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The LNG-as-a-fuel market share is expected to increase to USD 59.22 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 5.45%.
This LNG-as-a-fuel market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers LNG-as-a-fuel market segmentation by end-user (power generation, transportation, and others) and geography (APAC, Europe, North America, South America, and Middle East and Africa).
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The LNG-as-a-fuel market report also offers information on several market vendors, including BP Plc, Cheniere Energy Inc., Chevron Corp., China Petroleum and Chemical Corp., Equinor ASA, Exxon Mobil Corp., Freeport LNG Development LP, Gazprom, Indian Oil Corp. Ltd., INPEX Corp., Linde Inc., PAO NOVATEK, Petroliam Nasional Berhad, Porsche Automobil Holding SE, PT Pertamina(Persero), Qatargas Operating Co. Ltd., Royal Dutch Shell Plc, SK Inc., and TotalEnergies SE among others.
Technavio categorizes the global LNG-as-a-fuel market as a part of the global oil and gas storage and transportation market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the LNG-as-a-fuel market during the forecast period.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the LNG-as-a-fuel market encompasses successful business strategies deployed by the key vendors. The LNG-as-a-fuel market is fragmented and the vendors are deploying growth strategies such as improving liquefaction capacity to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The LNG-as-a-fuel market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
The rise in demand for cleaner fuels is notably driving the LNG-as-a-fuel market growth, although factors such as rising adoption of renewable energy sources may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the LNG-as-a-fuel industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key LNG-as-a-fuel Market Driver
One of the key factors driving the global LNG-as-a-fuel industry growth is the rise in demand for cleaner fuels. According to the IEA, in 2021, global energy-related CO2 emissions increased by 4.8% after witnessing a consecutive year of decline in CO2 emissions globally in 2020. Thus, various regulations are being enforced by countries to reduce emissions. For instance, the Climate Change Act, which was introduced in 2008 in the EU, aims at reducing carbon emissions. The objective of this act is to reduce GHG emissions by 80% by 2050 over the GHG emissions levels in 1990. In addition, various vendors are expanding gas pipeline networks. For instance, in December 2021, Saudi Aramco signed a USD 15.5 billion lease and leaseback deal for its gas pipeline network with a consortium led by BlackRock Real Assets and Hassana Investment Company in its second major infrastructure deal year. Thus, the expansion of LNG pipelines will positively impact the market in focus during the forecast period.
Key LNG-as-a-fuel Market Trend
Growing use of floating liquefied natural gas (FLNG) vessels is one of the key LNG-as-a-fuel market trends that is expected to impact the industry positively in the forecast period. The use of FLNG technology allows underwater gas resources, which were difficult to obtain, to be exploited economically. Several vessels are expected to be commissioned during the forecast period. For instance;
The project represents the first of its kind in the country as well as the world's first ultra-deepwater FLNG operating at a depth of 2,000 meters. Thus, the various benefits of using FLNG vessels, such as shorter lead times than onshore liquefaction units, will further support the market growth in the coming years.
Key LNG-as-a-fuel Market Challenge
One of the key challenges to the global LNG-as-a-fuel industry growth is the rising adoption of renewable energy sources. According to the IEA, the demand for energy increased globally by 5% in 2021. The demand for new energy is largely being met through renewable sources of energy due to changes in policies. For instance;
Moreover, wind power is expected to become the leading source of electricity after 2030. Such factors will challenge the market growth during the forecast period.
This LNG-as-a-fuel market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
Our report provides extensive information on the value chain analysis for the LNG-as-a-fuel market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
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59% of the market's growth will originate from APAC during the forecast period. China, Japan, India, and Russia are the key markets for LNG-as-a-fuel in APAC. Market growth in this region will be faster than the growth of the market in other regions.
The significant increase in the demand for LNG from countries such as Japan, India, and Taiwan, owing to the demand-supply mismatch in power generation and energy resources from domestic production and the competitive pricing of LNG, will facilitate the LNG-as-a-fuel market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
The market in the region is witnessing certain challenges due to the outbreak of COVID-19. The outbreak has affected several countries in the region, such as China, India, South Korea, and Japan. It has also affected the supply chain of end-user industries, such as mobility and oil and gas, thereby affecting the region's economy. However, the region is gradually ramping up its economic activities and simultaneously vaccinating its population with the newly developed COVID-19 vaccines. Thus, the market is expected to witness a gradual recovery in the coming years.
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The LNG-as-a-fuel market share growth by the transportation segment will be significant during the forecast period. The use of LNG in the transportation sector is expected to increase in the coming years as more countries are focusing on expanding their dependence on LNG. For instance, as of January 2021, the Government of India announced plans to spend USD 60 billion in creating gas infrastructure till 2024, including pipelines, LNG terminals, and city gas distribution (CGD) networks.
This report provides an accurate prediction of the contribution of all the segments to the growth of the LNG-as-a-fuel market size and actionable market insights on post COVID-19 impact on each segment.
LNG-as-a-fuel Market Scope |
|
Report Coverage |
Details |
Page number |
120 |
Base year |
2021 |
Forecast period |
2022-2026 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.45% |
Market growth 2022-2026 |
$ 59.22 billion |
Market structure |
Fragmented |
YoY growth (%) |
4.91 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 59% |
Key consumer countries |
US, China, Japan, India, and Russia |
Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
Key companies profiled |
BP Plc, Cheniere Energy Inc., Chevron Corp., China Petroleum and Chemical Corp., Equinor ASA, Exxon Mobil Corp., Freeport LNG Development LP, Gazprom, Indian Oil Corp. Ltd., INPEX Corp., Linde Inc., PAO NOVATEK, Petroliam Nasional Berhad, Porsche Automobil Holding SE, PT Pertamina(Persero), Qatargas Operating Co. Ltd., Royal Dutch Shell Plc, SK Inc., and TotalEnergies SE |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by End-user
6 Customer Landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
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