Cryogenic equipment: Key market research findings
- APAC dominates the market geographically
- Petrochemical and chemical segment accounts for a majority of the market’s revenue
- Key vendors – Chart Industries, Cryofab, INOXCVA, Linde, VRV, and Wessington Cryogenics
Technavio’s market research analysts predict the global cryogenic equipment market to grow at a CAGR of around 6% between 2016 and 2020. The growth of this market can be accredited to the increased demand for nitrogen from the food processing industry. Nitrogen is used in the food processing industry for preserving and freezing foods. Nitrogen-cooled freezers are replacing conventional refrigerants such as ammonia and fluorocarbons, which affect the environment. The food processing industry uses LN2 freezers to increase throughput and product quality. During 2015, the global cryogenic equipment market was dominated by the APAC region, which accounted for a market share of around 37%. The presence of many manufacturing and production facilities in the region will fuel further growth in the cryogenic equipment market in APAC.
The new market research report from Technavio presents a breakdown and analysis of the cryogenic equipment segments based on the end user.
“Innovations in HTS cables is a major development in the power sector, which will drive the demand for cryogenic equipment across the globe. These cables require cryogenic cooling during operations for proper functioning. These cables also have the potential to reduce T&D losses, which saves the cost borne by utilities,” says Anju Ajaykumar, Lead Analyst, Heavy Industry, Technavio Research.
The petrochemical and chemical segment accounted for around 41% of the overall market share to become the key revenue generating vertical of the global market. Cryogenic equipment has major applications in petrochemical and chemical processing such as cryogenic distillation, air separation, hydrofracturing, and storage of gasses in liquid form. Cryogenic containers and gases are used in chemical processing for freezing foods and providing extreme cold conditions for the reactions to process.
The key vendors in the global cryogenic equipment market include Chart Industries, Cryofab, INOXCVA, Linde, VRV, and Wessington Cryogenics. The industry is dominated by century old vendors such as Linde and Chart Industries along with firms such as VRV, Inox India, and Cryofab, which are three to four decades old. The scope of cryogenic application is increasing every day, and vendors are looking forward to expand their reach in new sectors such as food and beverages, cold logistics, life sciences, semiconductors, and automobiles. With growing R&D in the industry, vendors are coming up with innovative cryogenic applications. For instance, Chart Industries has developed new applications like LN2 dosing for the craft beer market that helps in enhancing the shelf life of the product. The company has also developed the Chart Qdrive cryocooler technology that is capable of producing LO2 in a record time of 20 minutes.
A more detailed analysis is available in the Technavio report, Global Cryogenic Equipment Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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