Small-Scale LNG Market - Forecast(2023 - 2028)

Report Code: CMR 54035 Report Format: PDF + Excel

Small-Scale LNG Market Overview

The Small-Scale LNG Market size is projected to grow at a CAGR of 2.5% during the forecast period 2022-2027 and reach US$2.9 billion by 2027. LNG (liquefied natural gas) can be categorized into liquefaction and regasification terminals and it is mostly supplied from these terminals to various end-users through pipelines, transshipment & bunkering, rails or trucks. They are primarily used in a wide range of industries including automotive, marine, construction, power generation and others. The expansion of small-scale LNG is primarily driven by its usage in the marine industry. Surging developments associated with LNG-fueled marine ships and rails are expected to drive the growth of the Small-Scale LNG Market size in the upcoming years. In 2020, the surge in the COVID-19 pandemic negatively impacted the marine sector as a result of the country-wide shutdown of manufacturing sites, shortage of labor and the decline of the supply and demand chain all across the world. These factors temporarily affected the growth of the small-scale LNG industry as it is primarily used as a marine fuel to power LNG ships and carriers. However, a steady recovery in production activities from the marine sector has been witnessed across many countries around the world since 2021, which in turn, is driving the demand for Small-scale LNG.

Small-Scale LNG Market Report Coverage

The "Small-Scale LNG Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Small-Scale LNG Market.

By Type: Liquefaction and Regasification.
By Mode of Supply: Pipeline, Transshipment and Bunkering, Truck and Rail.
By End-use Industry: Transportation [Automotive (Passenger Cars, Light Commercial Vehicle and Heavy Commercial Vehicles), Aerospace (Commercial, Military and Others), Marine (Passenger Ships & Cruises and Heavy Load Carriers) and Railways], Construction (Residential, Commercial and Industrial), Power Generation, Mining, Food Industry and Others.
By Geography: North America (the USA, Canada and Mexico), Europe (the UK, Germany, France, Italy, the Netherlands, Spain, Denmark, Belgium and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia and the Rest of APAC), South America (Brazil, Argentina, Colombia, Chile and the Rest of South America) and the Rest of the World [the Middle East (Saudi Arabia, the UAE, Israel and the Rest of Middle East) and Africa (South Africa, Nigeria and the Rest of Africa)].

Key Takeaways

  • Truck segment held a significant share in the Small-Scale LNG Market in 2021, owing to the range of benefits that it offers over other modes of supply available for LNG.
  • Transportation industry held the largest share in the Small-Scale LNG Market in 2021, owing to the increasing demand for small-scale LNG from the automotive and marine sectors across the world.
  • Asia-Pacific dominated the Small-Scale LNG Market in 2021, owing to its increasing demand from the transportation sector in the region. LNG is a cleaner and more efficient source of fuel that is relatively economical, which makes it ideal for use as a transportation fuel.
  • A detailed analysis of strengths, weaknesses, opportunities and threats would be provided in the Small-Scale LNG Market Report.

Figure: Small-Scale LNG Market Revenue Share, By Geography, 2021 (%)
Small-scale LNG Market
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Small-Scale LNG Market Segment Analysis – by Mode of Supply

The truck segment held a significant Small-Scale LNG Market share of over 20% in 2021, owing to the range of benefits that it offers over other types of modes of supply available for LNG. For instance, the transportation and supply of LNG (liquefied natural gas) through trucks offer a range of benefits such as reduced refueling time, more efficient scheduling and reduced downtime as compared to transshipment & bunkering, rail and other modes of supply. The supply of LNG through trucks can cover large and variable areas and it is the most ideal and feasible solution in areas that do not have access to ports for transshipment & bunkering or railways and pipelines. For instance, in January 2021, Shell Energy launched its small-scale LNG supply infrastructure, a truck loading unit at its LNG terminal in Hazira, India. The main motive of this launch was to expand the supply of LNG via trucks across India in order to enhance consumer access to cleaner energy. All of the above-mentioned benefits of truck supply are driving its demand over other modes of supply for LNG, which in turn, is expected to boost the market growth during the forecast period.

