Global Liquefied Natural Gas (LNG) Market Is Estimated To Witness High Growth Owing To Shift towards Cleaner Energy Sources and Increasing Demand for LNG Transportation
The Global Liquefied Natural Gas (LNG) Market is estimated to be valued at US$ 8.8 billion in 2021 and is expected to exhibit a CAGR of 9.0% over the forecast period 2022 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The LNG market involves the liquefaction of natural gas to enable its storage and transportation in a condensed form. LNG offers several advantages, such as high energy density, reduced volume requirements, and ease of transportation, making it an attractive alternative to traditional natural gas. The market finds application across various industries such as power generation, transportation, and residential sectors. It is also increasingly being used as a fuel for heavy-duty vehicles and marine vessels. Furthermore, the shift towards cleaner energy sources and the growing demand for LNG transportation are driving the market growth.
Market Dynamics:
The two primary drivers contributing to the high growth of the global LNG market are the shift towards cleaner energy sources and the increasing demand for LNG transportation. The need for cleaner energy sources to reduce greenhouse gas emissions and combat climate change has led to a significant demand for natural gas, including LNG. Additionally, the growing adoption of LNG as a fuel in transportation sectors, such as shipping and trucking, is further propelling the market growth. The use of LNG as a transportation fuel offers cost and environmental benefits, as it reduces carbon emissions and air pollution compared to traditional fuels. These drivers are expected to continue fueling the growth of the LNG market over the forecast period.
SWOT Analysis:
Strength:
Liquefied Natural Gas (LNG) market is expected to witness high growth with a CAGR of 9.0% over the forecast period. The increasing global demand for cleaner energy sources and the shift towards natural gas as a replacement for coal and oil are the primary drivers for this growth.
Weakness:
One weakness of the LNG market is the high capital cost involved in setting up LNG infrastructure, which can limit the entry of new players. Additionally, LNG is highly dependent on the availability of natural gas reserves, which can be a constraint in certain regions.
Opportunity:
The LNG market presents opportunities for expansion in developing regions, such as Asia-Pacific and Africa, where there is a growing demand for cleaner energy sources. Furthermore, the increasing use of LNG as a marine fuel and its potential application in the transportation sector opens up new avenues for market growth.
Threats:
Two major threats to the LNG market are competition from other energy sources, such as renewable energy and nuclear power, which are gaining popularity due to their lower carbon footprint. Additionally, geopolitical tensions and trade disputes can disrupt the supply chain and affect the market's stability.
Key Takeaways:
The global Liquefied Natural Gas (LNG) market is expected to witness high growth, exhibiting a CAGR of 9.0% over the forecast period, due to the increasing demand for cleaner energy sources. Asia-Pacific is the fastest-growing and dominating region in the LNG market, driven by factors such as urbanization, industrialization, and government initiatives to reduce carbon emissions. Key players operating in the LNG 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 players contribute significantly to the market's growth through product innovations, strategic partnerships, and expansions.
Read More:
https://www.feedsfloor.com/other/liquefied-natural-gas-market-reach-us88-billion-2021
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