CAGR: 7.6%Current Market Size: USD 3.6 BillionFastest Growing Region: APAC
Largest Market: North AmericaProjection Time: 2023-2030Base Year: 2022
The global multi-layer cryogenic insulation market is expected to grow from USD 3.6 billion in 2022 to USD 6.46 billion by 2030, at a CAGR of 7.6% during the Projection period 2023-2030. The growth of this market is mainly driven owing to the increasing demand in the automation sector and rapid urbanization.
A multilayer cryogenic insulation is a high-performance material used for applications below 75 degrees centigrade that reduces energy leaks and provides high thermal isolation. It is widely used for storing and transporting cryogenic gases such as liquid natural gas, liquid nitrogen, propane, and ethylene because of its high level of thermal isolation. In order to transport these gases efficiently and safely, multilayer cryogenic insulation is provided. The rising investments in R&D will likely result in new product development and enhancement of product quality. As a result of the pooling of resources and technologies by major players, cryogenic insulation is expected to grow over the Projection period as highly efficient products are developed at lower costs. Overall market growth is expected to be hampered by fluctuating raw material prices, safety concerns, and concerns about product durability. A significant portion of the insulation is composed of expensive raw materials that are sold at exorbitant prices, which increases the product's cost. The increase in the use of materials like aerogel and perlite in the product leads to superior performance, accelerating the cryogenic insulation market's growth. A technological trend Projection for the Projection period is the increasing use of enhanced technology to improve performance characteristics.
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Market Dynamics:
Drivers:
In the shipping and vehicle industries, liquefied natural gas is being used more frequently as a fuel because it is a transparent form of energy, which is why the market is growing. In light of the growing demand for liquefied natural gas, high depository capacities and transportation are needed, as well as multilayer cryogenic insulation, which can maintain massive quantities of gas while controlling heat loss. Due to reduced sulfur and greenhouse gas emissions, liquefied natural gas is a favourable fuel for use in the marine industry. This insulation stores and conveys liquified oxygen, nitrogen, methane, and hydrogen.
Restraints:
As a result of the weight and volume of hydrogen repository techniques, the vehicle range is insufficient compared to petroleum-fueled vehicles. Hydrogen is hard to keep since it has a smaller volumetric fuel mass, it's the lightest and most affordable component, lighter than helium, and it has 3.1 times the fuel mass of natural gas and 2700 times that of gasoline.
Opportunities:
The multi-layer cryogenic insulation market is predicted to grow as a result of increasing automation and urbanization. Over the Projection period, the aerospace and space research industries are also expected to increase demand for the market. The use of multi-layer insulation in space applications is a driving force for the global cryogenic insulation market, as it permits thermal control to reduce the impact of severe temperature changes.
Challenges:
Among the multilayer, cryogenic insulation market's top concerns are the cost of raw materials. The unnecessary price fluctuations of raw materials represent a serious challenge for cryogenic insulation market players who wish to stay competitive and maintain margins that will last. In recent product development, evaluating current costs and managing margins is essential. The entire product type/application must be checked and optimized.
Segmentation Analysis:
The global multi-layer cryogenic insulation market has been segmented based on type, end-user, and region.
By Type
The type segment includes fiberglass, cellular glass, perlite, PU & PIR, and polystyrene. The PU & PR segment led the largest share of the multi-layer cryogenic insulation market with a market share of around 31% in 2022. With a market share of 30.6% in 2021, PU & PIR dominated the market. Increased demand is primarily due to their benefits and overall functions. In addition to being weightless, moist, and non-flammable, PU & PIR foam has lower thermal conductivity and mass and is better suited to structural applications. Multilayer cryogenic insulation will become increasingly important as LNG ships and storage tanks become more common.
By End-User
The end-user segment includes chemicals, electronics, shipping, metallurgical and energy & power. The energy & power segment led the largest share of the multi-layer cryogenic insulation market with a market share of around 29% in 2022. The segment of energy & power dominated the market in 2021 with a 31% market share and revenue of 1.03 billion. Energy & power is the largest end-user industry for multilayer cryogenic insulation, and liquefied natural gas as a fuel is driving the growth of the energy & power industry.
