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The oil and gas storage service market size is forecast to increase by USD 3.99 billion at a CAGR of 5.11% between 2023 and 2028. The market is driven by the growth in global fuel consumption, particularly in the upstream, downstream, and midstream sectors involving refining, processing, distribution activities, and valuable products such as diesel, jet fuel, and petrochemicals. Market trends include the adoption of advanced fuel injection systems to enhance efficiency and reduce emissions, as well as the emergence of solidification technology for natural gas storage to mitigate fuel degradation and microbial contamination. However, operational and infrastructural costs remain challenges for businesses and consumers alike. The market caters to various service types, including above-ground and underground storage solutions, and serves residential, commercial, and industrial sectors. Sustainability concerns and the transition towards renewable energy sources are expected to influence the future growth dynamics of the market.
The market is driven by the increasing demand for petroleum products, particularly gasoline, in the energy supply chain. With the rapid industrialization and urbanization in various regions, the need for a stable oil supply and efficient energy supply chain has become crucial. Oil storage plays a vital role in ensuring the availability of hydrocarbons for refining and further distribution. The production of refineries necessitates sufficient storage space to accommodate crude oil before processing. Safety is a paramount concern in oil storage facilities, with stringent safety requirements and reservoir analysis ensuring optimal safety rates. The integration of IoT technology in oil storage systems enhances operational efficiency and facilitates real-time monitoring, thereby improving overall performance.
Moreover, the investment in refining capacity expansion and environmental sustainability initiatives are expected to create significant opportunities for the oil storage market. Crude oil prices and economic development also influence the market dynamics. The oil storage sector is essential for maintaining oil price stability and ensuring a reliable energy supply, making it a critical component of the energy sector.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The power plants segment is estimated to witness significant growth during the forecast period. The market encompasses various types of businesses involved in the upstream, midstream, and downstream sectors of the fossil fuel industry. These services cater to the fuel injection systems of power plants, refineries, processing facilities, and distribution activities to ensure the availability of valuable products such as diesel, jet fuel, and petrochemicals. The importance of fuel storage in this context is paramount, as it mitigates fuel degradation and microbial contamination, thereby ensuring the sustainability of operations. Power plants, particularly those relying on peaking and backup power generation, account for the largest share of the market. These facilities require secure and readily available fuel sources, such as natural gas or oil, to ensure reliable electricity generation during periods of high demand.
Additionally, above-ground and underground storage solutions are employed based on operational and infrastructural costs, as well as the specific requirements of residential and commercial consumers. In summary, the market plays a vital role in the fuel injection systems of power plants, refineries, and distribution activities. Its significance is underscored by the need to maintain the availability of valuable products, mitigate fuel degradation and microbial contamination, and ensure reliable electricity generation during peak demand periods.
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The power plants segment was valued at USD 4.05 billion in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 28% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market in North America is experiencing significant growth due to the region's status as a leading producer and consumer of fuel. With the largest oil and gas storage capacity in the world, the US and Canada are at the forefront of this market. The increasing consumption of diesel, jet fuel, petrochemicals, and other valuable products necessitates the expansion of storage facilities to accommodate the growing demand. This expansion is driven by upstream activities such as unconventional E and P production in the US and Canada, including shale drilling and oil sands extraction. Maintaining the quality of stored fuels is crucial to ensure their sustainability and prevent fuel degradation and microbial contamination.
Similarly, service providers offer various types of storage solutions, including above-ground and underground options, catering to the operational and infrastructural costs of businesses and consumers. The market growth is further fueled by the midstream, refining, and processing, as well as distribution activities, which require efficient and reliable storage services to ensure the continuity of their operations.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increase in global oil and gas demand is the key driver of the market. The global economy's rapid urbanization and industrial development have resulted in a significant increase in energy consumption, particularly in the form of refined products such as oil and natural gas. According to The World Bank Group, the urban population in China grew by 6.25% in 2022 compared to 2019. This trend is not unique to China, as developing countries worldwide are experiencing similar growth. The International Energy Agency (IEA) predicts that global energy demand will increase by 15% by 2050, driven by economic growth and the rising need for cooling and heating in certain regions. The US Energy Information Administration (EIA) reports that global liquid fuel consumption reached 1.6 million barrels per day (mbpd) in 2023 and is projected to reach 1.7 mbpd in 2024.
Moreover, the energy sector's supply chain includes storage terminals and mixing facilities, which play a crucial role in ensuring energy security by providing a buffer against supply disruptions and emergencies. Quality control measures are essential to maintain the integrity of these energy resources, preventing issues such as sludge formation and microorganism growth in water accumulation. The transportation sector's increasing reliance on oil and natural gas also necessitates the need for efficient storage and distribution systems. The transition to renewable energy sources, such as solar, wind, and hydro, is ongoing, but the demand for oil and natural gas is expected to remain strong in the near term.
