Liquefied Natural Gas (LNG) As A Fuel Market

By Source;

Offshore and Onshore

By Feedstock;

Natural Gas, Associated Gas and Biogas

By Production Process;

Cryogenic Liquefaction, Mixed-Refrigerant Liquefaction and Cascade Liquefaction

By Application;

Transportation Fuel, Power Generation and Others

By Geography;

North America, Europe, Asia Pacific, Middle East & Africa and Latin America - Report Timeline (2021 - 2031)
Report ID: Rn083060480 Published Date: August, 2025 Updated Date: September, 2025

Lng As A Fuel Market Overview

Lng As A Fuel Market (USD Million)

Lng As A Fuel Market was valued at USD 108,610.39 million in the year 2024. The size of this market is expected to increase to USD 179,311.82 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 7.4%.


Liquefied Natural Gas (LNG) As A Fuel Market

*Market size in USD million

CAGR 7.4 %


Study Period2025 - 2031
Base Year2024
CAGR (%)7.4 %
Market Size (2024)USD 108,610.39 Million
Market Size (2031)USD 179,311.82 Million
Market ConcentrationMedium
Report Pages376
108,610.39
2024
179,311.82
2031

Major Players

  • Chevron Corporation
  • BP plc
  • Engie SA
  • Gazprom PJSC
  • Mitsubishi Corporation
  • Cheniere Energy, Inc.
  • Dominion Energy, Inc.

Market Concentration

Consolidated - Market dominated by 1 - 5 major players

Liquefied Natural Gas (LNG) As A Fuel Market

Fragmented - Highly competitive market without dominant players


The Liquefied Natural Gas (LNG) as a Fuel Market is expanding rapidly as industries and transport sectors shift toward cleaner and more efficient energy solutions. LNG is recognized for cutting greenhouse gas emissions by nearly 25% compared to oil-based fuels, making it a strategic choice for businesses aiming to meet sustainability goals while lowering operational costs.

Environmental Advantages
The market’s growth is strongly influenced by the environmental advantages of LNG. It delivers almost 90% lower nitrogen oxide emissions and virtually eliminates sulfur oxide emissions, creating a cleaner alternative for sectors under strict emission mandates. With this trend, over 30% of new shipping vessels are now being developed to run on LNG fuel, reflecting the industry’s strong push toward sustainable solutions.

Cost and Efficiency Benefits
In addition to its environmental profile, LNG provides a 15% to 20% improvement in fuel efficiency compared to traditional liquid fuels. Its high energy density supports extended operating ranges, making it ideal for long-haul transport and industrial power applications. These economic and performance benefits continue to accelerate its adoption across multiple industries.

Infrastructure and Innovation
The expansion of technological innovations and infrastructure is another critical enabler. More than 40% of energy providers are actively developing fueling stations and bunkering facilities to enhance LNG accessibility. Advanced storage and regasification technologies further ensure the safe and efficient use of LNG, strengthening its position in the energy mix.

  1. Introduction
    1. Research Objectives and Assumptions
    2. Research Methodology
    3. Abbreviations
  2. Market Definition & Study Scope
  3. Executive Summary
    1. Market Snapshot, By Source
    2. Market Snapshot, By Feedstock
    3. Market Snapshot, By Production Process
    4. Market Snapshot, By Application
    5. Market Snapshot, By Region
  4. Lng As A Fuel Market Dynamics
    1. Drivers, Restraints and Opportunities
      1. Drivers
        1. Growing adoption of LNG-fueled ships
        2. Cost-competitiveness
        3. Infrastructure development
        4. Stringent emission regulations
        5. Energy security
      2. Restraints
        1. Infrastructure limitations
        2. High initial investment
        3. Regulatory challenges
        4. Price volatility
        5. Limited bunkering infrastructure
      3. Opportunities
        1. Government incentives and regulations promoting LNG
        2. Growing LNG exports and trade opportunities
        3. Emergence of small-scale LNG projects
        4. LNG's role in decarbonizing industries
    2. PEST Analysis
      1. Political Analysis
      2. Economic Analysis
      3. Social Analysis
      4. Technological Analysis
    3. Porter's Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of Substitutes
      4. Threat of New Entrants
      5. Competitve Rivalry
  5. Market Segmentation
    1. Lng As A Fuel Market, By Source, 2021 - 2031 (USD Million)
      1. Offshore
      2. Onshore
    2. Lng As A Fuel Market, By Feedstock, 2021 - 2031 (USD Million)

      1. Natural Gas

      2. Associated Gas

      3. Biogas

    3. Lng As A Fuel Market, By Production Process, 2021 - 2031 (USD Million)

      1. Cryogenic Liquefaction

      2. Mixed-Refrigerant Liquefaction

      3. Cascade Liquefaction

    4. Lng As A Fuel Market, By Application, 2021 - 2031 (USD Million)
      1. Transportation Fuel
      2. Power Generation
      3. others.
    5. Lng As A Fuel Market, By Geography, 2021 - 2031 (USD Million)
      1. North America
        1. United States
        2. Canada
      2. Europe
        1. Germany
        2. United Kingdom
        3. France
        4. Italy
        5. Spain
        6. Nordic
        7. Benelux
        8. Rest of Europe
      3. Asia Pacific
        1. Japan
        2. China
        3. India
        4. Australia & New Zealand
        5. South Korea
        6. ASEAN (Association of South East Asian Countries)
        7. Rest of Asia Pacific
      4. Middle East & Africa
        1. GCC
        2. Israel
        3. South Africa
        4. Rest of Middle East & Africa
      5. Latin America
        1. Brazil
        2. Mexico
        3. Argentina
        4. Rest of Latin America
  6. Competitive Landscape
    1. Company Profiles
      1. Chevron Corporation
      2. BP plc
      3. Engie SA
      4. Gazprom PJSC
      5. Mitsubishi Corporation
      6. Cheniere Energy, Inc.
      7. Dominion Energy, Inc.
  7. Analyst Views
  8. Future Outlook of the Market