According to the latest research report, with a CAGR of 45.13 percent, the LNG bunkering global market size is expected to reach USD 11,212 by 2024.
The procedure of transferring LNG to a ship for its own use is known as LNG bunkering. The benefits of utilizing LNG as a marine fuel in the shipping sector include fewer shipping emissions, cheaper operational and cargo costs, safety, and non-toxicity, among other things. Environmental regulations aimed at reducing pollution produced by ship transportation are projected to be the major growth driver in the LNG bunkering industry. LNG has been a popular fuel in the maritime sector during the previous five years. Furthermore, the focus on upgrading the LNG distribution network and the number of LNG-powered ships is growing, which is likely to fuel market development throughout the projection period.
Due to the extreme increase in demand for marine fuel, the worldwide market is expected to develop at a rapid pace over the forecast period. Furthermore, the government's severe environmental laws have spurred the demand for efficient fuel systems that fulfill environmental standards and regulatory criteria. For example, the transportation industry, which is the greatest contributor to global oil consumption in many nations, is focusing on cost reduction. Vessels that run on LNG can save up to 25% of their overall fuel costs. Singapore, for example, has just created a multi-user import terminal. Furthermore, Skangass is building a bunker port at Risavika Stavanger, Norway, in collaboration with Gassnor. Such improvements are likely to increase demand for LNG bunkering.
This report contains all the information on the global market trends and strengths. The report also contains the culmination of dynamics, segmentation, key players, regional analysis, and other important factors. And a detailed analysis of the market forecast for 2027 is also included in the report.
Covid 19 Analysis
The COVID-19 pandemic outbreak has resulted in a temporary restriction on import and export, interrupting the supply chain and hampered LNG bunkering market growth in the second, third, and fourth quarters of 2020. However, the market is projected to rebound by the end of the year or in the first quarter of 2021 as demand for LNG as bunker fuel grows in the marine transport and shipping industries.
To stay competitive in the LNG bunkering market, major LNG bunkering industry players are employing a variety of methods such as product launches, agreements, partnerships, company growth, cooperation, and acquisition.
Major Key Players
The growing demand for LNG as bunker fuel and LNG bunkering services has resulted from a rise in marine-borne trade. Furthermore, since many bunker fuel providers turn their attention on an operation to these offshore resource locations, the increase in gas drilling activities in developing gas areas promotes the expansion of the market growth. Furthermore, the IMO sulfur content restriction in marine fuel has prompted the shipping sector to focus on new options like LNG, which is less damaging to the marine environment, which is expected to fuel market development in the future years.
Due to the exploration of untapped hydrocarbon reserves in these oil & gas emerging countries, growth in possibilities for market players to expand their LNG bunkering business in developing markets such as India, Japan, South Korea, and China is expected to create lucrative opportunities for the global market outlook.
Over the projected period, the worldwide market is likely to be restrained by high transportation costs and the need for safety in the transportation process. Furthermore, a lack of infrastructure to fuel LNG across bunkering locations is likely to stymie the target market's expansion in the near future.
The lack of a worldwide network, infrastructure, size, and economics, as well as the existence of increased prices, is all common challenges in the use of LNG as bunkering fuel.
Cumulative Growth Analysis
The International Maritime Organization (IMO), a United Nations organization, reduced the sulfur content cap in marine fuels from 3.5 percent to 0.5 percent in October 2016. The new legislation is set to go into effect in 2020. This, however, may require refineries to make extra expenditures and process adjustments in order to provide marine fuels that fulfill sulfur content limits. Furthermore, studies conducted by the International Petroleum Industry Environmental Conservation Association (IPIECA) and the Baltic and International Maritime Council (BIMCO) show that current refineries will be unable to integrate such modifications by 2020, resulting in a shortage of traditional marine fuels.
LNG fuel, on the other hand, has a lower sulfur concentration and requires less processing to comply with sulfur content regulations. As a result, compared to traditional marine fuels, it requires fewer changes in the production process. As a result, LNG's economic feasibility is projected to lead to greater adoption in the future years. During the projected period, this development is likely to boost the market.
Value Chain Analysis
According to the reports, the global LNG bunkering market has been divided into three categories: vessel type, product type, and geography. The market has been divided into portable tanks, port to ship, ship to ship, and truck to ship based on product type. Because truck to ship is the most frequently utilized way of providing LNG to ships, it dominates the market. Because it is a high-cost technique, it is projected to have a smaller market share throughout the projection period. For its benefits such as rapid transfer operations and a high capacity of 700-7500 tonnes, the ship-to-ship market is anticipated to develop significantly in terms of revenue during the projection period. Due to its cost-effective exploration and production operations, the offshore support vessel sector is anticipated to dominate the worldwide market in terms of revenue throughout the forecast period.
The market is segmented on the basis of the vessel type, product type, and geography. The global LNG bunkering market value is expected to witness decent growth during the forecast period.
Based on the application, the market is segmented into Container Fleet, Tanker Fleet, Cargo Fleet, Ferries, Inland Vessels, and Others
Based on the propulsion types, the market is segmented into Ferries, Cruise-Ships, Bulk and General Cargo Fleet, Offshore Support Vessels, Tanker Fleet, and Container Fleet
According to the reports, on the basis of region, the global LNG bunkering market is divided into North America, Europe, Asia Pacific, and LAMEA. Due to rigorous government regulations for emission on growing offshore oil and gas exploration & development operations across various nations in the area, the market in Europe is projected to lead the worldwide market in terms of revenue during the forecast period. The Asia Pacific market is anticipated to expand the quickest during the forecast period, owing to increased demand for energy across different industrial applications and a shift toward the usage of LNG as a marine fuel in several nations in this region. Over the projected period, the North American market is predicted to develop significantly in terms of revenue.
The following report comprises of –
LNG BUNKERING MARKET SEGMENTS
By Product Type
|Market Size||2024: USD 11,212 Million|
|CAGR||45.13% CAGR (2020-2027)|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Vessel Type, Product Type|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Barents Naturgass AS, Bomin Linde LNG GmbH & Co. KG, ENI Norge AS, Gasnor AS, Harvey Gulf International Marine LLC, Korea Gas Corp, Polskie LNG SA, Statoil ASA, Skangas AS, and SEA\LNG Ltd|
|Key Market Opportunities||New product launches and R&D Amongst major key Players|
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
The worldwide market of LNG bunkering can thrive at 45.13% CAGR from 2014 to 2025.
By 2025, the LNG bunkering market can value at USD 11,212 by 2024.
Barents Naturgass AS, ENI Norge AS, Bomin Linde LNG GmbH & Co. KG, and Gasnor AS are some reputed players of the LNG bunkering market.
The LNG bunkering market can surge as the need for energy efficient fuel systems is increasing.
The APAC LNG bunkering market can thrive at the highest CAGR.