by The LNG bunkering market caters to the need for cleaner marine fuel with the increasing environmental regulations concerning reduction of emissions from ships and vessels. Liquefied Natural Gas (LNG) provides a viable alternative to conventional marine fuels such as heavy fuel oil and marine gas oil as it burns cleaner with significantly lower emissions of sulfur oxides, particulate matter and greenhouse gases. Several shipping companies have turned to adopting dual-fuel engines capable of using both LNG and conventional fuels to comply with the stringent emission norms stipulated by International Maritime Organization (IMO). The growth of LNG-fueled ships and expansion of LNG bunkering infrastructure such as supply vessels, terminals and barges along major trade routes is expected to drive the demand for LNG bunkering. The global LNG Bunkering Market is estimated to be valued at US$ 1084.62 Mn in 2024 and is expected to exhibit a CAGR of 8.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends in the Global LNG Bunkering Market Size is the deployment of small-scale and mobile LNG bunkering units such as bunkering vessels and barges. Compared to centralized fixed bunkering terminals which require huge investments, smaller modular liquefaction units provide flexibility and scalability by enabling bunkering operations at ports that do not have established LNG infrastructure. Leading LNG suppliers are investing in innovative bunkering units that can be deployed on demand to remote ports to meet the fuel needs of ships. For instance, Anthony Veder group has developed semi-mobile diesel-electric powered LNG fueled bunker vessels which provides an economically viable option for ports with moderate demand. The modular design allowing on-site assembly helps optimize the CAPEX for suppliers and enables a smooth transition to LNG as a marine fuel.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the LNG bunkering market is moderate. High capital requirements for infrastructure like LNG bunkering vessels limit new companies from entering the market easily.
Bargaining power of buyers: The bargaining power of buyers in the LNG bunkering market is high. Buyers can negotiate prices as there are multiple bunkering companies and not much product differentiation.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. While a few large companies dominate the supply of LNG, changing suppliers is possible due to availability of options.
Threat of new substitutes: The threat of substitutes is low. There are no close substitutes for LNG that can offer the clean burning fuel properties for marine bunkering.
Competitive rivalry: The competitive rivalry in the LNG bunkering market is high owing to presence of many international companies offering similar products.
Key Takeaways
The global LNG bunkering market is expected to witness high growth over the forecast period of 2023 to 2030. The market size is projected to reach US$ 1084.62 Mn in 2024.
Regional analysis: Europe is currently dominating the global LNG bunkering market with over 40% share owing to presence of major ports and increasing adoption of LNG as a marine fuel. The Asia Pacific region is expected to grow at the fastest pace attributed to rising maritime trade and government initiatives for cleaner fuel in countries like China, Japan and South Korea.
Key players: Key players operating in the LNG bunkering market include Medtronic, Becton Dickinson and Company (BD), Boston Scientific Corporation, Cook Medical, B. Braun Melsungen AG, Koninklijke Philips N.V., Opto Circuits (India) Limited, Terumo Corporation, Surmodics, Inc., and Biotronik. These companies are focusing on geographic expansion and capacity additions to meet the growing demand for LNG bunkering services across major ports.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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