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The Liquified Petroleum Gas Tanker Market size is forecasted to increase by USD 52.5 million, at a CAGR of 3.2% between 2023 and 2028. Market expansion hinges on several key factors, notably the augmented supply of natural gas, spurred by advancements in extraction technologies. Additionally, robust government backing for liquefied petroleum gas (LPG) adoption amplifies market growth prospects. Furthermore, the escalating transportation of LPG via tanker vessels bolsters market dynamics, facilitating efficient distribution networks. These factors collectively underscore the pivotal role of regulatory support, technological innovations, and logistical infrastructure enhancements in driving the growth trajectory of the LPG market. As demand continues to surge, stakeholders must prioritize sustainable practices and infrastructure development to meet evolving consumer needs.
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The market share by the residential segment will be significant during the forecast period. Residential end-users include households, apartments, and private homes that consume LPG. In the residential sector, LPG is a highly versatile source of energy and can be used across a wide range of applications, such as water and space heating and cooling. In developing countries, LPG is used for lighting where electricity is unavailable, while in developed countries, LPG is used for outdoor activities such as barbecues and camping. As LPG-fired electricity is cleaner, it is preferred by residential end-users.
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The residential segment was valued at USD 169.50 million in 2018. LPG has various economic and environmental advantages over other fuels. The use of LPG in the residential sector is high. It has a high calorific value in liquid form, which reduces transportation costs. Therefore, LPG is convenient to handle when compared to other oil-based fuels, coal, and wood. LPG is a clean-burning fuel and can be used in direct contact with food without any risk of contamination. Hence, the benefits of using LPG as well as government initiatives to promote the same are expected to drive the growth of the residential segment of the global market during the forecast period.
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Europe is estimated to contribute 33% 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. The growth of the market in the region is attributed to factors such as the growth in the production of petroleum products and imports of crude oil. The transport sector is heavily dependent on oil products. In May 2021, oil traders provisionally booked around six tankers to ship gasoline from Europe to US destinations. Such developments are expected to drive the growth of the market in Europe during the forecast period. The regional market is dominated by Western Europe and Russia, driven by numerous oil and gas exploration projects in the North Sea. For instance, BP PLC invested USD 150 billion in May 2022 to develop the Murlach oil field in the North Sea by 2025. Such projects will drive the growth of the market in the region during the forecast period.
LPG Tankers are essential vessels used for transporting petroleum gases such as propane and butane. These gases are stored in cargo holds under pressure to maintain their liquid state during transportation. LPG tankers cater to various industries including oil and gas, petrochemical, automotive, and refrigeration and pressurization. The primary cargoes transported are Ammonia, propylene, and vinyl chloride. LPG tankers come in different sizes, including large gas carriers, medium gas carriers, and small gas carriers. The demand for LPG tankers is driven by the growing usage of LPG in industries like petrochemical, where it is used as a feedstock for producing ethylene. Shale gas production through hydraulic fracturing and horizontal drilling methods has also boosted the demand for LPG tankers. LPG is extensively used in residential segments for cooking and HVAC applications. The market for LPG tankers is segmented based on the type of tank, including fully pressurized, semi-refrigerated, and fully refrigerated types. Type C tanks are commonly used for transporting LPG due to their high strength-to-weight ratio and excellent insulation properties.
The increase in the supply of natural gas is notably driving market expansion. Natural gas is the fastest-growing fossil fuel, with a rise in the supply of coalbed methane, shale gas, and tight gas. Hence, the production of unconventional oil and gas resources such as natural gas has increased significantly in the global oil and gas industry. According to International Energy Agency (IEA), natural gas consumption grew from 3,630 billion cubic meters in 2016 to 4,000 bcm in 2022.
Further, according to IEA, natural gas production in the US accounted for 40% of global natural gas output growth from 2017 to 2022. The US produced 890 bcm or 22% of the global natural gas in 2022. Russia is the second-largest producer of natural gas in the world, and there is substantial under-utilized natural gas production capacity in the Yamal peninsula. Such initiatives will likely fuel the growth of the market growth throughout the forecast period.
