LGC And VLGC LPG Shipyard Carrier Market Research Report: By Vessel Type (Large Gas Carriers (LGC), Very Large Gas Carriers (VLGC)), By Fuel Type (Liquefied Petroleum Gas (LPG)), By Market segment (New Build Construction, Retrofit Projects), By Capacity (Small (less than 50,000 cubic meters), Medium (50,000 to 100,000 cubic meters), Large (over 100,000 cubic meters)) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2032

Global LGC And VLGC LPG Shipyard Carrier Market Overview

As per MRFR analysis, the LGC And VLGC LPG Shipyard Carrier Market Size was estimated at 2.28 (USD Billion) in 2022. The LGC And VLGC LPG Shipyard Carrier Market Industry is expected to grow from 2.38 (USD Billion) in 2023 to 3.5 (USD Billion) by 2032. The LGC And VLGC LPG Shipyard Carrier Market CAGR (growth rate) is expected to be around 4.4% during the forecast period (2024 - 2032).

Key LGC And VLGC LPG Shipyard Carrier Market Trends Highlighted

The demand for LGC and VGLC LPG shipyard carriers is shaped by Environmental regulations for stricter and more efficient vessels, such as IMO’s 2020 sulfur cap, which creates increased demand. The demand for LPG for heating, cooking and its use in industries in the developing nations also increases the need for specialized carriers. Moreover, the increasing trend of LPG export terminals and the growth of the total market of LPG creates avenues for shipyards as well.

The growing trend of dual-fuel vessels, which widens the fuel pool to both LPG and conventional Options, was seen as one of the trends in the LGC and VGLC LPG shipyard carrier market. Such dual-fuel vessels reduce operating costs and emissions. Also, the global trade of LPG is expected to grow in the near future which will see an increased emphasis on larger and more capable vessels for bulk transport of LPG. Also, Current investment patterns in the shipyard, among others, are in new technologies such as digitalization and automation.

The past trends are only an indicator that the LGC and VGLC LPG shipyard carrier market will cater to the growing need for specialized vessels as well as expand into unexplored markets which the market has the potential to arise from. With the growing demand for LPG as well as the right policy for regulation, more shipyards vessels are expected to be built in the next few years.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

LGC And VLGC LPG Shipyard Carrier Market Drivers

Rising Demand for LPG Transportation

The increasing demand for liquefied petroleum gas both at a global and a country level better explains the growth of the LGC And VLGC LPG Shipyard Carrier Market industry. LPG is widely applied today as a fuel for cooking and heating, and as an alternative for vehicles. Moreover, increased population and urbanization in developing countries result in a higher consumption level for the product, which requires efficient and safe transportation.Finally, government incentives supporting LPG as a more environmentally friendly alternative to conventional fuels boost the market growth even further.

Expansion of Global Trade and Logistics

Another essential driving force for the LGC And VLGC LPG Shipyard Carrier Market Industry is the vibrant development of global trade and logistics. The increased volume of trade in such areas as Asia-Pacific, the Middle East results in the expanding demand for specific carriers that can transport significant amounts of LPG. The growth of e-commerce and the demand for effective supply chains are among the other factors contributing to this market’s development.

Technological Advancements and Efficiency Improvements

Global developments and progress in the LGC And VLGC LPG Shipyard Carrier Market Industry driven by technological advances and efficiency improvements. In terms of fuel efficiency and the clean operation of new vessels, shipbuilders are making advancements. An increase in the use of advanced materials and optimized design, along with rapidly progressing digitalization is making the work of carriers easier and less costly. With each step, market competitiveness and sustainability are enhanced.

