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Home Press Releases Global LPG Tanker Market Size Worth USD 286 Million by 2030 | CAGR of 5%

Global LPG Tanker Market Size Worth USD 286 Million by 2030 | CAGR of 5%

Introduction

Market Dynamics

Growing Trade Relations & Increasing Shale Gas Extraction to Drive the Global Market

Due to the growing trafficking of liquefied petroleum gas throughout multiple regions, the international demand for liquefied petroleum gas tankers is expected to rise rapidly throughout the forecast period. As a possible consequence of volatile crude oil prices and advancements in hydraulic fracturing and horizontal drilling procedures, key actors have changed their attention to oil and gas generation from shale rock. Consequently, an expansion in shale gas commercial relations between the United States, Japan, and India from 2020 to 2027 is projected to raise the market for LPG tankers.

Due to its non-toxic, cost-effective, clean, handy, approachable, and portable characteristics, LPG is used in motor fuel, business and residential purposes, refinery, and petrochemical. Factors such as shale gas capacity expansion from new supplies, increased global gas trade, and continued use of liquefied petroleum gas as a fuel for cooking are all supporting the industry's growth for liquefied petroleum gas tankers.

Technological Advancements in LPG Tanker to Provide Lucrative Opportunities for the Global Market

The substantial growth of the oil & gas industry and increasing shale gas production across the world are significant factors contributing to a positive outlook for the LPG tanker market. Numerous technological advancements in LPG tankers, such as the bow wave resistance systems on the hull of the tanker and the integration of semi-membrane tanks, are opening new avenues for the market.

Due to the latest emission regulations, LPG tanker manufacturers have developed engines with higher efficiency. Other factors such as favorable government policies and extensive infrastructural developments, especially in emerging economies, are expected to drive market growth and create more opportunities.

Impact of COVID-19

The shutdown of manufacturing plants had a significant influence on the production chain of the LPG and auxiliary industries, particularly in the Asia Pacific, which was the epicenter of the COVID-19 and among the most hit areas in the world by the pandemic. COVID-19 caused a significant slowdown in the industrial and energy & power industries worldwide. Furthermore, domestic and international restrictions on travel, quarantine regulations, and lockdowns prolonged the delivery of LPG cargoes.

Due to constrained manufacturing in nations severely hit by COVID-19, LPG producers faced obstacles and shortfalls of LPG. End consumers and service vendors in affected regions have problems obtaining and supplying LPG. Production interruptions also contributed to price increases in some world regions, albeit for a brief time in 2020. Although most of the world's major LPG-consuming nations have government-regulated LPG pricing, the sudden and acute scarcity severely damaged them.

Market Recovery Timeline

The expansion of the COVID-19 hampered the growth of the worldwide LPG tanker industry due to lower operational costs by end-users and disruptions in LPG availability due to manufacturing delays and logistic concerns. Furthermore, LPG producers have taken additional steps to provide their services to end customers who have long-term contracts with service providers. Currently, merchants prefer digital tools and adhere to social distancing conventions. They employ protective kits during onsite assessments or when providing maintenance services to end-users on an as-needed basis.

However, global mobility and economic activity are expected to expand throughout time. This will increase industrial and commercial consumption for alternative energies, resulting in increased demand for LPG from end-users to assure the continuity of their individual manufacturing units' operations.

Regional Insights

The LPG tanker market has been divided into five regions: North America, Central and South America, Europe, Asia-Pacific, and the Middle East and Africa. The European LPG tanker market will expand rapidly as the region undergoes significant technical innovation. The European LPG tanker market was valued at USD 52 million in 2021. Germany, the United Kingdom, Spain, Italy, France, and Russia compose the European market. Germany, France, and the United Kingdom have been highlighted as essential contributors to developing the region's LPG tanker market, owing to their huge consumer population and the growing number of manufacturers and distributors of LPG and LPG tankers.

Asia-Pacific accounted for the second-largest share of 27% in the global LPG tanker market and was valued at USD 49 million in 2021. China, Japan, and India dominate the market in Asia Pacific. More than 70% of the world's largest LPG tankers are built-in Asia-Pacific, notably in South Korea and Japan. Asia-Pacific is primarily made up of emerging economies that are rapidly industrializing. The demand for LPG tankers is likely to rise as the usage of LPG spreads beyond domestic to industrial and commercial applications. The rapid rise of industry in China, Japan, and India has fueled the demand for LPG tankers in these countries.