Global Multi-Layer Cryogenic Insulation Market- Sales Analysis.
The sale of multi-layer cryogenic insulation expanded at a CAGR of 7% from 2016 to 2022.
Compared to additional fossil fuels, LNG seems to have a brighter future because of its lower price and lower emissions from production and explosion. Liquefied natural gas could also find unforeseen growth over the Projection period.
The LNG market has been pushed by the global stimulus to green fuels in automobiles, domestic energy, and power generation needs, resulting in a growing demand for cryogenic insulation materials. The use of cryogenic engines is a significant factor due to their exceptional load-carrying capabilities. China and India's entry into space exploration is expected to drive the global demand for multilayered cryogenic insulation.
Marine industries prefer liquefied natural gas as a fuel since it releases less sulfur and greenhouse gases, which increases the global market for liquefied natural gas. However, spacecraft and cryogenics are also expected to boost the market development over the projection period due to the use of multi-layer insulation.
Thus, owing to the aforementioned factors, the global multi-layer cryogenic insulation market is expected to grow at a CAGR of 7.6% during the Projection period from 2023 to 2030.
By Regional Analysis:
The regions analyzed for the multi-layer cryogenic insulation market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The North American region dominated the multi-layer cryogenic insulation market and held a 39% share of the market revenue in 2022.
Global Multi-Layer Cryogenic Insulation Market - Country Analysis:
Germany's multi-layer cryogenic insulation market size was valued at USD 0.25 billion in 2022 and is expected to reach USD 0.45 billion by 2030, at a CAGR of 7.7% from 2023 to 2030.
In the country, gas exploration and production activities are increasing as environmental awareness increases, cryogenic insulation penetration is high, and the energy consumption is high.
China’s multi-layer cryogenic insulation market size was valued at USD 0.27 billion in 2022 and is expected to reach USD 0.49 billion by 2030, at a CAGR of 7.9% from 2023 to 2030.
Market drivers include the growth of the manufacturing sector, high energy consumption, and increasing environmental concerns. While the multilayer cryogenic insulation market is relatively saturated in this region, new entrants will also face a high level of barriers due to its saturation.
India's multi-layer cryogenic insulation market size was valued at USD 0.20 billion in 2022 and is expected to reach USD 0.36 billion by 2030, at a CAGR of 7.8% from 2023 to 2030.
In order to meet the growing demand for LNG in a variety of sectors, such as automotive, power generation, and domestic and commercial fuels, exploration and production activities across the nation are expected to increase. Consequently, the market for multi-layer cryogenic insulation is expected to grow over the Projection period as the demand for LNG storage and transportation rises.
Key Industry Players Analysis:
To increase their market position in the global multi-layer cryogenic insulation market business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2022-2030 |
Base year |
2022 |
CAGR (%) |
7.6% |
Market Size |
3.6 billion in 2022 |
Projection period |
2023-2030 |
Projection unit |
Value (USD) |
Segments covered |
By Type, By End-User, and By Region. |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
Ruag, Unifrax I LLC, ImreYS S.A., Technifab Products, Roching Industrial, Lydall, Inc, Kaefer, Thermaxx Jackets, Nichias Corporation, Hertel, Callenberg Technology Company, and Aspen Aerogels. |
By Type |
|
By End-User |
|
Regional scope |
|
Scope of the Report
Global Multi-Layer Cryogenic Insulation Market by Type:
Global Multi-Layer Cryogenic Insulation Market by End-User:
Global Multi-Layer Cryogenic Insulation Market by Region:
Global multi-layer cryogenic insulation market is expected to reach USD 6.46 billion by 2030, at a CAGR of 7.6% from 2023 to 2030.
