Very Large Gas Carrier Market
Very Large Gas Carrier Market Forecasts to 2030 - Global Analysis By Type (Fully Pressurized VLGCs, Semi-Ref Vessels (SRV), Fully Refrigerated VLGCs, Eco-Friendly VLGCs, Dual Fuel VLGCs and Other Types), Cargo Type, Vessel Size, End User and By Geography
According to Stratistics MRC, the Global Very Large Gas Carrier Market is accounted for $7.34 billion in 2023 and is expected to reach $9.68 billion by 2030 growing at a CAGR of 9.4% during the forecast period. Very large gas carriers are specialized vessels designed for transporting liquefied petroleum gas (LPG) in large quantities. VLGCs play a crucial role in the global energy trade, facilitating the transportation of LPG from production centers to consumption markets worldwide. These ships are equipped with advanced safety features to handle the unique challenges posed by carrying highly flammable cargo. VLGCs are vital for meeting the growing demand for clean energy sources, particularly in regions where access to natural gas infrastructure is limited.
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:
Global energy demand
VLGCs are crucial for transporting large volumes of LNG across vast distances, meeting the energy needs of regions worldwide. With expanding industrialization and urbanization, coupled with the transition towards cleaner fuels, the demand for LPG and LNG rises. VLGCs play a crucial role in efficiently transporting these gases across long distances, catering to diverse markets worldwide. As energy consumption patterns evolve and the demand for gas surges, the VLGC market expands to meet these growing needs, ensuring a pivotal role in the global energy landscape.
Restraint:
Regulatory compliance
Regulatory compliance in VLGCs encompasses stringent safety, environmental, and operational standards set by international bodies like the International Maritime Organization (IMO). These regulations impose high costs on VLGC operators for equipment upgrades, crew training, and compliance audits. Moreover, non-compliance risks penalties and reputational damage, adds further pressure. Consequently, compliance burdens can inflate operational expenses, impacting profitability and hindering market growth.
Opportunity:
Rising shale gas production
Very large gas carriers emerge as vital assets in this landscape, facilitating the global distribution of LNG. As shale gas extraction increases, particularly in regions like the United States, the need for VLGCs escalates to transport LNG to various markets worldwide. This expansion in shale gas production thus propels the growth of the VLGC market, fostering investments in vessel construction, logistics, and related services to meet the rising demand for LNG transportation efficiently and sustainably.
Threat:
Overcapacity concerns
Overcapacity in VLGCs arises when the number of vessels exceeds market demand, leading to reduced freight rates and profitability for shipping companies. This surplus capacity results from an influx of new buildings and slow scrapping rates, exacerbating market pressures. It leads to intensified competition among carriers, lower charter rates, decreased vessel utilization, and financial strain on operators. Consequently, shipping companies face challenges in maintaining sustainable operations and profitability amidst a saturated market.
Covid-19 Impact
The covid-19 pandemic significantly affected the VLGC market, leading to fluctuating demand and supply dynamics. Restrictions on international trade and reduced industrial activities dampened demand for LPG, a key cargo for VLGCs. Delays in port operations and disruptions in crew rotations further compounded challenges for vessel operators. However, the gradual recovery of global economies and the resumption of trade activities provided some relief, although uncertainties persist due to evolving pandemic situations and regulatory changes impacting maritime trade.
The dual fuel VLGCs segment is expected to be the largest during the forecast period
The dual fuel VLGCs segment is estimated to have a lucrative growth. Dual Fuel VLGCs are vessels equipped to run on traditional marine fuels offering flexibility and environmental benefits. These vessels leverage advanced engine technology, such as dual-fuel engines or engines capable of burning both LNG and traditional fuels, allowing operators to adapt to evolving regulatory requirements and market conditions while contributing to the transition towards cleaner maritime transportation.
The petrochemical companies segment is expected to have the highest CAGR during the forecast period
The petrochemical companies segment is anticipated to witness the highest CAGR growth during the forecast period. Petrochemical companies utilize VLGCs to transport these gases from production facilities to distribution centers and end-users worldwide. These vessels ensure efficient and safe transportation, enabling petrochemical companies to meet global demand for their products. VLGCs are equipped with advanced technology and adhere to stringent safety and environmental regulations, making them indispensable assets in the petrochemical supply chain.
Region with largest share:
Asia Pacific is projected to hold the largest market share during the forecast period due to growing demand for liquefied petroleum gas (LPG) transportation. Rapid industrialization and urbanization in countries like China, India, and Japan fuel the demand for LPG. Additionally, emerging economies like Indonesia and Vietnam contribute to the increasing consumption of LPG. This demand surge has led to substantial investments in VLGCs, with major shipping companies focusing on fleet expansions and technological advancements to cater to the burgeoning market in the Asia Pacific region.