Key Highlights

The global liquefied petroleum gas tanker market was estimated at USD 182 million and is expected to reach USD 286 million by 2030 at a CAGR of 5% during the forecast period (2022 – 2030).
Based on the vessel, the liquified petroleum gas (LPG) tanker market has been segmented into the very large gas carrier, large gas carrier, medium gas carrier, and small gas carrier. In terms of revenue, a very large gas carrier segment dominated the global market and was valued at USD 53 million in 2021 and is expected to reach USD 77 million by 2030, growing at a CAGR of 4%.
Based on refrigeration & pressurization, the LPG tanker market has been segmented into ethylene (extra refrigerated), full refrigerated, semi refrigerated, and full pressurized. The full pressurized segment led the market in 2021 and is expected to maintain its dominance over the forecast period. The full pressurized segment of the LPG tanker market was valued at USD 59 million in 2021 and is projected to reach USD 101 million by 2030, at a CAGR of 6% over the forecast period.

Competitive Players

StealthGas Inc.
Dorian LPG Ltd.
Teekay Corporation
PT Pertamina (Persero)
STX Corporation
Namura Shipbuilding Co., Ltd
DAE SUN SHIPBUILDING & ENGINEERING Co., Ltd.
Kuwait Oil Tanker Co. S.A.K
BW LPG
Hyundai Heavy Industries
Great Indian Shipping Co. Ltd

Recent Developments

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 May 2021, BW LPG took control of its Indian JV with Global United Shipping and now has an 85% stake in the company.
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 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.
In June 2021, EXMAR took delivery of the world's largest dual-fuel LPG carrier, which has a capacity of 88,000 cbm.

Segmentation

By Type of Tanker
1. Full Pressurised
2. Semi Pressurised
3. Full Refrigerated
4. Semi Refrigerated
By Size of Tanker
1. Small Size
2. Medium Size
3. Large Size

