LNG Liquefaction Equipment Market Size, Share, Growth and Industry Analysis by Type (Heat exchanger, compressor, LNG pump, and, others) By Application (Small LNG plants (below 0.25 MTPA), mid-scale LNG plants (0.25 to 2.0 MTPA), and, large LNG plants (Above 2.0 MTPA)) Regional Forecast From 2025 To 2033

• 

  Request a Free sample to learn more about this report

LNG LIQUEFACTION EQUIPMENT MARKET OVERVIEW

The global LNG Liquefaction Equipment Market size was USD 0.87 billion in 2024 and is expected to reach USD 1.33 billion by 2033, growing at a compound annual growth rate (CAGR) of about 4.8% during forecast period.

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

LNG liquefaction equipments help in the transformation of natural gas into liquefied natural gas (LNG). The main purpose of using these devices is that they cool and condense natural gas to very low temperatures, usually below -162 degrees Celsius, so that it can be converted into a liquid condition for simpler storage and transit. With the help of these devices natural gas can be liquefied effectively and reliably. These devices have applications in various industries.

New liquefaction techniques are being introduced into the market. These help in improving the efficiency of the equipments. Natural gas is affordable and is found in abundance. These factors contribute in the growth and development of LNG liquefaction equipment market share.

COVID-19 IMPACT

Reduction in Demand for Energy During Pandemic Reduced Market Growth

The pandemic of COVID-19 created a lot of difficulties for the markets to operate. It posed several obstacles for the smooth functioning of all the sectors including the LNG liquefaction equipments market. The travel bans and worldwide curfews that were imposed to prevent the spread of the virus hampered supply chains and slowed down the production and shipping of equipment parts.

Due to social distancing norms and shortage of labor liquefaction plant construction was delayed. Also, during the pandemic, there was less demand for energy which had an impact on LNG prices and investment choices. Therefore, the market experienced a downfall during the pandemic period.

LATEST TRENDS

Manufacturing of Compact and Effective Liquefaction Techniques to Increase Market Growth

Several new trends are shaping the future of the market. One such development is the creation of more compact and effective liquefaction techniques. This process involves using mixed refrigerant systems as well as single-mixed refrigerant processes.  Both of these are very helpful in lowering the price of developing LNG facilities while simultaneously increasing energy efficiency.

Another notable development in the market is the emergence of modular and pre-fabricated equipment. Cryogenic engineering and materials science have also made important advancements. All of the new advancements in the market are prone to increase the scope of the product.

Request a Free sample to learn more about this report

LNG LIQUEFACTION EQUIPMENT MARKET SEGMENTATION

By Type

The market can be divided on the basis of type into the following segments:

Heat exchanger, compressor, LNG pump, and, others. The heat exchanger segment is anticipated to dominate the market during the forecast period.

By Application

Classification based on application into the following segment:

Small LNG plants (below 0.25 MTPA), mid-scale LNG plants (0.25 to 2.0 MTPA), and, large LNG plants (Above 2.0 MTPA). The small LNG plants (below 0.23 MTPA) segment is predicted to dominate the market during the research period.

DRIVING FACTORS

High Demand for Cleaner Sources of Energy to accelerate Market Growth

From the past few decades, people are becoming more conscious about condition of the environment. This is influencing them to switch to cleaner and renewable sources of energy. Natural gas is one of the most used clean sources of energy. Natural gas is very versatile and can be used for numerous applications.

As a result, the demand for LNG liquefaction equipments has increased in order to meet the surging demand. Along with this there has been an expansion in LNG trade because of which new LNG export terminals are being established. Many new advancements have been introduced in the market and they include the production of modular and small-scale liquefaction systems. The above-mentioned factors have helped in the tremendous development of the market. 

Abundance of Natural Gas Reserves Around the World to Propel Market Growth

Apart from the above-mentioned factors there are several other reasons that contribute towards the rapid growth of the market. The abundance of natural gas reserves around the world, offers a dependable and secure source for LNG production. Along with this LNG's advantageous economics, particularly its affordability and adaptability, draw investments in liquefaction infrastructure.

The demand for LNG as a flexible and accessible option is driven by the growing emphasis on energy diversification and minimizing reliance on a single energy source. Various government rules and regulations also support the use of these equipments. These factors are contributing towards the LNG liquefaction equipment market growth.

RESTRAINING FACTOR

Large Upfront Capital Cost to Decrease Market Growth

In spite of the several advantages provided by the LNG liquefaction equipments, development and deployment of LNG liquefaction technology are constrained by a number of variables. One important problem is the large upfront capital cost involved in constructing liquefaction plants, including the installation of sophisticated infrastructure and equipment.

 Project delays might occur as a result of the lengthy and difficult regulatory and permitting procedures for LNG projects. Challenges for investors and project developers include limited financing options and unpredictability surrounding long-term LNG demand and pricing. All of these factors can considerably bring down the market development.

• Request a Free sample to learn more about this report

•  

LNG LIQUEFACTION EQUIPMENT MARKET REGIONAL INSIGHTS

Asia Pacific to Dominate Market in Upcoming Years

North America is the region dominating the market. Several factors have contributed towards the growth of this region in the market. They include, the high demand for natural gas in numerous countries of Asia Pacific.

Along with this, many of the well-developed Asia countries are major players in the market. These countries employ many advanced technologies, and they also have a very strong manufacturing base. Supportive government policies further increase the share of Asia Pacific in the LNG liquefaction equipment market.

KEY INDUSTRY PLAYERS

Leading Players adopt Acquisition Strategies to Stay Competitive

Several players in the market are using acquisition strategies to build their business portfolio and strengthen their market position. In addition, partnerships and collaborations are among the common strategies adopted by companies. Key market players are making R&D investments to bring advanced technologies and solutions to the market.

List of Top LNG Liquefaction Equipment Companies

• Air Products and Chemicals (U.S.) 
• Linde Group (Germany)
• ConocoPhillips Company (U.S.)
• Atlas Copco (Sweden)
• Ingersoll Rand (Ireland)
• General Electric (U.S.)
• Kobelco Compressors (Japan)
• Chart Energy and Chemicals (U.S.)
• Elliott (U.S.)
• Mitsui E&S (Japan)
• MCO (U.S.)
• IHI Corporation (Japan)
• Mitsubishi Heavy Industries (MHI) (Japan)
• Neuman & Esser (Germany)
• Cryostar (France)
• Nikkiso (Japan)
• Fives Group (France)
• Sichuan Air Separation Equipment (Group) (China)
• Liaoning CIMC Harbin Cryogenic Gas Liquefaction Equipment (China)
• Suzhou Oxygen Plant (China)
• Shaanxi Blower (Group) (China)
• Chengdu Shenleng Liquefaction Plant (China)
• Hangzhou Zhongtai Cryogenic Technology (China)

REPORT COVERAGE

The report provides an insight into the industry from both the demand and supply sides. Further, it also gives information on the impact of COVID-19 on the market, the driving and the restraining factors along with the regional insights. Market dynamic forces during the forecast period have also been discussed for the better understanding of the market situations