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Small Scale LNG Market Size to Reach USD 12.5 Billion by 2025
Applications such as industrial & power, and the potential to transport LNG over long distances without the need for heavy investment like pipelines, push the growth of the small scale LNG market across the globe. Factors such as lack of funding for infrastructure in certain regions like the Middle East and Africa and high CAPEX demand, along with a long payback period, are expected to hamper the Small Scale LNG (SSLNG) market growth being studied.
The Small Scale LNG (SSLNG) market size was estimated at USD 6.350 Billion in 2018 and is expected to reach USD 12.5 Billion by 2025, at a CAGR of 10.1% over the forecast period.
TRENDS INFLUENCING THE SMALL SCALE LNG (SSLNG) MARKET SIZE
- Factors such as the opportunity to gain profits in a shorter period, combined with the rising use of LNG as a primary energy source, are expected to drive the small-scale LNG market size.
- Due to the growing demand for LNG as a source of fuel for ships and heavy-duty vehicles, the application for transportation is expected to provide a major boost for the small-scale LNG market. Because of the high capital investment needed for a small-scale LNG infrastructure, the construction of cost-effective small-scale LNG infrastructure is expected to provide significant opportunities for potential small-scale LNG technology providers and haulers.
- There is also increasing interest in SSLNG from the remote residential and industrial power generation sectors. The ability to use LNG in its liquid form, without going through the regasification process, helps small business developers to create more viable business models. SSLNG's benefits over large-scale LNG ventures are lower CAPEX, faster construction cycles, and quicker payoff periods.
REGION WISE SMALL SCALE LNG MARKET SHARE ANALYSIS
- The North America Small Scale LNG market is expected to post the highest CAGR in terms of volume during the forecast period. The growth of the region's small-scale LNG market is driven primarily by the industrial & power application.
- Throughout the forecast period, the APAC region is expected to account for the largest SSLNG market share. Growth in this area is due to increased demand from applications such as heavy-duty vehicles, manufacturing, & electricity. In 2017, the Asia Pacific occupied 54.3% of SSLNG sales market share. It is followed by Europe and North America, which accounts for 36.7% and 4.8%, respectively.
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