Technological advances is a key trend shaping market development. One of these advances is the development of cross-compound double-reduction steam turbines. These steam turbines are compact and take up less space in the ship engine room. Marine two-stroke diesel engines have replaced marine steam turbine engines, as they are more economical for commercial purposes.
Further, the introduction of the controllable pitch propeller (CPP) for running tanker ships is another technological advancement. This enables transporting more volume of goods using tankers. Innovation in the propulsion system can be attributed to the GDF SUEZ Global Energy and Provalys vessels. These vessels can be driven by dual-fuel diesel-electric propulsion systems. The propulsion system can utilize diesel, oil, and steam-boiled-off- gases, which enhances the vessel's efficiency by 25%-30% compared to conventional propulsion systems. Such technological advancements are expected to propel the development of the market during the forecast period.
Fluctuations in crude oil prices may impede market growth. These fluctuations adversely impact the end-user industries of the market. As per the IEA, in October 2018, the average cost of crude oil was USD 73.6/bbl. However, in H1 2022, the average cost of crude oil reached more than USD 100/bbl.
Additionally, unexpected price fluctuations affect the market adversely. The recent frequent volatility in crude oil prices has also negatively impacted the petroleum industry. These fluctuations can lead to disruptions in the oil and gas industry, which will ultimately impact investments in the market. Thus, fluctuations in global crude oil prices will challenge the growth of the market during the forecast period.
The market 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 market forecasting 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.
DAE SUN SHIPBUILDING and ENGINEERING CO. LTD. - The company offers an LPG carrier that is designed to carry 3500 cubic meters of LPG fuel.
The research report also includes detailed analyses of the competitive landscape of the market and information about 16 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 companiesas dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
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The market is integral to global energy logistics, facilitating the safe transportation of LPG from refineries via very large gas carriers and semi-refrigerated vessels. These tankers, with full pressurized and Type C tanks, handle bulk quantities efficiently, addressing crude oil price volatility and CO2 emissions concerns. Innovations like semi-membrane tanks and bow wave resistance systems improve transport safety and efficiency, while engines with higher horsepower and geared diesel sets enhance fuel consumption and reduce greenhouse gases. Flanders Innovation drives advancements in safe storage solutions, including small and semi-pressurized tanks for independent reservoirs. With rapid industrialization increasing demand, the market plays a crucial role in petrochemical industries, ensuring safe and convenient LPG delivery worldwide.
In addition, the market is essential for the global energy sector, ensuring efficient transportation from refineries to consumers. Tankers vary from full refrigerated to semi-refrigerated and utilize Type C tanks for safe storage of LPG. They are equipped with geared diesel sets to enhance fuel efficiency, crucial for reducing operational costs and environmental impact. Safety is prioritized through innovations like semi-membrane tanks and robust hull designs, ensuring secure transportation across varying sea conditions. The market caters to diverse needs with small and semi-pressurized tanks, accommodating different storage capacities and transportation requirements. As demand for LPG rises, particularly in industries and residential sectors, the market continues to evolve with technological advancements and stringent safety standards driving its growth and sustainability.
Market Scope |
|
Report Coverage |
Details |
Page number |
159 |
Base year |
2023 |
Historic period |
2018- 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.2% |
Market growth 2024-2028 |
USD 52.5 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.05 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 33% |
Key countries |
US, Germany, China, France, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Air and Gas Holdings Pty Ltd., Bosco India, BW Group, DAE SUN SHIPBUILDING and ENGINEERING CO. LTD., Dorian LPG Ltd., Exmar NV, GLOBE GAS EQUIPMENTS INDUSTRY PVT. LTD., HD Hyundai Co. Ltd., Kawasaki Heavy Industries Ltd., Krison Engineering Works, Kuwait Oil Tanker Co. SAK, Mitsubishi Heavy Industries Ltd., Nakilat, Namura Shipbuilding Co. Ltd., PT Pertamina Persero, StealthGas Inc., STX Corp., Teekay Corp., and The Great Eastern Shipping Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our 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 Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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