Features

Pressure vessels in the past were much more prone to accidents

Pressure vessels in the past were much more prone to accidents



Industrialisation spurs growth

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 2019

The pressure vessel market is expected to reach $184.87 billion by 2021, growing at a CAGR of 5.38 per cent from 2016 to 2021, said a report.

The growth of this market is attributed to huge electricity demand and industrialisation in different regions. 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, a report by Transparency Research said.

Pressure vessels are containers designed 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.

The materials used in pressure vessels are steel and composite materials, such as carbon fibre and polymer, which can withstand the high pressure and high temperature. Pressure vessels are used as recompression chambers, distillation towers, pressure reactors, autoclaves and in mining industries, petrochemical plants, oil refineries and nuclear reactors. They are also used in storage of LPG, chlorine, and gasses in liquid forms.

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

 

MARKET DRIVERS

The major driver for the global pressure vessels market is the rising need for energy around the world. 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.

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.

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.

The global pressure vessel market is segmented into the end-user industry, material, type and geography. The end-user industry is segregated into power, chemicals, oil and gas and others. On the basis of the material, the global market is divided into steel alloys, composites and other alloys. Based on the type, the global pressure vessel market is diversified into nuclear reactors, boilers, separators and others. Boilers type segment is the dominant segment in the global market and is used in few energy generation procedures.

 

GEOGRAPHICAL DYNAMICS

Regionally, the market is diversified into Asia-Pacific, Europe, North America, Latin America and the Middle East and Africa.

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 this 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.

Major players in North America and Europe regions in the pressure vessels market are focusing to expand capabilities of pressure vessels. The Middle East and Africa (MEA) is significantly investing in new power projects and well-established oil and gas infrastructure are other factors influencing the regional demand. The development of urban and industrial infrastructure of Latin America is also expected to give rise to pressure vessels market in this region.

The major companies in the global pressure vessels market are Mitsubishi Heavy Industries (Japan), Babcock and Wilcox Enterprises (US), Bharat Heavy Electricals Ltd (India), Doosan Heavy Industries & Construction (South Korea), and Larsen & Toubro Ltd (India).

 

ALTERNATIVE FUELS MARKET

Meanwhile, the pressure vessel market for alternative fuels was valued at $3,038 million in 2016, and is expected to reach at $8,529 million by 2023, growing at a CAGR of 16.6 per cent from 2017 to 2023, said a report by alliedmarketresearch.com. CNG pressure vessels are widely used for storage and transportation of liquids and gases when configured as tanks. These vessels are generally manufactured from curved sheets joined by welding, and mostly V-butt welded pressure vessels are used. The riveted joints could be used but since the plates are weakened at the joint due to the rivet holes the plate thickness should be enhanced by considering the joint efficiency.

The pressure vessel market for alternative fuels is segmented based on construction type, application, and region. Based on construction type, it is classified into CNG type I, CNG type II, CNG type III and CNG type IV. Based on application, it is categorised into CNG vehicles, hydrogen vehicles and gas transport. CNG type I is the highest revenue generator for the pressure vessel’s alternative fuels market in 2016, because it is least expensive out of other CNG types. Also, the metalworking skills and equipment needed to produce them are widely available internationally. CNG type IV segment is forecasted to register the highest growth rate during the forecast period as it is the lightest among other CNG types. CNG type IV reduces the weight of the storage container by 30 to 40 per cent.

 

TOP INVESTMENT POCKET

China and India dominated the pressure vessel market for alternative fuels owing the presence of major automobile manufacturer such as Toyota, BMW, Ford, and Nissan. The number for NGVs rose reached 5 million units in 2016 from 1.5 million units in 2012. Similarly, for India, the number for NGVs was 1.25 million units in 2012 and reached 1.8 million units in 2016, thereby driving the pressure vessel market for alternative fuel.

The CNG vehicles dominated the pressure vessel market for alternative fuels in 2016. Approximately more than 80 per cent of the heavy and medium trucks and transit buses are CNG-based fueling systems. The most lucrative market for CNG pressure vessels are witnessed in developing countries. In 2008 around 90 per cent of 2 million CNG vehicles were delivered to customers outside Europe and North America. Between 2009 and 2013, approximately 32 million CNG vehicles were delivered to customers outside North America and Europe thereby, indicating the major demand for these vehicles from developing economies.

Brazil and Argentina are the most active regions in the pressure vessel market for alternative fuels in the Latin America, Middle East and Africa (LAMEA). Major players from these countries are expanding their manufacturing unit to produce CNG vehicles. Inflex-Argentoil, Argentina based supplier of Type I and II pressure vessels has been regularly expanding their business throughout South America and Middle East by entering into a joint-venture production to increase its product line with Type III vessels.




More Stories



Tags