Region with highest CAGR:
North America is projected to have the highest CAGR over the forecast period, owing to the shale gas revolution, which has boosted domestic production of liquefied petroleum gas (LPG). The United States has emerged as a significant exporter of LPG, particularly to Asian markets. This has led to a growing demand for VLGCs for transportation purposes. Additionally, Canada's LPG production contributes to regional shipping needs. Regulatory frameworks and infrastructure development also play vital roles in shaping the VLGC market landscape in North America, as the region continues to adapt to evolving energy dynamics.
Key players in the market
Some of the key players profiled in the Very Large Gas Carrier Market include Hyundai Samho Heavy Industries, Mitsui O.S.K. Lines (MOL), Avance Gas, Nippon Yusen Kabushiki Kaisha, Navigator Gas, Epic Gas, Petredec Limited, Exmar, StealthGas Inc., Norgas Carriers, APM Terminals, Dorian LPG, BW LPG and Pacific Gas Limited.
Key Developments:
In April 2024, Hyundai Samho Heavy Industries launched the Taebaek Explorer, a new Very Large Gas Carrier (VLGC). The Taebaek Explorer is the first of two new VLGCs that will be chartered by Trafigura long-term. The Bellavista Explorer has a storage capacity of 90,000 cubic meters and can sail up to 31,700 kilometers at an average speed of 11.2 knots and a maximum speed of 19 knots.
In August 2023, APM Terminals Pipavav commenced operations of very large gas carriers (VLGCs) with the berthing of MT Jag Viraat, a 230-meter-long VLGC vessel owned by Great Eastern Shipping. The VLGC has a 37-meter beam and an arrival draft of 8.2 meters. The port recently revamped its berth to VLGC compliant to accommodate Very Large Gas carriers.
Types Covered:
• Fully Pressurized VLGCs
• Semi-Ref Vessels (SRV)
• Fully Refrigerated VLGCs
• Eco-Friendly VLGCs
• Dual Fuel VLGCs
• Other Types
Cargo Types Covered:
• Liquefied Petroleum Gas (LPG)
• Ammonia
• Ethylene
• Propylene
• Butane
• Propane
• Other Cargo Types
Vessel Sizes Covered:
• Below 70,000 CBM
• 70,000 - 80,000 CBM
• Above 80,000 CBM
End Users Covered:
• LPG Producers
• Energy Companies
• Petrochemical Companies
• Traders & Distributors
• Retail & Commercial Consumers
• Government Agencies
• Other End Users
Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o 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 2021, 2022, 2023, 2026, and 2030
