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Boilers segment is estimated to be the largest segment, by type for the pressure vessel market

Boilers segment is estimated to be the largest segment, by type for the pressure vessel market



PV market worth $206bn by 2023

The increasing demand from the oil and gas and chemical industries is a major driver propelling the global pressure vessels market at present, says a report

June 2018

Pressure vessels (PV) are used to store liquids and gases at high pressure. The particular parameters of pressure vessels differ according to regional regulations and the application, but the primary requirement of pressure vessels is the ability to withstand the high internal pressure. Pressure vessels in the past were much more accident prone than modern designs, which are constructed with the help of intensive research and development (R&D) and the support of stringent government regulations.

The global pressure vessel market is expected to reach $205.63 billion by 2023 from the current $149.64 billion, growing at an estimated CAGR of 5.44 per cent, according to a new report.

Pressure vessels represent an integral and critical equipment group for oil and gas processing facilities that require sophisticated manufacturing capabilities and labour skills.

 

DRIVERS AND RESTRAINTS

The major driver for the global pressure vessels market is the rising need for energy around the world. The growth of this market is attributed to huge electricity demand and industrialisation in different regions, said the report Pressure Vessel Market – Global Industry Analysis and Forecast 2024 by Transparency Market Research (TMR). Additionally, the increasing demand from the oil and gas and chemical industries is a major driver propelling the global pressure vessels market at present.

The rising demand from the chemicals industry is a major driver for the pressure vessels market

The rising demand from the chemicals industry is a major driver for the pressure vessels market

The increasing attention paid by governments all over the world to the renewable energy sector has also benefitted the pressure vessels market massively. Due to the mounting scarcity of natural fuels, which are an exhaustible resource, renewable sources of energy such as solar power have risen to the fore in the global energy scenario, benefitting the global pressure vessels market.

Investments for renewable power generation in Asia-Pacific and North American countries have been planned to meet the rising power demand, which in turn are going to boost the demand for pressure vessels, the report noted.

 

CHEMICALS INDUSTRY LEADS

Among various end-user industries for which pressure vessels are employed, the chemicals segment is expected to be the largest market by 2023.

The chemicals industry requires pressure vessels to store industrial liquids and other materials that are required in the production of their final products; sometimes they are also used to store the final product until shipped. Additionally, the chemicals industry utilises pressure vessels to convert raw materials by mixing, blending, and heating to produce the final product. The chemicals segment is projected to witness the fastest growth during the forecast period. This growth is attributed to increased annual production growth in the global chemicals industry. This in turn would require deployment of pressure vessels.

The rising demand from the chemicals industry is also a major driver for the global pressure vessels market. Chemicals that can react violently with atmospheric compounds need to be transported and stored in pressure vessels. The expanding chemicals industry is thus a major driver for the global pressure vessels market. The customisability of pressure vessels is another key driver for the global pressure vessel market.

On the other hand, the drop in mining activities has restrained the pressure vessels market to a degree. Pressure vessels need large amounts of metals, since they need to provide a barrier thick enough to contain even highly reactive and potentially destructive materials. Thus, the reduction in the extraction of metals has hurt the pressure vessels industry.

 

BOILERS SEGMENT TO LEAD

Boilers segment is estimated to be the largest segment, by type, for the pressure vessel market, the report noted. The boilers segment within the pressure vessel market is expected to have the highest growth from 2018 to 2023, given its increasing usage in the power generation sector. This market is expected to witness the maximum growth in the Asia-Pacific region.

Boilers, which are the dominant type of pressure vessel in the global market, are used in several energy generation procedures, which is expected to sustain their demand in the coming years. These are primarily employed in power plants for generating high pressure steam to produce electricity. It is estimated to be the largest segment, by type, for the pressure vessel market in 2016.

Increasing demand for electricity in Asia-Pacific requires integrated equipment for power generation, which in turn, is likely to drive the pressure vessel market. With majority of applications in power generation, this segment has a prospective market in Asia-Pacific.

 

GEOGRAPHICAL DYNAMICS

Asia-Pacific and North America comprise fast growing markets for this segment.

The largest regional market for pressure vessels at present is Asia Pacific. The rapid expansion of the power sector in the region, the increasing utilisation of nuclear power, and the increasing demand from the region’s chemicals industry are the major drivers for the global pressure vessels market. The expected expansion of urban and industrial infrastructure in the region in the coming years will ensure steady demand for electricity. This will drive the demand for pressure vessels in the region, as they are essential in most conventional power generation procedures.

China and India are the largest markets in the region, due to increasing demand for electricity and power generation capacity additions. Asia-Pacific is expected to grow at the highest rate from 2016 to 2021. Countries such as South Korea, Japan, and Malaysia also have high-growth prospects in the Asia-Pacific pressure vessel market. Increasing focus on renewable power generation and modernization of existing power infrastructure is likely to further boost the demand for pressure vessels in the Asian region.

Some of the leading players in the pressure vessel market are: Mitsubishi Heavy Industries (Japan), Babcock and Wilcox Enterprises (US), Doosan Heavy Industries & Construction (South Korea), Bharat Heavy Electricals Limited (India), and Larsen & Toubro Limited (India). These companies have been the most active in terms of strategic developments and most of these market players are present in Asia-Pacific and the US and have been actively participating in competitive developments. Intensive R&D into expanding the capabilities of pressure vessels is the prime opportunity for players in the global pressure vessels market.




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