Small-Scale LNG Market Segment Analysis – by End-use Industry

The transportation industry held the largest Small-Scale LNG Market share of over 25% in 2021, owing to the increasing demand for LNG-powered vehicles and ships across the world. LNG-powered vehicles operate on lower operational costs and are eco-friendly in nature as they do not emit harmful emissions as compared to petrol or diesel-powered vehicles, which in turn, is driving its demand in the automotive and marine sector. According to the Natural & Bio Gas Vehicle Association (NGVA Europe), more than 3,189 LNG-powered buses and over 6,802 LNG trucks were registered across Europe in 2020. It further states that around 688 new LNG-powered trucks were registered in Poland in 2021. Moreover, Denmark-based Celsius Tankers had placed orders for the construction of four liquefied natural gas (LNG)-powered marine carriers with Samsung Heavy Industries (SHI), based in South Korea. The new ships are scheduled for delivery between 2023 and 2024. Thus, such surging demand for LNG-powered vehicles and ships is expected to increase the demand for Small-scale LNG as a primary source of automotive or marine fuel to operate such vehicles and ships. This is expected to expand the Small-Scale LNG Market size during the forecast period.

Small-Scale LNG Market Segment Analysis – by Geography

Asia-Pacific held a dominant Small-Scale LNG Market share of over 46% in the year 2021. The consumption of small-scale LNG is particularly high in this region due to its increasing demand from the transportation sector in the region. In January 2022, China State Shipbuilding Corporation Hudong-Zhonghua and China Shipbuilding Trading signed a contract worth U$1.1 billion with Japan-based Mitsui O.S.K. CNOOC Gas & Power Group for the development of six large LNG-powered marine carriers. Also, more than 116.5 thousand LNG-powered trucks were registered in China in 2020. In 2021, NYK (Nippon Yusen Kabushiki Kaisha) Group, headquartered in Japan, invested around U$1.8 billion to build 12 LNG-fueled pure car & truck carriers, owing to the increasing cost of fuel and consumer preference for LNG-powered vehicles. They are scheduled to be delivered by 2024. This is expected to accelerate market growth during the forecast period.

Small-Scale LNG Market Drivers

Surging developments associated with LNG-fueled marine ships and carriers:

Small-scale LNG (liquefied natural gas) is primarily used in the marine sector as a primary source of marine fuel required for operating LNG-powered ships and carriers. In May 2022, Mitsui O.S.K. Lines, a Japanese shipping company, signed an agreement with Nihon Shipyard Co., Ltd. and Shin Kurushima Dockyard Co., Ltd. for the construction of four LNG-fueled marine carriers. These ships are scheduled to be built and delivered by 2025. Moreover, the MOL (Mitsui O.S.K. Lines) Group announced its plan to launch about 90 LNG-fueled marine vessels by 2030 as a part of its strategy for the adoption of cleaner alternative fuels. Hence, such increasing developments associated with LNG-fueled marine ships and carriers are expected to increase the demand for Small-scale LNG for operating such LNG-powered ships and carriers. This is anticipated to drive the growth of the market in the upcoming years.

Increasing developments related to LNG-fueled rails:

Small-scale liquefied natural gas (LNG) is mainly utilized in the railway industry to operate LNG-powered trains. In 2021, Operail, a railway company, launched its first LNG-fueled rail in Estonia, Europe. In September 2019, Sinara Group signed a contract with Gazpromtrans for the construction of 24 LNG-powered rails. The development of the new LNG-fueled rails commenced in 2019 and is scheduled for delivery by 2024. Furthermore, in February 2022, the Railway Ministry of Bangladesh announced its plans to convert Bangladesh’s diesel fuel-based railway locomotives into bio-fuels-powered railways including LNG, CNG and LPG, with the aid of UK-based manufacturing firm G-volution Ltd. Thus, such increasing developments associated with LNG-fueled rails are expected to increase the demand for small-scale LNG to operate such rails. This is expected to propel the growth of the Small-Scale LNG Market in the upcoming years.

