LPG Tanker Market

LPG Tanker Market Size and Share:

The global LPG tanker market size was valued at USD 210.1 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 320.0 Billion by 2033, exhibiting a CAGR of 5.4% during 2025-2033. Europe currently dominates the market, holding a significant market share of over 30.2% in 2024. This region’s dominance is attributed to robust infrastructure, increasing demand, and strategic port locations enhancing trade efficiency.

The LPG tanker market is motivated primarily by global demand for cleaner energy solutions. LPG has surfaced as one of the promising alternatives in this regard when countries and economies are being compelled to cut down carbon footprints with increasing regulatory stringencies regarding environment. For instance, in 2024, Dorian LPG Ltd. announced its commitment to greener practices by applying Hempel’s X7 silicone paint on five VLGCs, resulting in enhanced operational efficiency and increased fuel savings for investors and partners. Consequently, infrastructure investments in shipping capability have increased to deliver LPG around the globe. Increasing usage of LPG in household cooking, heating, and industrial purposes expands the need for LPG tankers. This represents an indication of the immense role that LPG tankers have in the overall energy usage and supply chains in the world.

The United States also plays a fundamental role in the LPG tanker market, mainly resulting from its massive production and export capacity. The United States stands among the biggest producers of natural gas liquids. A growth in U.S. LPG production results from an increase in its shale gas production. Improved extraction technologies have enabled increasing production. This surge in production has placed the U.S. as a major exporter to international markets, thus demanding efficient and sophisticated LPG tanker fleets. For instance, in 2024, US LPG and LNG exports reached record highs, totaling 20.2 million mt from January 1 to April 29, driven by soaring natural gas production and strong export demand. Furthermore, U.S. ports are enhancing their infrastructure to accommodate the growing volume of LPG shipments, ensuring timely delivery and compliance with global shipping standards, thereby strengthening their competitive advantage in the market.

LPG Tanker Market Trends

Rising Demand for LPG

The rising demand for liquefied petroleum gas (LPG) is one of the prominent factors driving the growth of the LPG tanker market. For instance, according to an article published by J.M. Baxi Group, LPG demand rose by nearly 2.9% to 28.7 million tons in 2022, following a 1.5% increase in 2021, while it surged by 8.5% per year from 2016 to 2019. LPG is a cleaner and efficient fuel as compared to coal and oil, thus highly popular for domestic, industrial, and transportation purposes. The energy landscape is changing worldwide towards cleaner sources of energy, and therefore LPG consumption is on the rise in those regions which do not have natural gas infrastructure. All these factors are likely to propel the LPG tanker market share in future years.

Expanding Petrochemical Industry

The expanding petrochemical industry is a key driver of growth in the LPG tanker market. For instance, according to IMARC, the global petrochemicals market size reached US$ 616.0 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 949.9 Billion by 2032, exhibiting a growth rate (CAGR) of 4.8% during 2024-2032. Liquefied petroleum gas (LPG) acts as an important feedstock for the manufacture of various petrochemical products such as ethylene, propylene, and butylene, which are used for the production of plastics, synthetic rubber, and other chemical products. This has further led to the support of the positive factors to the LPG tanker market forecast.

Technological Advancements

New innovations in the construction of tankers, including fuel-saving engines and environmentally friendly designs, have made transport cheaper and more efficient, and which has increased the fleets' expansion. The size of the global fleet management system market was USD 28.8 Billion in 2024. For example, in May 2024, Pertamina International Shipping (PIS) commissioned two new eco-friendly very large gas carriers (VLGCs) to its fleet: Pertamina Gas Caspia and Pertamina Gas Dahlia in an effort to transport LPG. Such vessels will be specifically designed to carry Liquefied Petroleum Gas, improving the logistics involved. In turn, this increases operational capacity for the company but adds much more to sustainability. Thus, it will spur the revenues in the LPG tankers market.

LPG Tanker Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global LPG tanker market, along with forecast at the global, regional, and country levels from 2025-2033. The market has been categorized based on vessel size and refrigeration and pressurization.

Analysis by Vessel Size:

• Very Large Gas Carrier
• Large Gas Carrier
• Medium Gas Carriers
• Small Gas Carrier

Very large gas carrier stand as the largest component in 2024, holding around 28.6% of the market. As the demand for LPG increases globally, the need for more significant vessels that can transport large quantities of LPG over long distances is very high. The massive carrying capacity of VLGCs (usually in the range of 80,000 to 90,000 cubic meters of LPG) enables transportation of high volumes of LPG within a single voyage, thereby satisfying the demand. In such a situation, the likelihood of conveying high volumes in one round voyage will increase, both making the conveyance process more efficient and reducing the shipping cost per unit of LPG delivered. Thus, as the energy demands of the world shift, the market share of VLGCs is expected to rise.

