Fiber Reinforced Plastic Tank Market Size Forecast to Reach $3.2 Billion by 2026
Fiber Reinforced Plastic (FRP) Tank Market size is forecast to reach US$3.2 billion by 2026, after growing at a CAGR of 5.4% during 2021-2026. Following the rapid industrialization in Asia during the last decade, demand for FRP tanks has risen sharply. With the arrival of composites, plastics market is experiencing a huge boom. Composites make the same polymer much tougher increasing its damage resistance and abrasion. These factors contribute to the growth of FRP tanks market as FRP composites are ecofriendly and has recycling advantage. FRP tanks are extensively used in chemicals, water, wastewater, oil, petroleum, gas, and all other industries for storage purpose. Cement containers cannot provide the same transportability or ease of use as the FRP tanks. Keeping the tanks airtight is also a necessity which cannot be achieved with concrete containers. Owing to advantages of FRP tank, compared to traditional cement or metal containers, FRP tank market is expected to grow during the forecast period.
COVID-19 Impact
The latest epidemic of COVID-19, however, has had a significant impact on the global fiber reinforced plastic (FRP) tank manufacturing sector. Across globe, the production activities have slowed down with the intention of restricting the spread of coronavirus, which affected the production, but the manufacturers are back to normal currently.
Fiber Reinforced Plastic (FRP) Tank Market Segment Analysis – By Resin Type
Thermoset segment dominated the Fiber Reinforced Plastic (FRP) Tank market in 2020, and is growing at a CAGR of 5.1% during forecast period 2021-2026. Most resins used in composites are the thermosetting type as they cannot be modified once formed, and they do not melt or flow. Fiberglass reinforced plastic tanks majorly use thermosetting resin systems of which two generic types, epoxy and polyester resins are majorly being used. The resin system is chosen for its chemical, mechanical, and thermal properties. Epoxy resins are used primarily for the manufacture of small diameter, whereas polyester resins are commonly used for large diameter storage tanks. Polyester resins come in many variations with different properties to resist caustics, acids and high temperatures. Since the 1950’s Fiberglass Reinforced Thermosetting Plastic (RTP) has been developed as a proven material for tanks application in an aggressive environment and hence the usage of thermoset resins in FRP tank is expected to grow during the forecast period.
Fiber Reinforced Plastic (FRP) Tank Market Segment Analysis – By Fiber Type
Glass fiber type dominated the Fiber Reinforced Plastic (FRP) Tank market in 2020 and is forecasted to grow at a CAGR of 5.2% during the forecast period. Glass fiber is a modern composite material used to build chemical plant equipment such as vessels and tanks. Different FRP tanks application is using glass fiber as they are corrosion resistant. Glass fibers inherent lightweight is an advantage when equipment must be mounted on existing structures, such as scrubbers on mezzanines or rooftops, and for specialty applications such as FRP tank trailers. Due to its excellent mechanical strength and a popular choice when it comes to corrosion resistance, fiberglass reinforced tanks are highly preferable. Furthermore, glass fiber has excellent temperature-resistant properties, offers thermal insulation and can be formed in complex shapes. FRP products are easy to repair and hardly require any maintenance. Hence, the growth of glass fiber reinforced plastic leads to the FRP tank market growth during the forecast period.
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Fiber Reinforced Plastic (FRP) Tank Market Segment Analysis – By Application
Waste treatment and water tanks dominated the fiber reinforced plastic (FRP) tank market in 2020 and is forecasted to grow at a CAGR of 6.8% during the forecast period. The amount of the wastewater is increasing gradually due to increased number of industries and therefore government is encouraging wastewater treatment project to make reduce the harmful level of such wastewater and make it usable in the different purposes. This apparently requires storage tanks to store wastewater, owing to which the manufacturers of the FRP tanks are exclusively designing a range of the FRP tanks considering waste water storage application. The robust and leak proof construction of FRP tanks for wastewater applications, prevents the contamination of the surrounding caused by leaks. Hence the application of FRP tank in waste treatment and water tanks is expected to grow during the forecast period.
Fiber Reinforced Plastic (FRP) Tank Market Segment Analysis – By End Use Industry
Water and wastewater segment dominated the Fiber Reinforced Plastic (FRP) Tank market in 2020, and is growing at a CAGR of 6.8% during forecast period 2021-2026. FRP tanks are widely used in the water and wastewater facilities due to its key product features such as corrosion resistance, UV resistance, slip resistance, flame retardance, impact absorption, non-conductive and low maintenance requirements. FRP composites are lightweight, corrosion/rot resistant, high strength, will not swell, or take on moisture, and can be retrofitted to municipal and industrial water and wastewater systems. FRP provides excellent resistance to the effects of wastewater and sea water containing acids, alkalis and other corrosive compounds. Due to increasing usage of FRP tanks in water and wastewater industry, the market for FRP tank is estimated to grow during the forecast period.
