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Classic Steel Cylinder Market - Forecast(2023 - 2028)
Classic Steel Cylinder Market Overview
The Classic Steel Cylinder Market
size is estimated to grow at a CAGR of 3.6% during the forecast period
2022-2027. Classic steel cylinders are used to store and transport gases such
as nitrogen, oxygen, helium, carbon dioxide and natural gases above atmospheric
pressure and they include stainless steel, titanium alloy and cast iron. Due to
its extensive qualities like low cost and easy availability, the Classic Steel Cylinder is mostly employed in the chemical sector, mining industry and hotel
business. Classic steel cylinders are primarily used for the storage and
transportation of industrial gases, medical oxygen, food and beverage grade gas
and alternative aerospace gases. The growing demand for gas cylinders in
various industrial sectors such as automotive, recreation, life support and
transportation are driving market expansion. The rising demand for gas
cylinders in natural gas automobiles, driven by rising carbon footprints from
combustion engines, is further strengthening market value. The
covid-19 pandemic majorly impacted the class steel cylinder market due to
restricted production, supply chain disruption, logistics restrictions and a
fall in demand. However, with robust growth and flourishing applications across
major industries such as transportation, building & construction and
others, the Classic Steel Cylinder Market size is anticipated to grow
rapidly during the forecast period.
Classic Steel Cylinder Market Report Coverage
The “Classic Steel Cylinder Market Report – Forecast
(2022-2027)” by IndustryARC, covers an in-depth analysis of the following
segments in the classic steel cylinder Industry.
Key Takeaways
- Asia-Pacific dominates the Classic Steel Cylinder Market size, owing to Increased construction activities and automotive production have boosted product demand in the APAC region
- The market for foods and beverages makes substantial use of Classic Steel Cylinders because of their low cost and easy availability. It is anticipated that this will increase demand for traditional steel cylinders over the anticipated period.
- The demand for transportation storage containers for liquid petroleum gas (LPG) and compressed natural gas is likely to fuel the expansion of the Classic Steel Cylinder Market.
- However, fluctuations in prices of Classic Steel Cylinder will hamper the growth of the Classic Steel Cylinder Market
Figure: Asia-Pacific High Strength Steel Market Revenue, 2021-2027 (US$ Billion)
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Classic Steel Cylinder Market Segment Analysis – By Application
The Liquified Petroleum Gas
segment held a significant share in the Classic Steel Cylinder Market share in
2021 and is forecasted to grow at a CAGR of 3.9% during the forecast period
2022-2027, owing to increasing demand from various end-use industries. Classic
steel cylinders are extensively used in liquified petroleum gas due to their
combination of features such as pliability, strength, corrosion resistance,
aesthetic properties, low maintenance cost, average product life cycle, cast
iron, titanium alloy and stainless steel, which drive the market growth of Classic Steel Cylinder in liquified petroleum gas industry. According to U.S.
Energy Information Administration, from 2016 to 2021, U.S. LNG export capacity
and shipments expanded significantly, from 200 billion cubic feet to 3600
billion cubic feet. These extensive properties
compiled with increasing application in the construction and transport industry
are majorly driving its segmental growth. Thus, the use of liquified petroleum gas in construction and transportation will propel the Classic Steel Cylinder Market share.
Classic Steel Cylinder Market Segment Analysis – By End-Use Industry
The Automotive segment held a
significant share in the Classic Steel Cylinder Market share in 2021 and is
forecasted to grow at a CAGR of 4.3% during the forecast period 2022-2027, owing
to the increasing usage of classic steel cylinder in the automotive components.
The increased use of natural gas and LPG as power sources in the automotive
sector has resulted in a significant demand for classic steel cylinders.
Additionally, the implementation of government support policies and the
benefits of using natural gas in transportation have increased the demand
for classic steel cylinder. According to the Energy Information Administration
(EIA), by 2035, there will be 1.7 million automobiles worldwide. According
to the International Organization of Motor Vehicle Manufacturers (OICA),
automobile output increased by 10% in the first nine months of 2021, to 57.26
million vehicles, up from 52.15 million units in the same period last year.
With the increasing automotive production, the demand for classic steel cylinder
will also likely increase, as a result of which the classic steel cylinder industry
will be flourished over the forecast period.
