CAGR: 14.4%Current Market Size: USD 7.04 BillionFastest Growing Region: North America
Largest Market: APACProjection Time: 2022-2029Base Year: 2021
The Global Small-Scale Liquefied Natural Gas (LNG) Market is expected to grow from USD 7.04 Billion in 2021 to USD 20.65 Billion by 2029, at a CAGR of 14.4% during the Projection period 2022-2029. The need for greener and cleaner fuels is rising, and liquefied natural gas (LNG) is becoming a more popular ship fuel than heavy fuel oil, marine gas oil, and diesel oil.
Liquefied natural gas (LNG) produced on a small scale is processed in industrial facilities with constrained capacities. After being cooled to incredibly low temperatures, the gas is changed into an odorless, colorless liquid that can be re-gasified for various uses. Small-scale LNG is frequently used to satisfy off-grid power generating needs in remote industrial and residential complexes since it is more environmentally friendly than oil and diesel. Additionally, it is widely used as a heating fuel, an industrial feedstock, and a transportation fuel in the industrial, commercial, and residential sectors. Since liquefied natural gas (LNG) has complete combustion and produces fewer carbon emissions than previously used fuel sources, there has been a significant transition in recent years. The Energy Information Administration reports that in 2016, natural gas eclipsed coal as the most popular way to generate energy in the United States. As a result of this continuing during the projection period and the anticipated increase in the nation's power demand, gas power plants would be improved, further increasing the demand for LNG. Small-scale LNG production and distribution are typically understood to cover everything from liquefaction plants down to regasification units. Anything in the LNG sector more minor than the standard sizes used now falls within the term. To meet off-grid demand and expand markets that are too small for regular suppliers, small-scale LNG is frequently deployed. LNG can be transported in smaller volumes for power in developing markets. Small-scale businesses also provide transportation-related services to the rail, trucking, and maritime industries.
Sample Request: - Global Small-Scale Liquefied Natural Gas (LNG) Market
Market Dynamics:
Drivers:
The increasing demand for energy sources that are both economical and efficient in terms of energy use is one of the main factors fueling the market's expansion. Additionally, the product's widespread acceptance in transportation is accelerating market expansion. The requirement for liquefied natural gas has increased due to the rising energy demand, leading to more LNG being produced. As a result of government initiatives to boost rural electrification and the abundance of distant places without electricity, demand for liquefied natural gas has surged. The market for small-scale liquefied natural gas will continue to grow steadily due to the quick industrialization and high demand for natural gas as a transportation fuel. Additionally, the drop in natural gas prices and fluctuation in crude oil prices was brought on by the overproduction of crude oil.
Restraints:
The pricey supply chain will hamper the expansion of the small-scale liquefied natural gas (LNG) business. Additionally, the small-scale liquefied natural gas (LNG) industry would suffer from the high per-KG operating costs compared to mid-size LNG and large-size LNG.
Opportunities:
In addition, over the Projection period of 2022–2029, the market players will benefit from the incorporation of new technology, rising investments, and the adoption of favorable government policies encouraging the use of liquefied natural gas (LNG). The future expansion of the small-scale liquefied natural gas (LNG) market will also be aided by the ease with which small-scale reserve sites can be established.
Challenges
As a result, this will hinder the growth rate of the small-scale liquefied natural gas (LNG) market. Additionally, the worldwide small-scale liquefied natural gas (LNG) industry is anticipated to have slow growth due to the depletion of natural resources.
Segmentation Analysis:
The global small-scale liquefied natural gas (LNG) Market has been segmented based on type, mode of supply, storage tank capacity, application, and regions.
By Type
The type segment includes the Liquefaction Terminal and Regasification Terminal. The liquefaction terminal segment led the largest share of the Small-Scale Liquefied Natural Gas (LNG) Market with a market share of around 60.2% in 2021. The three firms with the highest small-scale LNG liquefaction capabilities globally throughout the Projection period are Fortress Investment Group, Gazprom, and Shaanxi Gas Group Co Ltd. By 2023; these will have 4,240, 2,050, and 1,400 ktpa, respectively. By 2023, the proposed and announced facilities Browntown and Browntown II in the US are expected to have the largest small-scale LNG liquefaction capacities worldwide, each with 2,120 ktpa, followed by Portovaya in Russia with 1,500 ktpa.
