Impact of COVID-19 on the Global Cryogenic Equipment Market
The COVID-19 pandemic has affected the profitability of businesses in almost industries. Various regions, including Europe, have been heavily impacted, recording all-time low electricity prices in the first quarter of FY’2020. Moreover, due to the severity of the outbreak, industries are focusing only on essential work, leading to a pause on industrial component installations. Manufacturers of these components are facing several issues related to order completions due to global lockdown. The slowdown in the operations of various industries, including energy & power, metallurgy, chemicals, electronics, shipping, food & beverage, healthcare, and rail transport, has impacted the installation of cryogenic equipment as well. However, to combat the COVID-19 outbreak, many manufacturing units in India and other countries across Asia-Pacific are engaged in producing several healthcare products, including high-quality personal protection equipment (PPE) kits for emergency services. For instance, VRA Asia Pacific, a company engaged in designing and manufacturing cryogenic equipment, is producing superior quality liquid cylinders and storage tanks for storing liquid oxygen.
FIGURE: LNG IMPORT, BY REGION, 2018 (BILLION CUBIC METERS)
Moreover, COVID-19 has disrupted the supply of oxygen cylinders in India, as production has been halted in various parts of the country. However, on 4th April 2020, the Union Ministry of Health directed all states and union territories to maintain adequate oxygen suppliers. On the other hand, in Italy, the daily consumption of oxygen in hospitals has more than tripled during the pandemic as the number of patients needing ventilators and other forms of supplemental oxygen has significantly increased. These factors have created an opportunity for the cryogenic equipment manufacturers to revive some of their production operations. Recently, in the UK, one of the major hospitals in London came close to exhausting its oxygen supply, resulting in an urgent need for oxygen cylinders. This urgent requirement for cryogenic cylinders is ultimately boosting the cryogenic equipment market, thereby increasing the production and installation of these equipment.
Source: Primary Experts, Secondary Sources, and MRFR Analysis
Source: Secondary Sources