Containment Tanks Market

Containment Tanks Market Outlook (2024 to 2034)

The global containment tanks market was valued at US$ 6.1 billion in 2024 and will expand at a noteworthy CAGR of 4.7% to end up at US$ 9.6 billion by 2034

Containment tanks are essential storage units that serve several purposes in industries that store liquids, gases and other materials. These tanks are available in different sizes and of various types. They further provides control against low and high-pressure conditions for storing substances without compromising safety and environmental regulations. Containment tanks are made of steel, polyethylene, fiberglass, and other composites, which helps to endure extreme conditions while ensuring that the contents remain unaffected.

Industries such as oil and gas, chemicals, pharmaceuticals, and food and beverage, use applications for safe control of tank temperature, pressure, and some other parameters. Consequently, the containment tanks will see increased demand due to the growing necessity for effective and eco-friendly storage options.

Automation, real-time monitoring, and regular maintenance are some of the innovations in improving the safety and performance of tanks. Within the tighter and focused regulatory frameworks for sustainability, containment tanks play important role by offering safe and efficient methods of storage of sensitive materials.

In November 2021, a petroleum leak from the Red Hill Bulk Fuel Storage Facility in Hawaii contaminated the drinking water for 93,000 people, causing health issues and evacuations. The incident, involving aging storage tanks, led to a major clean-up effort and the decision to permanently close the facility in 2022. This event highlights how essential it is to have properly maintained containment tanks to avoid environmental damage and protect public health.

• Sales of steel tanks in 2024 was valued at US$ 2.2 billion and the segment accounted for 37.0% of the overall market share in 2024.
• Sales of fiberglass tanks in 2024 was valued at US$ 1.0 billion and the segment accounted for 16.8% of the overall market share in 2024.

Report Attributes	Details
Containment Tanks Market Size (2023A)	US$ 5.8 Billion
Estimated Market Value (2024E)	US$ 6.1 Billion
Forecasted Market Value (2034F)	US$ 9.6 Billion
Global Market Growth Rate (2024 to 2034)	4.7% CAGR
East Asia Market Share (2024)	39.1%
China Market Growth Rate (2024 to 2034)	5.2% CAGR
Key Companies Profiled	Granby Industries; CST Industries; Tank Connection; Snyder Industries; Caldwell Tank; Hughes Tank Company; Tuffa Tanks; Poly Processing Company; Gpi Tanks; Emerson Electric Co.; Permastore Ltd; Other Market Players

Historic Analysis (2019 to 2023) and Future (2024 to 2034) Pathway Analysis for the Containment Tanks market

The market grew at a growth rate of 5.2% from 2019 to 2023, and by the end of 2023, it was valued at US$ 5.8 billion.

Historical Report Attributes	Details
Market Size (2019A)	US$ 4.7 billion
Market Size (2023A)	US$ 5.8 billion
Historical CAGR (2019 to 2023)	5.2%
Forecasted CAGR (2024 to 2034)	4.7%

• Short Term (2024 to 2028): In the short term, the market will be impacted by heightened regulatory pressure, as governments are imposing more rigorous environmental safety laws. The market will encounter difficulties due to shortages in essential materials such as steel and plastics, potentially impacting production expenses and delivery timelines. As industrial activity expands in areas like North America and Europe, the need for containment tanks that meet updated regulations will rise.
• Medium Term (2028 to 2030): During this period, demand will increase, particularly for durable, eco-friendly solutions in water treatment, renewable energy, and oil & gas industries. Industry analysis suggests that, stricter government regulations will heighten the demand for compliant systems. Developments in infrastructure within emerging markets, especially in the Asia-Pacific and Latin America, will drive demand. Cost sensitivity will remain a challenge in these regions.
• Long Term (2030 to 2034): From 2030 to 2034, emerging technologies like automation and artificial intelligence will influence the market. Sensors affixed inside tanks that track indicators such as fill levels and temperature would significantly offer real-time data to avert problems and improve safety. The increasing emphasis on sustainability will also create demand for the containment tanks as made from recyclable materials and eco-friendly alternatives. Industry analysis indicates that businesses that focus on these sustainable tank designs will gain a competitive advantage, whereas those that do not adjust to tougher environmental regulations may find it difficult to succeed in a more regulated market.

On the back of the aforementioned facts, the market is anticipated to grow at a CAGR of 4.7% during the forecast period from 2024 to 2034, According to the Fact.MR, a market research and competitive intelligence provider.

Market Dynamics

What are the Factors Propelling Global Sales of Containment Tanks?

“Stringent Environmental Regulations and Compliance Standards”

The rising focus on environmental protection and stricter government regulations are playing a big role in driving the global demand for containment tanks. Regulations to control chemical leakages, prevent contamination, and deal with hazardous waste are making industries rely more on containment tanks.

International regulatory organizations, such as the Environmental Protection Agency (EPA) in the United States, European Environment Agency (EEA) have compiled stringent rules regarding the safe storage and containment of toxic substances. Many organizations are now required to maintain detailed records of their containment tank’s performance, driving the need for advanced monitoring technologies and periodic inspections to ensure compliance and enhance long-term safety.

“Optimization in Smart Tank Surveillance and IoT Integration”

Integration of smart technologies and the IoT is turning out to be a significant driver in the market. Smart tanks with IoT sensors have the ability to monitor critical parameters such as temperature, pressure, and chemical composition in real time. These sensors send warnings to the operators if something goes wrong and enable proactive maintenance to avoid potential failures.

IoT-enabled systems also provide valuable data analytics to optimize tank usage and reduce operational costs. During an emergency, intelligent tanks can autonomously initiate safety protocols, including spill containment or chemical neutralization. As sectors place greater emphasis on lowering risks, decreasing downtime, and adhering to regulatory standards, the need for these highly developed monitoring systems is likely to increase.

