APAC Cryogenic Equipment Market Outlook to 2030

APAC Cryogenic Equipment Market Overview

• The APAC Cryogenic Equipment Market is currently valued at USD 10.9 billion, according to recent analysis. The market is primarily driven by the rising demand for liquefied natural gas (LNG) storage and transportation across the region, alongside growing applications in healthcare, particularly for cryopreservation and cryotherapy. The expansion of energy infrastructure, coupled with advancements in cryogenic technologies, is driving substantial demand for cryogenic equipment in both industrial and medical sectors. Moreover, government support for cleaner energy alternatives like LNG is further boosting market growth.

• Leading markets such as China, Japan, and India are spearheading the APAC cryogenic equipment sector. China is a dominant player due to its large-scale investments in LNG production and transportation infrastructure. Japan, with its advanced healthcare system and energy-efficient technologies, significantly contributes to the market, particularly in cryopreservation applications. India is also experiencing growth in the sector due to increased industrial demand and government focus on expanding LNG capabilities. Emerging markets in Southeast Asia are seeing rising demand as they enhance energy storage infrastructure and healthcare applications.
• Governments across the APAC region are implementing clean energy transition plans that are boosting the demand for cryogenic equipment. Japans Strategic Energy Plan, revised in 2023, outlines a roadmap for increasing the countrys reliance on LNG and hydrogen by 2050, requiring large-scale cryogenic storage infrastructure. Similarly, South Koreas Hydrogen Economy Roadmap includes specific provisions for cryogenic technology to support hydrogen fuel storage.

APAC Cryogenic Equipment Market Segmentation

• By Product Type: The Market is segmented by product type into cryogenic tanks, cryogenic pumps, cryogenic valves, cryogenic heat exchangers, and others. Cryogenic tanks hold the dominant market share in 2023, owing to their extensive use in LNG storage and transportation. The rising demand for LNG as a cleaner energy alternative is the key factor driving the adoption of cryogenic tanks. Additionally, these tanks are widely used in healthcare facilities for the storage of biological materials like blood and tissues, further contributing to their significant share in the market.

• By Application: The Market is further segmented by application into storage & transportation, processing, distribution, and research & development. Storage & transportation dominates the market share in 2023, driven by the increasing need for safe and efficient storage of LNG and industrial gases across various sectors. This segment has seen substantial growth due to government investments in energy infrastructure and the expansion of LNG facilities across key markets like China, Japan, and India. Furthermore, the healthcare sectors reliance on cryogenic storage for organ preservation and pharmaceutical research boosts this segment's demand.

APAC Cryogenic Equipment Market Competitive Landscape

The APAC Cryogenic Equipment Market is highly competitive, with key players focusing on expanding their production capacities and developing innovative technologies to meet the rising demand for cryogenic solutions. Leading companies such as Air Liquide, Linde Group, and Chart Industries dominate the market with their extensive product portfolios and strong regional presence. These players are increasingly investing in research and development to improve the efficiency and safety of cryogenic equipment, particularly in LNG and healthcare applications.

APAC Cryogenic Equipment Industry Analysis

Growth Drivers:

• Industrial Gas Expansion: The industrial gas market in APAC is experiencing significant growth, driven by the increasing demand for liquefied natural gas (LNG), oxygen, and nitrogen. LNG is crucial for energy transition efforts in countries like China, Japan, and South Korea, contributing to a rise in cryogenic equipment for its storage and transport. In 2023, LNG imports in China reached 71.3 million tonnes, a 11.7 % increase from 2022, bolstering the need for cryogenic storage solutions. Additionally, the growing use of oxygen and nitrogen in the healthcare and manufacturing sectors has intensified the adoption of cryogenic equipment. This is in line with China's target to reduce carbon emissions by 65% by 2030, propelling clean energy initiatives that further expand the demand for cryogenic gases.
• Healthcare Advancements: The healthcare sector in APAC is undergoing rapid advancements, particularly in areas like cryopreservation and cryotherapy. In 2024, the region's healthcare expenditure is expected to surpass USD 2 trillion, with a significant portion dedicated to advanced medical technologies such as cryopreservation of organs and cryotherapy for cancer treatment. Japan, a leader in medical technology, has expanded its investment in cryogenic equipment for storing biomedical materials. This trend aligns with the region's aging population, which is driving the demand for innovative healthcare solutions that require cryogenic technology. Government healthcare reforms in countries like India and China are supporting the integration of cryogenic systems in hospitals and research centers.
• Expansion of Cryogenic Energy Storage Systems: The need for large-scale energy storage is increasing across the APAC region as governments push for clean energy solutions. In 2023, Japan and South Korea announced new projects aimed at expanding cryogenic energy storage systems as part of their long-term plans for carbon neutrality. Cryogenic energy storage can hold up to 10 times more energy than traditional methods, making it a valuable solution for energy grid stability, especially as renewable energy sources like wind and solar become more prevalent. With South Koreas hydrogen economy plan targeting USD 37 billion in investment by 2030, cryogenic storage systems are a critical component for managing energy demands and efficiency.

Market Challenges:

• High Initial Costs: Cryogenic equipment, such as storage tanks, pumps, and valves, requires substantial initial capital investment, which can be a significant barrier for small and medium enterprises (SMEs) in the APAC region. The high upfront cost is further compounded by the need for specialized materials, such as stainless steel and copper, which are essential for handling extremely low temperatures. These factors often limit market participation to larger, more established companies that have the financial resources to invest in the necessary infrastructure and technology.
• Technical Expertise and Maintenance Costs: Operating and maintaining cryogenic equipment demands a high level of technical expertise, which is not widely available in many developing APAC countries. The cost of training personnel to handle such specialized equipment is significant, and ongoing maintenance for cryogenic systems can place additional financial burdens on companies. These challenges are particularly pronounced in regions like India and Vietnam, where access to technical expertise is more limited compared to developed markets like Japan or South Korea, making it difficult for some companies to manage the operational complexities involved.

APAC Cryogenic Equipment Market Future Outlook

The APAC Cryogenic Equipment Market is poised to witness robust growth over the next five years, driven by the expansion of LNG infrastructure, advancements in healthcare applications, and increased industrial demand for cryogenic solutions. As governments across the region invest in clean energy and healthcare, the demand for cryogenic equipment is expected to rise, creating opportunities for market players to innovate and expand their product offerings.

Future Market Opportunities:

• Technological Innovations in Cryogenic Insulation: Advancements in cryogenic insulation technology are providing new growth opportunities for the cryogenic equipment market in the APAC region. Innovations such as multi-layer insulation (MLI) and advanced foam materials have drastically reduced heat transfer, improving the efficiency of cryogenic storage systems. Companies in Japan and South Korea are leading in the development of these technologies, with insulation systems capable of reducing energy loss by up to 50%. These innovations are being adopted in industries such as LNG storage, aerospace, and healthcare, where energy efficiency and temperature control are critical.
• Expansion in Aerospace & Space Exploration: The growing interest in space exploration across the APAC region is opening new opportunities for cryogenic equipment in rocket fuel storage. Japans space agency, JAXA, and Indias ISRO are increasingly relying on cryogenic propulsion systems for their satellite launches and lunar missions. In 2024, ISRO successfully tested its cryogenic engine for the Gaganyaan mission, marking a significant milestone in Indias space program. The need for advanced cryogenic tanks to store liquid hydrogen and oxygen for rocket propulsion is driving demand for specialized cryogenic equipment, with projected investments in the aerospace sector exceeding USD 50 billion in the coming years.