Market Analysis and Insights
At a CAGR of XX% throughout the course of the forecast period, the size of the LNG Liquefaction Equipment Market is anticipated to increase from USD XX billion in 2023 to USD XX billion by 2031.
An ever-increasing need for LNG liquefaction equipment exists as a result of the rising global demand for energy. The usage of cleaner-burning fuels has come under more attention recently as a result of growing environmental concerns and restrictions around greenhouse horticulture emissions. in contrast to various fossil fuels. LNG is a preferred option for power generation since it produces less carbon dioxide and other dangerous pollutants. This is likely to have a sizable impact on the market for LNG liquefaction equipment soon.
Lng Liquefaction Equipment Market Scope :
| Metrics | Details |
| Base Year | 2023 |
| Historic Data | 2018-2022 |
| Forecast Period | 2024-2031 |
| Study Period | 2018-2031 |
| Forecast Unit | Value (USD) |
| Revenue forecast in 2031 | NA |
| Growth Rate | CAGR of NA during 2023-2031 |
| Segment Covered | by Type, By Application, by Region. |
| Regions Covered | North America, Europe, Asia Pacific, South America, Middle East and Africa |
| Key Players Profiled | General Electric, Liquefied Natural Gas Limited Chart Energy & Chemicals, Inc., Air Products and Chemicals, Inc., Atlas Copco Ltd, Srisen Energy Technology Co., Ltd, Wärtsilä Corporation, Mitsubishi Corporation, MITSUI & CO., LTD., IHI Corporation, The Linde Group, FIVES, Société Anonyme, and ConocoPhillips Company. |
Market Definition
LNG stands for liquefied natural gas, which has been refrigerated to a cryogenic temperature of - 161°C (-157°C). liquefied Natural gas may be liquefied to reduce its volume by a factor of roughly 600, which makes it easy and affordable to transport across long distances.
A series of synchronized pieces of equipment used to treat and liquefy natural gas make up an LNG train. Due to the increased demand for LNG as a fuel source in recent years, the global market for LNG liquefaction equipment has continuously grown.
Equipment for LNG liquefaction makes up to 30% of the total project cost for a liquefaction plant. In order to reduce costs, expand the capacity of LNG plants, and enhance plant efficiency, LNG liquefaction equipment has thus been a crucial sector that requires ongoing innovation and development.
One of the most important feedstocks in the world is natural gas, and as the market for LNG liquefaction equipment expands, so does the need for LNG as more people turn to renewable energy sources. The market for LNG liquefaction equipment offers both new and established players significant growth potential.
The global LNG Liquefaction Equipment market refers to the complex network of activities, transactions, and interactions involving the production, consumption, trading, and pricing of LNG Liquefaction Equipment and related products on a worldwide scale. It encompasses various stages of the LNG Liquefaction Equipment supply chain, from manufacturing, distribution, and applications in various regions of the world.
Key Market Segmentation
Insights on Type
Compressor Segment is Emerges as Most Lucrative
Heat Exchangers, compressors, and LNC Pumps, among others, are the types of equipment used in LNG liquefaction. The estimate indicates that the compressor sector will account for the biggest market share. Due to their numerous uses, compressors are predicted to be the most important piece of machinery used in LNG liquefaction plants. Over the course of the anticipated term, the heat exchanger category is predicted to experience significant growth as well. Heat exchangers are employed at various phases of the LNG liquefaction process due to their effectiveness in transferring heat across media.
Insights on Application
Large LNG Plants (Above 2.0 MTPA) have the Biggest Market Share
The market for LNG liquefaction equipment is divided into three application-based sectors, with Small LNG Plants (below 0.25 MTPA) being one of them. Medium-Scale LNG Plants (0.25 to 2.0 MTPA) and Large LNG Plants (above 2.0 MTPA). The largest market share is estimated to be held by large LNG facilities over the anticipated time frame. Due to their large production capacity, it is predicted that these plants would use the most LNG liquefaction equipment. A significant rise in the number of small LNG facilities is also anticipated throughout the projected time range. The increased demand for LNG across a variety of end-use sectors is expected to result in the construction of more small-scale LNG plants in the upcoming years.
Insights on Region
The APAC Region Accounted for the Highest Share
Asia-Pacific remained the world's top importer, accounting for 72% of all LNG imports in 2018 (up from 69% in 2019). Last year, Asian LNG imports increased by 7.7% to reach 371.8 billion cubic meters. In every nation in the Asia-Pacific region but for Malaysia, Singapore, India, and Japan, imports increased. With an annual growth rate of 16.8% and 109.5 billion cubic meters of LNG imported last year, China, the region's largest LNG importer, saw the highest rise in terms of import quantities. Governments have also established measures that encourage the use of natural gas, including a number of LNG projects. Furthermore, in February 2023, work on the Jiangsu Huadian Ganyu LNG terminal in Lianyungang, China's eastern Jiangsu province, commenced. With a proposed LNG reception capacity of 3 million mt/year, the project is included in both the 14th Five-Year Plan for the Province and the National Natural Gas Development Plan. The federal government has authorized the project as one of four LNG-receiving projects with a combined capacity of around 24 million metric tonnes annually for 2022. In light of the aforementioned facts, Asia-Pacific is anticipated to rule the worldwide LNG market during the forecast period.
