The LNG bunkering market is estimated to be valued at US$ 1084.62 Mn in 2023 and is expected to exhibit a CAGR of 11.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Liquefied natural gas (LNG) bunkering refers to the supply of liquefied natural gas as fuel for ships and boats. LNG is increasingly being adopted as a marine fuel owing to its cleaner burning properties as compared to traditional marine fuels such as heavy fuel oil and marine diesel oil. The use of LNG helps reduce sulfur oxide and particulate matter emissions from ships and also provides cost benefits. Major shippers and shipping companies are investing in LNG-fueled vessels to comply with stringent environmental regulations.
Market Dynamics:
The growth of the LNG bunkering market is mainly driven by stringent environmental regulations regarding emission reduction from ships and investments toward expansion of LNG infrastructure for ships. The International Maritime Organization (IMO) has implemented regulations to limit sulfur content in marine fuels which has increased adoption of cleaner burning LNG as an alternative fuel. Furthermore, national and regional regulatory bodies are also promoting use of LNG in maritime transportation through incentives and subsidies. Countries such as Norway and the U.S. have invested heavily in developing LNG bunkering facilities to supply LNG as marine fuel. For instance, according to sources, over 80 LNG bunker vessels will be operational globally by 2025 to meet the growing LNG bunkering demand. Such expansion of infrastructure is expected to further drive the demand for LNG bunkering over the forecast period.
SWOT Analysis
Strength: LNG bunkering provides cleaner fuel solutions to maritime sector reducing emission. Increased adoption of LNG as bunker fuel by shipping lines and ports. Subsidies and incentives by governments to promote use of LNG as marine fuel.
Weakness: High capital cost of LNG bunkering infrastructure and equipments. Limited number of LNG bunkering vessels and facilities constrain widespread adoption. Technology barriers and safety concerns in developing small scale LNG bunkering solutions.
Opportunity: Stringent emission regulations by IMO and regional agencies driving demand. Expand LNG bunkering to inland waterways and offshore vessels. Develop small scale and mobile LNG bunkering solutions to access more ports.
Threats: Slow fleet conversion to gas fueled vessels. Alternative low carbon marine fuels like hydrogen and ammonia poses threat in long run. Geopolitical risk associated with gas supply contracts affects price stability.
Key Takeaways
The global LNG Bunkering Market Share is expected to witness high growth, exhibiting CAGR of 11.% over the forecast period, due to increasing environmental regulations to curb emissions from maritime sector. Stringent emission norms by IMO aiming to reduce Sulphur emission and introduce carbon intensity measure will drive demand for cleaner marine fuels like LNG.
Regional analysis - Asia Pacific dominates currently with over 60% share primarily driven by robust adoption in Korea and China. North West Europe is second largest growing at over 15% fueled by stringent emission regulations in region. Many ports in Germany, Netherlands and Norway are steadily building LNG bunkering infrastructure to cater growing LNG fueled fleet.
Key players operating in the LNG bunkering market are Royal Dutch Shell Plc., Skangas, ENN Energy, Korea Gas Corporation, Prima LNG, Harvey Gulf International Marine LLC, Bomin Linde LNG GmbH & Co KG, Fjord Line, Crowley Maritime Corporation, and Polskie LNG. Key players are investing in developing networks of LNG bunkering vessels and terminals across major ports along main trading routes. Companies also strategizing expansion to tap growing opportunities in emerging markets in Asia Pacific and Latin America.
Read More,
https://www.trendingwebwire.com/lng-bunkering-market-trends-size-and-share-analysis/