What are the Primary Constraints Faced by the Manufacturers of Containment Tanks?

“Challenges in Customization for Diverse Industry Applications”

Customization of containment tanks to meet the specific needs of different industries presents a significant challenge for manufacturers. Applications include industries such as oil & gas, pharmaceutical, chemical processing and water & wastewater management each with its unique requirement of capacity, chemical resistance and pressure rating. Meeting these specialized needs often calls for tailored solutions, which can increase production complexity and costs.

Custom tanks may require additional features like filtration systems, temperature controls or secondary containment, all of which demand extra research, design, and material sourcing. The customization process can make it difficult for manufacturers to scale production efficiently and can lead to quality control issues. For manufacturers with limited resources or those trying to serve a broad market, these challenges can affect profitability and hinder growth.

Country-wise Insights

Why is Adoption of Containment Tanks High in the United States?

“Oil & Gas Industry Boosts Demand for Containment Tanks amid Stricter Regulations”

The market in the United States is valued at US$ 1.3 billion in 2024 and is projected to expand at a CAGR of 4.8% through 2034. This market is projected to generate a US$ 0.8 billion absolute opportunity from 2024 to 2034.

The oil and gas industry in the United States has always been a significant driver of containment tank adoption, especially in regions like Texas and Alaska, home to major drilling operations. The industry handles hazardous materials, chemicals, and wastewater that need secure storage solutions to prevent environmental contamination.

Spill prevention and strict environmental protection regulations are key factors behind the growing demand for reliable containment tanks. As oil production continues to increase, particularly in shale oil and offshore drilling, the urgency for advanced containment tanks rises. Concerns over environmental spills are increasingly forcing operators in oil and gas to invest in containment tanks as a preventative step.

Why Are Key Suppliers of Containment Tanks Investing in China?

“Rapid Growth and Expanding Manufacturing Base”

The market in the China is estimated to reach US$ 2.2 billion in 2034 at a CAGR of 5.2%. This market is projected to generate a US$ 0.9 billion absolute opportunity from 2024 to 2034.

The rapid growth of China’s industrial sector continues to be a strong force for investment by key containment tank suppliers. China's chemical, petrochemical, pharmaceutical, and food and beverage industries are experiencing rapid growth.

This swift expansion requires dependable and safe containment solutions for hazardous substances, waste, and chemicals. Suppliers recognize this growth as a significant opportunity, and are establishing a good presence in China to handle growing demand for containment tanks. China’s expanding infrastructure projects and wastewater management initiatives also drive the need for secure containment tanks in both industrial and municipal applications.

Category-wise Insights

What Drives Increased Demand for Double-Wall Tanks in Industries?

“Increasing Focus on Spill Prevention and Risk Management”

The need for the prevention of spills and risk management in various industries is a driving force in the use of double-wall containment tanks. Rules are becoming stricter, with businesses facing pressure to reduce the chances of any spill or leak that could lead to significant environmental harm.

Double-wall tanks provide an extra layer of protection against potential leaks, containing spilled substances between the outer walls, preventing hazardous materials from leaking into the environment. Such feature is highly essential for industries dealing with dangerous substances, like oil and chemicals, where even minor leaks may have serious consequences.

Why is The Demand for Steel Containment Tanks Increasing?

“High Demand for Steel Containment Tanks Driven by Durability, Strength, and Reliability”

Steel exhibits excellent durability and strength making it an ideal material for securely storing various substances, including hazardous chemicals. Industries like oil and gas, chemicals, and wastewater management prefer steel tanks for their strength in harsh conditions and long-lasting corrosion resistance. Steel tanks can be customized, allowing them to be tailored to meet particular storage requirements regarding dimensions and volume.

This property makes them appropriate for extensive industrial applications as well as smaller commercial purposes. While steel tanks might come with a higher upfront price, their longevity and minimal maintenance needs make them a cost-efficient, ultimately reducing total costs.

Competitive Landscape

Companies devote a significant portion of their revenue to R&D to resolve problems and offer creative solutions to draw in new customers and stay competitive. Companies are developing customized offerings for issues that meet industry-specific needs to compete with other players.

• On November 2023, TerraVest Industries Inc., the parent company of Granby Industries, has announced the acquisition of Highland Tank, aimed at strengthening its position in the containment tank market. Highland Tank is recognized for its high-quality storage solutions for the refinery, fuel, gas, and water treatment industries. This acquisition will allow Granby Industries to expand its product offerings, addressing the increasing demand for safe, durable, and compliant storage solutions. The integration of Highland Tank’s expertise will enable Granby to provide more comprehensive products and services across North America, particularly for industries dealing with stringent regulatory requirements.

Fact.MR has provided detailed information about the price points of key manufacturers of Containment Tanks positioned across regions, sales growth, production, and speculative technological expansion, in the recently published report.

Segmentation of Containment Tanks Industry Research

• By Tank Type :

  • Single-Wall Tanks
  • Underground Storage Tanks (USTs)
  • Above-Ground Storage Tanks (ASTs)
  • Double-Wall Tanks
  • Underground Storage Tanks (USTs)
  • Above-Ground Storage Tanks (ASTs)

• By Material Type :

  • Steel Tanks
  • Polyethylene (PE) Tanks
  • Fiberglass Tanks
  • Concrete Tanks
  • Composite Materials

• By Capacity :

  • Up to 500 litres
  • 500 to 10,000 litres
  • Above 10,000 litres

• By End-User Industry :

  • Oil & Gas
  • Chemical & Petrochemical
  • Water & Wastewater Treatment
  • Pharmaceuticals
  • Food & Beverage
  • Agriculture
  • Mining & Metals

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa