Description of the Report
LNG Exports Rise in the wake of a rise in consumption post-COVID-19 Crisis
While gas prices soared in Europe and Asia during the coronavirus pandemic in the region, U.S. LNG trade saw an increase in exports. Companies operating in the U.S. LNG engine market are leveraging this opportunity to improve their supply chains to super-cooled fuel. While consumption was down between March-August, companies can offset their losses through increased consumption as the industries are fully operational and consumers are spending rising.
Companies operating in the market in the LNG engine sector are taking advantage of potential opportunities that are incremental that are being explored in South Korea, as the country has succeeded in resolving the COVID-19 crisis. It has also experienced an increase in LNG imports. These companies are encouraging the transition from coal to LNG in countries like Japan that are aware of green fossil fuels.
Demand fluctuating throughout the year, Alternative Gas Production Options Can Help Market Growth.
The LNG supply system is amid rapid growth in several countries. However, problems like difficulties improving supply chain efficiency, the LNG supply chain prices, demand uncertainty, and other gas production options, are causing that is threatening. The market for LNG engines in the world is expected to exceed the estimation at USdollars 2.6 Bn by the year 2030. But, manufacturers are confronted with difficulties such as the fluctuation of distribution methods and fluctuations in demand. Therefore, companies are increasing efforts to control the changing demand-supply structure and determine the optimal logistics chain suitable for LNG.
There is a rising demand to improve the infrastructure and enhance inventory routing within the LNG engine market.
Diesel LNG Engines Get Prominence on Heavy-Duty Trucks to help the Economy of Fuel.
Diesel internal combustion engines are growing in popularity in heavy and light-duty trucks. This is evident as there is a strong indication that the LNG engines market has been expected to expand by a healthy rate of about 6 per cent throughout the evaluation period. Manufacturers are experiencing an evolution towards an electric-hydrogen-renewable energy economy. This has resulted in development diesel-LNG internal combustion engines due to the similarities between the onboard fuel storage system and injection technology.
Heavy-duty trucks are a particular area of growth for businesses in the LNG engine market since emission reduction and fuel consumption can be achieved with the aid of LNG engines. Regarding relevant cryogenic temperatures, LNG is a more suitable option for heavy-duty trucks because they are constantly moving compared to passenger cars that tend to be stationary.
Shipping Transport Changes in Maritime Transport Fossil Fuels and Low Carbon Fuels
The trend toward decarbonizing maritime transport has become a key growth engine for companies operating in the LNG engine market. There is an increase in efforts by stakeholders to cut down on the global human-caused GHG (greenhouse gas) emission by half the current amount to achieve those Paris Agreement goals. LNG’s favourable hydrogen-to-carbon ratio, when compared with MGO, also known as marine gas oil (MGO) or bunker fuel, results in carbon dioxide emissions for the shipping sector.
The LNG engine market is going through a significant change due to an evolution in the direction of fossil fuels and fuels with low carbon and engine technology.
Bio and Synthetic LNG Hold Future Opportunities for Growth for Manufacturers
Alongside advancements in the field of new fuels, such as synthetic methane and biodiesel ammonia, hydrogen and Manufacturers mentioned above are focusing more on LNG as well as biodiesel, LPG, and biodiesel. WrtsilCorporation is a Finnish firm that produces and supplies power sources. Different equipment is developed using synthetic and bio-based LNG to deploy cost-effectiveness in the heavy-duty truck industry and shipping. It has been proven that LNG can significantly reduce GHG emissions compared to heavy fuel oil used in maritime transportation.
Synthetic and bio-based LNG is a viable option to use as drop-in fuels and traditional LNG to lower carbon content. This method is logical and practical is drawing the attention of those involved within the LNG engine industry who plan to eventually increase the supply and eventually replace LNG completely using synthetic and bio-based LNG
The LNG Engine Market Overview
- According to MWR’s new study of the world LNG engine market for the historical period of 2019 and the forecasted period from 2025 until 2030 and the introduction of more stringent laws and policies by governments to cut greenhouse gas emissions will be the main element that is expected to increase the market for the global LNG engine market over the forecast time. LNG engine is widely used in various industries, including power generation, marine and transportation.
- As a value, the market for LNG engines is expected to grow to $ 2.6Bn by 2030, growing by a CAGR of about 6 per cent over the forecast time. Based on the end-user, marine is expected to be a very profitable segment of the global LNG engine market in the forecast time. The IMO 2020 regulation has established guidelines for reducing pollution and the number of sulfur oxide emissions from ships. LNG engines are expected to reduce SOx (SOx) emissions by 90%-85 %. It is expected to increase the consumption of LNG engines in the marine sector.
The increase in the volume of LNG Commerce Activities is the primary driver of the LNG Engine Market.
- The trade activities involving LNG have seen a significant increase around the globe. The world’s LNG trade volume grew between 334 and 485 million cubic metres by 2019. The increase in LNG trade is attributed to the rising demand for natural gas within industries with end-users like power generation marine, steel, and power plant.
- The economy’s growth and shift in government policies toward greener fuels are some of the primary factors driving the increasing demand for LNG engines. In addition, natural gas accounts for approximately 21 per cent of the world’s energy needs, meaning that LNG accounts for about 10.7 per cent share.
- Asia Pacific is the leading LNG exporting region. It was responsible for 38.4 per cent of the total exports in 2018. This percentage is similar to its contribution to global exports in 2016 when it was the biggest LNG exporting region after having been second in the Middle East from 2010 to 2015. The growth in exports from the Asia Pacific was supported by new trains being launched and more production from the existing trains. The increase in LNG trade has increased the demand for LNG. Therefore, the demand worldwide for LNG to meet emission standards set by the authorities is expected to boost the market to purchase an LNG engine shortly.
