Micro Liquefied Natural Gas (LNG) market is projected to grow at a CAGR of 12.7% by 2034: Visiongain
Visiongain has published a new report entitled Micro Liquefied Natural Gas (LNG) Market Report 2024-2034: Forecasts by Type (On-site Liquefaction, Off-site Liquefaction), by Storage Type (Ambient, High-Pressure, Other), by System (Skid-Mounted, Trailer-Mounted, ISO Containers, LNG Trucks and Trailers, Other), by Application (Off-Grid Power Plants, Remote Communities, Transportation, Industrial & Manufacturing, Marine Fuel, Other) AND Regional and Leading National Market Analysis PLUS Analysis of Leading Companies AND COVID-19 Impact and Recovery Pattern Analysis.
The global micro liquefied natural gas (LNG) market was valued at US$4,201.0 million in 2023 and is projected to grow at a CAGR of 12.7% during the forecast period 2024-2034.
Increased Demand for LNG-Powered Vehicles
The growing demand for cleaner transportation fuels has significantly bolstered the micro LNG market. LNG-powered vehicles present an environmentally friendly alternative to traditional fossil fuels. Their reduced emissions and cost-effectiveness have led to an upsurge in demand, making micro LNG an essential player in the transportation sector. Companies like Shell have recognized this trend, establishing LNG refuelling stations across Europe, facilitating the transition to LNG-powered trucks and buses.
Shift from Coal to Natural Gas
Many regions globally are transitioning from coal to natural gas for power generation. Micro LNG facilitates this shift efficiently, offering a cleaner substitute for coal-based energy. Its flexibility allows for seamless integration into existing energy infrastructures. China, in particular, has capitalized on this shift, with micro LNG projects aiding in the country’s substantial reduction in coal dependency, contributing significantly to improved air quality and reduced emissions.
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How has COVID-19 had a significant negative impact on the Micro Liquefied Natural Gas (LNG) Market?
The COVID-19 pandemic has had a notable impact on the micro LNG market. At the onset of the pandemic, global economic disruptions, travel restrictions, and lockdown measures brought about uncertainty in energy demand. These circumstances initially led to a decline in the use of micro LNG for various applications, such as transportation and industrial processes. Reduced economic activity and energy consumption in some regions temporarily affected the growth of the micro LNG market.
However, the pandemic also highlighted the resilience and adaptability of micro LNG solutions. As the energy industry sought cleaner and more sustainable alternatives, the use of LNG as a transportation fuel gained momentum due to its lower carbon emissions. Micro LNG infrastructure, particularly for off-grid power generation and remote communities, proved invaluable during times of crisis, offering a reliable energy source independent of centralized grids. Furthermore, the decentralized nature of micro LNG facilities made them well-suited to providing energy in areas with limited access to conventional energy sources.
Looking forward, the micro LNG market is poised for recovery and growth. The pandemic has reinforced the importance of energy diversification and security, spurring increased interest in decentralized and cleaner energy solutions. As the global economy rebounds, micro LNG is expected to play a vital role in meeting the energy needs of a changing world, emphasizing its significance in ensuring energy reliability, accessibility, and sustainability.
How will this Report Benefit you?
Visiongain’s 368-page report provides 122 tables and 176 charts/graphs. Our new study is suitable for anyone requiring commercial, in-depth analyses for the global micro liquefied natural gas (LNG) market, along with detailed segment analysis in the market. Our new study will help you evaluate the overall global and regional market for Micro Liquefied Natural Gas (LNG). Get financial analysis of the overall market and different segments including type, storage type, system, and application and capture higher market share. We believe that there are strong opportunities in this fast-growing micro liquefied natural gas (LNG) market. See how to use the existing and upcoming opportunities in this market to gain revenue benefits in the near future. Moreover, the report will help you to improve your strategic decision-making, allowing you to frame growth strategies, reinforce the analysis of other market players, and maximise the productivity of the company.
What are the Current Market Drivers?