By Mode of Supply
The mode of supply segment includes Trucks, Shipment and Bunkering, Rail Tanks, pipelines, and Others. The shipment and bunkering segment led the Small-Scale Liquefied Natural Gas (LNG) Market with a market share of around 32.5% in 2021. The most popular type of mode of supply is shipment and bunkering. Ships are mostly used in the transportation process, which increases this segment.
By Application
The application segment includes Transportation, Heavy-Duty Vehicles, Industrial and Power, and Others. The transportation segment led the Small-Scale Liquefied Natural Gas (LNG) Market with a market share of around 37.9% in 2021. Most often, small-scale liquefied natural gas is utilized for transportation. It is the most used fuel in ships, and as we know, ships are widely used for transportation from one country to another.
By Regional Analysis:
The regions analyzed for the Small-Scale Liquefied Natural Gas (LNG) Market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The Asia - Pacific region dominated the Small-Scale Liquefied Natural Gas (LNG) Market and held a 39.2% share of the market revenue in 2021.
Country Analysis:
Germany's Small-Scale Liquefied Natural Gas (LNG) Market size was valued at USD 0.24 billion in 2021 and is expected to reach USD 0.67 billion by 2029, at a CAGR of 13.8% from 2022 to 2029. Germany has one of the leading small scare liquefied gas in Europe. In addition, Germany's transportation sector is the country's most innovative industry, which boosts the demand for transportation for several kinds of stuff.
China Small-Scale Liquefied Natural Gas (LNG) Market size was valued at USD 0.53 billion in 2021 and is expected to reach USD 1.65 billion by 2029, at a CAGR of 15.3% from 2022 to 2029. China's growing population and improved standard of living have boosted the demand for small-scale liquefied natural gas. One of the main factors contributing to China's growing liquefied natural gas use is its growing population, which also boosts demand for small-scale Liquefied Natural Gas (LNG).
India's Small-Scale Liquefied Natural Gas (LNG) Market size was valued at USD 0.51 billion in 2021 and is expected to reach USD 1.54 billion by 2029, at a CAGR of 14.9% from 2022 to 2029. India is one of the strongest growing economies in Asia. The factors, including increasing population, increasing disposable income, and changing lifestyles, have driven the growth of the Indian Small-Scale Liquefied Natural Gas (LNG) Market. The need for liquefied natural gas to maintain the growth of the economy and market is driven by the region's expanding transportation market, fueling the market for small-scale liquefied natural gas.
Key Industry Players Analysis:
To increase their market position in the global Small-Scale Liquefied Natural Gas (LNG) business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2021-2029 |
Base year |
2021 |
CAGR (%) |
14.4% |
Market Size |
7.04 Billion 2021 |
Projection period |
2022-2029 |
Projection unit |
Value (USD) |
Segments covered |
By Type, By Mode of Supply, By Storage tank Capacity, By Application |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
Gazprom, Engie, Honeywell International Inc., Wärtsilä, Linde plc, Gasum Ltd., IHI Corporation, Excelerate Energy L.P, Prometheus Fuels, Cryostar, General Electric, Novatek, Engie, NYK Line, Mitsui O.S.K.Lines, Teekay Corporation, Hyundai Heavy Industries Co., Ltd., Kawasaki Heavy Industries, Ltd., and among others. |
By Type |
|
By Mode of Supply |
|
By Storage tank Capacity |
|
By Application |
|
Regional scope |
|
Scope of the Report
Global Small-Scale Liquefied Natural Gas (LNG) Market by Type:
Global Small-Scale Liquefied Natural Gas (LNG) Market by Mode of Supply:
Global Small-Scale Liquefied Natural Gas (LNG) Market by Storage tank Capacity:
Global Small-Scale Liquefied Natural Gas (LNG) Market by Application:
Global Small-Scale Liquefied Natural Gas (LNG) Market by Region:
The estimated CAGR value of the global Small-Scale Liquefied Natural Gas (LNG) Market was 14.4%.
Global Small-Scale Liquefied Natural Gas (LNG) Market size was USD 7.04 billion in 2021.