Small-Scale LNG Market Challenge

Limitations associated with the use of LNG:

The use of LNG in the transportation sector has numerous limitations which include the requirement of extremely low temperatures (around -162°C). Thus, it requires special materials for its storage as most materials become brittle and lose strength. Moreover, the use of LNG requires more storage space of up to 150% as compared to fuel oil storage space along with a strict separation of gas and air. Also, the use of LNG is often associated with the dangers of leaks and the risk of asphyxiation as LNG is an odorless and colorless gas, which makes it very difficult to detect it in cases of leaks. In addition to this, LNG-powered vehicles, ships, carriers or locomotives are relatively more expensive than their petrol- or diesel-powered counterparts. Thus, such limiting factors associated with the use of LNG may confine the growth of the Small-scale LNG industry during the forecast period.

Small-Scale LNG Industry Outlook

Technology launches, acquisitions and increased R&D activities are key strategies adopted by players in the Small-Scale LNG Market. The top 10 companies in the Small-Scale LNG Market are:

  1. Shell PLC
  2. Linde Group
  3. PJSC Gazprom
  4. Engie SA
  5. Wartsila Oyj ABP
  6. Honeywell International Inc.
  7. Skangas AS
  8. IHI Corporation
  9. Excelerate Energy L.P
  10. Prometheus Energy

Recent Developments

  • In March 2022, Avenir LNG Limited acquired HIGAS Srl, an Italy-based company that owns and operates Small-scale LNG terminals. The main motive of this acquisition was to strengthen the company’s position in the European market.
  • In January 2021, Shell Energy launched its Small-scale LNG supply infrastructure, a truck loading unit at its LNG terminal in Hazira, India. The main objective of this launch was to expand the supply of LNG via trucks across India in order to enhance consumer access to cleaner energy.
  • In August 2020, Novatek launched its Small-scale LNG plant in the Chelyabinsk region. The plant has an overall capacity of 40 thousand tons per annum. The LNG produced would be primarily used in passenger, cargo transport and mining equipment in the Chelyabinsk region along with its neighboring areas.

