LPG Tanker Market Growth & Trends
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 2019. 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.
LPG Tanker Market Report Highlights
- The liquefied petroleum gas tanker market revenue was valued over USD 185.1 million in 2019 and is projected to expand further at a CARG of 6.0% over the projected period
- The large gas carriers segment accounted for the largest share in 2019
- Asia Pacific is projected to register a substantial growth rate over the forecast period. China, in particular, is expected to hold the maximum share in the regional market
- North America is also likely to display a moderate growth rate during the projected period