Classic Steel Cylinder Market Segment Analysis – By Geography
The Asia-Pacific segment held a significant share in the Classic Steel Cylinder Market share in 2021 up to 43%. The flourishing growth of classic steel cylinder is influenced by its major applications across major industries, along with growing development in automotive production and developed the base for classic steel cylinder in APAC. The increased use of natural gas and LPG as power sources in the automotive sector has resulted in a significant demand for classic steel cylinders. Additionally, the implementation of government support policies and the benefits of using natural gas in transportation have increased the demand for classic steel cylinder. According to the Organisation Internationale des Constructeurs d'Automobiles (OICA), automotive production and Vietnam grew by 1.2 per cent and 5.5 per cent from the previous year to 5,71,632 and 2,50,000 units, respectively, in 2019. In November 2020, Boeing forecasted that China's airlines would spend US$1.4 trillion on 8,600 new planes and US$1.7 trillion on commercial aircraft services over the next 20 years. According to India Brand Equity Foundation (IBEF), India’s domestic automobile production increased at a 2.36 per cent CAGR from FY16 to FY20, with 26.36 million vehicles produced in FY20. Between FY16 and FY20, domestic automobile sales increased at a 1.29 per cent compound annual growth rate (CAGR), with 21.55 million vehicles sold in FY20. According to the Japan Automobile Manufacturers Association (JAMA), automobile production in Japan increased in November from 6,67,462 units in October to 6,90,311 units. Thus, the growth of the Classic Steel Cylinder Market in the region is being aided by the increasing automotive sector in APAC, thereby dominating the market in the Asia-Pacific region.
Classic Steel Cylinder Market Drivers
Rising Demand for LPG & CNG:
Classic Steel Cylinder demand is anticipated
to rise due to the expanding use of these cylinders for a variety of
applications, including heating and cooking, extinguishing fires, water
treatment, soldering, beverage dispensing, medical uses and extinguishing
flames. As an additional measure, governments throughout the world are putting
strict regulations in place to lower emissions from vehicles and other
transportation systems. As a
result, demand for cylinders is increasing rapidly as more people buy natural
gas vehicles around the world. According to the Government of India, The Ministry of Petroleum & Natural Gas
has a programme called Pradhan Mantri Ujjwala Yojana that aims to link women
from Below Poverty Line (BPL) families to LPG. Provision has been included in
the Union Budget for FY 21–22 for the release of an additional 1 crore LPG
connections under the PMUY scheme. According to International Energy Association,
By 2029, the Indian government plans to have more than 35 million additional LPG
connections and over 7000 new CNG filling stations. According to the U.S.
Department of Energy, CNG fuels around 175,000 vehicles in the United States
and approximately 23 million vehicles globally. With the increase in LPG and CNG
production and growth prospects, the demand for classic steel cylinders is
rising in the LPG and CNG industry. Thus, with flourishing demand for LPG and
CNG, the classic steel cylinders are driving and growing rapidly.
Increase in Government Initiatives:
An increasing number of government
initiatives in emerging economies to educate people about the benefits of using
Classic steel cylinders instead of conventional cooking fuels such as coal,
wood and kerosene are predicted to boost the growth of the Classic gas cylinder
industry. Furthermore, unlike non-renewable fuels, LPG is portable, profitable,
clean and non-toxic, which is expected to drive demand for class steel cylinders
internationally. For instance, According to India Equity Foundation Market, In
December 2021, Prime Minister Narendra Modi's Pradhan Mantri Ujjwala Yojana
(PMUY) 2.0 in Uttar Pradesh delivered approximately 8.05 million residential LPG
gas connections. According to International Energy Agency, The French government
will invest EUR 2.5 billion in CNG and electric transportation as part of its
"France 2030" investment plan. With the increase in government
initiatives, the demand for classic steel cylinders is rising in the various
end-use industry. Thus, with flourishing demand in the end-use industry, the
classic steel cylinder is driving and growing rapidly.
Classic Steel Cylinder Market Challenge
Fluctuations in Prices:
Classic Steel Cylinder Industry Outlook
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the classic steel cylinder Market. The top 10 companies in the Classic Steel Cylinder Market are:
- Acerinox S.A.
- Aperam Stainless
- ArcelorMittal
- Baosteel Group
- Jindal Stainless
- Nippon Steel Corporation
- Outokumpu
- POSCO
- ThyssenKrupp Stainless GmbH
- Yieh United Steel Corp.
Relevant Reports
Report Code: CMR 11474
Report Code: ESR 74129
Report Code: CMR 1198
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