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The liquefied natural gas (LNG) bunkering market is estimated to grow by USD 855.43 million at a CAGR of 17.39% between 2022 and 2027. The growth of the market depends on several factors, including an increase in the supply of LNG, a growing marine logistics business, and stringent government regulations about marine transport emissions.
It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
One of the key factors driving global market growth is the increase in the supply of LNG. According to the IEA, an increase in natural gas production in the US will account for 40% of the growth in global natural gas output by 2022. It is expected that by 2022, the US will produce 890 bcm, or 22% of the global natural gas production. In addition, according to the IEA, the Middle East is expected to add 70 bcm to global natural gas production, as the production is expected to increase to 650 bcm by 2022.
Moreover, Russia, the second-largest natural gas producer in the world after the US, hosts a significant underutilized natural gas production capacity in the Yamal Peninsula. With the increase in natural gas production, the production of this has increased, which is projected to boost market growth during the forecast period.
An increase in demand for cleaner fuels is one of the primary trends for global market growth. The growth in the marine and other forms of transportation results in an increase in the consumption of fuels, thus resulting in the emission of pollutants. Moreover, the majority of marine fuel has 1,666.67 times more sulfur content compared with that of on-road diesel and gasoline. High sulfur content in fuel has contributed significantly to local air pollution, thus causing related health issues.
There has been a significant contribution to air pollution from the transportation sector. This has created a need for cleaner fuels to curb pollution. Thus, the demand for cleaner fuel is expected to propel the growth of the market in focus during the forecast years.
One of the key challenges to global market growth is the high capital requirements of using LNG as a marine fuel. One of the most challenging issues concerned with using this to power ships is the high capital and operational costs involved. The capital investment depends on tank and tank connection space, bunkering station, automation and interfacing, and yard cost. Moreover, the construction of a dual-fueled vessel costs around one-fifth times more than constructing a conventionally-fueled ship owing to the need to install these tanks, which are 250% bigger in size than HFO tanks. Retrofitting is expensive, as existing ships require space to install much bigger fuel tanks. Also, it involves educational and technological adaptation costs for shipowners.
The use of low sulfur content fuel will entail high fuel costs. The changes in fuel prices post-2020 will be complex and subject to volatility. Also, these storage and the requisite safety arrangements increase operational costs. Fuel cost represents more than 50% of the overall operation cost of a container ship. Hence, the use of these as marine fuel might result in high capital and operational costs, thus limiting the growth of the global market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Arkas.com.tr: - The company offers physical supplies as well as bunkers and lubricants. Also, the company offers agency services, port services, and integrated logistics services.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the tanker segment will be significant during the forecast period. This segment includes oil as well as chemical tankers and liquefied gas tankers. Tankers can carry crude oil, chemicals, oil products, and gas such as LNG and LPG. Hence, this segment presents a significant potential for adoption. Shuttle tankers, which load crude oil from offshore facilities to shoreside refineries, are used in the North Sea. The majority of new vessels in this segment over the past year are Aframax and Suezmax oil tankers, with a capacity of over 100,000 deadweight tonnage (DWT). Such factors will increase segment growth during the forecast period.
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The tanker segment was valued at USD 107.14 million in 2017 and continue to grow by 2021. In this segment, the Wartsila will supply its volatile organic compounds (VOCs) recovery technology, LNG fuel gas handling systems, and the auxiliary engines for the two AET and the four Teekay Offshore shuttle tankers. AET and Teekay Offshore shuttle tankers operate on this as the primary fuel, but VOCs, gas that evaporates from oil cargo tanks, can also be utilized as fuel by mixing with LNG. This way, each ship can save up to 8.22 tons of fuel per day. With the development of fuel-efficient technologies for tankers and stringent regulations, the global liquefied natural gas (LNG) bunkering market for tankers is expected to grow during the forecast period.
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Europe is estimated to contribute 58% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. There has been significant production of LNG in the region. According to the IEA (International Energy Agency), Russia, the second-largest natural gas producer in the world after the US, has a significant underutilized production capacity in the Yamal Peninsula. Russia is seeking to diversify its natural gas export outlets through a pipeline to China. Apart from the US and Australia, which will hold the first and second-largest liquefaction capacity, Russia is expected to contribute 15 bcm out of the 140 bcm global liquefaction capacity by 2023.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The LNG bunkering market is experiencing rapid growth, driven by the need for cleaner marine fuels. According to energy and power research, North America is set to dominate this market, with the US LNG bunkering market playing a pivotal role. LNG bunker fuel is becoming increasingly popular due to its lower greenhouse gas emissions compared to traditional fuels. The tanker fleet is expected to witness significant growth as more ships adopt LNG as a marine fuel to reduce their carbon footprint.
Moreover, the International Maritime Organization's regulations on NOx emissions, SOx particulate matter, and GHG emissions are also driving this shift. Key players such as Fincantieri Bay Shipbuilding, Wison Offshore & Marine, and Pilot LNG's Galveston LNG Bunker Port project are leading the way in LNG refueling services. The market is poised for substantial expansion, with projects like the Port Isabel Logistical Offshore Terminal and developments in the Cameron Parish Port, Harbor & Terminal District further fueling growth.
LNG Bunkering Market Scope |
|
Report Coverage |
Details |
Page number |
158 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 17.39% |
Market growth 2023-2027 |
USD 855.43 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
15.5 |
Regional analysis |
Europe, APAC, North America, South America, and Middle East and Africa |
Performing market contribution |
Europe at 58% |
Key countries |
US, Singapore, Norway, The Netherlands, and Denmark |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Arkas Holding SA, Broadview Energy Solutions B.V., Crowley Maritime Corp., Eagle LNG Partners, Equinor ASA, EVOL LNG, Fluxys SA, Gasum Oy, Harvey Gulf International Marine LLC, Naturgy Energy Group SA, Petroliam Nasional Berhad, Petronet LNG Ltd., QLNG Transport LLC, Shell plc, Singapore Technologies Engineering Ltd., TotalEnergies SE, SHV Energy, and Trelleborg AB |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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