The global LNG bunkering market size was US$ 4.77 billion in 2021. The global LNG bunkering market is forecast to grow to US$ 7.14 billion by 2030 by growing at a compound annual growth rate (CAGR) of 41.2% during the forecast period from 2022 to 2030.
The process of transferring liquefied natural gas or LNG to a ship for use as fuel is known as LNG bunkering. It is a popular method of fueling ships as it produces less pollution than other traditional methods such as marine gas oil and heavy fuel oil.
Factors Influencing the Market
LNG bunkering offers various benefits over conventional bunker fuel, such as better length of compliance and reduced GHG emissions. In addition, growing IMO regulations on sulfur content in marine fuel will make LNG an ideal choice for consumers. Thus, it will offer ample growth opportunities for the LNG bunkering market growth.
The rising need to reduce marine pollution will surge the demand for LNG bunkering in the coming years. Apart from that, growing contracts and strategies by the industry players are forecast to benefit the overall market in the coming years. For instance, In January 2022, CMA CGM inked a ten-year contract with Shanghai International Port Group with the aim to take on LNG as a bunker fuel in the Yangshan port area. CMA CGM's dual-fuelled 15,000 TEU box ships on the Pearl River Express route from China to Los Angeles will bunker in the Yangshan area.
The growing use of LNG as bunker fuel in this breakbulk shipping contributes to the growth of the overall LNG bunkering market. In addition, the growing number of investments aiming to develop infrastructure to provide LNG breakbulk shipping services will escalate the growth of the global LNG bunkering market.
COVID-19 Impact Analysis
Due to temporary bans on export and import during the COVID-19 pandemic, the global LNG bunkering market experienced a significant decline in growth. However, the market has recovered from declining revenues in the second half of 2021, owing to the increase in demand for LNG as bunker fuel in maritime transport. Moreover, strict sulfur content limitations in the use of conventional fuels and increased efficiency of LNG will drive demand for LNG bunkering.
Regional Analysis
The Asia-Pacific LNG bunkering market is one of the most prominent markets for LNG bunker fuel. It is due to the presence of the largest ports in terms of volumes of bunker fuel traded. In addition, the growing number of shipbuilding projects and infrastructure activities and rapid growth in the trade of essential goods and commodities will surge the growth of the LNG bunkering market in the region. Furthermore, stringent regulations targeting high sulfur content in the marine bunker are expected to fuel the growth of the Asia-Pacific LNG bunkering market.
Competitors in the Market
Market Segmentation
The global LNG bunkering market segmentation focuses on Product, Application, and Region.
By Product Type Outlook
By Application Outlook
By Regional Outlook