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1. Small-Scale LNG Market - Market Overview
    1.1 Definitions and Scope
2. Small-Scale LNG Market  - Executive Summary
    2.1 Key Trends by Type
    2.2 Key Trends by Mode of Supply
    2.3 Key Trends by End-use Industry
    2.4 Key Trends by Geography
3. Small-Scale LNG Market  – Comparative analysis
    3.1 Market Share Analysis - Major Companies
    3.2 Product Benchmarking - Major Companies
    3.3 Top 5 Financials Analysis
    3.4 Patent Analysis - Major Companies
    3.5 Pricing Analysis (ASPs will be provided)
4. Small-Scale LNG Market  - Startup companies Scenario Premium Premium
    4.1 Major startup company analysis:
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Product portfolio
        4.1.4 Venture Capital and Funding Scenario
5. Small-Scale LNG Market  – Industry Market Entry Scenario Premium Premium
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing Business Index
    5.3 Successful Venture Profiles
    5.4 Customer Analysis – Major companies
6. Small-Scale LNG Market  - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porter's Five Force Model
        6.3.1 Bargaining Power of Suppliers
        6.3.2 Bargaining Powers of Buyers
        6.3.3 Threat of New Entrants
        6.3.4 Competitive Rivalry
        6.3.5 Threat of Substitutes
7. Small-Scale LNG Market  – Strategic Analysis
    7.1 Value/Supply Chain Analysis
    7.2 Opportunity Analysis
    7.3 Product/Market Life Cycle
    7.4 Distributor Analysis – Major Companies
8. Small-Scale LNG Market  – by Type (Market Size - US$ Million/Billion)
    8.1 Liquefaction
    8.2 Regasification
9. Small-Scale LNG Market – by Mode of Supply (Market Size - US$ Million/Billion)
    9.1 Pipeline
    9.2 Transshipment and Bunkering
    9.3 Truck
    9.4 Rail
10. Small-Scale LNG Market  – by End-use Industry (Market Size - US$ Million/Billion)
    10.1 Transportation
        10.1.1 Automotive
            10.1.1.1 Passenger Cars
            10.1.1.2 Light Commercial Vehicle
            10.1.1.3 Heavy Commercial Vehicles
        10.1.2 Aerospace
            10.1.2.1 Commercial
            10.1.2.2 Military
            10.1.2.3 Others
        10.1.3 Marine
            10.1.3.1 Passenger Ships & Cruises
            10.1.3.2 Heavy Load Carriers
        10.1.4 Railways
    10.2 Construction
        10.2.1 Residential
        10.2.2 Commercial
        10.2.3 Industrial
    10.3 Power Generation
    10.4 Mining
    10.5 Food Industry
    10.6 Others
11. Small-Scale LNG Market  - by Geography (Market Size - US$ Million/Billion)
    11.1 North America
        11.1.1 The USA
        11.1.2 Canada
        11.1.3 Mexico
    11.2 Europe
        11.2.1 The UK
        11.2.2 Germany
        11.2.3 France
        11.2.4 Italy
        11.2.5 The Netherlands
        11.2.6 Spain
        11.2.7 Denmark
        11.2.8 Belgium
        11.2.9 The Rest of Europe
    11.3 Asia-Pacific
        11.3.1 China
        11.3.2 Japan
        11.3.3 India
        11.3.4 South Korea
        11.3.5 Australia and New Zealand
        11.3.6 Indonesia
        11.3.7 Taiwan
        11.3.8 Malaysia
        11.3.9 The Rest of APAC
    11.4 South America
        11.4.1 Brazil
        11.4.2 Argentina
        11.4.3 Colombia
        11.4.4 Chile
        11.4.5 The Rest of South America
    11.5 Rest of the World
        11.5.1 The Middle East
            11.5.1.1 Saudi Arabia
            11.5.1.2 The UAE
            11.5.1.3 Israel
            11.5.1.4 The Rest of the Middle East
        11.5.2 Africa
            11.5.2.1 South Africa
            11.5.2.2 Nigeria
            11.5.2.3 The Rest of Africa
12. Small-Scale LNG Market  – Entropy
    12.1 New Product Launches
    12.2 M&As, Collaborations, JVs and Partnerships
13. Small-Scale LNG Market – Industry/Segment Competition Landscape Premium
    13.1 Company Benchmarking Matrix – Major Companies
    13.2 Market Share at Global Level - Major companies
    13.3 Market Share by Key Geography - Major companies
    13.4 Market Share at Country Level - Major companies
    13.5 Market Share by Key Crop Type/Product category - Major companies
14. Small-Scale LNG Market  – Key Company List by Country Premium Premium
15. Small-Scale LNG Market  Company Analysis - Business Overview, Product Portfolio, Financials and Developments
    15.1 Company 1
    15.2 Company 2
    15.3 Company 3
    15.4 Company 4
    15.5 Company 5
    15.6 Company 6
    15.7 Company 7
    15.8 Company 8
    15.9 Company 9
    15.10 Company 10
* "Financials would be provided to private companies on best-efforts basis."
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LIST OF TABLES