Increase in the Use of LNG Engines in the Power Generation as well as Marine Industries
- The demand for LNG engines has increased in both the marine and power generation sectors due to strict government regulations to cut carbon emissions. Marine vessels are powered by bunker fuel, creating an abundance of pollution. In addition, greenhouse gases are an issue that is affecting everyone throughout the world. Air pollution like carbon monoxide, sulfur oxide, nitrogen oxide, and particulate matter is released in massive quantities into the atmosphere.
- LNG is used as a fuel for LNG engines. It is the cleanest fossil fuel. Thus, vehicles operating on LNG have fewer pollutants and harmful emissions.
- So, LNG engines can be essential in reducing carbon emissions and pollution in the marine and power generation sectors.
The LNG Engine Market: Competition Landscape
- A detailed profile of companies operating in the world LNG engine market is presented in the report for a thorough analysis of their financials, product offerings, latest developments and strategies.
- Significant players operating in the international LNG engines market include
- Cummins Inc.
- Fairbanks Morse
- Wartsila Corporation
- Rolls-Royce plc
- MAN Energy Solutions
- Anglo Belgian Corporation NV
- MITSUBISHI Heavy Industries, LTD.
- HHI Engine & Machinery
- DAIHATSU DIIESEL MFG. CO., LTD.
The LNG Engine Market: Strategic Partnerships
- Leading companies operating within the international LNG engine industry focus on strategic partnerships and acquisitions to expand their global reach. Other significant trends in the international LNG engines industry are listed below:
- On the 18th of December in 2020, MITSUBISHI INDUSTRIES LTD. and Equinor Energy signed a Memorandum of Understanding (MoU) for the collaboration of low carbon technology. The non-exclusive agreement is designed to help both companies develop and apply technology to reduce carbon emissions of oil and gas production. In particular, they are looking to develop further hydrocarbon and carbon capture and utilization and storage (CCS/CCUS) value chains.
- On the 16th of July in 2020, Wrtsil Corporation announced that it was appointed to the complete bridge system installation to five ice-breaking LNG tankers powered by engines to be built for the Arctic LNG-2 project. The navigational systems will be supplied through Wrtsil Voyage. This new business is responsible for digital solutions and decision-support tools to improve safety and reliability in shipping activities. The contract for the navigational systems with Wrtsil Voyage was signed within the 1st quarter of 2020. It is currently being executed through a partnership with Samsung Heavy Industries Co., Ltd.
- Within the world LNG engine report, we have examined individual strategies followed by companies offering LNG engines’ corporate profiles. The Competitive Landscape section has been added to the study to provide the readers with an overview of the competitive landscape and a market share analysis of the major companies operating in the world LNG engines market.
LNG Engine Market Scope Report
The most recent study, published and collated by MWR, analyses the current and historical scenario for the world LNG engine market to assess its potential growth precisely. The study provides comprehensive details on the critical growth factors, constraints and significant developments shaping the conditions for growth in this global LNG engine market to pinpoint opportunities for those involved. The study also offers insightful details on how the world LNG engine market is expected to grow from 2020 to 2030.
The report provides detailed information on various areas of the worldwide market for LNG engines that assist companies operating in the market in making strategic decisions. The study also explains the essential changes expected to shape the expansion of the worldwide LNG engine market throughout the forecast. It also assesses key indicators highlighting potential growth opportunities of the worldwide LNG engine market and provides data related to the market’s worth (U.S. million dollars).
This report provides an in-depth analysis of the world LNG engines market, the essential details, and a competition forecast. The report provides profiles of companies currently leading the global LNG engine market. The various expansions, developments and winning strategies used by these companies have been described in detail.
The most important questions are answered in MWR’s report about LNG Engine Market.
The report contains specific information on the worldwide LNG engine market based on thorough research of various elements which play a significant part in the rapid expansion of this market. The report provides answers to the most challenging questions for businesses operating globally and looking for new strategies to create a specific benchmark for global markets to assist them in developing successful strategies and making targeted decisions.
- Which of the segments from the worldwide LNG engine market could become a significant revenue source in the forecast time
- What market players are making money in the global market for LNG engines
- What is the Y-o-Y increase trend in the LNG engine market in the world between 2020 and 2030?
- What are the most effective imperatives of the world’s top players in the LNG engine market?
Research Methodology for LNG Engine Market
The methodology used by analysts in preparing this report about the world LNG engines is built on thorough secondary and primary research. Through deep analysis of market-related data collected and verified by market-based sources, analysts have presented captivating observations and genuine estimates for the world LNG engine industry.
In the initial research phase, analysts interviewed market participants such as investors, brand managers, vice presidents, and marketing and sales managers. Based on information obtained from interviews with genuine experts, they have focused on the evolving nature of the worldwide LNG engine market.
For additional research, analysts have analyzed many annual reports in white papers, market association publications, and corporate websites to gain knowledge of the world LNG engines market.
|LNG Engine Market Report Scope and Segmentation|
|UNIT||Value (USD Million/Billion)|
|BY REGION||North America, Europe, Asia Pacific, Latin America, Middle East and Africa|
Marketing Segmentation for LNG Engines
The research study of MWRs examines the global LNG engine market according to the type, the end-use and location. The report provides comprehensive market dynamics and advancing developments attributed to different segments and the way they affect the growth of the global LNG engine industry.
- North America
- The Netherlands
- Czech Republic
- Rest of Europe
- Asia Pacific
- South Korea
- Australia & New Zealand
- Rest of Asia Pacific
- South America
- Rest of South America
- The Middle East & Africa
- Saudi Arabia
- South Africa
- Northern Africa
- Rest of MEA