Key Company Profiles
The competitive scenario within the global LNG Liquefaction Equipment market is depicted through a comprehensive analysis of rivals. This entails insights into the company’s profile, financial performance, revenue generation, market prospects, research and development investments, innovative endeavors, international footprint, manufacturing locations, production capabilities, corporate advantages and limitations, the introduction of new products, range, and diversity of products, and predominant applications. These mentioned data metrics specifically pertain to the strategic orientations of companies concerning the global LNG Liquefaction Equipment market.
Some key players in the global LNG Liquefaction Equipment market are General Electric, Liquefied Natural Gas Limited Chart Energy & Chemicals, Inc., Air Products and Chemicals, Inc., Atlas Copco Ltd, Srisen Energy Technology Co., Ltd, Wärtsilä Corporation, Mitsubishi Corporation, MITSUI & CO., LTD., IHI Corporation, The Linde Group, FIVES, Société Anonyme, and ConocoPhillips Company.
COVID-19 Impact and Market Status
The COVID-19 pandemic has had a weighty effect on the global LNG liquefaction equipment market. The implementation of lockdown measures by many governments throughout the world has significantly hampered the building of new liquefaction plants. Additionally, it is projected that the pandemic's impact on gas demand will have a direct impact on market expansion. Presently the production and distribution have already reached pre-pandemic status.
Latest Trends
Globally, industry and urbanization have increased significantly over the past ten years, which has led to an increase in greenhouse gases like carbon dioxide. Governments are persuading the use of natural gas for generating power and automobile fuel in order to lower carbon and greenhouse gas emissions into the atmosphere. In order to promote the use of CNG and LNG-powered automobiles, governments are creating a number of supportive policies, such as giving consumers and automakers financial aid and tax breaks. Over the past ten years, natural gas consumption has increased globally. The consumption of natural gas was approximately 3,319.4 billion cubic meters in 2012, and it is expected to increase by more than 21% to approximately 4,037.5 billion cubic meters in 2021.
The World LNG Report 2022 states that LNG linked 19 export markets and 40 importing nations. After adding 6.9 MTPA, the global liquefaction capacity reached 459.9 MTPA in 2021, down from 20 MTPA the year before. With 123.9 MTPA of proposed liquefaction now awaiting a final investment decision, Africa has enormous potential for LNG, which is important for the future of the continent. The liquefaction projects that went online in 2021 included PFLNG Dua (1.5 MTPA), Corpus Christi T3 (4.5 MTPA), and Yamal LNG T4 (0.9 MTPA).
Recent Developments in the Global LNG Liquefaction Equipment Market: A Snapshot
A floating LNG terminal in Odisha will be built by Petronet LNG by 2025 at a cost of USD 195 million, the company said in April 2022. Furthermore, Petronet plans to invest USD 73 million to increase the Dahej LNG import facility's capacity from its existing 17.5 million metric tonnes per year to 22.5 million metric tonnes per year.
The Port Arthur LNG Phase 1 project in Jefferson County, Texas, will be designed, built, and operated by Sempra Infrastructure Partners LP (Sempra Infrastructure), of which it owns 70%. Sempra claims that this decision was taken in March 2023.
Significant Growth Factors
Liquefied natural gas is often recognized as a safe, reliable, and useful energy source. Due to easier transportation and expanded storage options, liquefaction procedures have expanded in variety in recent years. Because of the rising need for energy and the desire to reduce emissions, it is anticipated that LNG consumption would expand considerably over the course of the projected period.
Businesses are developing smaller, floating liquefaction trains. The development of sizable onshore liquefaction and regasification terminals, coupled with increased exploration and production from unconventional oil and liquids-rich basins such as tight gas, shale, and CBM, are major factors driving the growth of the global market for LNG liquefaction equipment.
Restraining Factors
Consequently, it is projected that a rise in demand will cause the market for LNG liquefaction equipment to expand significantly. The high installation and operating expenses of the equipment, however, limit the market growth for LNG liquefaction technology.
The low price of crude oil has also forced many Explorations and Production (E&P) businesses to cut costs, which has slowed the expansion of the worldwide LNG liquefaction equipment market. Key businesses are concentrating their efforts on creating novel concepts and cutting-edge practices in order to boost output, efficiency, and cost reduction.
Key Segments of the Global LNG Liquefaction Equipment Market
Type Overview
• Heat Exchanger
• Compressor
• LNG Pump
• Others
Application Overview
• Small LNG Plants (Below 0.25 MTPA)
• Mid-Scale LNG Plants (0.25 to 2.0 MTPA)
• Large LNG Plants (Above 2.0 MTPA)
Regional Overview
North America
• U.S.
• Canada
• Mexico
Europe
• Germany
• France
• U.K.
• Spain
• Italy
• Russia
• Rest of Europe
Asia Pacific
• China
• Japan
• India
• South Korea
• ASEAN
• Australia
• Rest of Asia Pacific
Middle East & Africa
• Saudi Arabia
• UAE
• South Africa
• Egypt
• Ghana
• Rest of MEA
Latin America
• Brazil
• Argentina
• Colombia
• Rest of Latin America
Frequently Asked Questions (FAQ) :
The global LNG Liquefaction Equipment market size is expected to reach NA 2031.
The LNG Liquefaction Equipment market is estimated to grow at a CAGR of NA
Key companies covered in the LNG Liquefaction Equipment market are General Electric, Liquefied Natural Gas Limited Chart Energy & Chemicals, Inc., Air Products and Chemicals, Inc., Atlas Copco Ltd, Srisen Energy Technology Co., Ltd, Wärtsilä Corporation, Mitsubishi Corporation, MITSUI & CO., LTD., IHI Corporation, The Linde Group, FIVES, Société Anonyme, and ConocoPhillips Company.