Significant adoption in bulk and general cargo fleets is prompted by strict rules on emissions in the industry. Growing demand for LNG bunkering helps shipping industry operators cut carbon emissions.
The use of low-sulfur fuel oil is key to the shipping industry’s growing supply and consumption of bunkering fuel. From 2022 to 2031, the LNG bunkering market is anticipated to grow at a CAGR of 6.5%. The introduction of restrictions to reduce airborne emissions from ships and comply with the most recent IMO guidelines on bunker fuels has increased demand for LNG bunkering.
Bunker fuel popularity
The popularity of LNG as IMO 2020-compliant bunker fuels among small-scale LNG producers is growing (SSLNG). Cruise ships, ferries, bulk and cargo fleets, and other types of vessels have all switched to LNG bunkering fuels, growing the market for LNG bunkering. A global market analysis of LNG bunkering also reveals that the growth in demand for LNG vessel bunkering services has resulted in significant revenue streams.
The authors of the report said that the Gas Exporting Countries Forum (GECF) is dedicated to promoting LNG as the preferred fuel for new vessels, improving the outlook for the LNG bunkering business. In the upcoming years, businesses are vehemently working with the GECF to comply with stronger environmental standards, which will accelerate the adoption of LNG bunkering fuels.
Key Findings of LNG Bunkering Market Study
- Demand for Low-Sulfur Content Fuels in Shipping Industry Underpins Massive Revenue Potential: Demand for low-sulfur oil fuel for a wide range of vessels is a key underpinning for abundant opportunities for firms in the LNG bunkering market. Advancements in refueling infrastructure in ports in developing countries will spur the adoption of LNG bunkering fuel. The study found that truck-to-ship transfer (TTS) is the most popular bunker configuration.
- Rising Demand Among Owners of Bulk and General Cargo Fleets: The bulk and general cargo fleets accounted for a major share amounting to 65.1% market share in 2021. The segment is anticipated to make substantial strides during the forecast period, propelled by the uptake of LNG fuels in maritime transport.
LNG Bunkering Market: Key Drivers
- Evolving regulations on reducing the carbon footprint of the shipping industry and constant impetus toward the adoption of low-sulfur marine fuels, supported by agencies such as the International Maritime Organization (IMO), are key drivers of the LNG bunkering market.
- Advancements made in the LNG infrastructure of ports in numerous economies are a key pivot for the expansion of avenues in the LNG bunkering market. The emphasis of economies on strengthening their operations in LNG bunkering terminals will boost the market.
LNG Bunkering Market: Regional Growth Dynamics
- Asia Pacific held a key share of the LNG bunkering market in 2021. Many Asian economies have grown their investments in LNG fuel supply businesses, such as Japan and Singapore. India is a lucrative market, found a study on the global LNG bunkering market. An increasing number of dedicated LNG bunkering facilities in the Asia Pacific is creating new revenue sources and supporting future opportunities in key economies, such as India.
- Europe held a major share of the global market in 2021. The TMR study projects the Europe LNG bunkering market is projected to advance at a CAGR of 6.1% during the forecast period. The presence of a massive number of operational LNG bunkering terminals is steering tremendous demand.
LNG Bunkering Market: Competition Landscape
Relatively few vendors accounted for a majority of stakes in the LNG bunkering market in 2021, found the TMR study. Top players are making sizable investments in research and development activities.
Some of the prominent players in the LNG bunkering market are Van Ameyde Marine, Air Liquide, Cryostary, Titan LNG, SEA-LNG, Harvey Gulf International Marine, Probunkers, Gasum Ltd., ABS Group, Total Energies, and Shell plc.
- Ship to Ship
- Terminal to Ship
- Truck to Ship
- Defense Vessels
- Cruise Ships
- Ferries & OSVs
- Bulk and General Cargo Fleets
- North America
- Latin America
- Asia Pacific
- Middle East & Africa
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Source: Global News Wire