LNG Bunkering Market
Global LNG bunkering market size was valued at USD 0.38 Billion in 2019, and is projected to reach USD 5.14 Billion by 2027, growing at a CAGR of 45.2% from 2020 to 2027.
The process of transferring LNG to a ship for its own consumption is known as LNG bunkering. Less shipping emissions, lower operating and shipment costs, safety, and non-toxicity are just a few of the benefits of using LNG as a marine fuel in the shipping industry. The primary growth factor in the LNG bunkering market is expected to be stricter environmental regulations regarding pollution caused by ship transportation. LNG has become a popular fuel in the shipping industry in the last five years. Furthermore, efforts to improve LNG distribution infrastructure and the number of LNG-powered ships are increasing, which is expected to fuel market growth over the forecast period.Key Market Segments
The pressure on environmental regulators to reduce emissions caused by ship transportation is increasing. The imposition of stricter sulfur content limits on marine bunker fuel is driving the growth of the LNG bunkering market during the forecast period.
Covid-19 Impact On LNG Bunkering Market
The COVID-19 pandemic-related lockdown has resulted in a temporary ban on imports and export, disrupting the supply chain and limiting the growth of the LNG bunkering market in the second, third, and fourth quarters of 2020. However, as demand for LNG as a bunker fuel from the maritime transport and shipping industry grows, the market is expected to recover by the end of the year or the first quarter of 2021.
Trends Influencing the Growth of LNG Bunkering Market
The primary driver for the growth of the LNG bunkering market is expected to be the IMO (International Maritime Organization) emission regulation on sulfur content in marine fuel. When compared to conventional fuels, liquefied natural gas (LNG) meets all International Maritime Organization (IMO) air emission regulations due to its low sulfur content, favorable ahydrogen-to-carbon ratio, and lower nitrogen oxide emissions.
LNG is less expensive than HFO (heavy fuel oil) and other marine fuels. As a result, the cost-effectiveness of LNG is expected to drive up the size of the LNG bunkering market.
The LNG bunkering market is expected to grow due to an increase in gas exploration and production activities, as well as an increase in cargo due to increased trade activity. During the forecast period, the focus on improving LNG distribution infrastructure and increasing the number of LNG-powered ships is expected to boost the LNG bunkering market size.
LNG Bunkering Market Share Analysis
In 2019, the ship-to-ship segment held the largest LNG bunkering market share of about 60.5 percent, and this is expected to continue throughout the forecast period. This is due to an increase in the number of ships that use LNG as a cleaner fuel to meet government regulations.
The cargo fleet segment has the largest LNG bunkering market share in 2019 and is expected to grow at a CAGR of 45.4 percent in 2020. This is due to a rise in the demand for cargo transportation via ships, as well as an increase in trade agreements. Furthermore, an increase in the number of manufacturing units and factories in regions such as Asia-Pacific and LAMEA is expected to fuel the cargo shipping market's growth.
Europe dominated the LNG bunkering industry by region in 2019, and this trend is expected to continue over the forecast period. This is due to a variety of factors, including a large customer base and an increase in the region's maritime trade activities. Furthermore, the European region's increased development of LNG bunkering infrastructure is expected to contribute to the market's growth.
Report Metric |
Details |
Report Name |
LNG Bunkering Market |
Market size value in 2019 |
USD 0.38 Billion |
Revenue forecast in 2027 |
USD 5.14 Million |
Growth Rate |
45.2% |
Base year considered |
2019 |
Forecast Period |
2020-2027 |
By Type |
truck-to-ship, port-to-ship, ship-to-ship, and portable tanks |
By Application |
Container Fleet, Tanker Fleet, Cargo Fleet, Ferries, Inland Vessels |
Report Coverage |
Revenue & volume forecast, company share, competitive landscape, growth factors, and trends |
Segments Covered |
By Type, Application, and Region |
Geographic Regions Covered |
North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
Ans. Global LNG bunkering market size was valued at USD 0.38 Billion in 2019, and is projected to reach USD 5.14 Billion by 2027, growing at a CAGR of 45.2% from 2020 to 2027.
Ans. Some of the major players in the market include Broadview Energy Solutions B.V., Crowley Maritime Corporation, Gasum Oy, Harvey Gulf International Marine, Klaw LNG, Korea Gas Corporation, Polskie LNG S.A., Royal Dutch Shell Plc, SHV Energy, Total SE, PETRONAS, and Exxon Mobil Corporation.
Ans. Yes, the report includes a COVID-19 impact analysis. Also, it is further extended into every individual segment of the report.
Ans. Europe garnered the highest share in the LNG bunkering market in 2019, in terms of revenue, and is anticipated to maintain its dominance throughout the forecast period.
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