Small-Scale LNG Market to Reach USD 166.56 Billion by 2032 | Driven by Decentralized Energy Demand and Clean Fuel Transition

GlobeNewswire On June 3, 2025 19:00 IST

The global small-scale liquefied natural gas (LNG) market is poised for substantial expansion, underpinned by rising demand for cleaner energy alternatives.

Austin, June 03, 2025 (GLOBE NEWSWIRE) — The Small-Scale LNG Market was valued at USD 56.52 billion in 2024 and is projected to reach USD 166.56 billion by 2032, registering a compound annual growth rate (CAGR) of 14.46% between 2025 and 2032.

Growing small-scale liquefied natural gas (LNG) demand in transportation and power generation is one of the key factors driving the growth of the market. LNG is poised to become a cleaner and economically attractive alternative fuel to current fossil fuels like diesel and heavy fuel oil in the transportation sector, particularly in marine and heavy-duty road transport. With regulatory bodies worldwide introducing more stringent emissions standards, the industry is moving to fuels that involve lower sulfur oxides (SOx), nitrogen oxides (NOx), and particulate matter.

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The U.S. small-scale LNG market size was valued at USD 10.04 billion in 2024 and is expected to reach USD 31.22 billion by 2032, growing at a CAGR of 15.24% during the forecast period of 2025-2032. It is owing to its large natural gas reserves, developed infrastructure, and favourable regulatory environment, the United States had the largest market share of the global small-scale LNG market. Relatively cheap and plentiful source of US natural gas—The US is one of the largest suppliers of natural gas in the world, which is a very attractive feed of natural gas, particularly for small-scale LNG applications. The country has also poured money into liquefied natural gas (LNG) infrastructure including liquefaction facilities, storage sites, and transportation networks around the Gulf Coast.

Key Players:

Shell PLC
Linde PLC
Gazprom
Engie SA
Wartsila Oyj Abp
Honeywell International Inc.
IHI Corporation
Excelerate Energy L.P.
Prometheus Energy
Skangas AS

Market Segmentation

By Type

The liquefaction segment captured the largest market share of approximately 64% in 2024. Therefore, liquefaction units are crucial for the processing of natural gas into LNG so that gas can be stored and transported as LNG, especially in remote and off-grid areas that lack pipeline infrastructure. To monetize stranded gas assets, particularly in emerging markets and offshore, the proliferation of portable and modular liquefaction units is being deployed.

By Mode of Supply

In 2024, the market share of the truck-to-tank segment held the largest market share of about 48%. It is a popular supply mode that efficiently delivers LNG to industrial users, power plants, and vehicle refueling stations in areas that lack pipeline connectivity. This provides flexibility, has a relatively low initial capital investment, and can be deployed more rapidly, making it suitable for many developing countries to expand access to clean fuel while avoiding massive infrastructure overhauls.

By Application

The small-scale LNG market was dominated by the transportation segment. The reason is that there is a global transition towards more environmentally friendly and sustainable fuel alternatives in the logistics and mobility sectors. LNG offers significant environmental advantages over diesel and heavy fuel oil with respect to carbon dioxide (CO₂), sulfur oxides (SOx) and nitrogen oxides (NOx) emissions.

Regional Analysis

Asia-Pacific held the largest market share of around 40.12% in 2024. It is owing to the increasing energy demand, industrial growth, and government support for clean energy alternatives in the region. Like China, India, Japan, and South Korea are taking steps to replace coal and oil with more eco-friendly fuels like LNG and other options. The movement is propelled by rising concerns over the environment, air pollution in cities, and international climate goals. Given the mixed energy requirements of the Asia Pacific and the lack of large-scale energy infrastructure in many remote and island communities, small-scale LNG is deemed to be a better fit since flexible delivery logistics can serve areas that otherwise would not be economically or even physically developable.

Recent Developments

In February 2024, Wartsila announced the commissioning of a modular LNG liquefaction plant in Norway, designed to support localized gas monetization and small-scale LNG export. The facility uses advanced nitrogen refrigeration cycles to enable cost-efficient operations.
In November 2023, Shell opened a small-scale LNG fueling station network in Germany to help heavy-duty LNG trucks and low-emission freight transport. It intends to build 40 of the stations in Europe by 2026.
In August 2023, Gazprom and Novatek reported plans for a joint venture to create some micro-LNG production units in regions of Siberia that have no grid infrastructure, with a view to serving off-grid communities and mining operations and to reduce suppression of associated gas.

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