Global Cryogenic Insulation Market Report - Market Analysis, Size, Share, Growth, Outlook - Industry Trends and Forecast to 2028

Drivers:

• The global attempt to diversify the energy mix away from coal and other resources, such as Liquified Natural Gas (LNG), is driving up demand for cryogenic insulation solutions.
• Growing number of space programs and their applications - spacecraft, launch vehicles, the Space Shuttle, and the International Space Station. 
• Rising demand for alternative fuels in the transportation sector to reduce carbon emissions resulting from strict government regulations. 
• Increasing production of cryogenic liquids due to their high demands in the end-user industry globally.

LNG as a transportation fuel:

One of the most significant applications for the cryogenic insulation market is the LNG for transportation and storage. In this case, the cryogenic equipment to be insulated will be the cryogenic tanks and the pipelines infrastructure.

Road fuel: LNG is the most common type of natural gas used as a transportation fuel for long-distance heavy-duty vehicles. This rapid increase in fuel consumption can be attributed to strong government initiatives in Asia and Europe to shift away from diesel-powered vehicles and toward alternatives to address deteriorating air quality. Since the introduction of LNG as an alternative fuel for heavy-duty vehicles in the early 2010s, China has become the world's largest market for LNG as a road fuel.

Marine Fuel: As stronger environmental laws are implemented at local and international levels to decrease emissions, many marine vessel owners are exploring cleaner alternative bunker fuels to comply. This will result in a significant reduction in ship-related air pollution, which will benefit both human health and the environment.

Starting from January 2020, the International Maritime Organization (IMO) established a new global sulfur content restriction of 0.50 % m/m (mass by mass) in ship fuel known as "IMO 2020". Implementing a sulfur content cap on marine bunker fuel has accelerated the transition to LNG-fueled ships by requiring the installation of new machinery (or conversion where practicable) and the building of associated infrastructure.

International Maritime Organization (IMO) has established an even tighter restriction of 0.10 percent m/m is in force in emission control areas (ECAS). 

The ECAS are the Baltic Sea region, the North Sea area, the North American area (including defined coastal areas of the US and Canada), and the US Caribbean Sea area are the four ECAS (around Puerto Rico and the United States Virgin Islands).

With these new restrictions in place, there will be a rise in new LNG ships, which will, in turn, boost the cryogenic insulation market in these regions.

Cryogenic Insulation:

Cryogenic systems are used for the storage and transportation of liquefied gases at extremely low temperatures, ranging from - 60°C to - 270°C such as liquid helium, liquid hydrogen, liquid argon, and liquid nitrogen, liquefied petroleum gas (LPG), liquified natural gas (LNG), and other.

Evaporation can cause costly material losses in these systems, known as boil-off losses. Boil-off can be reduced with high-performance vacuum insulation, resulting in a more efficient system. To maintain ultra-cold temperatures, cryogenic systems use insulation to minimize incoming heat. 

Cryogenic insulation provides robust, maintenance-free, outstanding thermal insulation with constant temperature for cryogenic containment systems. 

Without insulation, thermal energy enters the tanks and piping systems via convection, conduction, and radiation. If the temperature increases past the boiling point of the stored fluid, the liquid will begin to vaporize. As vapor collects, pressure increases inside the structure leading to dangerous accidents.

Cryogenic insulation is necessary to store cryogens while maintaining safe temperatures and pressures. Cryogenic insulation ensures carriers and onshore structures are protected from corrosion, abrasion, and harsh weather conditions.

Cryogenic equipment that requires insulation is Cryogenic Railcars, Cryogenic Vessels, Cryogenic tanks, Cryogenic trailers, Dewars, ISO Tanks, Microbulks, Cryogenic Vacuum Jacketed Pipes, Cryogenic Valves, liquified gases storage facilities, and others. 

The type of insulation for a specific application is chosen by finding a balance between cost, ease of application, weight, toughness, and other factors and the insulation's effectiveness.

In cryogenic equipment, there are numerous forms of insulation that can be utilized, including:

Forms - Multi-Layer Insulation (MLI) or Super insulation, Foam, and Bulk Fill.

Material Type - Polyisocyanurate (PIR) and Polyurethane rigid (PUR), Cellular Glass, Fiber Glass, Perlite, Aerogel, and Others.