Analysis by Refrigeration and Pressurization:

• Fully Pressurized
• Semi-pressurized
• Fully Refrigerated
• Extra Refrigerated (Ethylene Gas Carriers)

Fully pressurized leads the market with around 23.9% of market share in 2024. Fully pressurized tankers are generally smaller. With a capacity of 3,000 to 11,000 cubic meters or cbm, they will be best suited for operation in narrow and shallow ports that the larger vessels are unable to access. Accordingly, they are often used in transporting LPG to markets that are smaller, at regional ports, and indeed for coastal or inland waterway routes. In addition, the completely pressurized LPG tankers can transport LPG without requiring special cooling or large-scale refrigeration facilities at both loading and unloading ports. This independence from such complex infrastructure is a main advantage in developing regions and smaller ports where such facilities are unavailable.

Regional Analysis:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa

In 2024, Europe accounted for the largest market share of over 30.2%. Europe has actively pursued policies that include carbon emission reduction and energy source change towards cleaner forms of energy. LPG is a lower-carbon alternative to coal and oil, especially in heating and transport, which fits the overall decarbonization goal that Europe has. This push is increasing LPG demand, which requires efficient transportation means, including tankers. In addition, different European countries are phasing out coal and heavy fuel oils for cleaner fuels, such as LPG, in industrial processes and heating. With the replacement of coal and oil by LPG in some sectors, demand for secure LPG supply chains, including tanker shipping, is increasing. For example, according to an article published by the Guardian, more than 16 million people in the EU use LPG, about 4% of the population.

Key Regional Takeaways:

United States LPG Tanker Market Analysis

US accounts for 82.8% share of the market in 2024. The LPG tanker market in the United States is driven by several factors, including increasing domestic demand for liquefied petroleum gas (LPG) as a cleaner fuel alternative and expanding export opportunities due to global supply shortages. A significant number of U.S. households rely on propane for various purposes, with approximately 11 Million using it as a major fuel source and about 42 Million utilizing it for outdoor grilling, as reported by the 2020 Residential Energy Consumption Survey. This widespread adoption of propane, particularly in residential heating and cooking, is propelling the demand for tankers to transport LPG. Further, the U.S. is one of the major producers of LPG, largely because of the shale gas boom, and a substantial quantity is exported, which again increases the demand for tankers. New infrastructure in the form of modern port facilities and transportation routes also helps to boost the market. The U.S. government's focus on clean energy policies and low-carbon emissions, along with the technology developed in the field of transportation efficiency and safety, is also boosting the market. Going ahead, a shift in trends towards LPG as the cleaner fuel option for a wide array of industries would propel further growth in the LPG tanker market.

North America LPG Tanker Market Analysis

The North America LPG tanker market is currently growing at a fast rate. Demand for the consumption of liquefied petroleum gas in residential, commercial, and industrial areas is on the rise. It is because of some primary reasons such as infrastructural expansion, growing shale gas production, and increased utilization of cleaner forms of energy. For instance, LPG exports from North America on VLGCs rose 6.7% in Q3 2024, driven by strong production. Upcoming US terminal expansions are projected to sustain growth in high single-digits over the next three years. Tanker technology advancements also improve efficiency and reliability with safety protocols. Strategic market presence has been built in by the major players as they engage in partnerships and investments. However, regulation challenges and fluctuating prices of oil are possible threats that the stakeholders should overcome by constant adaptation and innovation in this changing landscape.

Asia Pacific LPG Tanker Market Analysis

In the Asia-Pacific region, the LPG tanker market is significantly driven by accelerated industrial development and urbanization, primarily in countries like China, India, and Southeast Asia. The growing use of LPG in residential, industrial, and transportation sectors is boosting tanker demand. According to the National Sample Survey Office report for 2020-2021, LPG was the primary energy source for 49.4% of households in rural areas and 89% of urban households across India, highlighting the fuel's widespread adoption. This trend is mirrored in other developing nations within the region, where LPG serves as a key energy solution for cooking, heating, and power generation. The expansion of LPG infrastructure, including refineries, storage facilities, and ports, is further accelerating market growth. Additionally, favorable government policies promoting clean energy, coupled with the adoption of LPG as an alternative fuel in transportation, are contributing to the region's market expansion. These factors, combined with the strategic positioning of APAC countries as LPG import-export hubs, continue to drive demand for LPG tankers.

Europe LPG Tanker Market Analysis

The European LPG tanker market is driven by increasing demand for alternative energy sources to reduce dependence on fossil fuels and lower carbon emissions. LPG, particularly Autogas, has become the most extensively utilized alternative fuel within the EU. According to the European Alternative Fuels Observatory, approximately 8.2 Million passenger cars and 300,000 light commercial vehicles in Europe used Autogas in 2023, supplied through a network of 32,000 filling stations. This widespread adoption of LPG as a vehicle fuel is significantly contributing to tanker demand. Additionally, the growth of LPG consumption in residential heating and cooking further supports the market. Government policies encouraging cleaner fuels, alongside rising environmental awareness, have accelerated the shift towards LPG. The expansion of infrastructure, including storage facilities and enhanced port capabilities for LPG imports and exports, also plays a key role in the region's market growth. With a focus on energy security and the integration of LPG into the European energy mix, the LPG tanker market is poised for continued expansion in the coming years.

