Floating Liquefied Natural Gas Power Vessel Market Forecasts to 2028 – Global Analysis By Vessel Type (Power Barge and Power Ship), Component (Power Generation System and Power Distribution System), Power Output (High Scale (Above 400 MW), Medium Scale (7

Floating Liquefied Natural Gas Power Vessel Market Forecasts to 2028 – Global Analysis By Vessel Type (Power Barge and Power Ship), Component (Power Generation System and Power Distribution System), Power Output (High Scale (Above 400 MW), Medium Scale (72 MW to 400 MW) and Small Scale (Up to 72 MW)), and By Geography

According to Stratistics MRC, the Global Floating Liquefied Natural Gas Power Vessel Market is accounted for $578.85 million in 2022 and is expected to reach $716.11 million by 2028 growing at a CAGR of 3.61% during the forecast period. A floating LNG power vessel is a vessel that runs on liquefied natural gas, these are specific offshore supply vessels that use LNG to generate and provide electricity via onboard elements such as gas turbines and steam generators. Floating LNG power vessels supply energy to enterprises in large quantities to support heavy industrial processes.

According to Malaysia’s energy authority, the electricity demand is expected to reach about 24 GW in 2039. To cater to the growing demand, the government has taken measures to scale up energy systems, such as floating LNG power plants to fulfill the same.

Market Dynamics

Driver:

Rising electricity demand, combined with a shortage of power infrastructure

Power consumption in the industrial sector surpasses supply. Some industries are experiencing severe power shortages. To close the demand-supply gap, governments are encouraging and enforcing efficient electricity consumption in the industrial sector. As a long-term electricity solution, additional power plants have been built. However, constructing permanent power plants is both costly and time-consuming. Such government measures have raised demand for electricity. The grid infrastructure, on the other hand, has provided market opportunities for temporary power solutions while emphasising the need for non-renewable floating power plants. As a result of the lack of infrastructure, the need for floating power plant solutions has skyrocketed.

Restraint

High operating expenses due to transportation, logistics, and accessibility issues

The extreme environmental conditions can damage floating power facilities that are located above bodies of water. Any equipment damage would necessitate maintenance, which is significantly more expensive than for land-based power facilities. Furthermore, floating power plants are typically positioned dozens of miles from shore and are difficult to reach, particularly in bad weather. Hence, resolving a little technical issue might be difficult and expensive which has hindered the market growth.

Opportunity

Advantages over land-based power plants

A power plant's decommissioning leaves hazardous leftovers, unfading fuel stains, and other forms of pollution that cannot be totally cleansed. As a result, power plant locations damaged by harmful leftovers are barred from future land use. Land degradation can be avoided by using a floating LNG power vessel. According to study, floating power plants are secure from the effects of earthquakes and tsunamis since the plant is protected by the ocean. The severity of the tsunami is not predicted to inflict major damage when the floating power plants are moored in roughly 100 metres of water. Hence, floating power plants can aid in the prevention of accidents. These advantages of floating power plants over land-based power plants are projected to propel the floating LNG power vessel market.

Threat

The floating power vessels are placed far from the shore

Challenge in the floating power plant business is grid connections and operation, as well as the creation of transmission infrastructure, which is easier with onshore power plant installations. The high operational costs, as well as challenges related to operation, maintenance, shipping, and logistics, may stymie the expansion of the floating power plant market.

Covid-19 Impact

The rapid spread of COVID-19 had a significant impact on global commercial operations, interrupting the supply chain and harming different industries. Global trade activity has been significantly hampered as a result of nationwide lockdowns, international border sealing, and tight social distancing measures. This had a significant impact on the global economy, as businesses around the world were compelled to either entirely or partially cease their operations, causing a disturbance in the supply-demand ratio. Nonetheless, with the resumption of trade activity, the industry is likely to see consistent growth in demand in the next years.

The Power barge segment is expected to be the largest during the forecast period

The Power Barge segment is estimated to have a lucrative growth, due to immediate assistance when energy is required quickly or in regions where land-based power facilities are not available. Power barges are self-contained floating power generators that do not rely on local resources or infrastructure to function. They are useful for providing energy to coastal regions, harbours, and sites near rivers since they are quick to deploy. These low-risk mobile assets can be easily financed and delivered quickly, providing for a quick return on investment. They bring advantages such as mobile energy, on-demand distribution, and so on rapid start-up and dynamic capacity, low emissions, high efficiency capability to run on multiple fuels, outstanding return on investment which enhances the market growth.

The Power generation system segment is expected to have the highest CAGR during the forecast period

The Power generation system segment is anticipated to witness the fastest CAGR growth during the forecast period, due to as heat engines that transform heat input into work and so produce electricity at a constant pace. Heat is provided via the combustion of fossil fuels and biomass, the processing of nuclear fuel, or the collection of thermal energy from renewable energy sources. Electricity is now the most efficient method of converting potential energy to working energy and moving that working energy to where it is needed. There are extensive energy transport systems all around the world that move energy from where it occurs naturally to where it may be used. Point-of-use generation systems can be found everywhere and are employed in large and heavy transport trucks thereby encouraging the growth of the market.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to Coal, hydro, natural gas, nuclear, and renewable energy technologies are frequently used to close the supply-demand energy imbalance in the Asia-Pacific area. Most economies now have a high rate of electricity access. On the other side, renewable energy sources have virtually eliminated power reliability difficulties, indicating that the region's market for floating LNG power plants is unlikely to emerge. As a result of the foregoing, Asia-Pacific is likely to dominate the floating LNG power plant market throughout the forecast period.

Region with highest CAGR

Europe is projected to have the highest CAGR over the forecast period, owing to The growing need for power, as well as the requirement for clean and efficient energy sources, are driving the expansion of the floating LNG power vessel market. The growing demand for floating LNG power boats is being driven by the growing need for LNG as a transportation fuel. Another major factor driving market expansion is the growing demand for floating LNG power vessels in Europe region.

Key players in the market

Some of the key players profiled in the Floating Liquefied Natural Gas Power Vessel Market include Siemens AG, MAN Diesel & Turbo SE, Wärtsilä Corporation, Caterpillar Inc., General Electric Company, Kawasaki Heavy Industries Ltd, Chiyoda Corp, Wison Group, Karadeniz Holding, Benchmarking, IHI Corporation, Modec, Hyundai Heavy Industries, Waller Marine, Mitsui O.S.K. Lines, Karpowership, Power Barge and Sevan Marine

Key Developments

In April 2023, Siemens Mobility expands facility in Munich-Allach, The factory will be enlarged to 80,000 m2 from its current 50,000 m2 to provide additional capacities for processing new orders, optimizing production and logistics flows within the facility, and add more office space.

In March 2023, Siemens launches Connect Box, a smart IoT solution to manage smaller buildings; Siemens Xcelerator is an open digital business platform that enables customers to accelerate their digital transformation easier, faster and at scale.

In March 2023, Wärtsilä signs a long-term Operations & Maintenance agreement with Brazilian utility Rio Amazonas Energia the agreement serves to strengthen the relationship already in place between Wärtsilä and RAESA, which entered into a Guarantee Asset Performance agreement.

In March 2023, Wärtsilä launches world-first radical derating solution for two-stroke engines to extend the emissions-compliant lifetime of merchant vessels by providing the existing two-stroke fleet with leaner, healthier and more optimised engines

Vessel Types Covered:
• Power Barge
• Power Ship

Components Covered:
• Power Generation System
• Power Distribution System

Power Outputs Covered:
• High Scale (Above 400 MW)
• Medium Scale (72 MW to 400 MW)
• Small Scale (Up to 72 MW)

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements