Oil Storage Market Analysis Report By Product, By Application, By Region And Segment Forecasts From 2020 To 2027

Industry Insights

The global oil storage market size was worth USD 1682 million cubic meters in 2019. The market is estimated to witness a 5.3% CAGR over the forecast years, 2020 to 2027. The rise in the production of oil & gas owing to their increasing demand from various end-use industries is attributing to the market growth. Owing to the rising use of crude oil, the demand for storage has surged in the past few years. This has led to increasing in infrastructural development and inventories. In addition, oil-importing countries are focusing on safeguarding their energy needs through sufficient storage amid volatility in crude oil prices. Thus, the aforementioned factors are attributing to the growth of the market.

The United States is among the leading crude oil-producing countries. The country has witnessed significant growth in the past few years owing to the rise in oil exploration activities. As per the U.S. Energy Information Administration, by storage utilization capacity, net crude oil inventories were at 64% in mid-2020. The storage facilities are located mostly in the Gulf Coast areas as it has major refining units.

However, regulations about the storage capacity of oil are likely to restrain market growth over the forecast duration. For example, the Control of Pollution Regulations 2001 (England) and the Water Environment Regulations 2006 (Scotland) are major regulations followed by European countries. Moreover, to ensure efficient storage, equipment manufacturers are heavily investing in advanced technology in steel tanks production to prevent oil leakage.

Application Insights

Depending on the application, the crude oil category held the highest share in the oil storage market in 2019 with more than 51.0%. The rise in production coupled with low demand from midstream and downstream sectors are projected to attribute to the growth of the crude oil storage segment.  On the other hand, middle distillates held the second-highest share in the market in 2019. The rise in low sulfur distillates demand and the development of highly advanced refineries are proliferating to the growth of this segment.

The gasoline segment is projected to register the highest growth over the forecast duration. Increasing use of gasoline as an automobile fuel is driving the demand for its storage. Gasoline is also used in various other applications such as farming, forestry, landscaping, and construction. However, increasing penetration of electric vehicles is likely to restrain the segment growth over the forecast period.

Product Insights

Among different products, the floating roof oil storage segment is anticipated to witness a 6.5% CAGR from 2020 to 2027. Floating roofs are designed in a way as it minimizes the losses due to corrosion and evaporation. Additionally, increasing demand to store low and medium flash point hydrocarbons is likely to proliferate the segment growth.

On the other hand, fixed roof storage held the largest share in the market. Further, the segment is anticipated to maintain its dominance over the forecast duration. Fixed roof storage is designed in a way to reduce the chances of fire, thereby, it is gaining traction. In addition, the declining cost of installation of this segment is further estimated to drive its growth. On the other side, the open tank storage is more prone to product contamination and fire, therefore, it is used to store oil with almost no evaporative losses.

Regional Insights

In 2019, MEA accounted for the highest share in the oil storage market with more than 34.0%. Further, the region is projected to maintain its dominance over the forecast duration. Increasing excavation of crude oil and the rise in the number of efficient storage facilities are driving regional growth. Countries such as Kuwait, Saudi Arabia, and UAE are the major markets in the region.

The Asia Pacific is projected to hold the second position in terms of growth. China is estimated to hold the highest share in the region. Increasing demand for oil in countries such as India and China is driving regional growth. On the other hand, North America is also predicted to witness considerable growth over the forecast duration. The United States is the major contributor to regional growth.  Shale gas reserves and increasing oil production in the United States and Canada are directly affecting regional growth.

Impact of COVID-19

COVID-19 pandemic has positively affected the demand for the market. Owing to the lockdown imposition across several parts of the world, automobile vehicles witnessed limited movement during the second and third quarters of 2020. Thus, the pandemic has caused a high crude oil supply and low demand. This has led to a significant rise in the storage capacity across the world, thereby, attributing to the market growth. However, this sudden demand for oil storage would be short-term only and the market is projected to witness a significant decline in the demand post-COVID-19, as electric vehicles will see increased adoption.

Oil Storage Market Share Insights

The market is consolidated in nature with the presence of leading multinational companies. Market players are increasingly investing in the research & development for the production of advanced tank storage facilities. Companies are increasingly focusing on consolidating their market position in the Asia Pacific and the Middle East, as these regions are highly dependent on conventional fuel vehicles. Major industry players operating in the market are Shawcor Ltd., Vitol Tank Terminals International BV (VTTI), Oiltanking GmbH, and Buckeye Partners, L.P. among others.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For this study, Million Insights has segmented the global oil storage market report based on application, product, and region:

• Application Outlook (Volume, Million cubic meters, 2016 - 2027)
    • Crude Oil
    • Middle Distillates
    • Gasoline
    • Aviation Fuel
    • Others

• Product Outlook (Volume, Million cubic meters, 2016 - 2027)
    • Open Top
    • Fixed Roof
    • Floating Roof
    • Others

• Regional Outlook (Volume, Million cubic meters, 2016 - 2027)
    • North America
        • The U.S.
        • Canada
        • Mexico
    • Europe
        • Germany
        • Russia
        • The Netherlands
        • Belgium
    • The Asia Pacific
        • China
        • Indonesia
        • Malaysia
        • Australia
    • Central & South America
        • Brazil
        • Argentina
    • Middle East & Africa
        • Saudi Arabia
        • UAE