Latin America LPG Tanker Market Analysis

In Latin America and the Caribbean, the LPG tanker market is fueled by the widespread adoption of LPG, particularly in residential cooking. According to industry reports, more than 70% of the population in the region relies on LPG for cooking, which significantly boosts demand for LPG transportation. As urbanization and industrialization continue to expand, LPG is increasingly utilized in various sectors, further driving tanker requirements. Additionally, government subsidies and policies promoting cleaner energy solutions facilitate market development. The demand for LPG in countries like Brazil, Mexico, and Argentina is expected to continue rising, ensuring sustained growth in the LPG tanker market across the region.

Middle East and Africa LPG Tanker Market Analysis

In the Middle East and Africa, the LPG tanker market is largely driven by the region's significant LPG production, particularly in countries like Saudi Arabia, Qatar, and the UAE. The UAE construction market, valued at USD 69.5 Billion in 2023, plays a key role in boosting LPG demand for various industrial applications, including heating, power generation, and construction activities. The region's large-scale infrastructure projects, coupled with growing residential and commercial use of LPG, are further fueling tanker demand. Additionally, the development of port and transportation infrastructure supports the continued growth of the LPG tanker market in this region.

Competitive Landscape:

The LPG tanker market has a wide range of players, from large multinational shipping companies to specialized operators. Such leading firms dominate the market through their large fleets and established logistical networks. Other than this, new entrants are entering the market through technological advancements and innovative shipping solutions that improve operational efficiency. The market is also experiencing consolidation trends, and companies are looking for synergistic alliances to optimize the use of allocated resources and improve their service offerings. In addition, regulatory compliance and environmental standards increase competition for companies to be sustainable while still being cost-effective in their operations. For instance, in 2024, BW LPG Limited agreed to acquire 12 modern Very Large Gas Carriers from Avance Gas Holdings Ltd. for a total of $1,050 million.

The report provides a comprehensive analysis of the competitive landscape in the LPG tanker market with detailed profiles of all major companies, including:

• BW Group
• Dorian LPG Ltd.
• EXMAR
• Hyundai Heavy Industries Co. Ltd.
• Kawasaki Heavy Industries Ltd.
• Kuwait Oil Tanker Company S.A.K
• Mitsubishi Heavy Industries Ltd
• StealthGas Inc.
• STX Corporation (Afc Mercury Co. Ltd)
• The Great Eastern Shipping Co. Ltd

Latest News and Developments:

• May 2024: NYK, MTI Co., Ltd., and Smert Design Co., Ltd. are trialing 3D modeling for the design of an LPG tanker using the "Basic Design Platform" (BDP) integrated with CADMATIC software. The project, commissioned by Kyoei Tanker Co., Ltd. and built by Murakami Hide Shipbuilding, aims to streamline the design process, enhance collaboration, and replace traditional 2D drawings with 3D models for improved clarity and reduced crew workload.
• May 2024: PT Pertamina International Shipping (PIS) has added two Very Large Gas Carriers (VLGCs), Pertamina Gas Caspia and Pertamina Gas Dahlia, to its fleet. Built by Hanhwa Ocean in South Korea, each vessel has a capacity of 91,000 m³ and will transport LPG and petrochemical products on international routes. The addition of these ships reinforces PIS’s role in Indonesia’s energy distribution and boosts its maritime presence.
• April 2024: Petregaz India, a subsidiary of Petredec Group, has launched a new LPG Import and Storage Terminal at Adani Krishnapatnam Private Port, Andhra Pradesh, with a Rs 600 crore investment. The facility, with a capacity of 1.5 million metric tonnes annually, features refrigerated storage, a modern jetty, and strong road connectivity to southern India, supporting LPG supply for various industries and consumers.
• July 2023: Goa Shipyard Limited (GSL) launched the second LPG Cylinder Carrier Vessel for the Port Shipping & Aviation Administration of Lakshadweep on July 14, 2023. The vessel, designed to transport 60 Tons of LPG cylinders from the mainland to Lakshadweep, is capable of operating at 11 knots with a 10-day endurance and can carry 18 crew members. Built under IRS Class, the vessel meets Merchant Shipping rules. The contract for two such vessels was secured through competitive bidding.
• September 2022: Goa Shipyard Limited (GSL) launched an indigenous LPG Cylinder Carrier Vessel for Lakshadweep on September 8, 2022. The 55-meter vessel, designed to transport 2,000 LPG cylinders, meets IRS and IMO regulations. Equipped with advanced systems, it is powered by two 700 BHP engines and three DG sets. This project marks GSL’s entry into the non-defense shipbuilding sector.

LPG Tanker Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the LPG tanker market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global LPG tanker market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the LPG tanker industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.