Volume Insights on LNG Carrier Sector
The global LNG Carrier sector Volume Projection was valued at 159,710.5 kilotons in 2023 and is projected to reach 278,887.8 kilotons by 2033, registering a CAGR of 5.8% from 2024 to 2033.
Volume Insights Strategic Overview
Allied Market Research announces the release of its comprehensive analysis of the global number of LNG Carrier. A Liquefied Natural Gas (LNG) carrier is a specialized vessel designed for the transportation of liquefied natural gas across oceans. These ships are crucial for the global energy trade, as they enable the efficient movement of LNG from production sites to consumer markets. LNG is natural gas that has been cooled to approximately -162°C (-260°F) to transform it into a liquid state, reducing its volume by about 600 times. This process makes storage and transportation much more practical. The rise of LNG carriers has played a pivotal role in the expansion of the global gas market, allowing countries with limited natural gas resources to meet their energy demands efficiently.
The report highlights the global demand for natural gas has been rising steadily, driven by the transition towards cleaner energy sources. As countries seek to reduce their reliance on coal and oil, liquefied natural gas (LNG) has emerged as a crucial alternative due to its lower carbon emissions and high energy efficiency. Governments and industries worldwide are increasingly adopting LNG as part of their energy mix to meet stringent environmental regulations while ensuring energy security. This shift has been particularly prominent in Asia and Europe, where economic growth, urbanization, and energy diversification strategies have fueled a surge in LNG consumption.
The increasing global demand for natural gas has led to significant investments in LNG export and import infrastructure. Countries across different regions are rapidly developing LNG terminals, regasification facilities, and pipeline networks to facilitate the transportation and distribution of liquefied natural gas. These infrastructure developments are crucial in ensuring a steady supply of LNG to meet rising energy demands while enhancing energy security.
The global volume of steam turbine propulsion is expected to grow from 74,866.1 kilotons in 2023, 126,706.6 kilotons by 2033, registering a CAGR of 5.4% over the forecast period. One of the primary advantages of steam turbine propulsion in LNG carriers is its ability to utilize boil-off gas as fuel. LNG naturally evaporates during transportation due to heat transfer from the surroundings. Instead of venting this gas into the atmosphere or requiring additional liquefaction, steam turbine systems efficiently use it to generate power. This characteristic reduces fuel costs and improves operational efficiency, making it a viable choice for LNG carriers for many years.
Regional LNG Carrier Sector Volume Growth
Asia-Pacific dominates the LNG carrier sector sales with 53.0% share in 2023 and 6.2%, CAGR, while North America, Europe, and LAMEA show strong growth at 5.2%, 5.4%, and 5.8% CAGR respectively, fueled by new trade routes & arctic LNG shipping.
The regional analysis highlights significant variations in adoption trends and market potential across the globe. Asia-Pacific leads the market, contributing over 53.0% of the total volume in 2023 and expected to grow at a CAGR of 6.2%, driven by rising industrialization and urbanization in countries such as China, India, and Rest of Asia-Pacific. North America, led by the U.S. and Canada, is projected to maintain steady growth at a 5.2% CAGR, fueled by rising investments in LNG infrastructure. Europe, with key players such as Germany, France, and Italy, is expected to grow at a 5.4% CAGR, supported by government incentives and subsidies for LNG adoption. In Germany, the European Commission approved a €40 million support measure for constructing and operating a new onshore LNG terminal in Brunsbüttel. Meanwhile, LAMEA presents a substantial growth opportunity with a 5.8% CAGR. The key drivers of this growth include countries like Brazil and the Middle East, development of membrane-type LNG containment systems where In the Middle East, countries like Qatar and the United Arab Emirates have been at the forefront of LNG production and exportation.
LNG Carrier Sector Volume Growth, By Region, 2023-2033 (Kilotons)
Region | 2023 | 2028 | 2033 | CAGR (2024-2033) |
North America | 38,731.2 | 49,280.0 | 63,920.6 | 5.2% |
Europe | 26,369.7 | 33,871.5 | 44,373.1 | 5.4% |
Asia-Pacific | 84,717.5 | 112,820.6 | 153,240.1 | 6.2% |
LAMEA | 9,892.2 | 12,971.7 | 17,353.9 | 5.8% |
Total | 159,710.6 | 208,943.8 | 278,887.7 | 5.8% |
LNG Carrier Country Sector Sales
China and U.S. lead the LNG Carrier market, projected to reach 61,647.1 kilotons and 48,645.7 kilotons, respectively, by 2033 at a CAGR of 5.6% and 5.3%, respectively. India is the fastest growing country followed by Australia in terms of CAGR, where India has been actively expanding its liquefied natural gas (LNG) import infrastructure to meet the growing domestic demand for natural gas. India plans to further increase its LNG import capacity by over 80%, with five new regasification terminals expected to become operational in 2025 and an additional four in subsequent years.
