, construction, and pharmaceutical, is projected to push the global storage tank market in the next few years.
North America and Europe -the major contributors to the growth in the market during the forecast period
The global market for water storage tanks has been segregated into Europe, Asia Pacific, North America, Middle East & Africa, and South America based on regions. The advanced economies of North America and Europe have played a significant role in developing the worldwide market. However, the Asia-Pacific and the rest of the world market hold strong potential for expansion. The increasing scarcity of drinking water has led to increased awareness of water conservation in these regions. That has fueled the request for water storage tanks. In Asia-Pacific, many south Asian countries face severe water scarcity, and it is a promising market for water storage systems. In North America, the growth of the water storage system market is propelled and accelerated by the extensive oil and gas extraction activities requiring fresh and used water.