LGC And VLGC LPG Shipyard Carrier Market Segment Insights:

LGC And VLGC LPG Shipyard Carrier Market Vessel Type Insights   

LGC And VLGC LPG Shipyard Carrier Market The LGC And VLGC LPG Shipyard Carrier Market  is slated to witness steady growth over the forthcoming years, driven by a surging global demand for LPG. The market is characterized by a variety of categories, including vessel type, propulsion type, and region. The vessel type segment is of particular importance for the present study since it defines the types of ships adopted to transport LPG. The two highlights worth mentioning are Large Gas Carriers (LGCs) and Very Large Gas Carriers (VLGCs).The first type is represented by smaller ships with cargo capacities varying from 15,000 to 25,000 cubic meters. Since they are used to transport LPG shorter distances due to limited capabilities and can satisfy regional markets or intra-regional trade, the LGC And VLGC LPG Shipyard Carrier Market  for LGCs is projected to develop at a similarly constant pace. The growing consumption of LPG in developing countries and the increasing need for less rigid transportation forms is one of the primary drivers. VLGCs, in turn, are the most massive option, with cargo capacities from 50,000 to 90,000 cubic meters.Quite naturally, they are used to perform deliveries over the longest distances preconditioned by the specifics of international trade. Therefore, the LGC And VLGC LPG Shipyard Carrier Market  for VLGCs is anticipated to grow significantly. The overall conclusion that can be made is that the vessel type segment is the most determinant for the LGC And VLGC LPG Shipyard Carrier Market. Depending on the cargo capacity, distance, and logistics point, the choice between LGCs and VLGCs may vary. In any case, the demand for both types is expected to maintain high levels of intensity.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

LGC And VLGC LPG Shipyard Carrier Market Fuel Type Insights   

Liquefied Petroleum Gas (LPG) is the well-known fuel type in the LGC And VLGC LPG Shipyard Carrier global market, and it will gain popularity over the years ahead. LPG is universal and can be employed in various fields, such as cooking, heating, resorts, and transport. Moreover, it is relatively more efficient and environmentally safer than other fuel types. This allows any vessel or shipyard to reduce the negative impact on nature. Additionally, compared to other types of petrol, it is cheap and saves money for ship owners. The LPG segment in the LGC And VLGC LPG Shipyard Carrier Market was the market leader, generating 59.9% of total revenue in 2020.One major driver is the colossal demand in developing countries, as many women prefer cooking with LPG.

LGC And VLGC LPG Shipyard Carrier Market Market segment Insights   

The new build construction segment accounted for a larger revenue share in the LGC And VLGC LPG Shipyard Carrier Market in 2023. The growth of this segment can be attributed to the increasing demand for new ships from emerging economies. The retrofit projects segment is expected to witness significant growth in the coming years, owing to the need to upgrade existing ships to meet environmental regulations and improve efficiency.

LGC And VLGC LPG Shipyard Carrier Market Capacity Insights   

The Capacity segment of the LGC And VLGC LPG Shipyard Carrier Market is anticipated to witness significant growth in the coming years, driven by rising demand for the transportation of liquefied petroleum gas (LPG). The market is segmented into three capacity categories: Small (less than 50,000 cubic meters), Medium (50,000 to 100,000 cubic meters), and Large (over 100,000 cubic meters). The Medium capacity segment currently holds the largest market share due to its versatility and ability to handle a wide range of LPG volumes. However, the Large capacity segment is expected to grow at a faster pace, driven by the increasing demand for efficient and cost-effective transportation of large volumes of LPG.The LGC And VLGC LPG Shipyard Carrier Market is projected to reach a value of USD 3.5 billion by 2032, expanding at a CAGR of 4.4% from 2023 to 2032.

LGC And VLGC LPG Shipyard Carrier Market Regional Insights   

The regional segmentation of the LGC And VLGC LPG Shipyard Carrier Market offers insights into the geographical distribution of market growth and opportunities. North America is expected to hold a significant market share in 2024, owing to the presence of major shipbuilding hubs and a growing demand for LGC and VLGG LPG carriers for domestic and international trade. Europe is another key region, driven by strict environmental regulations and a focus on sustainable shipping practices. The APAC region is anticipated to witness substantial growth in the coming years, fueled by rising trade activities and investments in infrastructure.South America and MEA are emerging markets with potential for growth as LPG transportation demand increases in these regions.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

LGC And VLGC LPG Shipyard Carrier Market Key Players And Competitive Insights:

Heavy investments in research and development, leading to new and innovative products, characterize key players in the LGC And VLGC LPG Shipyard Carrier Market. Another key focus for these leading companies includes efforts to expand global presence through acquisitions or strategic partnerships. Similar tendencies will define the future of the LGC And VLGC LPG Shipyard Carrier Market since its increase is anticipated, attributing to a rather high demand for LGC And VLGC LPG Shipyard Carrier Market products and services. Many leading players are currently present in the LGC And VLGC LPG Shipyard Carrier Market, and the competitive market landscape is likely to remain fragmented in the upcoming years.

