Cryogenic Insulation Market Size

Cryogenic Insulation Market size was valued at USD 3.5 billion in 2023 and is poised to grow from USD 3.72 billion in 2024 to USD 6.07 billion by 2032, growing at a CAGR of 6.3% during the forecast period (2025-2032).

Rising demand for LPG/LNG from various sectors such as power generation and automotive is anticipated to boost the demand for transportation and storage, which further propels the growth of cryogenic insulation market.

Rising demand for energy and power across the globe on account of the rising industrialization and urbanization is projected to promote the demand for cryogenic insulation. In addition, the growth of aerospace and space exploration industries is further anticipated to propel the demand for cryogenic insulation during the forecast period.

Rising gas exploration activities in the U.S. on account of growing demand from various sectors including electric power, industrial, and residential is expected to propel the demand for cryogenic insulation. In addition, demand for clean and eco-friendly energy resources is anticipated to result in growing demand for LPG/LNG, thereby stimulating the industry growth. However, fluctuating raw material prices, concerns regarding safety, and issues related to the product durability are the factors estimated to hamper overall market growth. Rising use of enhanced technology to advance performance characteristics is a technological trend estimated to boost industrial demand during the forecast period.

The insulation comprises high priced raw materials that are available for exorbitant prices, which increases the overall cost for the product. In addition, increasing use of materials such as aerogel and perlite in the product leading to superior performance is expected to emerge as the defining trend for the market during the forecast period. The rising investments in R&D is likely to result in new product development and enhancement of the product quality. In addition, major players are pooling their resources and technologies to develop highly efficient products at lower costs. This is projected to stimulate the growth of the market for cryogenic insulation during the forecast period.

The increasing demand for LPG/LNG from various sectors such as power generation and automotive causing high demand for transportation and storage and the rising need for energy and power due to the industrialization and urbanization are the major factors driving the cryogenic insulation market. The insulation comprises high priced raw materials that are available for exorbitant prices surging the overall cost for the product. The increase in the usage of materials including aerogel and perlite in the product leads to superior performance is anticipated to accelerate the global cryogenic insulation market growth.

The rise in the popularity of enhanced technology with the purpose of improving performance and pooling of resources and technologies by the manufacturers to develop highly efficient products at lower costs also influence the cryogenic insulation market. Additionally, the growth of aerospace and space exploration industries, rising investments in research and development activities, growing demand from various sectors including electric power, industrial, and residential and increase in the rate of gas exploration activities.

Market Key Attributes

In August 2024, Dover, a US-based manufacturer of industrial products, acquired SPS Cryogenics B.V. and Special Gas Systems B.V. for an undisclosed amount. Through this acquisition, Dover aims to expand its offerings and boost its capabilities in the cryogenic sector. SPS Cryogenics BV is a Netherlands-based manufacturer of vacuum-insulated piping systems serving the cryogenics industry and its sister company Special Gas Systems (SGS) B.V., a Netherlands-based manufacturer of cryogenic systems and components.

In January 2024, Aerogel Technologies Inc. developed a new insulation product based on aerogel that significantly enhances thermal resistance while reducing weight in comparison to what is offered through traditional materials. This development, therefore, comes as the most critical for the oil and gas industry, where effective cryogenic insulation is required for the storage and transport of liquefied natural gas.

In April 2022, Chemical multinational BASF used its proprietary Elastopor Cryo (Elastopor) technology has developed a cryogenic insulation system that is used to transport cryogenic liquid cargo such as liquefied natural gas (LNG). The system, developed by Shanghai Harvest Insulation Engineering Co., Ltd (Harvest), integrated into the first VLEC (Very Large Ethane Carrier) to be delivered to Jiangnan Shipyard, one of China’s leading shipbuilding companies.