The global small LNG market will grow at a compound annual rate of 6.8% from 2020 to 2027

According to a report released by Fior Markets, the global small-scale LNG market is expected to grow from $31.
3 billion in 2019 to $53.
03 billion in 2027, growing at a CAGR of 6.
81%
during the forecast period 2020-2027.

The small-scale LNG market is driven by government initiatives regarding electrification in rural areas and growing concern for the environment, resulting in the conversion of fuel from diesel to LNG
.
The demand for electricity in household applications, the rapid growth of industrialization provides a huge opportunity
for the small LNG market.
In addition, growing population and increasing demand for LNG for heating and cooking purposes create future opportunities
for the growth of the market during the forecast period.

The challenging factor for the growth of the market is the high cost of LNG production as it involves a large number of technologies
.
This has led to an increase in LNG prices
for end-users.
Moreover, the use of high-end technology presents challenges
in the production process.
Fluctuations in natural gas and crude oil prices limit the growth
of the market.
Similarly, increasing demand for LNG production in emerging economies is also driving the growth
of the market.
In addition, stringent emission control regulations from international agencies and governments have created a higher demand
for LNG.
This will lead to increased use of LNG in the industrial and commercial sectors, and changing preferences for cleaner fuels and green environments are driving the growth of the market
.

From a technical point of view, the market is mainly segmented into regasification and liquefaction
.
The regasification segment dominated the market and accounted for the largest market share
of 56.
14% in 2019.
This is attributed to the development of remote gasification terminals, freight terminals, LNG filling stations, infrastructure improvements and the logistics
industry.
Similarly, LNG-enabled power plants in remote areas are expected to witness significant growth during the forecast period

In terms of application areas, mining activities, railway engines, marine transportation, industrial and electric power, and heavy vehicles
are mainly included.
The heavy-duty vehicle market dominates, with a market value of $21.
58 billion
in 2019.
Due to its high fuel efficiency, the demand for LNG for heavy-duty vehicles is increasing
.
Moreover, suppliers offer LNG fuel at reasonable prices, and concerns about air quality and environmental sustainability are driving higher demands
on LNG.