Very Large Gas Carrier Market Forecasts to 2030 – Global Analysis By Type (Fully Pressurized VLGCs, Semi-Ref Vessels (SRV), Fully Refrigerated VLGCs, Eco-Friendly VLGCs, Dual Fuel VLGCs and Other Types), Cargo Type, Vessel Size, End User and By Geography

Very Large Gas Carrier Market Forecasts to 2030 – Global Analysis By Type (Fully Pressurized VLGCs, Semi-Ref Vessels (SRV), Fully Refrigerated VLGCs, Eco-Friendly VLGCs, Dual Fuel VLGCs and Other Types), Cargo Type, Vessel Size, End User and By Geography

According to Stratistics MRC, the Global Very Large Gas Carrier Market is accounted for $7.34 billion in 2023 and is expected to reach $9.68 billion by 2030 growing at a CAGR of 9.4% during the forecast period. Very large gas carriers are specialized vessels designed for transporting liquefied petroleum gas (LPG) in large quantities. VLGCs play a crucial role in the global energy trade, facilitating the transportation of LPG from production centers to consumption markets worldwide. These ships are equipped with advanced safety features to handle the unique challenges posed by carrying highly flammable cargo. VLGCs are vital for meeting the growing demand for clean energy sources, particularly in regions where access to natural gas infrastructure is limited.

According to the Observatory of Economic Complexity (OEC), North America accounted for a share of 15.0% of the global LPG exports valued at USD 40 billion in 2021.

Market Dynamics:

Driver:

Global energy demand

VLGCs are crucial for transporting large volumes of LNG across vast distances, meeting the energy needs of regions worldwide. With expanding industrialization and urbanization, coupled with the transition towards cleaner fuels, the demand for LPG and LNG rises. VLGCs play a crucial role in efficiently transporting these gases across long distances, catering to diverse markets worldwide. As energy consumption patterns evolve and the demand for gas surges, the VLGC market expands to meet these growing needs, ensuring a pivotal role in the global energy landscape.

Restraint:

Regulatory compliance

Regulatory compliance in VLGCs encompasses stringent safety, environmental, and operational standards set by international bodies like the International Maritime Organization (IMO). These regulations impose high costs on VLGC operators for equipment upgrades, crew training, and compliance audits. Moreover, non-compliance risks penalties and reputational damage, adds further pressure. Consequently, compliance burdens can inflate operational expenses, impacting profitability and hindering market growth.

Opportunity:

Rising shale gas production

Very large gas carriers emerge as vital assets in this landscape, facilitating the global distribution of LNG. As shale gas extraction increases, particularly in regions like the United States, the need for VLGCs escalates to transport LNG to various markets worldwide. This expansion in shale gas production thus propels the growth of the VLGC market, fostering investments in vessel construction, logistics, and related services to meet the rising demand for LNG transportation efficiently and sustainably.

Threat:

Overcapacity concerns

Overcapacity in VLGCs arises when the number of vessels exceeds market demand, leading to reduced freight rates and profitability for shipping companies. This surplus capacity results from an influx of new buildings and slow scrapping rates, exacerbating market pressures. It leads to intensified competition among carriers, lower charter rates, decreased vessel utilization, and financial strain on operators. Consequently, shipping companies face challenges in maintaining sustainable operations and profitability amidst a saturated market.

Covid-19 Impact

The covid-19 pandemic significantly affected the VLGC market, leading to fluctuating demand and supply dynamics. Restrictions on international trade and reduced industrial activities dampened demand for LPG, a key cargo for VLGCs. Delays in port operations and disruptions in crew rotations further compounded challenges for vessel operators. However, the gradual recovery of global economies and the resumption of trade activities provided some relief, although uncertainties persist due to evolving pandemic situations and regulatory changes impacting maritime trade.

The dual fuel VLGCs segment is expected to be the largest during the forecast period

The dual fuel VLGCs segment is estimated to have a lucrative growth. Dual Fuel VLGCs are vessels equipped to run on traditional marine fuels offering flexibility and environmental benefits. These vessels leverage advanced engine technology, such as dual-fuel engines or engines capable of burning both LNG and traditional fuels, allowing operators to adapt to evolving regulatory requirements and market conditions while contributing to the transition towards cleaner maritime transportation.

The petrochemical companies segment is expected to have the highest CAGR during the forecast period

The petrochemical companies segment is anticipated to witness the highest CAGR growth during the forecast period. Petrochemical companies utilize VLGCs to transport these gases from production facilities to distribution centers and end-users worldwide. These vessels ensure efficient and safe transportation, enabling petrochemical companies to meet global demand for their products. VLGCs are equipped with advanced technology and adhere to stringent safety and environmental regulations, making them indispensable assets in the petrochemical supply chain.

Region with largest share:

Asia Pacific is projected to hold the largest market share during the forecast period due to growing demand for liquefied petroleum gas (LPG) transportation. Rapid industrialization and urbanization in countries like China, India, and Japan fuel the demand for LPG. Additionally, emerging economies like Indonesia and Vietnam contribute to the increasing consumption of LPG. This demand surge has led to substantial investments in VLGCs, with major shipping companies focusing on fleet expansions and technological advancements to cater to the burgeoning market in the Asia Pacific region.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period, owing to the shale gas revolution, which has boosted domestic production of liquefied petroleum gas (LPG). The United States has emerged as a significant exporter of LPG, particularly to Asian markets. This has led to a growing demand for VLGCs for transportation purposes. Additionally, Canada's LPG production contributes to regional shipping needs. Regulatory frameworks and infrastructure development also play vital roles in shaping the VLGC market landscape in North America, as the region continues to adapt to evolving energy dynamics.

Key players in the market

Some of the key players profiled in the Very Large Gas Carrier Market include Hyundai Samho Heavy Industries, Mitsui O.S.K. Lines (MOL), Avance Gas, Nippon Yusen Kabushiki Kaisha, Navigator Gas, Epic Gas, Petredec Limited, Exmar, StealthGas Inc., Norgas Carriers, APM Terminals, Dorian LPG, BW LPG and Pacific Gas Limited.

Key Developments:

In April 2024, Hyundai Samho Heavy Industries launched the Taebaek Explorer, a new Very Large Gas Carrier (VLGC). The Taebaek Explorer is the first of two new VLGCs that will be chartered by Trafigura long-term. The Bellavista Explorer has a storage capacity of 90,000 cubic meters and can sail up to 31,700 kilometers at an average speed of 11.2 knots and a maximum speed of 19 knots.

In August 2023, APM Terminals Pipavav commenced operations of very large gas carriers (VLGCs) with the berthing of MT Jag Viraat, a 230-meter-long VLGC vessel owned by Great Eastern Shipping. The VLGC has a 37-meter beam and an arrival draft of 8.2 meters. The port recently revamped its berth to VLGC compliant to accommodate Very Large Gas carriers.

Types Covered:
• Fully Pressurized VLGCs
• Semi-Ref Vessels (SRV)
• Fully Refrigerated VLGCs
• Eco-Friendly VLGCs
• Dual Fuel VLGCs
• Other Types

Cargo Types Covered:
• Liquefied Petroleum Gas (LPG)
• Ammonia
• Ethylene
• Propylene
• Butane
• Propane
• Other Cargo Types

Vessel Sizes Covered:
• Below 70,000 CBM
• 70,000 - 80,000 CBM
• Above 80,000 CBM

End Users Covered:
• LPG Producers
• Energy Companies
• Petrochemical Companies
• Traders & Distributors
• Retail & Commercial Consumers
• Government Agencies
• Other End Users

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 2021, 2022, 2023, 2026, and 2030
- 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