LPG Tanker Market Forecasts to 2028 - Global Analysis By Refrigeration & Pressurization, Vessel Size (Small Gas Carriers, Medium Gas Carriers, Large Gas Carriers, Very Large Gas Carriers ), and Geography

According to Stratistics MRC, the Global LPG Tanker Market is accounted for $195.30 billion in 2022 and is expected to reach $298.06 billion by 2028 growing at a CAGR of 7.3% during the forecast period. A liquefied petroleum gas (LPG) tanker is a type of gas carrier that transports large quantities of petroleum gases. It is made up of separate reservoirs stacked in cargo holds. Small-pressurized tanks, insulated or refrigerated seagoing tanks, and semi-pressurized tanks are some of the most regularly used LPG tankers. They are available in very large, large, medium, and small sizes and are powered by a variable-pitch propeller and geared-diesel system. These tankers also transport ammonia, propylene, and vinyl chloride. As a result, they have a wide range of applications in industries such as oil and gas, chemical, automotive, and refinery.

According to the Observatory of Economic Complexity (OEC), North America accounted for a share of 15.0% of the global LPG exports valued at USD 40 billion in 2021.

Market Dynamics:

Driver:

Growing trade relations & increasing shale gas extraction

Due to growing trading of liquefied petroleum gas across numerous countries, the global market for liquefied petroleum gas tankers is expected to rise significantly. In response to the fluctuation of crude oil prices and the advancement of hydraulic fracturing and horizontal drilling methods, key participants have shifted their focus to oil and gas production from shale rock. As a result of the shift in focus, the market is likely to expand throughout the forecast period, as increased shale gas production has increased LPG trade globally.

Restraint:

Increasing demand and usage of CNG and natural gas

CNG is cleaner and less expensive than LPG, and it is primarily composed of methane. LPG has a higher calorific value than CNG and can catch fire faster. It is used in automobiles as a substitute for gasoline, and it emits fewer greenhouse gases than LPG. Furthermore, it is lighter than air. As a result, it disperses fast in the event of spilling. Regulatory policies, government subsidies, environmental benefits, resource availability, and fuel prices are likely to positively influence CNG adoption while inhibiting the growth of the LPG tanker market over the projection period.

Opportunity:

Technological advancements & substantial infrastructure development

Numerous technological improvements in LPG tankers, such as bow wave resistance systems on the tanker's hull and the integration of semi-membrane tanks, are paving the way for new market opportunities. LPG tanker manufacturers have created engines that are more efficient as a result of the latest emission requirements. Other factors, such as favourable government policies and substantial infrastructure development, are likely to boost market expansion and generate more opportunities, particularly in emerging economies.

Threat:

Volatile crude oil prices resulted in amplified prices of LPG

Volatile crude oil prices increased LPG prices, resulting in lower demand, which is expected to impede market growth throughout the forecast period. The sudden beginning of the COVID-19 pandemic resulted in a small decline in demand for liquefied petroleum gas in a variety of sectors. Demand for liquefied petroleum gas began to revive in 2021, and an increase in liquefied petroleum gas trade between the United States and Asian countries will involve vessels during the forecast period. Therefore, the amplified LPG prices has reduced the demand of LPG in various sectors.

COVID-19 Impact

The COVID-19 epidemic has had a negative impact on the market. International lockdowns triggered by the epidemic have disrupted the supply chain of LPG gas. However, with the resumption of various economic activities, the market is estimated to recover within a couple of years. LPG gas generation is a time-consuming and labor-intensive process that necessitates a large staff. However, COVID-19 has resulted in a labour shortage, significantly impacting LPG production. However, with the resumption of various economic activities, the market is estimated to recover within a couple of years.

The full pressurized segment is expected to be the largest during the forecast period

The full pressurized segment is estimated to have a lucrative growth, due to the increase in LPG transportation. VLGCs with fully-refrigerated capacities range from 15,000 m3 to 85,000 m3. Such ships can operate with vessels that can sustain a maximum working pressure of 0.28 kg/cm2 and a minimum operating temperature of -50 oC. Because ethylene requires additional refrigeration for safe global shipping, carriers are regarded as a unique industry category. In addition, the recent launch of fully pressurized LPG carrier sets in the global market is expected to drive market growth.

The Very Large Gas Carriers (VLGC) segment is expected to have the highest CAGR during the forecast period

The Very Large Gas Carriers (VLGC) segment is anticipated to witness the fastest CAGR growth during the forecast period, due to the growing liquefied petroleum gas trade relationships between countries, such as the Middle East and Asian countries, Western Africa and Europe, and the United States. Very large gas carriers are commonly utilised to carry LPG gas across extensive distances across multiple nations. Furthermore, top LPG tanker firms are acquiring VLGC tankers in order to expand their global reach.

Region with highest share:

Europe is projected to hold the largest market share during the forecast period as the region is on a significant cusp of technological transformation. Due to their huge customer bases and growing number of manufacturers and suppliers of LPG and LPG tankers, Germany, France, and the United Kingdom have been considered as key contributors to the expansion of the region's LPG tanker market. Various governments in Europe are fiercely advocating for a shift in their energy ecosystems through the use of sophisticated and efficient technology, which is predicted to drive the expansion of LPG tankers in the region.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period, owing to the need of LPG expansion from residential to industrial and transportation uses. This region's market is led by China, Japan, and India. More than 70% of the world's LPG tankers are produced in the Asia-Pacific area, notably in South Korea and Japan. Because sea transportation is significantly more accessible in this region, demand for LPG tankers is likely to increase during the projection period.

Key players in the market

Some of the key players profiled in the LPG Tanker Market include Hyundai Heavy Industries Co., Ltd, Kawasaki Heavy Industries, Ltd, Mitsubishi Heavy Industries, Ltd, The Great Eastern Shipping Co. Ltd, StealthGas Inc., EXMAR, Dorian LPG Ltd, Great Indian Shipping Co. Ltd, BW LPG, STX Corporation, Teekay Corporation, Kuwait Oil Tanker Co. S.A.K and PT Pertamina

Key Developments:

In January 2022, the EU blocked the proposed merger between Hyundai Heavy Industries and DSME on monopoly concerns. The European Commission announced its prohibition of the union would reduce competition in the LNG and LPG carrier market.

In January 2022, Kawasaki Heavy Industries delivered an LPG carrier named Crystal Trinity to Kumiai Navigation. It was Kawasaki's second LPG carrier with a capacity of 84,000 cbm.

In December 2021, StealthGas Inc. spun off its tanker division into a new company under Imperial Petroleum Inc. The management believes that having two companies for distinct sectors will be better for business focus.

In November 2021, Dorian LPG Ltd. announced the charter of three newbuilding dual-fuel Panama LPG vessels. They will be delivered in Q3 2023 for a 7-year employment charter.

In June 2021, EXMAR took delivery of the world's largest dual-fuel LPG carrier, which has a capacity of 88,000 cbm.

In May 2021, BW LPG took control of its Indian JV with Global United Shipping and now has an 85% stake in the company.

In May 2021, The Great Indian Shipping Co. Ltd. bought a second-hand mid-size LPG carrier of 35,000 cbm capacity. This is the company's sixth LPG carrier.

Refrigeration & Pressurizations Covered:

• Full Refrigerated
• Semi Refrigerated
• Full Pressurized
• Ethylene

Vessel Sizes Covered:

• Small Gas Carriers (SGC)
• Medium Gas Carriers (MGC)
• Large Gas Carriers (LGC)
• Very Large Gas Carriers (VLGC)

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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