Asia Pacific Cryogenic Equipment Market Outlook to 2028

Asia-Pacific Cryogenic Equipment Market Overview

• The Asia-Pacific Cryogenic Equipment Market was valued at USD 8.2 billion. The growth is primarily driven by the increasing demand for cryogenic technologies in industries such as healthcare, energy, and chemicals, which require highly efficient temperature control systems.
• The key players in the Asia-Pacific Cryogenic Equipment Market include Linde PLC, Air Products and Chemicals, Inc., Chart Industries, Cryoquip LLC, and INOXCVA. These companies are focusing on expanding production capacities, enhancing cryogenic storage systems, and exploring sustainable solutions for liquefied gases, particularly in the medical and energy sectors.
• Honeywell has agreed to acquire Air Products' liquefied natural gas (LNG) process technology and equipment business for $1.8 billion, allowing Honeywell to provide end-to-end LNG solutions and strengthen its energy transition portfolio.
• China led the Asia-Pacific Cryogenic Equipment Market in 2023, driven by its growing demand for liquefied natural gas (LNG), healthcare, and rapid industrialization. Other key markets include Japan and South Korea, which have also seen a surge in demand for cryogenic storage and transportation solutions, especially in the chemical and biomedical sectors.

Asia-Pacific Cryogenic Equipment Market Segmentation

The Asia-Pacific Cryogenic Equipment Market is segmented by Product, application, and region.

• By Product: The market is segmented into tanks, valves, pumps, vaporizers, and others. In 2023, tanks dominated the market, driven by the widespread application in the storage and transportation of liquefied gases such as LNG and oxygen.

• By Application: The market is segmented into energy and power, chemicals, healthcare, and others. The energy and power segment held the largest market share in 2023 due to the increasing use of LNG as a cleaner alternative to conventional fuels.

• By Region: The market is segmented into China, Japan, South Korea, India, Australia, and Rest of APAC. China accounted for the highest market share in 2023, followed by Japan, owing to rapid industrialization and the expansion of LNG infrastructure.

Asia-Pacific Cryogenic Equipment Market Competitive Landscape

• INOXCVA: InoxCVA, a leading cryogenic equipment manufacturer, has begun construction of a 200-crore facility in India to expand its production capacity and meet the growing demand for cryogenic equipment in various industries.
• Chart Industries: Chart Industries has announced the grand opening of its new jumbo cryogenic tank manufacturing facility in Theodore, Alabama. The facility will produce large-scale storage tanks for liquefied natural gas (LNG) and other cryogenic applications.

Asia-Pacific Cryogenic Equipment Market Analysis

Asia-Pacific Cryogenic Equipment Market Growth Drivers:

• Expansion of LNG Infrastructure: In 2023, Asia-Pacific's LNG capacity reached 160 million tonnes, with China alone importing around 79 million tonnes, making it the world's largest LNG importer. This growth is further supported by a projected consumption of 120 billion cubic feet per day of natural gas by 2050 in non-OECD Asian countries.
• Rising Demand for Industrial Gases: The healthcare sector's demand for oxygen and nitrogen surged by 20% in 2023, driven by increased medical usage. This growth is reflected in the rise of cryogenic equipment sales, as hospitals and industrial facilities expand their capabilities to store and distribute these gases efficiently.
• Sustainable Energy Solutions: Over 60% of energy companies in Asia-Pacific are transitioning to cleaner fuels, with 30% investing in hydrogen technologies. In 2023, hydrogen production capacity in the region increased by 25%, highlighting the growing reliance on cryogenic equipment for hydrogen storage and carbon capture initiatives aimed at reducing emissions.

Asia-Pacific Cryogenic Equipment Market Challenges:

• Fluctuations in Raw Material Prices: In 2023, the prices of stainless steel and other key materials for cryogenic equipment fluctuated by 15%, influenced by global supply chain disruptions. This volatility has led to increased production costs, with some manufacturers reporting a 10% rise in overall expenses due to these changes.
• Stringent Regulations: In Japan and South Korea, environmental regulations on emissions have substantially increased compliance costs, with manufacturers facing up to a 25% rise in expenses related to cleaner technologies. This has prompted many companies to invest over $1 billion collectively in advanced cryogenic technologies to meet stringent emission standards.

Asia-Pacific Cryogenic Equipment Market Government Initiatives:

• China's LNG Expansion Plan: China has allocated over USD 10 billion to expand its LNG import capacity and build new storage facilities by 2025, positioning itself as a key market for cryogenic equipment manufacturers as it aims to add regasification capacity to meet growing energy demands.
• Japan's Hydrogen Strategy: Japan's ambitious plan to increase its hydrogen infrastructure includes a 30% expansion in cryogenic storage capacity by 2028, underscoring its commitment to clean energy and driving the demand for advanced cryogenic technologies to support its transition to a hydrogen-based economy.

Asia-Pacific Cryogenic Equipment Market Future Market Outlook

The Asia-Pacific Cryogenic Equipment Market is expected to grow over the next five years, driven by advancements in cryogenic technologies and increasing demand from sectors like energy and healthcare.

Asia-Pacific Cryogenic Equipment Market Future Market Trends:

• Green Cryogenic Solutions: In the coming years, sustainable cryogenic technologies aimed at reducing carbon emissions will see increased adoption, with bio-based cryogenic materials expected to reduce environmental impact. This trend aligns with the growing emphasis on sustainability and the need for eco-friendly alternatives in the cryogenic equipment industry.
• Increased Use of Hydrogen Energy: In the coming years, the adoption of hydrogen energy is projected to grow substantially, driving demand for cryogenic storage and distribution equipment. This trend is consistent with the global push towards clean energy solutions and the role of hydrogen in decarbonizing various sectors.