Leading market players active in the global Small-Scale Liquefied Natural Gas (LNG) Market are Gazprom, Engie, Honeywell International Inc., Wärtsilä, Linde plc, Gasum Ltd., IHI Corporation, Excelerate Energy L.P, Prometheus Fuels, Cryostar, General Electric, Novatek, Engie, NYK Line, Mitsui O.S.K.Lines, Teekay Corporation, Hyundai Heavy Industries Co., Ltd., Kawasaki Heavy Industries, Ltd., and among others.
The need for greener and cleaner fuels is rising, and liquefied natural gas (LNG) is becoming a more popular ship fuel than heavy fuel oil, marine gas oil, and diesel oil around the globe are projected to influence the market in the upcoming years.
Based on the company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, and application dominance the companies are selected.
Political Factors- Sadly, politics significantly impact the oil and gas industry. As a planet that burns fossil fuels, the world strongly depends on the price and supply of oil, which significantly impacts both. Politically, this may lead to several international tensions. The oil and gas business is significantly influenced by governments as well. This is because it can control this asset and make enormous profits, especially if it is produced locally. Many nations will maintain control over this asset through legal frameworks, contract enforcement, pricing restrictions, taxes, and industrial safety. None can have a more significant negative impact on the environment than the oil and gas production and the usage of the byproduct that currently drives our industry and automobiles.
Economical Factors- The relationship between the petroleum sector and the world economy is quite significant, resulting in a lot of interaction between the two. It is well known that rising global economic activity supports an increase in oil and gas consumption worldwide. In addition, it should be noted that oil price is closely related to supply and demand, just like with other modern commodities. The following economic concerns should also worry the oil and gas sector since they have the potential to have an impact on the world economy such as the global economic crisis, over debt public and private sectors in many countries of OECD, and the failure of the major commercial banks as a result of their substantial investment in risky financial products like derivatives. The cost of oil and gas is the main determinant of whether a reserve is commercially viable. The cost of extraction from unconventional and offshore oil and gas fields is the greatest.
Social Factor- Migration, culture, religion, demography, income, and ideological perspectives on a topic are all variables taken into account for social factors affecting the small-scale liquefied natural gas market. Following are a few contemporary social trends and viewpoints that could have a big impact on the oil industry, such as limiting the use of "dirty" fossil fuels, including oil sands, coal, and shale gas, and raising awareness of and attention to more environmentally friendly fuels, Natural gas is considered the cleanest fuel among the fossil fuels, and Up to 2040, the world will consume more oil and gas as a result of population growth.
Technological Factors- It is obvious that the renewable industry and industrial (including the MOD) are seeking contractors outside of their usual "go to" organizations to secure more Commercial Off Shelf (COTS) equipment as my organization pursues employment outside of the typical Oil and Gas industry. Technology advances so quickly can affect the structure's competitiveness, affecting demand and the pricing structure down the road. It's critical for ONGC to consistently innovate and position its product as a need rather than a want to maintain market dominance over the long term. Other technological macroeconomic factors that could significantly impact the company's operations include acceptance of various mobile payment methods or modes, investment in research and development to be ready to benefit from new technology as a first mover advantage, digital drives and transparency, and ease of operations.
Environmental Factors- It is legal for each government to alter the national taxes levied on oil and gas income. Oil and gas businesses may encounter several issues if the government raises these taxes, including declining profitability, the impossibility of major oil and gas projects, and significant ramifications for their long-term company strategic and economic planning. Finally, it should be noted that the recent environmental trends toward lowering CO2 emissions, decreasing the use of fossil fuels in the global energy mix, and increasing the use of renewable energy sources can impact the entire world's oil and gas business.
Legal Factors- Safety is always at the top of the legal agenda. The small-scale LNG sector has traditionally placed a high priority on security. This is clear from my company's protracted design process while creating engineering solutions. This can take a long time before the initial "components" are constructed or made. This can be very frustrating for many clients (non-engineers) who frequently question the timelines. Despite this, there are still more effective ways to give a client access to this part of a service. Collaborations and other businesses can help develop a solution for product safety; this does not always have to be done in-house. This delivery method will be used for my project.
List of Table
List of Figures