The emergence of solidification technology for natural gas storage is the upcoming trend in the market. Natural gas and refined products are essential components of the global energy supply chain, requiring efficient storage solutions to ensure energy security and address supply disruptions in the transportation sector. Underground storage facilities, such as depleted aquifers, salt caverns, and oil or gas fields, are commonly used for storing natural gas under pressure. Aboveground facilities, including mixing facilities and storage terminals, are utilized for storing natural gas in its gaseous or liquefied form (LNG) or converting it into solidified natural gas (SNG) through complex industrial processes. Quality control measures are crucial in natural gas storage services to maintain the integrity and purity of the stored products.
Furthermore, natural gas hydrates, composed of natural gas molecules trapped inside a cage-like structure formed by water molecules, are an alternative form of natural gas storage. Strategic oil reserves also play a vital role in ensuring energy security during emergencies and supply disruptions. Emerging markets and drilling activities in energy-rich regions continue to drive the demand for oil and gas storage services. Industrial development, economic activity, and population growth further contribute to the increasing need for energy resources. Renewable energy sources, such as solar, wind, hydro, and water accumulation, are also gaining popularity, but oil and gas storage services remain indispensable in the transition to a more sustainable energy future. Microorganisms and sludge formation in storage facilities pose challenges that require ongoing research and innovation to ensure the long-term viability and sustainability of these essential energy infrastructure systems.
The volatility in oil and gas prices is a key challenge affecting the market growth. The market is a crucial component of the global energy supply chain, particularly for refined products and natural gas. The role of storage terminals and mixing facilities in ensuring the quality control measures for these energy resources is essential, as fluctuations in crude oil prices can significantly impact the industry. Refined products, such as gasoline and diesel, require storage to maintain consistency in their quality and availability, especially during periods of supply disruptions or emergencies. Moreover, strategic oil reserves play a vital role in ensuring energy security and mitigating the impact of supply disruptions in the transportation sector. In emerging markets, where drilling activities and industrial development are on the rise due to growing economic activity and increasing world population, the demand for oil and gas storage services is expected to increase.
However, the volatility of crude oil prices poses a significant challenge to the market. Low crude oil prices can lead to the cancelation or rescheduling of exploration and production projects, affecting the demand for storage services. Conversely, high prices can lead to increased production and, subsequently, the need for more storage capacity. In addition, the shift towards renewable energy sources, such as solar, wind, hydro, and water accumulation, is expected to impact the demand for oil and gas storage services in the long term. Microorganisms and sludge formation in storage tanks are other challenges that require continuous monitoring and maintenance to ensure the safety and efficiency of the storage facilities.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Compagnie Industrielle Maritime: The company offers storage tanks that has a capacity of 1.2 million CBM and 450 storage tanks.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is a critical component of the global energy supply chain, providing essential infrastructure for the storage of crude oil, petroleum products, and natural gas. With the increasing production of refineries and the need for energy security, the demand for storage services has grown significantly. The market caters to various industries, including residential, commercial, manufacturing, power generation, and industrial processes. Storage providers offer facilities and infrastructure such as warehouses, tanks, and terminals, with both above ground and underground options. Safety regulations, labor standards, and environmental impacts are key considerations for the industry. Climate change and emerging markets present challenges, with the need for sustainable practices and investments in renewable energy sources.
In conclusion, the storage infrastructure includes pipelines, terminals, and strategic reserves, ensuring the availability of fuels during supply disruptions and emergencies. The transportation sector, drilling activities, and economic development are major drivers of the market. Operational and infrastructural costs, as well as safety requirements, are critical factors for oil storage companies. The market is subject to various risks, including accidents, spills, security threats, and regulatory penalties for non-compliance. Automation, data analytics, and IoT integration are essential for optimizing operations and ensuring quality of service. The market encompasses upstream, midstream, and downstream activities, including refining, processing, distribution, and the production of valuable products such as diesel, jet fuel, and petrochemicals.
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Market Scope |
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Report Coverage |
Details |
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Page number |
186 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.11% |
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Market growth 2024-2028 |
USD 3.99 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
4.86 |
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Regional analysis |
North America, Middle East and Africa, APAC, Europe, and South America |
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Performing market contribution |
North America at 28% |
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Key countries |
US, Saudi Arabia, China, Russia, and Canada |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Brooge Energy Ltd., Buckeye Partners LP, Burns and McDonnell, Compagnie Industrielle Maritime, Emirates National Oil Co. Ltd. LLC., Enbridge Inc., Energy Transfer LP, Exolum Corp. S.A., Fluor Corp., IMTT, Kinder Morgan Inc., Koninklijke Vopak NV, LBC Tank Terminals, Marquard and Bahls AG, McDermott International Ltd., NOV Inc., NuStar Energy L.P., Odfjell SE, ONEOK Inc., and Plains All American Pipeline L.P. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Service
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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