Global LNG Bunkering Market Is Estimated To Witness High Growth Owing To Increasing Adoption of Cleaner Energy Sources
The global LNG Bunkering Market is estimated to be valued at US$592.84 million in 2021 and is expected to exhibit a CAGR of 35.26% over the forecast period of 2022-2030, as highlighted in a new report published by Coherent Market Insights.
A) Market Overview:
The LNG Bunkering Market refers to the provision of liquefied natural gas (LNG) to ships and vessels for fueling purposes. As the shipping industry strives to reduce its environmental impact, there has been a significant shift towards cleaner energy sources, with LNG being one of the preferred options. LNG offers numerous advantages such as lower emissions, cost-effectiveness, and compliance with stricter environmental regulations. It is increasingly being adopted as a fuel for various types of ships, including container vessels, tankers, and cruise ships.
B) Market Dynamics:
The LNG Bunkering Market is driven by two key factors. Firstly, the increasing adoption of LNG-fueled vehicles is propelling the demand for LNG bunkering. Shipping companies are switching from traditional fuels to LNG to comply with emission regulations and reduce air pollution. Secondly, the growing demand for cleaner energy sources is boosting the LNG bunkering market. Governments worldwide are incentivizing the use of LNG as a fuel by offering tax benefits and subsidies, further driving market growth.
For example, the International Maritime Organization (IMO) has implemented stringent regulations on sulfur emissions from ships, known as the IMO 2020 regulations. These regulations have prompted the shipping industry to adopt cleaner fuels such as LNG to meet the emission standards. Additionally, the availability of LNG infrastructure and the development of LNG bunkering hubs at various ports around the world are further fueling market growth.
C) Segment Analysis:
The LNG Bunkering Market can be segmented based on type, application, and region. Based on type, the market can be further divided into ship-to-ship, truck-to-ship, and port-to-ship bunkering. Ship-to-ship bunkering dominates the market, owing to its flexibility and efficiency in fuel supply operations. It enables ships to refuel while already at sea, reducing downtime and increasing operational efficiency.
D) PEST Analysis:
Political: Governments worldwide are implementing regulatory measures to promote the adoption of cleaner energy sources, including LNG, in the shipping industry.
Economic: The cost-effectiveness of LNG as a fuel and the availability of LNG infrastructure are driving market growth.
Social: Increasing awareness of environmental issues and the need for sustainable shipping practices are contributing to the growth of the LNG bunkering market.
Technological: Technological advancements in LNG storage and transport infrastructure, as well as the development of LNG bunkering vessels, are supporting market growth.
E) Key Takeaways:
- The global LNG Bunkering Market is expected to witness high growth, exhibiting a CAGR of 35.26% over the forecast period, due to the increasing adoption of LNG-fueled vehicles and the growing demand for cleaner energy sources.
- Asia-Pacific is the fastest-growing and dominating region in the LNG bunkering market, driven by countries such as China, Japan, and South Korea, which have a large shipping industry and strict emission regulations.
- Key players operating in the global LNG Bunkering Market include Harvey Gulf International Marine, Petronas, Exxon Mobil Corporation, Total SE, SHV Energy, Gasum Oy, Royal Dutch Shell PLC, Broadview Energy Solutions B.V., Crowley Maritime Corporation, Polskie LNG S.A., Korea Gas Corporation, and KLAW LNG. These players are focusing on expanding their LNG bunkering infrastructure and forming partnerships to cater to the increasing demand in the market.
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