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.
The LNG Bunkering Market is a market that deals in the supply of LNG as a cleaner marine fuel for ships. LNG is a clean source of energy that produces very low emissions and is estimated to become the primary marine fuel for decades to come. LNG allows ships to meet the International Maritime Organization (IMO) emission regulations that aim to reduce pollution from ships. With tightened regulations and concerns over emissions from international shipping, LNG is increasingly being used as a viable alternative to traditional marine fuels such as heavy fuel oil and marine diesel oil.
Market key trends:
The increasing adoption of stringent emission regulations is driving the demand for LNG bunkering. The IMO has implemented various regulations such as MARPOL Annex VI to reduce emissions from ships. The IMO's emission control areas impose even more stringent controls on emissions. Additionally, the sulphur cap regulation effective from 2020 limits the sulphur content in marine fuels to 0.5%, down from 3.5% earlier. This has fuelled the demand for cleaner marine fuels such as LNG. Furthermore, the growing LNG infrastructure is also favouring the adoption of LNG as a bunker fuel. The increasing number of LNG terminals, bunkering vessels and tonnage capable LNG ships is making LNG bunkering a viable option for ship operators. This, along with efforts by major market players to develop innovative technologies and infrastructure, is expected to drive significant growth of the LNG bunkering market during the forecast period.
Porter's Analysis
Threat of new entrants: The threat of new entrants is low as establishing LNG bunkering facilities requires high capital investments and regulatory approvals.
Bargaining power of buyers: The bargaining power of buyers is moderate as LNG is becoming an alternative fuel option for ships. However buyers have limited options for bunkering locations.
Bargaining power of suppliers: The bargaining power of suppliers is high as key suppliers like oil majors have integrated supply chains and established long term contracts with buyers.
Threat of new substitutes: The threat of new substitutes is low as LNG is considered the most viable clean fuel alternative for shipping currently.
Competitive rivalry: is intense as key players are rapidly expanding their infrastructure and service offerings.
SWOT Analysis
Strengths: LNG provides significant reductions in emissions. Established oil majors have integrated supply chains and experience in LNG market.
Weaknesses: Higher capital costs for retrofitting vessels and establishing bunkering facilities. Limited LNG bunkering locations constrain operations.
Opportunities: Stringent emission norms are driving adoption of LNG fuel. Government support for green shipping presents opportunities.
Threats: Delay in expansion of infrastructure can restrict growth. Technology advances may enable alternatives to compete with LNG.
Key Takeaways
The Global LNG Bunkering Market Size is expected to witness high growth, exhibiting CAGR of 11% over the forecast period, due to increasing international mandates to cut shipping emissions. International Maritime Organisation's decarbonization targets and emission control areas are driving adoption of LNG as a marine fuel.
Regional analysis: Europe dominates the global LNG bunkering market currently owing to the presence of major ports requiring use of cleaner fuels. The region’s stringent emission norms and focus on green shipping are propelling the growth of LNG infrastructure. Several European countries are supporting large scale pilots and projects to establish networks of LNG bunkering vessels and terminals.
Key players: 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. Major players are focusing on capacity expansions and strategic partnerships to cater to the growing LNG bunkering demand.
For More Insights, Read: https://www.newswirestats.com/lng-bunkering-market-demand-growth-and-regional-outlook-by-2030/
