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Oil Storage Terminal Market Size, Share, and Analysis, By Type (Strategic Reserve and Commercial Reserve), By Tank Type (Fixed Roof, Floating Roof, Bullet Tank, and Spherical Tank), By Product (Diesel, Petrol, Aviation Fuel, Crude Oil, Kerosene, and Others), By Region (North America, Europe, Asia-Pacific, And Rest of the World), And Regional Forecast 2024-2034
Oil Storage Terminal Market is anticipated to grow at a CAGR of 4.5% in the forecast period (2024-2034), with the market size valued at USD 32.6 billion in 2023 and projected to reach USD 53 billion by 2034.
Oil storage terminals are important infrastructures that are used for the temporary storage of crude oil, along with refined petroleum products and related substances. These facilities serve as crucial points in the oil supply chain, where oil products are received, stored, and distributed. In addition, oil storage terminals are typically situated near refineries or major transportation routes and have large storage tanks of different capacities to accommodate an enormous capacity of oil. They ensure a steady oil supply and act as buffers against disruptions or transportation delays. Besides, oil storage terminals streamline logistical operations by allowing the blending of different oil grades and providing centralized points for loading and unloading tanker trucks and ships. Furthermore, meeting safety and environmental standards is extremely important for these facilities to reduce risks and protect surrounding ecosystems and communities.
Oil storage terminal market is anticipated to reach USD 53 billion, growing at a CAGR of 4.5% during the forecast period, driven by increasing global energy demand and rising crude oil production across oil-producing regions. The growth in the oil storage terminal market is attributed to geopolitical tensions and financial uncertainties in oil-producing regions which cause stockpiling of oil and gas resources and stimulate demand for storage terminals. In addition, severe regulations regarding environmental safety and storage standards are influencing the dynamics of the oil storage terminal market and attracting investments for upgrading or building new terminals. Moreover, technological developments such as automation and digitization are being increasingly integrated into terminal operations to improve efficiency and safety. Consequently, the oil storage terminals market provides lucrative opportunities for stakeholders, including terminal operators, engineering companies, and equipment suppliers.
Source: Fatpos Global
Oil Storage Terminal Market is segmented based on Tank Type into Fixed Roof, Floating Roof, Bullet Tank, and Spherical Tank. The floating roof tank segment will lead the market as these tanks consist of a floating roof that adjusts with the liquid level and reduces evaporative losses, which is beneficial for storing volatile liquids like crude oil and petroleum products. Moreover, floating roof tanks offer better protection against environmental contamination and fire hazards compared to fixed roof tanks. These advantages have caused a vast adoption of floating roof tanks in oil storage terminals, which makes them a preferred choice for many operators seeking efficient and sustainable storage solutions. These aspects highlight the importance of floating roof tanks in meeting regulatory requirements and addressing varied industry needs to ensure safer and more efficient oil storage practices.
Oil Storage Terminal Market is segmented based on Type into Strategic Reserve and Commercial Reserve. The commercial reserve segment holds a dominant position in the oil storage terminal market owing to its easy adaptability to market conditions. Strategic reserves are controlled by the government and reserved for emergencies, whereas commercial reserves are owned by private entities and are frequently leased out for commercial purposes. This segment serves various industries, including oil trading, refining, distribution, and logistics, which offers flexibility to manage inventory levels and react to market fluctuations. Additionally, commercial reserves provide storage capacity for surplus production and allow producers to store excess oil during times of oversupply or release it into the market when demand rises. Therefore, these factors collectively highlight the crucial role of commercial reserves in ensuring the resilience of supply chains.
Source: Fatpos Global
Rising Global Demand for Oil and Petroleum Products Will Boost Market Growth and Development
Increasing global demand for oil and energy products highlights the important role of storage terminals in the oil and gas supply chain. These terminals play a crucial role in balancing supply and demand dynamics by acting as buffers for storing excess oil during periods of low demand and releasing it during an increase in demand. Additionally, terminals aid in international trade by providing efficient transportation and distribution of oil products across different regions. These facilities efficiently serve various applications, from manufacturing, transportation, and power generation industries. Therefore, high storage capacity in terminals is required to fulfill the demand for oil and petroleum products across the world.