Cryogenic insulation Applications Industry: Liquified Natural Gas (LNG), Medical, energy & power, transportation, aerospace, petrochemical & chemical industry, and Others. 

Recent Developments:

• On December 25, 2021, Dunmore's multi-layer insulation films were used to protect the James Webb Space Telescope developed by NASA, the European Space Agency, and the Canadian Space Agency. Dunmore produces materials that withstand thermal radiation and keep the telescope at 40 Kelvin (-233 degrees Celsius). 
• On June 23, 2021, BASF and Shanghai Harvest Insulation Engineering Co., Ltd (Harvest) have signed a Joint Development Agreement (JDA) to develop prefabricated cryogenic pipes made with BASF's Polyurethane rigid (PUR) foam system, Elastopor Cryo. 

Opportunities:

• Shipbuilding Industry - Growth potential for LNG in countries like North America, Europe, and the UK (due to the emissions regulations of the International Maritime Organisation ordered to have new LNG engines for the existing ships.)
• Rising number of fuel storage stations globally – LNG, Hydrogen.

Regional Analysis:

China: LNG 

China's energy mix is gradually becoming more environmentally friendly. China has launched a program to replace coal-fired power generation with natural gas-fired power generation to reduce air pollution in major industrial centers. According to the country's gas-to-power strategy, the natural gas market share in China's entire energy mix would rise to 15% by 2030.

China National Petroleum Corp (CNPC) anticipates China to reduce coal usage to 44% of total energy consumption by 2030 and 8% by 2060 as the country strives to meet its climate change targets by using more natural gas.

China has witnessed a surge in natural gas production over the past decade. China's natural gas production climbed by 9% from 178 billion cubic meters (bcm) in 2019 to 194 billion cubic meters (bcm) in 2020, according to BP's Statistical Review of World Energy 2021.

After Japan, China is currently the world's second-largest LNG importer, with annual shipments gradually increasing since 2010. Strong policy support for converting coal to gas to combat air pollution raised LNG imports dramatically. China's LNG imports increased by 10.97 percent from 84.7 billion cubic meters (bcm) in 2019 to 94 billion cubic meters (bcm) in 2020.

Since most of the newest gas plants have been established in conjunction with the Gas Pipeline and LNG terminals, access to gas infrastructure and steady supply is critical.

Chaozhou II LNG regasification terminal Project:

According to the LNG terminal plan, by 2035, there will be more than 30 LNG terminals in three central areas: Bohai Bay, Yangtzi River Delta, and Southeast Coast, with a receiving capacity of 340 million tonnes per year.

The Chaozhou II LNG regasification terminal, currently under development in China's Guangdong province, is operated by Huaying Natural Gas. Along with the first stage, three gas storage tanks with a capacity of 200,000 cubic meters will be built, with four more tankers of the same size planned for the second phase. In 2023, the terminal is expected to open for business.

The project is expected to have a regasification capacity of 292.2 billion cubic feet per year (bcf/yr) and a storage capacity of 0.28 million tonnes (Mt).

LNG infrastructure is likely to expand further in the coastal region. Power plants having direct supply agreements with gas suppliers will increase gas supply availability for power plants while potentially lowering fuel prices.

As a result of this, the cryogenic insulation market for cryogenic trailers, tanks, pipelines, and other equipment is expected to grow in China.

Blackridge Research's Global Cryogenic Insulation Market report provides insights into the current global and regional Global market demand scenario and its outlook.

This study offers a detailed analysis of various factors instrumental in affecting the Global Cryogenic Insulation market's growth. The study also comprehensively analyses the market based on forms (Multi-Layer Insulation (MLI), Foam, and Bulk Fill) by Material Type (Polyisocyanurate (PIR) and Polyurethane rigid (PUR), Cellular Glass, Fiber Glass, Perlite, Aerogel, and Others) by Cryogenic Liquid (Liquified Natural Gas (LNG), Liquid Oxygen, Liquid Nitrogen, Liquid Hydrogen, and Others) and geography (North America, Europe, Asia-Pacific, and the Rest of the world).

This report also includes the latest market trends, drivers and restraints, present and future opportunities, new projects, the global impact of Covid-19 on the Global Cryogenic Insulation market, and significant developments.

Further, the report will also provide Global Cryogenic Insulation market size, demand forecast, and key competitors in the market.