Fiber Reinforced Plastic (FRP) Tank Market Segment Analysis – By Geography
APAC dominated the market with a share of 48% in 2020, and is growing at a CAGR of 6.7% during forecast period 2021-2026. The factor that contributed to its growth is the increasing urbanization and industrialization coupled with the rising disposable income of the population. This has resulted in high demand of consumer goods and services such as power, construction, processed foods, and sanitation (water & wastewater treatment), which are the applications of FRP tanks. Furthermore, increasing demand for energy, demand from retail fuel stations, increasing number of desalination plants, looming freshwater shortage, conservation of rainwater, and growing replacement of old existing tanks are the major factors driving the FRP tanks market in APAC. Thus, growing application industries would significantly boost the FRP tank market in the Asia-Pacific region.
Fiber Reinforced Plastic (FRP) Tank Market Drivers
Increasing usage of FRP tanks in oil & gas and chemical industry
FRP has dielectric properties. This property encourages its use in applications wherein electric conductivity cannot be tolerated. FRP resists a broad range of chemicals and is unaffected by moisture or immersion in water, making it ideal as protective covering for surfaces where chemical spillages might occur. It also resists insect damages. Regular Steel and Aluminium tanks are subject to oxidation and corrosions. Rising demand for oil and gas storage systems and expansion of chemical plants are likely to boost the global FRP tanks market. The anisotropic nature (different physical properties in different directions) of FRP makes it a strain-absorber because its fibers can be reinforced and aligned in multiple ways during production. According to U.S energy information administration, Canada’s crude oil production rose in September 2019 to 4390 BBL / D/1 K, from 4320 BBL / D/1 K in August 2019. Denmark oil consumption increased up to 159.114 barrels per day in 2018 from 158.470 barrels per day in 2017. Furthermore, according to the Interstate Natural Gas Association of America, in U.S and Canada, a total $791 billion investments in new oil and gas infrastructure will be made from 2018 to 2035. In addition, according to International Monetary Fund, by 2023, oil demand will reach 104.7 mb/d, up by 6.9 mb/d from 2017. Thus, the growth in the oil industry is driving FRP tank demand.
Increasing FRP tank demand from automotive and aerospace & defense industry
According to Natural Resources Canada Ministry, fuel economy is growing by 6–8 % with one-tenth of its weight reduction. With this view, the automotive and Aerospace & Defense industry are increasingly focusing on using lightweight materials on fuel storage, and CNG products. FRP has a high strength to weight ratio and therefore tanks made from the FRP material are light in weight. It is anticipated that, the demand for FRP tanks from automotive and aerospace & defense industry will drastically increase, which will fuel the market growth in forecast period.
Fiber Reinforced Plastic (FRP) Tank Market Challenges
High Cost of the FRP composites is the major factor restraining the growth of the market
The high cost of FRP composite can restrain the growth of FRP tank market. Although FRP tank offers high weight savings, their price is much higher, which is acting as a barrier in the expansion of market. The labor cost is also high because conventional processing techniques used to fabricate composites, such as wet hand lay-up, autoclave and resin transfer molding, require a high amount of skilled labor to cut, stack and consolidate into a preformed component. FRP’s are utilized in applications where performance is more important than the price. The intrinsic properties of FRP composites makes it suitable raw material for manufacturing chemical storage FRP tanks, underground fuel storage FRP tanks, blending FRP tanks, and others. Cost of the product is the only factor which is restraining the market growth. However, there have been some initiatives which eventually lower down the price of FRP composites.
Fiber Reinforced Plastic (FRP) Tank Market Industry Outlook
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Fiber Reinforced Plastic (FRP) Tank Market. The key players in the Fiber Reinforced Plastic (FRP) Tank Market includes Denali Incorporated, ZCL Composites, Hexagon Composites ASA, Augusta Fiberglass, among others.
Acquisitions/Product Launches:
In February 2020, Shawcor Ltd. completed acquisition of ZCL Composites Inc. ZCL is North America’s manufacturer of environmentally friendly fiberglass reinforced plastic underground storage tanks for the fuel, water and wastewater and oil and gas markets.
Key Takeaways
Asia-Pacific dominates the global Fiber Reinforced Plastic (FRP) Tank market, owing to increasing demand for industrial water treatment facilities in the region.
In October 2019, the European Investment Bank has signed a Declaration of Intent with the Government of France and the City Council of Mariupol for creating a new municipal water supply infrastructure in Mariupol, Ukraine.
EIB announced to invest €35m whereas, the French government will invest €64m for a new drinking water plant. The development of drinking water plants and water treatment facilities in Mariupol will drive FRP tank market growth in the country. As FRP tank is used to store chemicals used in waste water treatment, because of its chemical and corrosion resistance properties.
Related Reports:
A. Carbon Fiber Reinforced Plastic Market
https://www.industryarc.com/Report/11646/carbon-fiber-reinforced-plastic-market.html
B. Glass Fiber Reinforced Plastics Composites Market
https://www.industryarc.com/Report/15070/glass-fiber-reinforced-plastics-gfrp-composites-market.html
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