Expansion of Oil Refining and Distribution Infrastructure is Proving Beneficial for the Market
Expansion and development of oil refining and distribution infrastructure are driving the demand for better storage solutions and highlighting the role of storage terminals. Refining activities are increasing, due to which the production of refined products such as gasoline, diesel, and jet fuel requires better storage facilities. In addition, terminals play an important role in supporting the refining process and distribution network by providing immediate storage for crude oil at refineries. They offer facilities for blending and mixing different components to meet specific product requirements, thereby ensuring quality and consistency. Furthermore, these oil storage terminals are strategically positioned near key transportation hubs, which simplify the distribution of refined products to end-users and reduce transportation costs. Therefore, the expansion of storage capacity in terminals is essential to address the growing demand for refining activities.
Strict Environmental Regulations are Presenting a Problem for the Oil Storage Terminals Market
Oil storage and terminal market is facing vital challenges due to severe environmental regulations, which lead to high costs, complexities in operations, and technological limitations. These restrictions need expensive upgrades, which impact the profitability and efficiency of various operations. The complex regulatory environment requires skilled expertise and administrative resources, that cause delays and penalties for non-compliance. Thus, to address these challenges, terminal operators are investing heavily in cleaner technologies and adopting best practices in safety and environmental management. Furthermore, several collaborative efforts are underway to find innovative solutions and lower the impact of regulatory limitations. Therefore, by prioritizing sustainability and embracing innovations in technology, the industry aims to resolve these challenges and meet regulatory requirements.
Oil Storage Terminal Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. The Asia-Pacific region is anticipated to lead the Oil Storage Terminal Market, due to fast economic expansion, which has resulted in high demand for oil and petroleum products. This surge in demand is attributed to high oil consumption for transportation, power generation, and diverse industrial applications. In addition, governments in the region are actively investing in comprehensive infrastructural development, including the expansion of refining and storage capacities. Furthermore, the North American region consists of well-established infrastructure and advanced technologies. Therefore, Asia Pacific will witness high demand for oil storage terminals and North America will play a significant role in the oil storage terminals market.
Source: Fatpos Global
Covid-19 pandemic significantly impacted the oil storage terminal market by presenting challenges and opportunities. The immediate reduction in global travel and industrial activity led to a sharp decline in oil demand and caused existing storage capacity to swiftly fill as producers sought places to store excess oil. Additionally, the limited availability of storage facilities resulted in high storage rates and offered temporary financial profits for terminal operators. However, the pandemic highlighted the urgent need for better data management and remote operations, which encouraged the industry to adopt digital technologies. Therefore, while the pandemic caused a temporary boom in the oil storage terminal market, it highlighted the importance of adaptability and long-term strategic planning in navigating the market ecosystem.
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ATTRIBUTE |
DETAILS |
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Study Period |
2018-2034 |
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Base Year |
2023 |
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Forecast Period |
2024-2034 |
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Historical Period |
2019-2022 |
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Growth Rate |
CAGR of 4.5% from 2024-2034 |
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Unit |
Value (USD Billion) |
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Segmentation |
Main Segments List |
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By Type |
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By Tank Type |
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By Product |
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By Region |
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Oil Storage Terminal Market size was valued at USD 32.6 billion in 2023 and is projected to reach the value of USD 53 billion in 2034, exhibiting a CAGR of 4.5% during the forecast period.
The Oil Storage Terminal is an essential component of the energy infrastructure, which serves as an important link in the total oil and gas supply chain.
The Floating Type segment and Commercial Reserves segment accounted for the largest Oil Storage Terminal Market share.
Key players in the Oil Storage Terminal Market include ExxonMobil Corporation, Vopak, BP plc, Chevron Corporation, Valero Energy Corporation, Royal Dutch Shell plc, Marathon Petroleum Corporation, Phillips 66, PBF Energy Inc., Buckeye Partners, L.P., Oiltanking GmbH, Trafigura Group Ltd., Vitol Group, Glencore International AG, Mercuria Energy Group Ltd. and Other Prominent Players.
Rising global demand for petroleum products, along with the expansion of oil refining and distribution infrastructure are the factors driving the oil storage terminal market.
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