The global liquefied natural gas market is expected to witness high growth, exhibiting a CAGR of 9.0% over the forecast period from 2022 to 2030, as stated in a new report by Coherent Market Insights.
Liquefied Natural Gas refers to natural gas that has been cooled to a liquid state, making it easier to store and transport. The market for LNG is experiencing significant growth due to the increasing demand for cleaner sources of fuel. LNG offers several advantages such as lower carbon emissions, reduced air pollution, and versatility in usage across various industries. The need for LNG is driven by the need to reduce reliance on traditional fossil fuels and transition towards more sustainable energy sources.
Market Key Trends:
One key trend in the LNG market is the growing adoption of LNG as a marine fuel. With stricter regulations on emissions in the maritime industry, there is a growing demand for cleaner fuel alternatives. LNG is being increasingly used as a fuel for ships as it emits significantly lower levels of pollutants compared to heavy fuel oil or diesel. The use of LNG as a marine fuel not only helps in reducing emissions but also improves the overall efficiency and operational costs for shipping companies. This trend is expected to drive the growth of the LNG market in the forecast period.
Threat of New Entrants: The liquefied natural gas market is expected to experience a moderate threat of new entrants. The high capital requirements and technical expertise needed to establish liquefaction and regasification facilities act as barriers to entry for new players. Additionally, the market is dominated by established companies with long-term contracts, making it difficult for new entrants to gain a foothold.
Bargaining Power of Buyers: The bargaining power of buyers in the liquefied natural gas market is moderate. Buyers, such as utility companies and industrial consumers, have limited options and rely on long-term contracts with suppliers. However, the growing demand for cleaner energy sources and increased liquefaction capacity provide some leverage to buyers in negotiating favorable terms.
Bargaining Power of Suppliers: The bargaining power of suppliers in the liquefied natural gas market is relatively high. Limited availability of natural gas reserves and the capital-intensive nature of liquefaction projects enable suppliers to have control over pricing and contract terms. Suppliers can also dictate supply volumes and destination flexibility based on their production capabilities.
Threat of New Substitutes: The threat of new substitutes in the liquefied natural gas market is low. Natural gas is considered a cleaner alternative to coal and oil, making it an attractive choice for power generation and industrial applications. Additionally, the lack of viable alternatives at a comparable scale ensures the continued demand for liquefied natural gas.
Competitive Rivalry: The competitive rivalry in the liquefied natural gas market is intense. Major players in the market, such as Asahi Kasei Corporation, BASF SE, and PetroChina, compete based on production capacity, supply contracts, and technological advancements. The industry is characterized by long-term supply agreements, and companies strive to secure reliable customers to maintain their market position.
The global liquefied natural gas market is expected to witness high growth, exhibiting a CAGR of 9.0% over the forecast period from 2022 to 2030. This growth can be attributed to the increasing demand for cleaner energy sources and the transition towards natural gas as a preferred fuel for power generation and industrial applications. The abundant availability of natural gas reserves in regions like North America, Asia-Pacific, and the Middle East further supports market growth.
In terms of regional analysis, Asia-Pacific is projected to be the fastest-growing and dominating region in the liquefied natural gas market. This can be attributed to the rapid industrialization and urbanization in countries like China and India, driving the demand for energy. Furthermore, government initiatives to reduce carbon emissions and increase the share of natural gas in the energy mix contribute to market growth in this region.
Key players operating in the liquefied natural gas market include Asahi Kasei Corporation, Ascend Performance Materials, BASF SE, Invista, Lanxess Ag, PetroChina Liaoyang Petrochemical, Radici Group, Rhodia, Shandong Haili Chemical Industry Company Ltd., and Shandong Hongye Chemical Company, Ltd. These companies have established a strong market presence through their significant production capacities, extensive supply chain networks, and technological expertise.
In conclusion, the liquefied natural gas market is poised for substantial growth in the coming years, driven by increasing demand for cleaner energy sources and favorable government policies. Asia-Pacific is expected to emerge as the leading region in the market, with key players dominating the industry through their market leadership and technological advancements.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it