LPG Tanker Market

Global LPG Tanker Market:

The global LPG tanker market size reached US$ 201.0 Billion in ​2023​. Looking forward, IMARC Group expects the market to reach US$ 314.6 Billion by ​2032​, exhibiting a growth rate (CAGR) of 4.5% during 2024-2032. The increasing global LPG demand, expanding petrochemical industry, rising infrastructure investments, and ongoing technological advancements are primarily driving the market's growth.

LPG Tanker Market Analysis:

• Major Market Drivers: Significant growth in the oil and gas industry, along with increasing shale gas production across the globe, is one of the key factors creating a positive outlook for the market. Furthermore, the rising demand for LPG for heating, ventilation, and air conditioning (HVAC) applications is providing a thrust to the LPG tanker market growth.
• Key Market Trends: Various technological advancements, such as the integration of semi-membrane tanks and bow wave resistance systems on the hull of the tanker, are propelling the market's growth. Additionally, the implementation of favorable government policies, along with extensive infrastructural developments, especially in developing economies, is anticipated to drive the LPG market demand.
• Competitive Landscape: Some of the prominent LPG tanker market companies include 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), and The Great Eastern Shipping Co. Ltd., among many others.
• Geographical Trends: According to the LPG tanker market analysis report, Europe dominates the overall market. European countries are increasingly adopting LPG as part of their transition toward cleaner energy sources. LPG produces fewer emissions than coal, oil, and diesel, making it an attractive option for residential, industrial, and transport uses.
• Challenges and Opportunities: High competition among key players and fluctuating prices of raw materials are hampering the market's growth. However, introducing new flavors, ingredients, and ethnic varieties can capture consumer interest and differentiate products in a crowded 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 more efficient fuel compared to coal and oil, making it a popular alternative for domestic, industrial, and transportation uses. As the global energy landscape shifts towards cleaner energy sources, LPG consumption is rising, particularly in regions lacking access to natural gas infrastructure. These factors are expected to propel the LPG tanker market share in the coming 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) plays a crucial role as a raw material (feedstock) for producing essential petrochemical products, particularly ethylene, propylene, and butylene, which are used to manufacture plastics, synthetic rubber, and other chemical products. These factors further positively influence the LPG tanker market forecast.

Technological Advancements

New technologies in tanker construction, such as fuel-efficient engines and eco-friendly designs, have made transportation more efficient and cost-effective, encouraging fleet expansion. For instance, in May 2024, Pertamina International Shipping (PIS) launched two additional eco-friendly very large gas carriers (VLGCs) to its fleet: Pertamina Gas Caspia and Pertamina Gas Dahlia in order to transport LPG, thereby boosting the LPG tanker market revenue.

Global LPG Tanker Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global LPG tanker market report, along with forecasts at the global, regional, and country levels from 2024-2032. Our report has categorized the market based on vessel size and refrigeration and pressurization.

Breakup by Vessel Size:

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

Very large gas carrier currently holds the majority of the total market share

The report has provided a detailed breakup and analysis of the LPG tanker market based on the vessel size. This includes very large gas carrier, large gas carrier, medium gas carriers, and small gas carrier. According to the report, very large gas carrier currently holds the majority of the total market share.

According to the LPG tanker market outlook, as global demand for LPG rises, there is a growing need for larger vessels capable of transporting large quantities of LPG efficiently across long distances. VLGCs, with their massive carrying capacity (typically between 80,000 and 90,000 cubic meters of LPG), allow for the transportation of significant volumes of LPG in a single voyage, making them ideal for meeting this growing demand.

Breakup by Refrigeration and Pressurization:

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

Fully pressurized exhibits a clear dominance in the market

The report has provided a detailed breakup and analysis of the LPG tanker market based on the refrigeration and pressurization. This includes fully pressurized, semi-pressurized, fully refrigerated, and extra refrigerated (ethylene gas carriers). According to the report, fully pressurized exhibits a clear dominance in the market.

According to the LPG tanker market outlook report, fully pressurized tankers are typically smaller in size, ranging from 3,000 to 11,000 cubic meters (cbm) in capacity. This makes them highly suitable for navigating narrow and shallow ports that larger vessels cannot access. As a result, they are frequently used for transporting LPG to smaller markets, regional ports, and even for coastal or inland waterway routes. Moreover, fully pressurized LPG tankers can transport LPG without requiring special cooling or large-scale refrigeration facilities at both loading and unloading ports. This independence from complex infrastructure is a key advantage in developing regions and smaller ports where such facilities are unavailable.

Breakup by Region:

• 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
   

Europe currently dominates the global market

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Europe currently dominates the global market.

According to the LPG tanker market statistics, Europe is actively pursuing policies to reduce carbon emissions and transition to cleaner energy sources. LPG is considered a lower-carbon alternative to coal and oil, particularly in heating and transportation, which aligns with Europe’s decarbonization goals. This shift is boosting LPG demand and requires efficient transportation solutions, including tankers. Moreover, various European countries are phasing out coal and heavy fuel oils in favor of cleaner fuels like LPG for industrial processes and heating. As coal and oil are replaced by LPG in certain sectors, the need for secure LPG supply chains, including tanker shipping, increases. For instance, according to an article published by the Guardian, more than 16 million people in the EU use LPG, about 4% of the population.

Competitive Landscape:

The LPG tanker market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major market companies have also been provided. Some of the key players in the market include: 

• 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
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

LPG Tanker Market Recent Developments:

• May 2024: Nippon Yusen Kabushiki Kaisha and its group firm MTI Co., Ltd., in partnership with Smert Build Co. Ltd., initiated a trial to employ 3D models to build an LPG tanker for Kyoei Tanker Co.
• May 2024: Pertamina International Shipping (PIS) launched two additional eco-friendly, very large gas carriers (VLGCs) to its fleet: Pertamina Gas Caspia and Pertamina Gas Dahlia, in order to transport LPG.
• April 2024: Petregaz India, a subsidiary of Petredec Group, commissioned its new Rs 600 crore refrigerated LPG import and storage terminal at the Adani Group-owned Krishnapatnam port in Andhra Pradesh.

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 2018-2032.
• 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.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.