Leading players in the multi-layer cryogenic insulation market are Ruag, Unifrax I LLC, ImreYS S.A., Technifab Products, Roching Industrial, Lydall, Inc, Kaefer, Thermaxx Jackets, Nichias Corporation, Hertel, Callenberg Technology Company, Aspen Aerogels among others.
Rising demand for LNG and rapid urbanization and growing automation sector.
North American region will witness more growth in the multi-layer cryogenic insulation market.
The segments covered in the multi-layer cryogenic insulation market are; type, end-user and region.
Leading players in the multi-layer cryogenic insulation market are Ruag, Unifrax I LLC, ImreYS S.A., Technifab Products, Roching Industrial, Lydall, Inc, Kaefer, Thermaxx Jackets, Nichias Corporation, Hertel, Callenberg Technology Company, Aspen Aerogels among others.
Political Factors- Political stability is important for business organisations because it influences investor and customer trust, which has a big impact on the economy. Political turmoil has a negative impact on consumer spending, business investment, and economic growth. Internal and external conflicts are currently producing considerable political instability in the region where the multi-layer cryogenic insulation sector is active. The firm may be able to accomplish its expansion objectives only if management understands and manages the current political instability, and they may be hesitant to spend extra dollars.
Economic Factors- Economic issues and consumption trends are inextricably linked. The multi-layer cryogenic insulation market has exciting growth potential when customers have more discretionary cash and are willing to spend more on goods and services to improve their lifestyles. This is because new items and services may be introduced to these clients with simplicity, as well as the higher probability of revenue growth. The multi-layer cryogenic insulation market must thoroughly assess the consumption/spending patterns and tastes of today's choosy consumers in order to alter its marketing mix strategies. multi-layer cryogenic insulation product markets must also determine whether hedonistic or utilitarian incentives drive consumer behaviour.
Social Factors- The workforce's abilities and skills have a significant impact on how successfully the multi-layer cryogenic insulation sector performs. To remain competitive, the multi-layer cryogenic insulation sector needs talented personnel to be readily available when needed. The multi-layer cryogenic insulation market should examine trends in labour demand and supply to determine how personnel with the appropriate skill set can be successfully employed. Strong labour unions and a tight labour market can pose a slew of issues for the multi-layer cryogenic insulation business. It may, for example, coerce a multi-layer cryogenic insulation market to approve an unfair pay hike or halt output by calling a strike.
Technological Factors-The rate and advancement of technological innovation may have an impact on the market and industry as a whole. The multi-layer cryogenic insulation market will be able to comprehend the rate of new product creation, the length of the product life cycle, and the distinguishing qualities that consumers demand by studying the upcoming technological innovation trends. The multi-layer cryogenic insulation market can determine whether migrating to e-commerce will be more advantageous than opening a physical location by analysing consumer attitudes about cutting-edge, new digital technologies. If competitors employ automation technology to cut costs, the multi-layer cryogenic insulation market may be compelled to transition from manual to automated methods, especially if the general population is technologically aware.
Environmental Factors- Businesses are under pressure to lessen their environmental impact due to rigorous environmental legislation in many different countries. To avoid harsh, reputation-damaging criticism from relevant stakeholders, the multi-layer cryogenic insulation market should practise ethical manufacturing, encourage ethical consumption among its target market, work to improve its brand's sustainability reputation, and ensure that all local and international environmental laws are followed. The weather must also be considered because it has a significant impact on operating expenses, personnel productivity, and efficiency.
Legal Factors- Employment law encompasses a wide range of regulations that protect workers' rights, including the right to a living wage, equality, equity, inclusion, fairness, and bodily and mental safety. Employment laws are not properly enforced in certain nations, while in others, violating any of the specified employee rights is punishable by substantial fines. The multi-layer cryogenic insulation market should ensure the security of the working environment while entering or operating in such nations. Direct and indirect discrimination must be avoided, hence the proper procedures must be in place. Adherence to employment rules can assist multi-layer cryogenic insulation markets to build their employer brand reputation, which is critical for attracting and maintaining top people.
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