Table of Contents
Overview
New York, NY – August 18, 2025 – The Global Oil Storage Market is projected to reach USD 28.3 billion by 2034, up from USD 19.9 billion in 2024, with a CAGR of 3.6% from 2025 to 2034. In 2024, North America led the market, holding a 34.8% share, equivalent to USD 6.9 billion in revenue.
India, the world’s third-largest oil importer, relies on imports for over 80% of its crude oil needs, making oil storage infrastructure critical for energy security. The Indian Strategic Petroleum Reserve Limited (ISPRL) manages the country’s strategic petroleum reserves (SPR), operating three underground facilities in Visakhapatnam, Mangaluru, and Padur, with a combined capacity of 5.33 million metric tonnes (MMT). These reserves act as a safeguard against supply disruptions and price volatility.
Key factors driving the market include global supply volatility, energy security priorities, and supportive government policies. According to the International Energy Agency (IEA), global oil inventories increased by 1.2 million barrels per day (mb/d) in the first half of 2025, with expected growth of 0.9 mb/d for the remainder of 2025 and 1.1 mb/d, contributing to downward pressure on oil prices. India’s heavy reliance on imports underscores the need for diversified supply sources and enhanced storage capacity.
To strengthen energy security, the Indian government has approved two new commercial-cum-strategic petroleum reserve facilities with a total capacity of 6.5 MMT, located at Chandikhol (4 MMT) in Odisha and Padur (2.5 MMT) in Karnataka, under a Public-Private Partnership (PPP) model.
Additionally, plans are in place for new strategic reserves at six locations, including Bikaner (5.2–5.3 MMT), an expansion in Mangalore (1.75 MMT), and Bina (capacity to be determined), to further enhance preparedness against supply disruptions. The 2025–26 Union Budget allocates INR 55.97 billion (approximately USD 647 million) for oil purchases to fill strategic reserves. Additionally, INR 1.8 billion is designated for the operation and maintenance of SPRs, and INR 3.35 billion is allocated for land acquisition and construction of new storage caverns.
Key Takeaways
- The Oil Storage Market size is expected to be worth around USD 28.3 billion by 2034, from USD 19.9 billion in 2024, growing at a CAGR of 3.6%.
- Floating Roof tanks held a dominant market position, capturing more than a 56.2% share.
- Steel held a dominant market position, capturing more than a 64.3% share.
- Onshore held a dominant market position, capturing more than a 54.8% share.
- Crude Oil held a dominant market position, capturing more than a 59.9% share.
- North America held a commanding lead in the global oil storage market, commanding a 34.8% market share, corresponding to approximately USD 6.9 billion.
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Report Scope
| Market Value (2024) | USD 19.9 Billion |
| Forecast Revenue (2034) | USD 28.3 Billion |
| CAGR (2025-2034) | 3.6% |
| Segments Covered | By Product (Floating Roof, Open Top, Fixed Roof, Others), By Material (Steel, Concrete, Composite Materials, Fiberglass Reinforced Plastic, Polyethylene), By Capacity (Small (less than 10,000 barrels), Medium (10,000-100,000 barrels), Large (over 100,000 barrels)), By Application (Crude Oil, Middle Distillates, Gasoline, Aviation Fuel, Others) |
| Competitive Landscape | Vitol Tank Terminals International BV (VTTI), Koninklijke Vopak NV, Oiltanking GmbH, Buckeye Partners, L.P., Columbian Steel Tank, Anson, Ascent Industries, ElixirPro Engineering Solutions, ERGIL, Fisher Tank, LF Manufacturing |
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Key Market Segments
By Product Analysis
Floating roof tanks led the market in 2024, capturing a 56.2% share due to their superior safety features and minimal evaporation losses. Their effective vapor-control mechanisms reduce fire hazards, making them ideal for storing crude oil and petroleum products. These tanks also support compliance with stringent environmental regulations, driving their adoption. The trend toward prioritizing sustainability and operational efficiency is expected to sustain their dominance.
By Material Analysis
Steel held a 64.3% market share in 2024, driven by its strength, durability, and resistance to harsh environmental conditions. Steel tanks offer excellent corrosion and leak protection, making them a top choice for large-scale oil storage. Their ease of maintenance and repair minimizes operational downtime, enhancing their appeal. Steel is expected to remain the preferred material for oil storage in 2025 due to its reliability and cost-effectiveness.
