The market for LNG liquefaction equipment is being driven by a number of factors, including the rising global need for energy. The market for LNG liquefaction equipment is being driven by liquefied natural gas (LNG), one of the cleanest burning fossil fuels, which is anticipated to play a significant role in satisfying the world's energy needs.
Additionally, the LNG liquefaction process is comparatively straightforward compared to other fossil fuel liquefaction processes and does not require high processing pressures or temperatures, which is again anticipated to drive market expansion over the course of the projected period.
Due to the global need for energy, which is always rising, there is an ever-increasing requirement for LNG liquefaction equipment. There has been an increased emphasis on adopting cleaner burning fuels due to the rise in environmental concerns and restrictions surrounding greenhouse gas emissions. Compared to other fossil fuels, LNG emits less carbon dioxide and other hazardous pollutants, making it a desirable option for power generation. During the projected period, this is anticipated to be yet another important element influencing the market for LNG liquefaction equipment.
The LNG liquefaction process is relatively simple compared to other fossil fuel liquefaction processes and does not require high pressures or temperatures for processing, which is again anticipated to propel the market growth during the forecast period. The market for LNG liquefaction equipment also has the benefit of being quite affordable to buy. LNG is a desirable alternative for power generation since it burns more cleanly than other fossil fuels and emits less carbon dioxide and other damaging pollutants. This is anticipated to be yet another important element boosting the market for LNG liquefaction equipment during the forecast period.
The procedure and tools required to transform natural gas into liquid form for storage and transportation are referred to as LNG Liquefaction Equipment. Large-scale liquefaction plants are where LNG is commonly generated. Here, it is cooled to -162°C (-260°F) and transformed into a clear, colourless, non-toxic liquid.
From 2021 to 2031, the LNG liquefaction equipment market is projected to grow at a CAGR of more than 5%. By the end of 2031, the market is anticipated to be worth more than USD 8 billion.
Some of the factors restraining the growth of the LNG Liquefaction Equipment Market during the forecast period include the high cost of liquefaction plants and the need for a sizeable upfront investment. Another key issue that is likely to have an effect on market growth during the anticipated period is the shifting nature of gas prices. However, it is projected that the increased focus on using cleaner fuels will create new opportunities for industry expansion in the years to come.
General Electric, Linde AG, Siemens AG, TechnipFMC, KBR Inc., Air Products & Chemicals, Inc., Chart Industries, Inc., Hitachi Zosen Corporation, and Cryostar S.A.S. are a few of the market's major players, manufacturers, and suppliers.
The Compressor Type to Emerge as the Most Lucrative Segment
The LNG Liquefaction Equipment Market is divided based on type into Heat Exchangers, compressors, LNG Pumps, and Others. The compressor sector is predicted to have the biggest market share of these over the projection period. Compressors are anticipated to be the most crucial piece of equipment utilised in LNG liquefaction plants due to their vast range of applications. The heat exchanger category is likely to grow significantly over the course of the forecasted period as well. Heat exchangers are employed in many phases of the LNG liquefaction process because of their effectiveness in transferring heat from one medium to another.
The Most Popular Application Segment is Large LNG Plants (Above 2.0 MTPA)
The LNG Liquefaction Equipment Market is divided into three application-based segments: Small LNG Plants (below 0.25 MTPA), Mid-Scale LNG Plants (0.25 to 2.0 MTPA), and Large LNG Plants (Above 2.0 MTPA). Large LNG plants are predicted to hold the biggest market share during the anticipated time range. It is anticipated that these plants will utilise the most LNG liquefaction equipment because of their high output capacity. Additionally, within the anticipated time frame, a large increase in the category of small LNG facilities is anticipated. A greater number of small-scale LNG facilities are anticipated to be built in the coming years as a result of the rising demand for
LNG across a range of end-use sectors.
The Asia Pacific (APAC) region to render Adequate Financing Avenues
The market in Asia Pacific is predicted to grow at the highest CAGR during the forecast period. One of the main reasons propelling market development in this industry is the rising need for energy in nations like China and India. Due to the region's rising shale gas production, it is also anticipated that the market in North America would have considerable growth throughout the forecast period. During the forecast period, a moderate rate of market expansion is anticipated in Europe. The considerable LNG supply in the area is anticipated to open up the market in Europe. During the projected period, a moderate growth rate is anticipated for the markets in South America, the Middle East, and Africa.
COVID-19 Impact and Market Status
The market for LNG Liquefaction Equipment has been significantly impacted by the COVID-19 epidemic. The development of new liquefaction plants has been slowed considerably as a result of the lockdown measures taken by various governments throughout the world. Additionally, the pandemic's influence on gas demand is anticipated to have an immediate effect on the market expansion. However, as energy demand is anticipated to rise globally in the upcoming years, the industry is anticipated to rebound.
Latest Innovations in the Global LNG Liquefaction Equipment Market: A Snapshot
• General Electric debuted the LM2500+G4 liquefied natural gas (LNG) compressor in January 2019. The new compressor is intended to lower emissions and improve the efficacy of LNG production processes.
• TechnipFMC announced in February 2019 that its patented PRICO liquefaction technology had successfully finished building the first full-scale LNG plant in the history of the globe. The factory is in Zhuhai, China, and it can produce 3 million tonnes of cargo annually.
• Siemens AG introduced its new SGT-A45TR gas turbine for LNG applications in May 2019. The new turbine is intended to increase the effectiveness of the steps involved in producing LNG.
LNG Liquefaction Equipment Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2032||USD 8 billion|
|Growth Rate||CAGR of 5% during 2021-2031|
|Segment Covered||by Type, by Deployment, By Application, by Application, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and Africa|
|Key Players Profiled||General Electric, Linde AG, Siemens AG, TechnipFMC, KBR Inc., Air Products & Chemicals, Inc., Chart Industries, Inc., Hitachi Zosen Corporation, and Cryostar S.A.S.|
Key Segment of Global LNG Liquefaction Equipment Market
By Type Overview 2021-2031, (USD Billion)
• Heat Exchanger
• LNG Pump
By Application Overview 2021-2031, (USD Billion)
• Small LNG Plants (Below 0.25 MTPA)
• Mid-Scale LNG Plants (0.25 to 2.0 MTPA)
• Large LNG Plants (Above 2.0 MTPA)
By Region Overview 2021-2031, (USD Billion)
• Rest of Asia Pacific
• Rest of North America
• Rest of Europe
Middle East and Africa