LNG Insulation Panel Market Size, Share, Growth, And Industry Analysis By Type (Foaming Agent, Laminated Densified Wood, Application Insights) By Application (LNG Carrier, LNG Receiving Station, Others), Regional Insights, and Forecast To 2031

Updated On: 08 April 2024

LNG Insulation Panel Market Report Overview

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The global LNG insulation panel market size was USD 766.5 million in 2022 and is expected to reach USD 5307.47 million in 2031, exhibiting a CAGR of 24.0% during the forecast period.

In order to make LNG storage and transportation easier, natural gas can be cooled down to -163 degrees Celsius using LNG insulation panels. Although they are mostly utilized in LNG carriers, FLNG facilities (LNG FPSO/FSRU), fixed offshore platforms, and offshore storage is also progressively using them.

LNG insulating panels are mostly utilized in LNG carriers, but FLNG facilities (LNG FPSO/FSRU) and offshore storage are now increasingly using them. 85 LNG carrier orders were placed internationally between 2009 and 2012, an increase of 183% over the orders placed in the three years prior to that time. As a result, the combined order backlogs for the two LNG insulating panel makers described above increased by 376% from the level at the end of 2010 to a record-high level of W633.6bn at the end of 2012. They have already secured employment for 2014, taking into account orders received in 1Q13. After 1Q13, orders will begin to be carried out starting in 2015.

COVID-19 Impact: Pandemic-related Disruptions Impacted Market Forecast

The global COVID-19 pandemic has been unprecedented and staggering, with LNG Insulation Panel Market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.

Due to supply chain disruption, a drop in energy usage and a deterrent to investing in more advanced technology, the COVID-19 pandemic has had a significant negative impact on the market. However, operating companies are increasingly supporting small-scale LNG efforts as pressure on large-scale LNG plants to demonstrate returns to investors grows. Compared to large-scale LNG plants, which can take up to 10 years to build, a small-scale LNG facility with a capacity of less than 1 MTPA can be built in three years. In addition, it is anticipated that in the upcoming years, factors such rising demand for LNG in bunkering, road transportation, and off-grid power will propel the small-scale LNG industry.

Latest Trends

"Performance Benefits to Strengthen Market Outlook In Future "

Following the nuclear tragedy in Japan and the expansion of shale gas production, the demand for LNG has been continuously expanding on a global scale. In fact, during the past ten years, the global volume of LNG freight has grown at a rate of 7% annually, which is higher than the growth rate of crude oil volume. Sales of insulating materials required by LNG carriers, FLNG, and onshore storage tanks are increasing along with the rise in LNG demand. In addition, rising product costs are a result of businesses' efforts to lower boil-off rates (BOR).

LNG Insulation Panel Market Segmentation

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• By Type Analysis

According to type, the market can be segmented into Foaming Agent, Laminated Densified Wood, Application Insights. Foaming Agent is anticipated to be the leading segment.

• By Application Analysis

Based on application, the market can be divided into LNG Carrier, LNG Receiving Station, Others. LNG Carrier will be the dominating segment.

Driving Factors

"Rising LNG consumption is anticipated to drive market expansion."

Liquefied natural gas (LNG) is natural gas that has just 1/600 of its volume left in a gaseous condition. To liquefy the natural gas, it is chilled to -1640 degrees Celsius. Due to its smaller volume, LNG is perfect for effective storage and transportation. The equipment used for LNG storage and transportation, as well as plant components, must withstand extremely low LNG temperatures (such as pipework systems carrying LNG, and tanks storing LNG). Permanent thermal insulation between these pipes and the insulation of the tanks is required. Insulation made with cryogenics is required. Global cryogenic insulation demand is anticipated to increase due to rising LNG demand. It is anticipated that rising LNG demand, particularly in Asia, will propel market expansion. In 2021, exports will be dominated by the US.

"Growing Application to Fuel Demand During Forecast Period "

Due to its advantages over diesel and fuel oil in terms of cost and the environment, LNG is mostly utilized to power ships and trucks. Due to LNG's non-corrosive and non-toxic characteristics, a vehicle's lifespan can be increased by up to three times. In addition, LNG has a relatively low boiling point, which means that minimal heat energy and little mechanical energy are needed to turn it into a gas at high pressure.

Restraining Factors

"High Cost and Challenging Technology Restraining the Market"

It is challenging for manufacturers of insulating materials to penetrate the above-ground LNG tank-use materials market due to high costs and technological restrictions. However, a number of factors, including the high operating costs associated with small-scale LNG, the absence of supporting infrastructure in places like the Middle East and Africa, high CAPEX requirements, as well as a lengthy payback period of more than 12 years, are anticipated to impede the growth of the market under study.

LNG Insulation Panel Market Regional Insights

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"Asia Pacific Is Expected To Hold A Significant Portion Of The Worldwide Market"

During the current forecast period, the regional market is anticipated to grow strongly due to rising investment in sectors like the energy, electricity, food, and beverage industries. Countries including China, India, Japan, and Indonesia are found in the region. The market growth in these areas is anticipated to be significant on a global scale. China will be one of the world's leading economies by 2021, which will increase demand for LNG. In 2020, there were about 12 million tonnes of LNG imported; in 2021, there were 79 million tonnes. China surpassed Japan to become the world's biggest LNG importer as a result of this spike in demand. Due to Chinese LNG purchasers signing long-term contracts for more than 20 million tonnes annually, demand has surged. The industrial, residential, and power generation sectors in China are driving up demand for small-scale LNG, with the transportation sector having the largest potential.

Key Industry Players

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

List of Market Players Profiled

• Dongsung Finetec (South Korea)
• Hankuk Carban (China)
• Yoke Technology (China)
• Roechling (Germany)
• Meisei (Japan)
• Kingspan Group (Dyplast LOGSTOR) (Ireland)
• Kawasaki (Japan)
• TIG (India)

Report Coverage

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.