Oil Storage Market Size, Share, and Trends 2024 to 2034

The global oil storage market size was exhibited at USD 12.9 billion in 2022 and is expected to reach around USD 21.54 billion by the end of 2032, poised to reach a compound annual growth rate (CAGR) of 5.8% from 2023 to 2032.

Key Takeaways

• The floating roof product segment is growing at a CAGR of 4.3% from 2023 to 2032.
• The LPG end-use segment is expanding at a CAGR of 3.7% between 2023 and 2032.

Terminals or tanks used to store generated or processed oil above or below ground is referred to as oil storage facilities. The tanks transfer and treat the reservoir through several phases. The type of oil and its characteristics influence the material and form of tanks. There are several distinct styles of storage tanks, including open-top, fixed roof, floating roof, single skin, double skin, and bunded. Wooden storage tanks were used in the early 1980s; they have since been replaced with those made of stainless steel, polyethylene, carbon steel, or reinforced concrete. Security from short-term supply changes of crude oil and its derivatives is another benefit of oil storage. When compared to the market from end-use sectors, the growth rate of oil production is much higher. Storage tanks come in a variety of sizes and forms. Tanks may need to be rectangular, in the shape of horizontal cylinders, or even spherical depending on the use. Hydrocarbon or chemical materials are frequently stored in full loads in horizontal cylinders and spheres. The vertical, cylindrical storage tank is the most often utilized design.

Growth Factors

The global oil storage market is primarily propelled by an ongoing improvement in the energy picture together with rising anxiety about meeting the need for emergency crude oil supplies. The market is expanding as a result of rising import-export activity in the petroleum sector. Logistics and transportation are essential tasks in the oil and gas sector.

• The growing end-user demand
• Low cost of crude oil

Oil Storage Market Scope

Oil Storage Market Dynamics

Key Market Drivers

Increased production of crude oils

• Due to the U.S. shale oil revolution and continuous investments in the discovery and production of oil reserves in several nations, including Saudi Arabia, the output of crude oil has dramatically expanded during the past few years. The difference between supply and demand for crude oil has been caused by excess. The development of oil storage facilities is thus anticipated to spur investment, expanding the worldwide market for oil storage.

Increased attention to finding alternative oil storage solutions

• Due to rising demand from various end-use sectors, the oil and gas business has grown impressively during the past few decades. Oil storage has become a crucial need since the demand for various types of oil, such as gasoline, aviation fuel, intermediate distillates, and crude oil, is still rising quickly. In order to get a firm footing in the competitive market environment, players in the oil storage market are actively allocating resources to the development of new technologies, oil storage product manufacturing, and oil storage methods. Oil storage is a crucial component of the whole oil supply chain since oil and gas are typically transported across vast distances throughout the world. This aspect is anticipated to drive innovations and new development throughout the oil storage market throughout the forecast period.
• Due to the requirement for large storage systems for marine transport, particularly at export-import ports. This factor is predicted to support the expansion of the global oil storage market over the assessment period. The need for oil storage to store strategic reserves to guarantee the supply of oil during a crisis has steadily increased over the past few decades.

Rising oil & gas industry

• Due to the considerable expansion of the global oil and gas sector, the oil storage market is consistently growing in a northerly direction. The growing need for efficient oil storage facilities is a result of the desire for large-scale refining centers and infrastructure for import and distribution, particularly in emerging countries like Venezuela, Saudi Arabia, Iran, and Iraq. The rise of the oil storage industry is also being driven by government bodies' increasing usage of strategic petroleum reserves (SPRs) to maintain substantial oil stockpiles and guarantee a consistent supply of energy.
• Exploratory operations, both on and offshore, are expanding globally, which is causing a significant increase in demand for oil storage facilities. This is anticipated to boost the growth of the oil and gas market throughout the forecast period. Hence, the oil & gas industry drives the market. 

Key Market Challenges

• Adoption of renewable energy sources - The growing use of alternative energy sources to produce power is severely limiting the demand for oil storage. Environmental concerns have superseded energy security as the main driver of government programs to favor renewable fuels since they often emit less pollution. The focus of current research and development on alternative automotive fuel technology has been on hydrogen fuel cells, electric vehicles (EVs), and biofuels generated from plant material, such as ethanol, and biodiesel. 

