The global market for liquefied natural gas engines is set to double by 2033

The global market for engines running on liquefied natural gas (LNG) is set to grow spectacularly over the next decade, driven by energy diversification policies, the development of refuelling infrastructures and growing demand for more economical and less polluting transport solutions. According to a report by Allied Market Research published on 25 March, this market, valued at $5.4 billion in 2023, is expected to reach $10.7 billion by 2033, with a compound annual growth rate (CAGR) of 7.1%.

LNG engines are gaining ground in two key sectors: shipping and power generation. In the energy sector, their superior efficiency and reduced emissions of greenhouse gases and pollutants make them an increasingly competitive option to coal and diesel. The power generation segment, which currently dominates market revenues, is expected to grow at a CAGR of 7.0% over the forecast period. In the maritime sector, the adoption of LNG is being accelerated by strict international standards, notably Annex VI of the MARPOL Convention, which came into force under the aegis of the International Maritime Organisation (IMO). These regulations limit the sulphur content of marine fuels to 0.5%, prompting shipowners to turn to alternatives such as LNG.

The Asia-Pacific region is the undisputed leader in this expansion, with an expected CAGR of 7.5%. Economic giants such as China and India are leading the charge, supported by ambitious policies. In India, for example, the government plans to install 1,000 LNG refuelling stations by 2030, as part of a strategy to reduce dependence on diesel. This momentum is reinforced by regional collaborations, such as the Asia-Pacific Partnership on Clean Development and Climate, which brings together India, Japan and China to accelerate the deployment of clean technologies in transport and energy.

The rise of LNG engines is reshaping energy-related trade and geopolitical flows. By diversifying their sources of supply, major players such as the European Union, India and China are reducing their dependence on oil. By 2023, European LNG imports have jumped to 155 billion cubic metres, an increase of 60% compared with 2021. This trend is benefiting major exporters such as the United States, Qatar and Australia, while producing countries such as Indonesia are betting on ambitious local projects, such as converting 41 diesel power stations to LNG.

To support this growth, investment in supply chains, storage, distribution and refuelling stations is increasing. Heavy road transport, which is a major consumer of diesel, is a particular target. In India, manufacturers such as Tata Motors and Ashok Leyland are developing LNG-compatible trucks, encouraged by tax incentives and favourable regulations. A striking example is Blue Energy Motors, an Indian start-up which, in January 2025, raised $100 million to triple its production to 3,000 trucks sold the following year.

The development of LNG engines is part of an overall drive towards energy transition, combining environmental and economic imperatives. While logistical challenges and initial infrastructure costs remain, technological advances and political commitments point to even wider adoption by 2033. At a time when nations are seeking to reconcile growth and sustainability, LNG could well become an essential pillar of the global energy mix.