Liquefied Natural Gas (LNG) Market Analysis North America, Middle East and Africa, Europe, APAC, South America - US, Russia, China, Iran, Saudi Arabia - Size and Forecast 2024-2028

Liquefied Natural Gas Market Size 2024-2028

The liquefied natural gas market is estimated to grow by USD 21.9 billion at a CAGR of 6.8% between 2023 and 2028. The market is experiencing significant growth, driven by several key factors. Firstly, there has been a notable increase in LNG production, particularly in countries like Qatar, Russia, and Australia. Secondly, the demand for LNG bunkering is surging, as more shipping companies turn to cleaner fuel sources to reduce emissions. Additionally, fluctuations in global oil and Natural gas prices continue to impact the LNG market, with price volatility leading to both opportunities and challenges for market participants. LNG is used for Power Generation in Gas Power Plants, reducing Greenhouse Gas Emissions compared to traditional coal-fired power plants. The LNG industry is expected to continue its expansion in the coming years, driven by these trends and the growing demand for cleaner energy sources.

What will be the size of the Market During the Forecast Period?

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Market Dynamics

Liquefied Natural Gas (LNG) is a clean, odorless, colorless liquid derived from natural gas through the liquefaction process. It is a valuable alternative to traditional energy sources like Coal and oil for Electric Power generation, especially in the context of Distributed Power and Utility Projects. LNG is an essential part of the Energy Mix, providing energy security by diversifying Supply sources. The LNG market is significant in Power Generation, with LNG terminals and Import capacities playing a crucial role in its transportation. LNG is an effective replacement for Petrol and Diesel in certain applications. The Liquefaction process cools natural gas to -162 degrees Celsius, enabling its transportation via tankers to receiving terminals. The LNG industry's environmental footprint is relatively low compared to Coal and oil, with lower CO2 emissions and minimal air pollution. LNG's role in the Energy sector is increasingly important as countries transition to Clean Energy Sources. The Regasification process converts LNG back into its gaseous state for distribution through pipelines to domestic consumers. The LNG market's growth is influenced by various factors, including the availability of Natural Gas, the cost of alternative fuels, and government policies promoting energy efficiency and reducing carbon emissions.

Key Market Driver

The increase in LNG production is notably driving market growth. Natural gas is one of the fastest-growing fossil fuels due to the development of worldwide supplies of coalbed methane, shale gas, and tight gas. As a result, the amount of unconventional resources will significantly expand for the global oil and gas business.

The US has been successfully extracting shale oil and gas since 2008, which has increased its availability worldwide. The Permian Basin has dominated shale gas production in the US; by 2025, output there is predicted to double. Additionally, it is anticipated that over half of the additional natural gas generated in the US will be transformed into LNG for export to nations whose domestic natural gas production is nonexistent or insufficient to meet demand. Hence, the increase in production has led to a rise in production, which is likely to boost the growth of the market during the forecast period.

Significant Market Trend

Commoditization of LNG is the key trend in the market. As the variety of producers and consumers grows, so does the number of floating liquefaction and regasification plants and the liquidity of tradeable LNG, which results in the commoditization of LNG. As a result, the market will eventually evolve into one that is more open, effective, and liquid. Such programs encourage digitalization and boost openness in the oil and gas sector. 

LNG has become a commodity on a global scale, opening up new opportunities for stakeholders. Reduced LNG costs have encouraged its use, accelerating the ongoing switch from coal to natural gas. The commoditization of LNG has increased LNG trading activities and benefitted vendors. Therefore, the enhanced interconnectivity and flexibility of trading and the emergence of a more transparent and competitive marketplace are expected to have a positive impact on the global market during the forecast period.

Major Market challenge

The rising adoption of renewable energy sources is the major challenge impeding market growth. Geothermal, wind, solar, biomass, and landfill trash are all examples of renewable energy sources. Due to changes in policy, there is now much more demand for capturing renewable energy sources like solar, wind, and hydropower. For example, the EU has set a goal to generate 35% of its electricity from renewable sources by 2030. In the EU, 80% of all new capacity is anticipated to come from renewable sources between 2020 and 2030.

In addition, wind energy is anticipated to surpass all other sources of electricity around 2030, largely due to the EU countries' rapid expansion of onshore and offshore wind farms. This, therefore, shows that the emphasis in energy generation has shifted to renewable energy sources. Hence, the increased adoption of renewable sources of energy is expected to lead to a decline in the use of fossil fuels.

Key Market Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.