Governments in Many Countries are Providing Regulatory Support for the Development of LNG Infrastructure
the micro LNG market has seen significant growth, thanks in large part to the proactive role played by governments in numerous countries. Various governments have recognized the environmental and economic advantages of transitioning to cleaner energy sources like liquefied natural gas (LNG). To encourage the development of the micro LNG sector, governments have implemented supportive regulatory frameworks. These regulations often include incentives, subsidies, and favorable policies that make it easier for businesses to invest in micro LNG infrastructure. By doing so, governments aim to reduce greenhouse gas emissions, improve energy security, and boost economic growth in their respective regions. These measures have significantly propelled the growth of the micro LNG market, creating a conducive environment for investment and expansion.
Reduction in the Prices of Natural Gas Driving the Market Growth
One of the most significant drivers behind the growth of the micro LNG market is the consistent reduction in natural gas prices. Over the past several years, advancements in natural gas extraction technologies, particularly the shale gas revolution, have significantly increased the global supply of natural gas. This surplus has led to a notable decrease in natural gas prices, making LNG more economically competitive when compared to other fossil fuels. Lower natural gas prices have improved the cost-effectiveness of the entire LNG value chain, from production to distribution. As a result, businesses and industries are increasingly turning to micro LNG solutions as a more affordable and environmentally friendly energy source. This has led to a surge in investments and the rapid expansion of micro LNG infrastructure.
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Where are the Market Opportunities?
Development of Micro LNG Infrastructure More Accessible
The development of accessible micro LNG infrastructure presents a unique opportunity to transform energy accessibility. Micro LNG infrastructure enables the distribution of liquefied natural gas to smaller, localized markets and niche applications, such as off-grid power generation and transportation. By making such infrastructure more accessible, companies can tap into markets that were previously underserved due to logistical challenges. Furthermore, this accessibility fosters energy security and resilience by reducing dependence on centralized energy sources. The deployment of micro LNG infrastructure aligns with the broader goal of diversifying energy options and promoting sustainability.
Integration of New Technology Opportunities for the Market
The integration of new technology within the LNG sector represents an exciting opportunity for innovation and efficiency. Advancements in LNG liquefaction, storage, and transportation technologies offer several benefits, including reduced energy consumption, improved safety, and enhanced cost-effectiveness. Furthermore, the integration of digital solutions, automation, and data analytics can optimize operations, minimize downtime, and enhance supply chain management. As the industry embraces these technologies, it not only streamlines processes but also paves the way for sustainable and environmentally friendly practices. By staying at the forefront of technological advancements, the LNG sector can remain competitive and continue its evolution toward a more sustainable and resilient energy future.
The major players operating in the micro liquefied natural gas (LNG) market are Black & Veatch, Chiyoda Corporation, Cryonorm, Eco Eléctrica Inc, Eni S.p.A, Equinor ASA, Gasum Oy, General Electric Company, GLP Group, Linde Plc, Petroliam Nasional Berhad, Prometheus Energy, Royal Dutch Shell Plc, Siemens AG, Wärtsilä Corporation. These major players operating in this market have adopted various strategies comprising M&A, investment in R&D, collaborations, partnerships, regional business expansion, and new product launch.
- 14 Aug 2023, GLP Group to partner with Chart Industries to build a micro-LNG liquefaction plant in Singapore. The plant will have a capacity of 200,000 tonnes per annum and is expected to start production in 2025.
- 26 Aug 2023, Gasum Oy and Wärtsilä Corporation signed a partnership agreement to develop and commercialize micro-LNG solutions for marine and industrial applications.
- 04 Jan 2023, Chiyoda Corporation and TotalEnergies have signed a partnership agreement to develop and commercialize micro-LNG technology.
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To find more Visiongain research reports on the energy sector, click on the following links:
- Liquified Natural Gas (LNG) Market Report 2023-2033
- Liquefied Natural Gas (LNG) Storage Tank Market Report 2021-2031
- Liquefied Natural Gas (LNG) Bunkering Market Report 2021-2031
- Floating LNG Power Vessel Market Report 2021-2031
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