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A liquefied petroleum gas (LPG) tanker is a gas transporter that transports massive volumes of petroleum gases. It is made up of separate reservoirs stacked in cargo holds. Small-pressurized tanks, shielded or refrigerated seagoing tanks, and semi-pressurized tanks are the most regularly used LPG tankers. Liquefied petroleum gas is a cleaner fuel compared to coal. Hence a shift toward LPG as a domestic fuel is expected to drive the demand for the transportation of LPG. Concurrently, the need for liquefied petroleum gas for HVAC and cooking applications is on the rise, generating increased demand for transportation and safe storage of liquefied petroleum gas, leading to high demand for LPG tankers in the upcoming years. Market Dynamics Growing Trade Relations & Increasing Shale Gas Extraction to Drive the Global Market Due to the growing trafficking of liquefied petroleum gas throughout multiple regions, the international demand for liquefied petroleum gas tankers is expected to rise rapidly throughout the forecast period. As a possible consequence of volatile crude oil prices and advancements in hydraulic fracturing and horizontal drilling procedures, key actors have changed their attention to oil and gas generation from shale rock. Consequently, an expansion in shale gas commercial relations between the United States, Japan, and India from 2020 to 2027 is projected to raise the market for LPG tankers. Due to its non-toxic, cost-effective, clean, handy, approachable, and portable characteristics, LPG is used in motor fuel, business and residential purposes, refinery, and petrochemical. Factors such as shale gas capacity expansion from new supplies, increased global gas trade, and continued use of liquefied petroleum gas as a fuel for cooking are all supporting the industry's growth for liquefied petroleum gas tankers. Technological Advancements in LPG Tanker to Provide Lucrative Opportunities for the Global Market The substantial growth of the oil & gas industry and increasing shale gas production across the world are significant factors contributing to a positive outlook for the LPG tanker market. Numerous technological advancements in LPG tankers, such as the bow wave resistance systems on the hull of the tanker and the integration of semi-membrane tanks, are opening new avenues for the market. Due to the latest emission regulations, LPG tanker manufacturers have developed engines with higher efficiency. Other factors such as favorable government policies and extensive infrastructural developments, especially in emerging economies, are expected to drive market growth and create more opportunities. Impact of COVID-19 The shutdown of manufacturing plants had a significant influence on the production chain of the LPG and auxiliary industries, particularly in the Asia Pacific, which was the epicenter of the COVID-19 and among the most hit areas in the world by the pandemic. COVID-19 caused a significant slowdown in the industrial and energy & power industries worldwide. Furthermore, domestic and international restrictions on travel, quarantine regulations, and lockdowns prolonged the delivery of LPG cargoes. Due to constrained manufacturing in nations severely hit by COVID-19, LPG producers faced obstacles and shortfalls of LPG. End consumers and service vendors in affected regions have problems obtaining and supplying LPG. Production interruptions also contributed to price increases in some world regions, albeit for a brief time in 2020. Although most of the world's major LPG-consuming nations have government-regulated LPG pricing, the sudden and acute scarcity severely damaged them. Market Recovery Timeline The expansion of the COVID-19 hampered the growth of the worldwide LPG tanker industry due to lower operational costs by end-users and disruptions in LPG availability due to manufacturing delays and logistic concerns. Furthermore, LPG producers have taken additional steps to provide their services to end customers who have long-term contracts with service providers. Currently, merchants prefer digital tools and adhere to social distancing conventions. They employ protective kits during onsite assessments or when providing maintenance services to end-users on an as-needed basis. However, global mobility and economic activity are expected to expand throughout time. This will increase industrial and commercial consumption for alternative energies, resulting in increased demand for LPG from end-users to assure the continuity of their individual manufacturing units' operations. Regional Insights The LPG tanker market has been divided into five regions: North America, Central and South America, Europe, Asia-Pacific, and the Middle East and Africa. The European LPG tanker market will expand rapidly as the region undergoes significant technical innovation. The European LPG tanker market was valued at USD 52 million in 2021. Germany, the United Kingdom, Spain, Italy, France, and Russia compose the European market. Germany, France, and the United Kingdom have been highlighted as essential contributors to developing the region's LPG tanker market, owing to their huge consumer population and the growing number of manufacturers and distributors of LPG and LPG tankers. Asia-Pacific accounted for the second-largest share of 27% in the global LPG tanker market and was valued at USD 49 million in 2021. China, Japan, and India dominate the market in Asia Pacific. More than 70% of the world's largest LPG tankers are built-in Asia-Pacific, notably in South Korea and Japan. Asia-Pacific is primarily made up of emerging economies that are rapidly industrializing. The demand for LPG tankers is likely to rise as the usage of LPG spreads beyond domestic to industrial and commercial applications. The rapid rise of industry in China, Japan, and India has fueled the demand for LPG tankers in these countries. Key Highlights The global liquefied petroleum gas tanker market was estimated at USD 182 million and is expected to reach USD 286 million by 2030 at a CAGR of 5% during the forecast period (2022 – 2030). Based on the vessel, the liquified petroleum gas (LPG) tanker market has been segmented into the very large gas carrier, large gas carrier, medium gas carrier, and small gas carrier. In terms of revenue, a very large gas carrier segment dominated the global market and was valued at USD 53 million in 2021 and is expected to reach USD 77 million by 2030, growing at a CAGR of 4%. Based on refrigeration & pressurization, the LPG tanker market has been segmented into ethylene (extra refrigerated), full refrigerated, semi refrigerated, and full pressurized. The full pressurized segment led the market in 2021 and is expected to maintain its dominance over the forecast period. The full pressurized segment of the LPG tanker market was valued at USD 59 million in 2021 and is projected to reach USD 101 million by 2030, at a CAGR of 6% over the forecast period. Market News 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 May 2021, BW LPG took control of its Indian JV with Global United Shipping and now has an 85% stake in the company. 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 August 2021, Mitsubishi concluded a technical cooperation agreement with Namura Shipbuilding to construct a very large LPG carrier. Based on this agreement, both the companies will jointly develop a new type of VLGC. This new carrier can transport ammonia and LPG at the same time. 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. Global LPG Tanker Market: Segmentation By Vessel Very Large Gas Carrier Large Gas Carrier Medium Gas Carrier Small Gas Carrier By Refrigeration & Pressurization Ethylene Full Pressurized Semi Refrigerated Full Refrigerated By Region North America Europe Asia-Pacific Central and South America Middle East & Africa