Customer Landscape

Who are the Major Market Players?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Bechtel Corp. - The company offers liquefied natural gas solutions such as integrated EPC, and hydrocarbon technology liquefaction as its key offerings. Additionally, through the nuclear, security, and environment segment, the company includes chemical weapons demilitarization projects, missile defense infrastructure, design commissioning for NASA, scientific and national security facility operations, and commercial and US operations.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, including:

• Exxon Mobil Corp.
• Fluor Corp.
• Freeport LNG Development LP
• Gasum Oy
• INPEX Corp.
• PAO NOVATEK
• PetroChina Co. Ltd.
• Qatargas Operating Co. Ltd.
• SEFE Energy Ltd.
• Sempra Energy
• TechnipFMC plc
• TotalEnergies SE
• Shell plc
• Chevron Corp.
• BP Plc

Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.

Market Segmentation

The market share growth of the power segment will be significant during the forecast period. Many coal-dependent nations, including China, are switching to natural gas for electricity generation as the focus on improving air quality intensifies. Additionally, the heavy reliance on coal during times of peak electricity demand causes the plant to age and shortens its overall lifespan. This, on the other hand, is not affected by this issue.

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The power segment was valued at USD 17.30 billion in 2018. The current industrial shift from conventional to unconventional resources has increased the demand in the power sector due to the abundant supply of these resources. As a result, several new power plants that run on natural gas, including LNG, are being set up. This will facilitate segment growth during the forecast period.

Key Region

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Europe is estimated to contribute 29% to the growth of the global market during the forecast period. Another region offering significant growth opportunities to companies is North America. Technavio's analysts have elaborately explained the regional market trends and drivers that shape the market during the forecast period. The US, Canada, and Mexico are among the nations in North America that use LNG. The main cause of the growing demand for natural gas in the US has been the switch from coal to gas in the power generation industry. The competitive pricing for industrial uses has also increased demand for it. Since it makes up a significant portion of the primary energy usage in these nations, Mexico is incredibly dependent on it.

Additionally, according to the IEA, despite the increased domestic demand, more than half of the increased production is likely to be exported in the form of LNG. To achieve this, the US is installing several new liquefaction facilities and is likely to emerge as one of the largest LNG producers globally by the end of the forecast period. Consequently, the export capacity of the US will significantly increase, which, in turn, will boost the growth of the global market in North America during the forecast period.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• End-user Outlook
  • Power
  • Industry
  • Others

• Region Outlook
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • North America
    • The U.S.
    • Canada
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • APAC
    • China
    • India
  • South America
    • Brazil
    • Argentina

Market Analyst Overview

Liquefied Natural Gas (LNG) is a clean energy source that is odorless and colorless, making it an ideal choice for various applications. The LNG market is significant in the context of Electric Power generation, particularly in Distributed Power and Utility Projects, where it competes with Coal and Renewable Energy in the Energy Mix. In the Transportation sector, LNG is used as a fuel for vehicles, providing an alternative to Petrol and Diesel. The Liquefaction process cools natural gas to -162 degrees Celsius, making it possible for transportation via tankers and pipelines. LNG is also used in the Mining Industry, Food Processing, and Construction products industries. The LNG market is driven by the increasing demand for clean energy sources and the availability of Shale Gas Reserves.

Further, the Liquefaction process and Regasification process are crucial in the LNG value chain, enabling the export of Natural Gas as LNG and its transportation to countries without direct access to natural gas pipelines. The LNG market also includes the development of Liquefaction plants and the expansion of Liquefaction capacity to meet the growing demand. The LNG market is used in Industrial and mining applications, particularly in Commercial and Industrial Boilers, and in the production of Petrochemicals. LNG is also used in City gas distribution networks and in the pipeline infrastructure for Natural Gas exports. The growth of the LNG market is expected to continue, driven by the need for Sustainable Energy and the reduction of Greenhouse Gas Emissions.

Liquefied Natural Gas (LNG) is a vital alternative fuel, cooling natural gas to -162 degrees Celsius for transportation. It bridges the gap between traditional gas pipeline infrastructure and transportation sectors, providing a solution for heavy duty vehicles, road transport emissions, marine vessels, and even dairy product cooling. LNG is an increasingly popular diesel substitution for commercial boilers and industrial processes, reducing greenhouse gas emissions and contributing to climate commitments.

Floating and land-based terminals facilitate LNG's distribution, allowing it to reach markets previously inaccessible by pipeline. With the shale gas revolution, LNG has become a competitive alternative to compressed natural gas, gasoline, and heavy duty trucks. Emissions regulations and geopolitical tensions continue to drive demand for LNG as a bridging fuel towards renewables. However, methane emissions from LNG production and transportation must be addressed through emission reduction frameworks.

Gas sale agreements ensure a stable supply of LNG for power generation, domestic gas distribution, and industrial applications. LNG is a versatile fuel, serving as a critical alternative for transportation, heavy industry, and electricity generation, while contributing to emission reductions and climate goals.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2028.
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market's competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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