Global Floating LNG Power Vessel Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Floating LNG Power Vessel Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Floating LNG power vessel is a vessel that uses liquefied natural gas as fuel, and is divided into full power and hybrid power. Floating LNG power vessel can increase the proportion of clean energy in the energy consumption of the transportation industry and reduce the greenhouse gas emissions of ships and the pollution of water bodies. Floating LNG power vessel ships are mainly to respond to the requirements of emission control zones, and the driving force comes from the shipping industry. Shipbuilding companies mainly promote green and environmentally friendly concept ships, mainly new-built ships, with high technical standards and expensive construction costs.

Market Overview:

The latest research study on the global Floating LNG Power Vessel market finds that the global Floating LNG Power Vessel market reached a value of USD 445.25 million in 2022. It’s expected that the market will achieve USD 962.3 million by 2028, exhibiting a CAGR of 13.71% during the forecast period.

Impacts from the short-term

From the perspective of global economy and trade, the short-term impact caused by the COVID-19 is more serious than the financial crisis, and may even cause a sustained recession. During the severe epidemic period, Floating LNG Power Vessel enterprises mainly faced the problem of not being able to resume production in time and other issues, which may lead to ship production delays, and some ship orders cannot be started or delivered at the time points required by the contract or international conventions. From the perspective of the shipping market, the pressure on excess capacity caused by the epidemic will be significantly less than the previous financial crisis.

Impacts from the long-term

The reduction in demand caused by COVID-19, the historically low LNG prices and the ongoing oil price war have continued to affect the development of large-scale Floating LNG Power Vessel projects. With the reduction of project fleet orders and speculative ship orders, fleet growth will slow down. Before investing in Floating LNG Power Vessel, investors will consider diversifying supply and procurement sources to reduce risks. In the long term, the prospects for the Floating LNG Power Vessel industry remain optimistic because global natural gas demand is expected to grow strongly to support humanity's transition to cleaner fuels.

Drivers

The demand for electricity in the industrial sector exceeds the supply. Some industries are facing severe power shortages. Therefore, governments of various countries are encouraging and forcing the industrial sector to consume electricity efficiently in order to reduce the demand and supply gap. Other power plants have also been established as permanent power solutions. However, the establishment of permanent power plants requires a lot of capital and time. Such government initiatives have increased the demand for electricity. However, grid infrastructure, especially in most developing countries, cannot meet the growing demand for electricity. Some countries in the Asia-Pacific region, the Middle East, Africa and South America have poor planning and insufficient capital expenditures. This has created market opportunities for temporary power solutions and increased the demand for non-renewable floating power stations. Therefore, the lack of infrastructure has increased the demand for floating power plant solutions.

Limitations

Power plants floating on water may be damaged by harsh environmental conditions. Any damage to the equipment requires maintenance, which is slightly higher than the maintenance cost of onshore power plants. Moreover, floating power plants are usually located tens of miles from the coast and are difficult to access, especially in severe weather. Therefore, correcting minor technical problems can be tricky and incur huge costs. Compared with power barge-based power plants, the maintenance challenges of power ship-based floating power plants are higher. The equipment of the power ship-based power plant is located on the bottom of the ship. Therefore, problems related to maintenance and repair will increase the non-production time of the power plant. Other challenging factors in the floating power plant market are the interconnection and operation of the power grid and the development of transmission infrastructure, which is simpler in the installation of onshore power plants. High operating costs and problems related to operation, maintenance, transportation and logistics will hinder the growth of the floating power plant market.

Region Overview:

In 2022, the share of the Floating LNG Power Vessel market in Japan stood at 35.1%.

Company Overview:

Kawasaki Heavy Industries is one of the major players operating in the Floating LNG Power Vessel market, holding a share of 17.51% in 2023.

Kawasaki Heavy Industries

Kawasaki Heavy Industries is a Japanese company with heavy industry as its main business. Its business scope covers aviation, space, railway vehicles, motorcycles, ships, machinery and various other equipment.

Becker Marine Systems

Becker Marine Systems GmbH & Company KG manufactures rudders and maneuvering systems. The Company distributes flap, twisted, twin, steering nozzle rudders, and other related products, as well as offers automated material handling and monitoring systems.

Segmentation Overview:

Among different product types, Power Ship segment is anticipated to contribute the largest market share in 2028.

Power Ship

A power ship is a special purpose ship, on which a power plant is installed to serve as a power generation resource. Converted from existing ships, power ships are self-propelled, ready to go infrastructure for developing countries that plug into national grids where required. Power ships or power barges can be equipped with single or multiple gas turbines, reciprocating diesel and gas engines, boilers or nuclear reactors for electricity generation. Bureau Veritas, an international certification agency with experience in overseeing both shipbuilding and power plant development, classifies such floating power plants as special service power plants.

Power Barge

Power Barge refers to the installation of the power station on a special ship that can quickly provide electricity, heat and drinking water for natural disasters, offshore operations that are difficult to cover by the power grid, and remote areas. Suitable for coastal areas and large river basins. A floating power plant can be completely independent and can be installed relatively quickly in any waterway reachable location, such as a port, coastal area, or near a river, to provide independent power supply for local resources or infrastructure.

Application Overview:

By application, the Leasing segment occupied the biggest share from 2018 to 2022.

Selling

With the increasing emission standards of ships, the demand for electricity in the industrial sector exceeds the supply, some countries have poor planning, and a large amount of investment from the country, the sales of Floating LNG Power Vessel are also increasing.

Leasing

Due to the high costs associated with operation, maintenance, transportation and logistics, many downstream buyers are unable to afford the high cost of buying a Floating LNG Power Vessel. So Floating LNG Power Vessel is usually used for short-term and medium-term contracts in the energy leasing market.

Key Companies in the global Floating LNG Power Vessel market covered in Chapter 3:

Wison Offshore & Marine
Hudong-Zhonghua Shipbuilding (Group) Co., Ltd.
Samsung Heavy Industries
Kawasaki Heavy Industries
Becker Marine Systems
KARMOL
MODEC Inc.
CHIYODA
Mitsubishi Heavy Industries

In Chapter 4 and Chapter 14.2, on the basis of types, the Floating LNG Power Vessel market from 2018 to 2029 is primarily split into:

Power Ship
Power Barge

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Floating LNG Power Vessel market from 2018 to 2029 covers:

Selling
Leasing

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)