As we navigate an era of growing environmental consciousness and shifting energy preferences, the LNG Carrier market is poised for robust growth in the near future. Driven primarily by rising global demand for LNG and the sector's expanding deployment capabilities, this market offers immense potential for investors and business leaders actively seeking opportunities in energy-focused industries. The increasing global consumption of LNG, enforced by supportive government regulations and rising demand from a range of end-user industries such as power generation and industrial segments, underscore the long-term viability of investing in the LNG Carrier market.
The market is marked by advancements and trends such as the dominance of the membrane type containment, attributed to its higher carrying capacity and increased visibility. Furthermore, terminals are innovating to house small-scale and bunkering vessels to align with emission targets and seize new commercial opportunities. The Asia-Pacific region, driven by increasing demand in countries such as China, Japan, and India, is predicted to command a significant share of the market.
Attaining a comprehensive understanding of these dynamic market trends is essential in steering successful business strategies in the evolving LNG Carrier market. Combine this with a moderately fragmented competitive landscape, featuring key players like Royal Dutch Shell, Nippon Yusen Kabushiki Kaisha, and Mitsui OSK Lines, the opportunity to leverage untapped potential comes to light. This market research report provides an in-depth analysis of these trends to assist in devising strategic investment decisions for optimal returns.
- Membrane type containment was the largest segment of the global LNG carrier market as of 2020, owing to its higher carrying capacity and increased visibility. This segment is expected to continue dominating the market during the forecast period.
- Many terminals are adjusting to accommodate small-scale and bunkering vessels to comply with emissions targets and capture new commercial opportunities. Conventional oil-based fuels will remain the main fuel option for most vessels in the future. At the same time, commercial opportunities of LNG are much interesting for many projects.
- Asia-Pacific is expected to dominate the market, with most of the demand coming from China, Japan, and India.
LNG Carriers Market Trends
Membrane Type Containment to Dominate the Market
- The membrane-type segment held the largest market share in 2020, accounting for around 79%, owing to its higher carrying capacity and other advantages. This containment segment is expected to dominate the global market throughout the forecast period.
- Gaztransport and Technigaz (GTT) designed the most common membrane tank systems. Several GTT systems have already been implemented onboard LNG carriers for many years, and other designs from different companies have been developed.
- By 2020, 454 units of the active fleet had a GTT membrane-type containment system. It continues to lead the order book as the preferred containment option.
- Due to technological advancements, the membrane-type containment has a superior capacity to bear the immense pressure of LNG and its compact shape to carry large LNG volumes compared to moss-type containment.
- Therefore, with the largest market share and existing fleet by containment type (active), the membrane-type LNG carrier’s demand is expected to grow significantly over the forecast period.
Asia-Pacific to Dominate the Market
- Asia-Pacific accounted for the largest LNG carrier market share in 2020 due to increased demand for natural gas because of high industrial growth and the adoption of clean energy sources. Therefore, the region is expected to continue its dominance in the market throughout the forecast period. Most of the demand in the region came from China.
- In 2020, the Chinese government announced that it is building the largest liquefied natural gas carrier with a capacity of 270,000 cubic meters to meet the rising demand for clean fuel in the country. China's LNG import is still severely dependent on foreign LNG carriers, with an external capacity dependence rate of more than 65%.
- China imported more than 68.9 million metric ton of liquefied natural gas (LNG) in 2020, an 11.7% increase compared to 2019. Therefore, China became a vital contributor to the global LNG industry's development and prosperity.
- Net LNG imports in Asia in 2020 increased by 9.5 MT. On the other hand, Australia in the Pacific region overtook Qatar as the largest exporter in 2020, exporting 77.8 MT of LNG.
- The growing LNG consumption by various end-user industries, such as manufacturing, petrochemicals, and fertilizers, is on a consistent rise in China and South Korea. Japan prevalently consumes LNG for power generation. These countries are expected to aid in the growth of the Asia-Pacific market.
LNG Carriers Market Competitor AnalysisThe LNG carrier market is moderately fragmented. Some of the major companies operating in the market include Royal Dutch Shell PLC (Shell), Nippon Yusen Kabushiki Kaisha (NYK), Mitsui OSK Lines Ltd (MOL), Misc Berhad (Misc), and Teekay Corporation.
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Table of Contents
1.2 Market Definition
1.3 Study Assumptions
4.2 Market Size and Demand Forecast in USD billion, till 2027
4.3 Global LNG Carrier Fleet (Historical and Forecast) in Number of Vessels, Until 2027
4.4 Recent Trends and Developments
4.5 Government Policies and Regulations
4.6 Market Dynamics
4.7 Supply Chain Analysis
4.8 Porter's Five Forces Analysis
4.8.1 Bargaining Power of Suppliers
4.8.2 Bargaining Power of Consumers
4.8.3 Threat of New Entrants
4.8.4 Threat of Substitutes Products and Services
4.8.5 Intensity of Competitive Rivalry
5.2 Propulsion Type
5.2.1 Steam Turbines
5.2.2 Dual Fuel Diesel Engine/Tri-Fuel Diesel Engine (DFDE/TFDE)
5.2.3 Slow-Speed Diesel (SSD)
5.2.4 M-type Electronically Controlled Gas Injection (ME-GI)
5.2.5 XDF Two-stroke Engine
5.2.6 Steam Re-heat and Stage
5.3.1 North America
5.3.4 South America
5.3.5 Middle-East and Africa
6.2 Strategies Adopted by Leading Players
6.3 Market Share Analysis
6.4 Company Profiles
6.4.1 Ship Builders
184.108.40.206 Samsung Heavy Industries Co. Ltd
220.127.116.11 Hyundai Samho Heavy Industries Co. Ltd
18.104.22.168 Daewoo Shipbuilding and Marine Engineering Co. Ltd
22.214.171.124 STX Offshore and Shipbuilding
126.96.36.199 Mitsubishi Heavy Industries Ltd
188.8.131.52 Kawasaki Heavy Industries Ltd
184.108.40.206 China Shipbuilding Trading Co. Ltd
220.127.116.11 Japan Marine United Corporation
18.104.22.168 Hanjin Heavy Industry Co. Ltd
6.4.2 Ship Operators
22.214.171.124 Royal Dutch Shell PLC
126.96.36.199 Nippon Yusen Kabushiki Kaisha
188.8.131.52 Mitsui OSK Lines Ltd
184.108.40.206 Malaysia International Shipping Corporation Berhad (MISC)
220.127.116.11 Teekay Shipping Corporation
18.104.22.168 Maran Gas Maritime Inc.
22.214.171.124 Golar LNG
126.96.36.199 BW LPG
188.8.131.52 GasLog Ltd
184.108.40.206 Kawasaki Kisen Kaisha Ltd (“K” LINE)
A selection of companies mentioned in this report includes:
- Ship Builders
- Ship Operators