The report identifies U.S. and China as the largest contributors to the LNG Carrier market in terms of volume. In China, the use of LNG Carrier is gaining increasing popularity due to upgrades in LNG loading and unloading processes, where LNG Carrier are projected to reach 28,850.6 kilotons by 2033, achieving a CAGR of 7.3%. However, the U.S., remains an important player in North America, growing with a CAGR of 5.3% by 2033.
The report identifies the China and Japan as the largest contributors to the LNG carrier in terms of digitalization and AI for fleet optimization. China has made significant strides in advancing liquefied natural gas (LNG) reliquefication technology, focusing on enhancing the efficiency and environmental sustainability of LNG transportation and storage, is projected to reach 61,647.1 kilotons by 2033, achieving a CAGR of 5.6%. Japan, on the other hand, remains a critical player in the Asia-Pacific region, growing at a steady 5.8% CAGR and accounting for 31,200.6 kilotons by 2033.
Emerging markets such as India and Australia are expected to drive significant growth as India is actively integrating smart shipping technologies to enhance navigation safety and bolster its maritime capabilities. The Indian Navy is at the forefront of this transformation, implementing artificial intelligence (AI) and machine learning (ML) across various domains, including autonomous systems, predictive maintenance, and maritime domain awareness. India is expected to grow with a CAGR of 7.3%, the highest among major countries. Australia is projected to grow at a CAGR of 7.0%. where Australia's liquefied natural gas (LNG) sector is experiencing significant transformations due to the development of alternative cross-border pipeline projects and shifting global demand patterns.
LNG Carrier Sector Volume Share, By Country, 2023-2033 (Kilotons)
Country | 2023 | 2028 | 2033 | CAGR (2024-2033) |
China | 35,974.3 | 46,647.1 | 61,647.1 | 5.6% |
India | 14,361.4 | 20,183.3 | 28,850.6 | 7.3% |
Australia | 4,295.5 | 5,952.3 | 8,399.7 | 7.0% |
U.S. | 29,147.4 | 37,294.8 | 48,645.7 | 5.3% |
Germany | 4,227.1 | 5,529.4 | 7,374.3 | 5.8% |
France | 6,713.8 | 8,375.2 | 10,646.4 | 4.8% |
The Asia-Pacific region is witnessing a substantial increase in power generation demand, significantly influencing the deployment of liquefied natural gas (LNG) carriers. Power generation is expected to account for 47% of the total natural gas demand increase in the region. Countries such as China, India, and those in Southeast Asia are leading this surge, driven by the need to meet escalating energy requirements and transition to cleaner fuel sources. In India, LNG imports reached a record 26 million tonnes per annum (mmtpa) in 2024, representing over half of the nation's gas consumption. This trend is projected to continue, with LNG demand expected to surpass 37 mmtpa by 2030 and 88 mmtpa by 2050, as domestic production declines and energy needs grow.”
Surge in Spot and Short-Term LNG contracts Drives LNG Carrier Sector Volume Trends
The report also highlights the global liquefied natural gas (LNG) market is witnessing a significant surge in spot and short-term contracts, driven by evolving market dynamics, supply-demand fluctuations, and the need for greater flexibility in procurement. LNG trade was dominated by long-term contracts spanning 15 to 20 years, ensuring stable supply agreements between producers and buyers. However, recent geopolitical events, volatile energy prices, and increased LNG demand in emerging markets have accelerated the shift toward more flexible purchasing arrangements. One of the key drivers of this trend is the European energy crisis, triggered by supply disruptions from Russia. European countries have increasingly relied on spot and short-term LNG purchases to fill the gap left by reduced pipeline gas imports. This has significantly influenced global LNG trade, as suppliers from the United States, Qatar, and Australia have redirected shipments to meet Europe’s growing demand. Consequently, the share of spot and short-term LNG contracts in total global LNG trade has risen sharply, accounting for approximately 40% of transactions.
Shipbuilders have focused on enhancing the efficiency and environmental performance of LNG carriers. In September 2024, Samsung Heavy Industries (SHI) received Approval in Principle (AiP) from Lloyd’s Register for its new generation 174,000 cubic meter LNG carrier design. This design incorporates advanced technologies aimed at improving fuel efficiency and reducing emissions, reflecting the industry's commitment to sustainable shipping solutions. LNG Carrier stakeholders should use the report’s insights to grab new opportunities and plans.
About Allied Market Research
Allied Market Research is a full-service research and business consulting firm that provides actionable insights and strategic recommendations to help clients make informed decisions and achieve sustainable growth. For more inquiries, please visit alliedmarketresearch.com.
About Allied Market Research
Allied Market Research is a full-service market research and business consulting firm, which provides actionable insights and strategic recommendations to help clients make informed decisions and achieve sustainable growth. For more inquiries, please visit alliedmarketresearch.com