Key Market Opportunities

• Increasing demand creates opportunity in the oil storage market - The demand for oil has risen as a result of rising demand from numerous end-use industries. Oil production and transportation increase in response to the rise in demand, creating possibilities for storage containers. The need for oil storage is fueled by the dependence of the supply chain on storage tanks. Another factor opening up the market is the increase in crude oil output.

Product Type Insights

On the basis of product type, the crude oil segment is expected to have the largest market share of around 52% in the coming years period. Over the projected period, rising crude oil output is anticipated to enhance storage, combined with declining downstream and midstream demand. The development of more cutting-edge refinery facilities and the increased demand for low-sulfur distillates are responsible for the expansion. The installation of upgrade units, which increase the productivity of middle distillates and consequently fuel its storage market expansion, is anticipated to be a result of expanding refining investments throughout Asia-Pacific nations.

The category for gasoline is anticipated to see the greatest CAGR throughout the projection period. Due to its high blazing energy, the segment's rise can be ascribed to reasons related to its use as a car fuel. It is more frequently utilized in production, forestry, landscaping, and agricultural equipment.

Storage Type Insights

On the basis of storage type, the fixed roof oil storage market category held the greatest market share, representing more than 49% of the total market volume. The fixed roof oil storage's high degree of containment, which lowers the chance of a fire occurrence, can be credited with the segment's expanding penetration. Furthermore, it is anticipated that falling installation costs associated with fixed-roof designs would further increase demand for these goods.

During the projection period, the floating roof sector is anticipated to have substantial expansion. The efficient design of the floating roof, which lessens corrosion and evaporative losses, is what is largely driving demand in this market. This segment's oil storage market is anticipated to increase as a result of the consistently rising demand for the storage of hydrocarbons with medium and low flash points.

Regional Insights

The Middle East and Africa region was dominated the market in 2022 with a revenue share of around 35.4%.

The LAMEA is expected to continue to be among the most alluring markets and this region is accounted for the majority revenue share in the market throughout the projection period. The expansion of the oil storage industry in the area is being driven by an increase in the number of productive refineries and rising oil production in nations like the UAE, Saudi Arabia, and Kuwait.

The Middle Eastern market will continue to dominate the market in terms of revenue during the anticipated period as a result of the growing demand for petroleum products across multiple industrial and commercial sectors in numerous countries throughout the region. In countries like the UAE, Saudi Arabia, and Kuwait, improved refinery throughput and increasing oil output are predicted to grow the industry. The demand for petroleum and distillates in the industrial sectors is predicted to cause the requirement for storage tanks in the area to keep growing.

By 2032, it is expected that Asia Pacific would account for more than 43% of the global oil storage market. To satisfy the soaring petroleum demand, there is an increasing focus on hoarding crude oil for commercial and emergency uses, which will boost regional industry share. Key oil manufacturing enterprises are expanding both greenfield and brownfield across the country. Additionally, the region will use a lot more storage containers as a result of the increase in yearly refinery throughput. 

Recent Developments

• In December 2019 – A plan to extend the supplementary open season was made public by Magellan Midstream Partners, L.P. in order to elicit further commitments for the transportation volume on the western leg of its refined petroleum products pipeline system in Texas. The corporation is now working to increase the capacity of its west Texas refined products pipeline system from its existing capacity of 100,000 barrels per day (BPD) to about 175,000 BPD.

Segments Covered in the Report

By Product Type

• Crude Oil
• Gasoline
• Aviation Fuel
• Middle Distillates
• LPG
• Diesel
• Others

By Storage Type

• Open Top Tanks
• Fixed Roof Tanks
• Floating Roof Tanks
• Other Storage Facilities

By Material

• Steel
• Carbon Steel
• Fiberglass-reinforced Plastic (FRP)

By Reserve Type

• Strategic Petroleum Reserve
• Commercial Petroleum Reserve 

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)