LNG Compressor Market

Global LNG Compressor Market Size (2024 to 2032)

The Global LNG Compressor Market was valued at USD 4.52 billion in 2023 and is predicted to reach USD 7.29 billion in 2032 from USD 4.77 billion in 2024, with a CAGR of 5.45% from 2024 to 2032.

The pressing call for LNG in the world has resulted in the development of various equipment in the LNG value chain. One of them is the LNG compressor that is employed to liquefy LNG. These systems precede the refrigeration process in the LNG plant and are also called refrigeration compressors. LPG compressors can be broadly classified according to their design as vertical split-barrel compressors, horizontally split compressors, and axial compressors. Horizontal split compressors are mainly employed for low and medium-pressure applications; Axial compressors for high flow, low-pressure applications; and vertically split compressors for high-pressure applications.

Market Trends

The critical need for LNG worldwide has raised concerns about the advancement of different devices in LNG management. The functions introduce the freezing procedure in the LNG plant, also called freezing compressors. The LPG air compressor can be broadly classified according to its model into separate vertical drum compressors, horizontally separate compressors, and central compressors.

Market Drivers

Mass production of natural gas is at the forefront of the expansion of the worldwide LNG compressor market.

For example, the boom in natural gas production from shale reserves in the United States and the myriad of offshore sites in Africa have significantly boosted the LNG trade around the world. This has stimulated the call for LNG compressors employed in its liquefaction. In the future, the LNG compressor market is predicted to grow at a sustained rate due to the further increase in natural gas production from unconventional sources and offshore sites and due to the opening of the canal. The worldwide liquefied gas compressor market is predicted to see a development during the foreseen period due to the increase in energy use designs combined with the escalating call for natural gas as a major crude oil. Volume expansion at surviving liquefied natural gas plants along with impending activities, particularly in the United States and Australia, are predicted to drive expansion in the liquefied natural gas compressor market over the next seven years. 10% of the worldwide contribution of electricity is recently facing the LNG carrier. The escalating number of LNG workstations and strict government regulations have guided the flow of LNG compressors in need of a higher-level melting procedure. This trend is predicted to stimulate market development and is predicted to persist into the calculable future.

Market Restraints

With a large number of LNG contracts, LNG operators are forced to reduce delivery costs by achieving greater economies of scale. This has led to the development of advanced machines with more efficient techniques and capacity that reduce liquefaction time

Market Opportunities

Realizing the opportunities and profits in the industry, more and more companies are investing in the LNG compressor market these days. The escalating call for drivers to achieve the cheapest possible transportation price has led to advanced reliability and plate foreseeing that is successively estimated to enhance the development of the LNG compressor market during the foreseen period. Horizontal cut compressors are typically employed for medium and low force deployments; central compressors for low force and excessive force implementations, and separate perpendicular compressors for excessive force implementations.

Market Challenges

The high initial capital required to install the equipment and the high operating expenses hamper progress in the worldwide LNG compressor market. Additionally, volatility in oil and gas prices and a shortage of skilled labor also act as deterrents. Component reliability also remains a crucial challenge for the LNG compressor market.

Impact of COVID-19 on the Global LNG Compressor Market

COVID-19 and other events have changed the dynamics of the liquefied natural gas (LNG) market. Industry watchers had predicted an adjustment in mid-2020, but that outlook was offset by a widespread oversupply that led to downward pressure on prices. First, in late 2019, Northeast Asia experienced an unusually warm winter, weakening the call for LNG in the region. The oversupply was sent to Europe, which had excess storage and was able to take advantage of lower prices to store LNG when needed (this transfer is an example of how Europe can play a role in the worldwide LNG ecosystem to balance the supply and call). Then, in March 2020, an oil price war broke out between Saudi Arabia and Russia. Crude prices fell, with negative barrel prices for several days. LNG spot prices also fell, dragged down by lower oil prices. The volatility of the oil market was not an overreaction. The oversupply problem was real, and the only solution was for Saudi Arabia to cut production. Unsurprisingly, the worldwide spread of COVID-19 is the biggest event for LNG call to date in 2020, and its effects are putting more severe and potentially long-term pressure on call. Cities around the world have imposed roadblocks that restrict the movement of people and shut down non-essential businesses, as well as places of entertainment, sports, and places of worship.

REPORT COVERAGE

Market Segmentation

Global LNG Compressor Market Analysis By Type

• Horizontal Split
• Vertically Split Barrel
• Axial Compressors

Horizontal split compressors are predicted to have the highest borehole on the market in terms of methodical design and convenience in storage. These compressors are employed for medium and low-force deployments. It is estimated that the product segment will lose part to excessive development segments, such as vertical and axial divisions, due to the escalating implementation of these mechanical devices in future projects. The great need for excessive force compressor functions with improved compressibility underground side conditions is believed to be the need to power axial and vertical LNG compressors for the predicted period.

Global LNG Compressor Market Analysis By Application

• Low-Pressure Application
• Medium Pressure Application

Market Regional Analysis

The LNG Compressor Report includes the segmentation of Regions:

• North America 
• Europe 
• Asia Pacific
• Latin America 
• Middle East & Africa 

Geographically, North America is a key region in the worldwide LNG compressor market due to the abundant production of shale gas. With the opening of the expanded canal in Panama, the market is predicted to gain new momentum. Additionally, the Asia-Pacific region is also investing substantially in LNG plants that will supply the region's market. India, China and Japan, which are the main energy consumers in the region, are offering LNG infrastructure to convince large LNG compressor companies to invest in the region. Another key market is the Middle East, driven mainly by Qatar, which is a major LNG exporter and is spending money on building LNG infrastructure. North America is estimated to be the dominant region in the LNG compressor market, due to the improved framework of the LNG workstation infrastructure in the area.

The Middle East and Africa constitute another large zonal market for LNG compressors. Qatar is the largest LNG distributor and largely finances the upgrade of the existing infrastructure framework. It is also estimated that the zonal market will see a notable need for LNG compressors from provinces such as Kuwait, United Arab Emirates, Nigeria, and Egypt. It is estimated that the LNG natural gas compressor market in Asia-Pacific will see excessive development in call due to the various LNG vaporization workstations coming up and the development of natural gas use in China. as an important means of creating energy.

Most of the subsequent calls are predicted to come from countries such as China, the United States, India, Pakistan, the United Arab Emirates, Malaysia, Indonesia, and Albania. The Asia Pacific area is also being financed notably in LNG plants that will stimulate the market. Japan, China, and India, which are the main electricity customers in the area, are approaching an LNG infrastructure framework to upgrade major LNG compression industries to be financed in the area.

Market Key Players

1. Siemens AG
2. General Electric Company
3. Elliott Company
4. Eagle Burgmann Germany GmbH & Co
5. KG
6. Mitsubishi Heavy Industries Ltd
7. Kobelco Compressors America Inc. 

Market Recent Developments

• Oslo-based TMC Compressors (TMC) is using the Nor-Shipping platform to launch a new marine evaporative gas compressor system suitable for all ships using LNG as ship fuel.
• TMC Compressors has announced the launch of an evaporative gas compressor (BOG) that can be employed on all ships that use LNG as ship fuel. The compressor system will be unveiled at the Nor-Shipping event in Oslo, Norway, and can also be employed on dual-fuel ships.