LPG Tanker Market Size, Share, Growth Analysis, By Vessel Size(Very large, large, medium, small gas carrier), By Refrigeration & pressurization(Ethylene, Full Refrigerated, Semi Refrigerated, Full Pressurized), By Region - Industry Forecast 2024-2031

LPG Tanker Market Driver

• The LPG tanker market is being driven by growing trade relations and increased shale gas extraction. Because of increased trading of liquefied petroleum gas across various countries, the global market for liquefied petroleum gas tankers is expected to grow significantly. Due to volatile crude oil prices and the advancement of hydraulic fracturing and horizontal drilling processes, key participants have shifted their focus to oil and gas production from shale rock. As a result of the shift in focus, the market is expected to grow during the forecast period, as augmented shale gas production has boosted LPG trade globally.
• The opening of the Panama Canal's third set of locks is expected to improve LPG trade between the East and West by shortening the distance and shifting international trade routes. LPG demand has also increased for high ventilation air conditioning (HVAC) and cooking applications. Increased trade relations between the United States, Japan, and India for shale gas from 2020 to 2027 are expected to increase demand for LPG tankers.
• The LPG tanker market is expected to expand rapidly due to an increase in its traditional use for cooking as a substitute for coal and wood. Because of its non-toxic, cost-effective, clean, convenient, accessible, and portable nature, LPG is used in auto fuel, residential or commercial purposes, refinery, and chemicals. The expansion of shale gas capacity from unexplored stocks improved global gas trade, and the continued use of liquefied petroleum gas as a cooking fuel contributes to the growth of the liquefied petroleum gas tankers market.

LPG Tanker Market Restraint

• The rising demand for and use of CNG and natural gas is limiting the growth of the LPG tanker market. CNG is cleaner and less expensive than LPG, and it is primarily composed of methane. LPG has a higher calorific value than CNG and can catch fire faster. It is used in automobiles as a substitute for gasoline and emits fewer greenhouse gases than LPG. Furthermore, it is lighter than air. As a result, if it spills, it disperses quickly. It is generally less expensive than LPG and is widely used in automobiles and locomotives, posing a challenge to the growth of the LPG tanker market. CNG has been introduced in many commercial vehicles in the United States, ranging from light-duty trucks to medium and heavy-duty trucks
• CNG has been adopted as a vehicle fuel in Iran, Argentina, China, Brazil, and Pakistan. Because of the lower maintenance costs of natural gas vehicles, the CNG market is expected to grow faster than the LPG market, which is a market restraint. Because of the increasing use of natural gas in buses and trucks, particularly in Ukraine and Russia, retrofitted vehicles dominate the European market. Over the forecast period, regulatory policies, government subsidies, environmental benefits, resource availability, and fuel prices are expected to positively influence CNG adoption while hindering the growth of the LPG tanker market.