The Global Petroleum Tank Cleaning Market was worth US$ 1.04 billion in 2023, and it is estimated to reach a valuation of US$ 1.35 billion by 2029, expanding at an annual growth rate of (CAGR) of 4.40% between 2024 and 2029.
Market Overview:
Tank cleaning is the process of removing hydrocarbon vapors, liquids, or residues from cargo tanks aboard a tanker. Tank cleaning may be required for one or more of the following grounds such as to gas-free tanks for internal inspection, repairs, or before entering the dry dock. Also, to remove sediments from top plating. The Petroleum tank cleaning market is mostly a regulation-driven market. Cleaning & inspection of petroleum tanks after a certain time period is mandatory in most countries and that generates regulations-driven revenue for cleaning service providers. Apart from regulations, tank farm operators always clean their tanks before filling a new product or a different quality from the last filled product. The key purpose of tank cleaning aboard oil, product, and chemical tankers is to remove the most recent cargo from the vessel’s containment systems in promptness for the next cargo.
Market Drivers:
With changing global geopolitical situations and crude price fluctuations, Crude Oil Refiners have changed their conventional procurement strategies and are opting for strategies with changing scenarios to maintain or increase their refining margins. Previously refiners were procuring Crude oil by balancing between the refinery’s crude quality requirement and crude prices. But In the past few years, Refiners have upgraded their refineries to process a wide variety of crude oil to strengthen their supply chain and improve their price negotiation capabilities. The rising trend of spot trading and Industry regulations are the other major driving forces of the Petroleum Tank Cleaning Market.
Market Restraints:
Large Crude Oil Tank farm owners generally prefer service providers who can also provide “hazardous material services” along with “Tank cleaning services” as they tend to sign a long-term contract with a reliable & financially capable contractor. In the same manner, Petroleum product tank farm operators prefer signing a single contract for multiple services with a single contractor who can provide a variety of other services including general maintenance and inspection & corrosion protection services. Such structural contract needs do not provide competitive play & behave as a restraint for many small-sized cleaning service providers.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 – 2029 |
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Base Year |
2023 |
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Forecast Period |
2024 - 2029 |
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CAGR |
4.40% |
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Segments Covered |
By Type, Application, and Region. |
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Various Analyses Covered |
Global, Regional and Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
CLEAN HARBORS, INC., Balmer Lawrie & Co. Ltd., TRADEBE, Enva Group, Triumvirate Environmental, STS-tank, Willacy Oil Services, Contango-OGS, Heritage Environmental Services, Regen Robotics, and Others. |
Market Segmentation:
Based on cleaning type, the global petroleum tank cleaning market is segmented into manual, Semi-automatic, and automatic. Since the start of the oil & gas era, manual cleaning was the generally used method for tank cleaning but it was time-consuming and hazardous to human health. With technological advancement, new cleaning methods with very competitive up-time have evolved and these technologies continuously replaced or assisted manual labor in hazardous work areas. But with time tank size, build type & material, and roof type had also changed as per industry & regulation requirements. And those changes forced cleaning service providers to modernize themselves and market more semiautomatic cleaning services. Within a country & region, cleaning methods depend on several markets & in-country factors such as trained manual labour availability & its cost, technology type availability, market competitiveness, governing regulations, and contamination type & other environmental considerations. Improved semiautomatic methods with few low-level manual works are the largest used method of cleaning presently and automation continues to replace more manual labor from petroleum tank cleaning jobs. Complete automatic “No man Entry” tank cleaning service providers are majorly providing services to international oil companies in major producing hubs with strict regulatory criteria like the UK, Norway & US. But presently it has a small share of the market and is at the early growth stage of its life cycle. Automatic cleaning services are expected to replace most semiautomatic cleaning methods in the near future.
Based on tank type, the global petroleum tank cleaning market is segmented into Crude Oil Tank, Refinery Petroleum Product Tank, Depot & Gas Station, Petroleum Product Trading Tanks, and Others. Crude oil tanks are the largest revenue pocket for cleaning service providers as those tanks are large and contain the major chunk of contaminations & hazardous waste of the oil & gas industry, and Cleaning contracts for crude oil tanks are very costly compared to refined petroleum products tanks. Petroleum product tanks located at Refineries and Depots generally holds the same variety of product, so do not require much cleaning other than regulation-driven mandatory cleaning. Petroleum product trading tanks hold a variety of products most of the time and require more cleaning than any other tanks. These tanks are generally mid-sized and traders require very high up-time to lower their operations costs. The tank cleaning market for this segment is expected to rise above 6% between 2022 and 2027 due to a rise in petroleum product trading.
Other tanks such as ISO tanks are very small and are generally manually cleaned. These tanks are used to carry products from one location to another location and are also used in importing small quantities of petroleum products.
Market Regional Analysis:
The Global Petroleum Tank Cleaning Market has been categorized into four regions:
North America specifically the US is the largest petroleum tank cleaning market globally. In terms of count, the US has the largest base of above-ground petroleum tanks and more than 130 active refineries.
The Middle East is the second largest petroleum tank cleaning market with the world’s largest crude exporting capacity and is also a world’s hub of crude & petroleum product trading.
China, India, and Australia are the biggest petroleum tank cleaning markets in Asia-Pacific. China has around 34 refineries with the second-largest refining capacity in the world followed by India. UK & Norway are the major exporters, and France & Germany are the major importers of Oil in Europe. These European countries contain most of the petroleum tank farms and also follow the regulations.
Market Key Players:
Some of the leading companies operating in the Global Petroleum Tank Cleaning Market are
Market Recent Developments:
Frequently Asked Questions
The Petroleum Tank cleaning market size was estimated at US$ 1.04 billion in 2023 and is estimated to reach US$ 1.35 billion by 2029.
The Petroleum Tank cleaning market is expected to grow at a compound annual growth rate of 4.40%
Automatic cleaning services are expected to replace semiautomatic cleaning services in developed countries like UK, Norway and US in the next 5 years.
Improved Semiautomatic method holds the largest market share of the Petroleum Tank cleaning market as it is widely used method by most tank farm owners. Automation is continued to replace more manual labors from petroleum tank cleaning jobs. Complete automatic “No man Entry” tank cleaning service providers are majorly providing service in countries regulated with strict environmental norms. Automatic cleaning services or robotic cleaning service providers are continuously spending on R&D to lower the overall cleaning cost and improving the crude recovery from sludge. Automatic cleaning services are expected to replace most of the semiautomatic cleaning methods in near future.
There is an increase in new product developments, and mergers & acquisitions by the key players such as CLEAN HARBORS, INC., Balmer Lawrie & Co. Ltd., and Regen Robotics
Crude Oil Tank segment is dominating in the Petroleum Tank cleaning market due to strict regulation followed by the Tank farm owners and cleaning contracts for crude oil tanks are very costly compare to other type of tanks.
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