1.Global Small-Scale LNG Market By Type Market 2019-2024 ($M)
1.1 Liquefaction Terminal Market 2019-2024 ($M) - Global Industry Research
1.2 Regasification Terminal Market 2019-2024 ($M) - Global Industry Research
2.Global Small-Scale LNG Market By Type Market 2019-2024 (Volume/Units)
2.1 Liquefaction Terminal Market 2019-2024 (Volume/Units) - Global Industry Research
2.2 Regasification Terminal Market 2019-2024 (Volume/Units) - Global Industry Research
3.North America Small-Scale LNG Market By Type Market 2019-2024 ($M)
3.1 Liquefaction Terminal Market 2019-2024 ($M) - Regional Industry Research
3.2 Regasification Terminal Market 2019-2024 ($M) - Regional Industry Research
4.South America Small-Scale LNG Market By Type Market 2019-2024 ($M)
4.1 Liquefaction Terminal Market 2019-2024 ($M) - Regional Industry Research
4.2 Regasification Terminal Market 2019-2024 ($M) - Regional Industry Research
5.Europe Small-Scale LNG Market By Type Market 2019-2024 ($M)
5.1 Liquefaction Terminal Market 2019-2024 ($M) - Regional Industry Research
5.2 Regasification Terminal Market 2019-2024 ($M) - Regional Industry Research
6.APAC Small-Scale LNG Market By Type Market 2019-2024 ($M)
6.1 Liquefaction Terminal Market 2019-2024 ($M) - Regional Industry Research
6.2 Regasification Terminal Market 2019-2024 ($M) - Regional Industry Research
7.MENA Small-Scale LNG Market By Type Market 2019-2024 ($M)
7.1 Liquefaction Terminal Market 2019-2024 ($M) - Regional Industry Research
7.2 Regasification Terminal Market 2019-2024 ($M) - Regional Industry Research

LIST OF FIGURES

1.US Small-scale Lng Market Revenue, 2019-2024 ($M)
2.Canada Small-scale Lng Market Revenue, 2019-2024 ($M)
3.Mexico Small-scale Lng Market Revenue, 2019-2024 ($M)
4.Brazil Small-scale Lng Market Revenue, 2019-2024 ($M)
5.Argentina Small-scale Lng Market Revenue, 2019-2024 ($M)
6.Peru Small-scale Lng Market Revenue, 2019-2024 ($M)
7.Colombia Small-scale Lng Market Revenue, 2019-2024 ($M)
8.Chile Small-scale Lng Market Revenue, 2019-2024 ($M)
9.Rest of South America Small-scale Lng Market Revenue, 2019-2024 ($M)
10.UK Small-scale Lng Market Revenue, 2019-2024 ($M)
11.Germany Small-scale Lng Market Revenue, 2019-2024 ($M)
12.France Small-scale Lng Market Revenue, 2019-2024 ($M)
13.Italy Small-scale Lng Market Revenue, 2019-2024 ($M)
14.Spain Small-scale Lng Market Revenue, 2019-2024 ($M)
15.Rest of Europe Small-scale Lng Market Revenue, 2019-2024 ($M)
16.China Small-scale Lng Market Revenue, 2019-2024 ($M)
17.India Small-scale Lng Market Revenue, 2019-2024 ($M)
18.Japan Small-scale Lng Market Revenue, 2019-2024 ($M)
19.South Korea Small-scale Lng Market Revenue, 2019-2024 ($M)
20.South Africa Small-scale Lng Market Revenue, 2019-2024 ($M)
21.North America Small-scale Lng By Application
22.South America Small-scale Lng By Application
23.Europe Small-scale Lng By Application
24.APAC Small-scale Lng By Application
25.MENA Small-scale Lng By Application
26.The Linde Group, Sales /Revenue, 2015-2018 ($Mn/$Bn)
27.Wartsila Corporation, Sales /Revenue, 2015-2018 ($Mn/$Bn)
28.Honeywell International Inc., Sales /Revenue, 2015-2018 ($Mn/$Bn)
29.General Electric, Sales /Revenue, 2015-2018 ($Mn/$Bn)
30.Engie, Sales /Revenue, 2015-2018 ($Mn/$Bn)
31.Gazprom, Sales /Revenue, 2015-2018 ($Mn/$Bn)
32.Skangas, Sales /Revenue, 2015-2018 ($Mn/$Bn)
33.Sofregaz, Sales /Revenue, 2015-2018 ($Mn/$Bn)
34.Dresser-Rand, Sales /Revenue, 2015-2018 ($Mn/$Bn)
35.Prometheus Energy, Sales /Revenue, 2015-2018 ($Mn/$Bn)