No single player is likely to control or define the tendencies in the LGC And VLGC LPG Shipyard Carrier Market because such a possibility is mitigated by the high number of leading players. In the LGC And VLGC LPG Shipyard Carrier Market, the company with the leading position is Hyundai Heavy Industries. It is also the company famous for delivering the highest quality of product. Moreover, HHI often leads innovations in the LGC And VLGC LPG Shipyard Carrier Market. The company is also known for its heavy reliance on research and development associated with new product development. Hyundai Heavy Industries is also likely to expand its global presence in the future.

The competitive company to HHI in the LGC And VLGC LPG Shipyard Carrier Market is Daewoo Shipbuilding  Marine Engineering. DSME also has a track of delivering the highest quality of LGC And VLGC LPG Shipyard Carrier Market services and products. DSME is not new to innovations either on the basis of products or on manufacturing equipment. The key goal for DSME now is the expedited expansion of its global presence through acquisitions and strategic partnerships.

Key Companies in the LGC And VLGC LPG Shipyard Carrier Market Include:

• Samsung Heavy Industries Co., Ltd.


• Jiangnan Shipyard (Group) Co., Ltd.


• COSCO Shipping Heavy Industry Co., Ltd.


• Meyer Werft GmbH KG


• Kawasaki Heavy Industries, Ltd.


• The China Shipbuilding Group, Ltd.


• Flensburger SchiffbauGesellschaft KG


• Mitsubishi Heavy Industries, Ltd.


• China Merchants Heavy Industry (Shenzhen) Co., Ltd.


• Hyundai Heavy Industries Co., Ltd.


• HudongZhonghua Shipbuilding (Group) Co., Ltd.


• STX Offshore Shipbuilding Co., Ltd.


• Bohai Shipbuilding Heavy Industry Co., Ltd.


• Yangzijiang Shipbuilding (Holdings) Ltd.


• Daewoo Shipbuilding Marine Engineering Co., Ltd.

LGC And VLGC LPG Shipyard Carrier Market Industry Developments

The LGC And VLGC LPG Shipyard Carrier Market is projected to grow from USD 2.38 billion in 2023 to USD 3.5 billion by 2032, exhibiting a CAGR of 4.4% during the forecast period. This growth is attributed to the increasing demand for LPG as a clean and efficient fuel, particularly in developing economies. The growing global trade of LPG, driven by factors such as industrialization and urbanization, is also contributing to the market's expansion. Additionally, government initiatives to promote the use of LPG as an alternative fuel are expected to further drive market growth. Recent developments in the market include strategic partnerships between shipyards and energy companies to enhance production capabilities and meet the growing demand for LPG carriers. Technological advancements, such as the development of more efficient and environmentally friendly vessel designs, are also expected to shape the market's future.

LGC And VLGC LPG Shipyard Carrier Market Segmentation Insights

• LGC And VLGC LPG Shipyard Carrier Market Vessel Type Outlook
  
  
  
  • Large Gas Carriers (LGC)
  
  
  • Very Large Gas Carriers (VLGC)
  
  
  
  

• LGC And VLGC LPG Shipyard Carrier Market Fuel Type Outlook
  
  
  
  • Liquefied Petroleum Gas (LPG)
  
  
  
  

• LGC And VLGC LPG Shipyard Carrier Market Market segment Outlook
  
  
  
  • New Build Construction
  
  
  • Retrofit Projects
  
  
  
  

• LGC And VLGC LPG Shipyard Carrier Market Capacity Outlook
  
  
  
  • Small (less than 50,000 cubic meters)
  
  
  • Medium (50,000 to 100,000 cubic meters)
  
  
  • Large (over 100,000 cubic meters)
  
  
  
  

• LGC And VLGC LPG Shipyard Carrier Market Regional Outlook
  
  
  
  • North America
  
  
  • Europe
  
  
  • South America
  
  
  • Asia Pacific
  
  
  • Middle East and Africa