LPG Tanker Market Set to Witness an Uptick during 2020 to 2027Posted by Mrudula Anil Karmarkar on April 21st, 2021 The global LPG tanker market size is expected to reach USD 295.5 million by 2027 registering a CAGR of 6.0%, according to a new report by Grand View Research, Inc. The government policies related to reducing Greenhouse Gas (GHG) emissions, leading to the replacement of coal with clean fuel, will drive the market growth. The demand for natural gas is high in developing countries such as China. Moreover, the growing acceptance of LPG as a feedstock in petrochemical plants will boost market growth over the coming years. Factors including the enhanced output of shale gas from untapped stocks, enhanced global gas trade, and ongoing usage of LPG as a cooking fuel, are also augmenting the market growth. In addition, strong development in crude oil manufacturing will surge supply for LPG tankers over the upcoming years. Volatility in prices of crude oil coupled with developments in hydraulic fracturing and horizontal drilling methods led to noteworthy sectors concentrating on shale gas extraction. This is estimated to further spur market development over the projected timeline. Asia Pacific was the second-largest regional market and accounted for over 28% of the total revenue share in 2020. Asia Pacific is anticipated to witness a considerable CAGR during the forecast period. The major variable propelling the VLGC sector is the growing trade business between different regions, such as the U.S. and Europe, the Middle East and West Africa, & Asia. The demand for small gas carriers is projected to observe profitable growth over the upcoming years owing to higher demand for LPG from the residential sector. Growing trade relationships between the United States and Asia Pacific region for shale gas owing to the reduced cost of transportation is likely to outgrow the demand for LPG tankers over the forecast period. Instability in crude oil prices, resulting in amplified prices of LPG, is projected to hinder market growth over the projection period. Moreover, the abrupt onset of the COVID-19 pandemic caused a slight decrease in demand for liquefied petroleum gas in various sectors. LPG Tanker Market Report Highlights
However, LPG demand will start recovering from 2021 and a rise in LPG trade on the route of the United States to Asian countries will boost the product demand. Since, the demand for LPG continued to deteriorate in Europe due to the COVID-19 pandemic, in April 2020, Russia’s largest petrochemical company Sibur capitalized on the prospect to enter into a new market by delivering two cargoes of LPG to India. The VLGC vessel type accounted for the largest market share of over 28% in 2020. The segment will have a steady growth owing to developments in oil & gas capital markets, such as a reduction in the rate of interest, an increase in liquidity levels among major investors, and a rise in income prospective. These gas carriers are widely used for transportation of LPG for longer distances. Growing LPG trade relationships between countries, such as the Middle East and Asian countries, Western Africa and Europe, and the United States, is the major factor boosting the demand for these gas carriers. The LGC type is estimated to be the largest segment by 2027. Increasing extraction and production of shale gas is the main factor in driving the growth of the large and medium gas carrier segments. Demand for SGC is projected to have considerable growth over the coming years due to growing LPG demand from the residential sector. Have a Query? Ask Our Expert: https://www.grandviewresearch.com/inquiry/1647/ibb The global industry is highly competitive owing to the presence of major manufacturers and multinational corporations. The market is likely to attract a large number of regional companies over the estimated period. The majority of the market players have been concentrating on expanding their vessel capacities and also complying with their vessels according to the IMO regulations. Some of the prominent players in the LPG tanker market include:
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