Oil storage Market Analysis and Global Forecast (2024-2034)

Oil storage Market Overview

The Oil storage Market size accounted for USD 15.32 Billion in 2023 and is estimated to account for 16.99 Billion in 2024. The Market is expected to reach USD 24.36 Billion by 2034 growing at a compound annual growth rate (CAGR) of 7.25% from 2024 to 2034. The oil storage market refers to the industry that provides storage facilities for crude oil and refined petroleum products. These facilities, often consisting of tanks or terminals, play a crucial role in the energy supply chain by ensuring a steady and reliable supply of oil to various industries such as transportation, manufacturing, and petrochemicals.

The oil storage market is a vital component of the global energy infrastructure. It plays a crucial role in ensuring a stable and reliable supply of oil, managing market volatility, and maintaining strategic reserves. This market is critical for ensuring the balance between oil supply and demand and mitigating disruptions in the global oil supply chain.

Global Oil storage Market Synopsis

Oil storage Market Dynamics

The major factors that have impacted the growth of Oil storage Market are as follows:

Drivers:

Ø  Oil Price Volatility and Trade and Export Policies

Fluctuations in oil prices, often due to geopolitical tensions, production cuts, or demand changes, create opportunities for oil storage. When prices are low, companies may store oil, waiting for price increases before selling. Changes in trade policies, including import/export restrictions or tariffs on oil products, can lead to temporary surpluses that require additional storage until new markets are found. Innovations in storage technologies, such as floating roof tanks and underground storage, improve storage efficiency, reduce costs, and drive investment in the oil storage market.

Restraint:

• Perception of High Capital Investment and Volatility in Oil Prices

Building and maintaining oil storage infrastructure requires significant upfront capital. This includes the construction of storage tanks, pipelines, and terminals, as well as meeting safety and environmental regulations. These costs can be prohibitive, especially in times of low oil prices. While oil price volatility can drive storage demand, it can also act as a restraint. Prolonged periods of low oil prices may reduce profitability for oil producers and storage operators, discouraging investments in new storage capacity.

Opportunity:

⮚      Energy Transition and Storage Flexibility

The ongoing energy transition presents an opportunity for oil storage providers to diversify their offerings by integrating storage solutions for liquid natural gas (LNG), hydrogen, and other emerging fuels. Storage facilities that can accommodate both traditional oil products and new energy sources will be well-positioned for future growth. During the energy transition, oil storage can play a role in providing backup fuel for power generation in regions transitioning to renewable energy sources like wind or solar. Oil storage facilities can offer flexible solutions to store oil as a backup energy source for grid stability.

Oil storage Market Segment Overview

By Material

Based on Material, the market is segmented based on Steel, Carbon Steel and Fiberglass Reinforced Plastic. The carbon steel segment dominant the market because of the high demand and need for carbon steel in manufacturing oil storage tanks due to its high affordability than stainless steel. Tanks, which are constructed with carbon steel, can be easily painted or lined to enhance their water and chemical resistance that, which allows them to hold most types of fluids or even gases more conveniently, which has fueled their popularity among a large number of manufacturers and expected to drive the segment growth at a significant pace.

By Type

Based on Type, the market segment has been divided into Crude Oil, Gasoline, Aviation Fuel, Naphtha, Diesel, Kerosene and Liquefied Petroleum Gas. The Crude Oil segment dominant the market. crude oil output is anticipated to enhance storage, combined with declining downstream and midstream demand. The development of more cutting-edge refinery facilities and the increased demand for low-sulfur distillates are responsible for the expansion. The installation of upgrade units, which increase the productivity of middle distillates and consequently fuel its storage market expansion, is anticipated to be a result of expanding refining investments throughout Asia-Pacific nations.

By Product Design

Based on Product Design, the market segment has been divided into Open Top Tank, Fixed Roof Tank, Floating Roof Tank and Others. The floating roof tank segment dominant the market. The market’s growth can be attributed to the efficient design of the floating roof that helps reduce evaporative losses and corrosion, along with the rapid increase in the demand for storage of medium and low flash point hydrocarbons. Moreover, the advancements in technology and new innovative product launches introduced by major market players will further propel the growth of the segment market.

Global Oil storage Market Regional Analysis

Based on region, the global Oil storage Market has been divided into North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America. North America is projected to dominate the use of the Oil storage Market followed by the Asia-Pacific and Europe regions.

