Liquefied Natural Gas LNG Market Application Insights
The Global Liquefied Natural Gas (LNG) Market is segmented based on application into Power Generation, Industrial Processes, Residential and Commercial Heating, and Transportation.
The power generation segment accounted for the largest share of the Global Liquefied Natural Gas (LNG) Market in 2023 and is projected to continue its dominance over the forecast period. The growth of the segment can be attributed to the increasing demand for electricity and the rising popularity of natural gas as a fuel source for power plants. Natural gas is a cleaner and more efficient fuel than coal or oil, and it produces fewer emissions. As a result, many countries are switching to natural gas for power generation.
The industrial processes segment is the second-largest segment of the Global Liquefied Natural Gas (LNG) Market. Natural gas is used as a feedstock in a variety of industrial processes, such as the production of fertilizers, chemicals, and plastics. The growth of the segment is expected to be driven by the increasing demand for these products.
The residential and commercial heating segment is the third-largest segment of the Global Liquefied Natural Gas (LNG) Market. Natural gas is used for heating homes and businesses in many parts of the world. The growth of the segment is expected to be driven by the increasing demand for natural gas for heating purposes.
The transportation segment is the smallest segment of the Global Liquefied Natural Gas (LNG) Market. Natural gas is used as a fuel for vehicles, such as trucks, buses, and ships. The growth of the market is expected to be driven by the increasing demand for natural gas for power generation, industrial processes, residential and commercial heating, and transportation purposes.
Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review
Liquefied Natural Gas LNG Market Feedstock Insights
The feedstock segment of the Global Liquefied Natural Gas (LNG) Market incorporates various sources applied to produce LNG. As a feedstock source, natural gas occupies the leading position and amounts to a considerable share of production. In 2023, the market of the identified source as a feedstock of LNG reached nearly USD 201.26 billion and by 2032 is projected to grow with a CAGR of 6.7% to about USD 359.7 billion. Associated gas is the waste product of crude oil extraction and is another source used in the LNG market.
In 2023, its value was estimated at USD 30.2 billion, and by 2032, it is expected to reach approximately USD 54.1 billion, having increased with a CAGR of 6.2%. Among other sources of energy, biogas is becoming increasingly applied to the production of LNG. The market size of the feedstock source was minimal in 2023 – USD 2.7 billion, but by 2032, it is projected to grow up to nearly USD 9.6 billion, with the CAGR being 14.2%.
In such a way, the identified feedstock sources have a critical impact on the gas market nature and tend to define LNG market dynamics and increase sales.
Liquefied Natural Gas LNG Market Production Process Insights
Cryogenic liquefaction, mixed-refrigerant liquefaction, and cascade liquefaction are the three main production processes used in the Liquefied Natural Gas (LNG) industry. Cryogenic liquefaction, the most used method, involves cooling natural gas to cryogenic temperatures (-162C) to convert it into a liquid state. Mixed-refrigerant liquefaction utilizes a mixture of refrigerants to achieve the required cooling temperatures, while cascade liquefaction employs a series of refrigeration cycles to progressively cool the natural gas. The choice of production process depends on factors such as the capacity and efficiency requirements of the LNG plant.
The market growth is driven by increasing demand for LNG as a cleaner and more efficient fuel, particularly in the power generation and transportation sectors.
Liquefied Natural Gas LNG Market End-User Industry Insights
The end-user industry segment plays a crucial role in understanding the dynamics of the Global Liquefied Natural Gas (LNG) Market. The power industry is a major consumer of LNG, utilizing it for electricity generation. In 2023, the power industry accounted for approximately 40% of the global LNG market revenue. The industrial sector is another significant consumer, utilizing LNG as a fuel source for various industrial processes. In 2024, the industrial sector is projected to account for around 28% of the global LNG market revenue, with a growth rate of 6.5%.
The residential sector is also a growing consumer of LNG, primarily for heating and cooking purposes. In 2025, the residential sector is expected to contribute approximately 22% to the global LNG market revenue. Lastly, the transportation sector is witnessing a surge in LNG demand for marine bunkering and heavy-duty vehicles. In 2026, the transportation sector is anticipated to account for around 10% of the global LNG market revenue, driven by increased environmental regulations and technological advancements.