By Capacity Analysis
Onshore storage facilities accounted for 54.8% of the market in 2024, attributed to their ability to handle large-scale storage capacities exceeding 100,000 barrels. These facilities are cost-efficient, with lower construction costs compared to offshore options and easier access for operations and maintenance. Onshore storage’s logistical simplicity and reliability ensure its continued dominance in 2025, driven by growing global demand for oil storage.
By Application Analysis
Crude oil storage held a 59.9% market share in 2024, fueled by high global consumption and the need for strategic reserves to ensure energy security. Large reserves help stabilize market prices amid supply and demand fluctuations, particularly during geopolitical tensions. With rising energy demands in emerging economies, crude oil storage is expected to maintain its leading position.
Regional Analysis
North America led the global oil storage market in 2024 with a 34.8% share, equivalent to USD 6.9 billion in revenue. This dominance is driven by a mature oil and gas ecosystem, supported by significant production from shale basins like the Permian and Eagle Ford.
The United States’ Strategic Petroleum Reserve (SPR), with a capacity of 727 million barrels and 403 million barrels in stock as of July 2025, underscores the region’s energy resilience. Key storage hubs, such as Cushing, Oklahoma (over 90 million barrels) and the Louisiana Offshore Oil Port (LOOP) with 50 million barrels in salt-dome caverns, further strengthen North America’s position.
Top Use Cases
- Strategic Petroleum Reserves: Countries store crude oil in large facilities to ensure energy security during supply disruptions or price spikes. These reserves, like underground caverns or tanks, act as a buffer against geopolitical tensions or natural disasters, maintaining a stable fuel supply for industries and consumers.
- Price Arbitrage: Companies store oil when prices are low to sell later at higher prices. This strategy uses tanks or floating storage to hold crude or refined products, helping traders and refiners maximize profits by timing sales with favorable market conditions.
- Refinery Operations Support: Oil storage facilities near refineries hold crude oil and refined products like gasoline or diesel. They ensure a steady supply for processing, manage production fluctuations, and support efficient distribution to meet consumer and industrial demands.
- Emergency Supply Management: Storage systems provide backup oil during unexpected events like pipeline failures or hurricanes. Large onshore or offshore tanks maintain fuel availability, ensuring critical sectors like transportation and healthcare operate without interruptions during crises.
- Regulatory Compliance and Safety: Advanced storage tanks, like floating roof designs, reduce evaporation and emissions to meet environmental regulations. They enhance safety by minimizing fire risks and use IoT sensors for real-time monitoring, ensuring compliance and operational efficiency.
Recent Developments
1. Vitol Tank Terminals International BV (VTTI)
VTTI, a subsidiary of Vitol, has been expanding its global storage capacity, particularly in Asia and the Middle East. Recently, the company completed upgrades at its Banyan Terminal in Singapore, enhancing its ability to handle biofuels and clean petroleum products. VTTI is also investing in digitalization to improve terminal efficiency and safety.
2. Koninklijke Vopak NV
Vopak is focusing on energy transition by expanding its LNG and hydrogen storage infrastructure. The company recently acquired a stake in Germany’s hydrogen storage project and is developing new terminals in Singapore and China. Vopak also divested some non-core oil storage assets to prioritize sustainable energy solutions.
3. Oiltanking GmbH
Oiltanking, a Mabanaft subsidiary, has been expanding its storage footprint in key hubs like Houston and the UAE. The company recently partnered with ADNOC to develop new storage facilities in Fujairah. Additionally, Oiltanking is enhancing automation and safety measures across its terminals.
4. Buckeye Partners, L.P.
Buckeye has been investing in renewable fuel storage, including biodiesel and renewable diesel, at its terminals in the U.S. and Caribbean. The company recently expanded its Bahamas Hub (BORCO) and is integrating digital tracking systems for better inventory management.
5. Columbian Steel Tank
Columbian Steel Tank specializes in manufacturing storage tanks for oil and chemicals. Recently, the company has seen increased demand for modular and customized tank solutions, particularly for biofuels. They are also focusing on eco-friendly coatings to extend tank lifespans.
Conclusion
The Oil Storage Market is vital for global energy stability, driven by the need for energy security, price management, and efficient supply chains. With growing demand for crude and refined products, advanced storage technologies and strategic reserves are critical. The market is expected to grow steadily, supported by investments in infrastructure and smart systems, ensuring resilience against disruptions.
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