The tank insulation market is projected to reach USD 6.5 billion by 2023, at a CAGR of 4.50% from USD 5.2 billion in 2018.
Transportation and storage of various materials are the major applications of tank insulations in the oil & gas and chemical sectors. In addition, the necessity to insulate tanks to save energy is another reason driving the tank insulation market. The growing production of oil in countries such as the US, Saudi Arabia, Iran, and Russia is also fueling the market growth. Rapid industrialization in APAC, especially in China and India, is another factor driving the demand for tank insulation materials in industrial plants.
PU & PIR is the largest segment in the tank insulation market in 2018.
The PU & PIR segment is estimated to account for the largest share of the tank insulation market during the forecast period, in terms of value. The dominance of the PU & PIR segment is expected to continue during the forecast period due to its increasing use in the oil & gas industry. PU & PIR are majorly used in storage and transportation facilities of materials where cold or cryogenic conditions are required. Furthermore, these are also used in cold stores and food processing plants.
Increasing demand for LNG as a fuel to drive the market for tank insulation in the oil & gas segment during the forecast period
The oil & gas segment is estimated to be the largest end-use industry of tank insulation during the forecast period. In the oil & gas segment, tank insulation is used in transportation & storage vessels, where oil and natural gases/liquefied natural gases (LNG) are stored and in the liquefaction plant, where conversion of natural gas into a liquid state is undertaken. Insulating tanks help in maintaining the actual form of LNG while storing and transporting. Hence, demand for LNG as a fuel across the globe is expected to increase the demand for tank insulation in the oil & gas industry.