North America Market

North America holds a dominant position in the Oil storage Market. The North American oil storage market is relatively mature, with a focus on maintaining existing infrastructure and optimizing operations. The U.S. is one of the largest producers and consumers of oil globally. Major oil storage hubs include Cushing, Oklahoma, which serves as a key pricing point for West Texas Intermediate (WTI) crude and The region benefits from a well-developed infrastructure, including pipelines and rail networks, facilitating efficient oil transportation and storage.

Asia-Pacific Market

The Asia-Pacific region has indeed emerged as the fastest-growing market for the Oil storage Market industry.  China is heavily investing in strategic oil reserves to ensure energy security. The country has been building large-scale storage facilities along its coastline and India is also expanding its strategic oil reserves to enhance energy security. The establishment of new storage facilities, particularly along the eastern and western coasts, is a key focus and increasing energy consumption driven by economic growth is likely to sustain demand for oil storage in the country.

Competitive Landscape

The global Oil storage Market is highly competitive, with numerous players offering a wide range of software solutions. The competitive landscape is characterized by the presence of established companies, as well as emerging startups and niche players. To increase their market position and attract a wide consumer base, the businesses are employing various strategies, such as product launches, and strategic alliances.

Prominent Players:

• Vitol Tank Terminals International
• Koninklijke
• Oiltanking
• Shawcor Ltd
• Buckeye Partners
• Containment Solutions
• ZCL Composites
• Belco Manufacturing
• Zepnotek Storage
• Columbian Steel Tank

Key Development

In November 2021, Trico Corporation introduced its bulk oil-storage systems that provide a cleaner, safer, & easier alternative to the 55-gallon drums for effective handling of the lubricants. The new oil storage systems are available in three tiers to meet the unique and specific requirements of applications.

In May 2021, PSO introduced its first-ever digitally integrated oil storage and dispatch terminal at the PSO’s Keamari Terminal in the southern port city, which will boost the company’s operational capabilities while improving efficiency and strengthening controls. Digitalizing the filling and dispatch operations will further result in significant growth and improvement in dispatch rates.

Scope of the Report

Global Oil storage Market, by Material

• Steel
• Carbon Steel
• Fiberglass Reinforced Plastic

Global Oil storage Market, by Type

• Crude Oil
• Gasoline
• Aviation Fuel
• Naphtha, Diesel
• Kerosene
• Liquefied Petroleum Gas

Global Oil storage Market, by Product Design

• Open Top Tank
• Fixed Roof Tank
• Floating Roof Tank
• Others

Global Oil storage Market, by Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Benelux
  • Nordic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • Indonesia
  • Austalia
  • Malaysia
  • India
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of Middle East & Africa

 

Parameters	Indicators
Market Size	2033: $24.36 Billion
CAGR	7.25% CAGR (2023-2033)
Base year	2022
Forecast Period	2023-2033
Historical Data	2021
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Key Segmentations	Material, Type, Product Design
Geographies Covered	North America, Europe, Asia-Pacific, Latin America, Middle East, Africa
Key Vendors	Vitol Tank Terminals International, Koninklijke, Oiltanking, Shawcor Ltd, Buckeye Partners, Containment Solutions, ZCL Composites, Belco Manufacturing, Zepnotek Storage and Columbian Steel Tank
Key Market Opportunities	• Energy Transition and Storage Flexibility • Oil Storage for Renewable Energy Backup
Key Market Drivers	• Oil Price Volatility and Trade and Export Policies • Technological Advancements

 

REPORT CONTENT BRIEF:

• High-level analysis of the current and future Oil storage Market trends and opportunities
• Detailed analysis of current market drivers, restraining factors, and opportunities in the future
• Oil storage Market historical market size for the year 2021, and forecast from 2023 to 2033
• Oil storage Market share analysis at each product level
• Competitor analysis with detailed insight into its product segment, Government & Defense strength, and strategies adopted.
• Identifies key strategies adopted including product launches and developments, mergers and acquisitions, joint ventures, collaborations, and partnerships as well as funding taken and investment done, among others.
• To identify and understand the various factors involved in the global Oil storage Market affected by the pandemic
• To provide a detailed insight into the major companies operating in the market. The profiling will include the Government & Defense health of the company’s past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.