- 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
Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances
Table of Contents
1 Executive Summary
2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions
3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 End User Analysis
3.7 Emerging Markets
3.8 Impact of Covid-19
4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry
5 Global Very Large Gas Carrier Market, By Type
5.1 Introduction
5.2 Fully Pressurized VLGCs
5.3 Semi-Ref Vessels (SRV)
5.4 Fully Refrigerated VLGCs
5.5 Eco-Friendly VLGCs
5.6 Dual Fuel VLGCs
5.7 Other Types
6 Global Very Large Gas Carrier Market, By Cargo Type
6.1 Introduction
6.2 Liquefied Petroleum Gas (LPG)
6.3 Ammonia
6.4 Ethylene
6.5 Propylene
6.6 Butane
6.7 Propane
6.8 Other Cargo Types
7 Global Very Large Gas Carrier Market, By Vessel Size
7.1 Introduction
7.2 Below 70,000 CBM
7.3 70,000 - 80,000 CBM
7.4 Above 80,000 CBM
8 Global Very Large Gas Carrier Market, By End User
8.1 Introduction
8.2 LPG Producers
8.3 Energy Companies
8.4 Petrochemical Companies
8.5 Traders & Distributors
8.6 Retail & Commercial Consumers
8.7 Government Agencies
8.8 Other End Users
9 Global Very Large Gas Carrier Market, By Geography
9.1 Introduction
9.2 North America
9.2.1 US
9.2.2 Canada
9.2.3 Mexico
9.3 Europe
9.3.1 Germany
9.3.2 UK
9.3.3 Italy
9.3.4 France
9.3.5 Spain
9.3.6 Rest of Europe
9.4 Asia Pacific
9.4.1 Japan
9.4.2 China
9.4.3 India
9.4.4 Australia
9.4.5 New Zealand
9.4.6 South Korea
9.4.7 Rest of Asia Pacific
9.5 South America
9.5.1 Argentina
9.5.2 Brazil
9.5.3 Chile
9.5.4 Rest of South America
9.6 Middle East & Africa
9.6.1 Saudi Arabia
9.6.2 UAE
9.6.3 Qatar
9.6.4 South Africa
9.6.5 Rest of Middle East & Africa
10 Key Developments
10.1 Agreements, Partnerships, Collaborations and Joint Ventures
10.2 Acquisitions & Mergers
10.3 New Product Launch
10.4 Expansions
10.5 Other Key Strategies
11 Company Profiling
11.1 Hyundai Samho Heavy Industries
11.2 Mitsui O.S.K. Lines (MOL)
11.3 Avance Gas
11.4 Nippon Yusen Kabushiki Kaisha
11.5 Navigator Gas
11.6 Epic Gas
11.7 Petredec Limited
11.8 Exmar
11.9 StealthGas Inc.
11.10 Norgas Carriers
11.11 APM Terminals
11.12 Dorian LPG
11.13 BW LPG
11.14 Pacific Gas Limited
List of Tables
1 Global Very Large Gas Carrier Market Outlook, By Region (2021-2030) ($MN)
2 Global Very Large Gas Carrier Market Outlook, By Type (2021-2030) ($MN)
3 Global Very Large Gas Carrier Market Outlook, By Fully Pressurized VLGCs (2021-2030) ($MN)
4 Global Very Large Gas Carrier Market Outlook, By Semi-Ref Vessels (SRV) (2021-2030) ($MN)
5 Global Very Large Gas Carrier Market Outlook, By Fully Refrigerated VLGCs (2021-2030) ($MN)
6 Global Very Large Gas Carrier Market Outlook, By Eco-Friendly VLGCs (2021-2030) ($MN)
7 Global Very Large Gas Carrier Market Outlook, By Dual Fuel VLGCs (2021-2030) ($MN)
8 Global Very Large Gas Carrier Market Outlook, By Other Types (2021-2030) ($MN)
9 Global Very Large Gas Carrier Market Outlook, By Cargo Type (2021-2030) ($MN)
10 Global Very Large Gas Carrier Market Outlook, By Liquefied Petroleum Gas (LPG) (2021-2030) ($MN)
11 Global Very Large Gas Carrier Market Outlook, By Ammonia (2021-2030) ($MN)
12 Global Very Large Gas Carrier Market Outlook, By Ethylene (2021-2030) ($MN)
13 Global Very Large Gas Carrier Market Outlook, By Propylene (2021-2030) ($MN)
14 Global Very Large Gas Carrier Market Outlook, By Butane (2021-2030) ($MN)
15 Global Very Large Gas Carrier Market Outlook, By Propane (2021-2030) ($MN)
16 Global Very Large Gas Carrier Market Outlook, By Other Cargo Types (2021-2030) ($MN)
17 Global Very Large Gas Carrier Market Outlook, By Vessel Size (2021-2030) ($MN)
18 Global Very Large Gas Carrier Market Outlook, By Below 70,000 CBM (2021-2030) ($MN)
19 Global Very Large Gas Carrier Market Outlook, By 70,000 - 80,000 CBM (2021-2030) ($MN)
20 Global Very Large Gas Carrier Market Outlook, By Above 80,000 CBM (2021-2030) ($MN)
21 Global Very Large Gas Carrier Market Outlook, By End User (2021-2030) ($MN)
22 Global Very Large Gas Carrier Market Outlook, By LPG Producers (2021-2030) ($MN)
23 Global Very Large Gas Carrier Market Outlook, By Energy Companies (2021-2030) ($MN)
24 Global Very Large Gas Carrier Market Outlook, By Petrochemical Companies (2021-2030) ($MN)
25 Global Very Large Gas Carrier Market Outlook, By Traders & Distributors (2021-2030) ($MN)
26 Global Very Large Gas Carrier Market Outlook, By Retail & Commercial Consumers (2021-2030) ($MN)
27 Global Very Large Gas Carrier Market Outlook, By Government Agencies (2021-2030) ($MN)
28 Global Very Large Gas Carrier Market Outlook, By Other End Users (2021-2030) ($MN)
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
List of Figures
RESEARCH METHODOLOGY
We at ‘Stratistics’ opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.
Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.
Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.
Data Mining
The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.
Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.
Data Analysis
From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:
- Product Lifecycle Analysis
- Competitor analysis
- Risk analysis
- Porters Analysis
- PESTEL Analysis
- SWOT Analysis
The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.
Data Validation
The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.
We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.
The data validation involves the primary research from the industry experts belonging to:
- Leading Companies
- Suppliers & Distributors
- Manufacturers
- Consumers
- Industry/Strategic Consultants
Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.
For more details about research methodology, kindly write to us at info@strategymrc.com
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