LGC And VLGC LPG Shipyard Carrier Market is expected to Grow with a CAGR of 5.61% through 2030

Rising global demand for liquefied petroleum gas (LPG), coupled with expanding petrochemical industries and increasing intercontinental energy trade, is driving the growth of LGC and VLGC LPG shipyard carrier construction.

According to TechSci Research report, “LGC And VLGC LPG Shipyard Carrier Market – Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030F”, the LGC And VLGC LPG Shipyard Carrier Market was valued at USD 2.09 Billion in 2024 and is expected to reach USD 2.93 Billion by 2030 with a CAGR of 5.61%. The LGC and VLGC LPG Shipyard Carrier Market is experiencing robust growth, primarily driven by the rising global demand for liquefied petroleum gas (LPG) and the corresponding need for efficient, high-capacity transportation solutions. As LPG gains prominence as a cleaner alternative to conventional fuels, particularly in residential, industrial, and transportation sectors, global trade volumes are increasing significantly. This surge in LPG consumption is compelling shipping companies and energy firms to invest in larger and more technologically advanced gas carriers to support long-haul, cross-continental deliveries.

VLGCs, in particular, are becoming the vessel of choice due to their ability to transport large quantities of LPG economically and with greater fuel efficiency. Additionally, growing LPG exports from the United States and the Middle East to high-demand regions such as Asia Pacific are placing immense pressure on global shipping capacity, prompting a wave of new shipbuilding orders. Shipyards are responding to this demand by designing next-generation LGC and VLGC vessels equipped with dual-fuel engines, enhanced cargo containment systems, and improved safety and environmental compliance features. Moreover, stricter international maritime regulations focused on emissions reduction are accelerating the shift toward modern, energy-efficient gas carriers, further driving demand for newbuilds. Countries such as China, India, and Southeast Asian nations are also investing heavily in LPG infrastructure, including storage and import terminals, which in turn amplifies the requirement for specialized carriers to handle increased import volumes.

From a shipbuilding perspective, technological advancements and digital integration in vessel design and construction are enabling faster production cycles, reduced operating costs, and optimized fleet management—making new LGC and VLGC builds more attractive to fleet operators. Furthermore, rising charter rates and strong utilization levels for existing VLGCs are encouraging shipping companies to expand their fleets, ensuring they remain competitive and capable of meeting evolving market requirements. The trend of fleet replacement, driven by the aging of older vessels and the need to comply with stricter environmental norms, is also contributing to sustained demand for new shipyard orders. Strategic partnerships between shipbuilders, gas companies, and logistics providers are becoming increasingly common, enabling long-term contracts that de-risk investments in new vessels and promote innovation.

As global energy markets continue to shift toward lower-emission fuels, LPG is expected to remain a key transitional fuel, supporting its transportation infrastructure. In this context, the LGC and VLGC shipyard carrier segment is positioned as a critical enabler of global energy trade, with shipyards playing a vital role in meeting the demand for reliable, cost-effective, and environmentally compliant transport solutions. This market momentum is further strengthened by financial institutions showing greater willingness to fund green and low-emission vessel projects, making capital more accessible for shipbuilders and fleet operators. Overall, the convergence of rising global LPG trade, stricter environmental regulations, technological advancements in ship design, and supportive investment trends is driving sustained growth in the LGC and VLGC LPG Shipyard Carrier Market, with long-term implications for global energy logistics and maritime innovation.

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Based on the Capacity, the Medium (50,000 to 100,000 cubic meters) segment held the largest Market share in 2024. The Medium segment (50,000 to 100,000 cubic meters) of the LGC and VLGC LPG Shipyard Carrier Market is witnessing robust growth, primarily driven by the rising global demand for liquefied petroleum gas (LPG) as a cleaner energy alternative across residential, industrial, and transportation sectors. This demand surge has led to increased LPG production and export-import activities, particularly between major producers in the United States and the Middle East and high-demand regions in Asia Pacific and Europe. As trade volumes expand, shipping companies are increasingly investing in medium-capacity carriers due to their operational flexibility and cost efficiency.

These vessels are ideally suited for accessing a broader range of ports, including those with draft restrictions or limited infrastructure, offering a competitive advantage in regional and intercontinental routes. Additionally, medium-sized LPG carriers strike a balance between cargo volume and navigational agility, making them highly attractive for operators seeking to optimize fleet utilization while meeting varying route requirements. The segment also benefits from evolving regulatory standards aimed at reducing greenhouse gas emissions in the maritime sector, which is accelerating the adoption of new-build vessels equipped with advanced propulsion technologies, dual-fuel engines, and emissions control systems.

Shipyards are responding by offering innovative designs and enhanced fuel-efficient hull structures, tailored for mid-sized carriers, to support compliance and performance. Moreover, the increasing focus on fleet modernization is prompting shipping companies to replace aging vessels with more efficient and environmentally friendly ships within this segment. Emerging LPG bunkering infrastructure, combined with expanding downstream applications of LPG in petrochemicals and power generation, further strengthens the need for reliable, medium-capacity transport solutions. In addition, geopolitical factors and supply chain realignments are prompting stakeholders to diversify shipping routes and fleet compositions, boosting demand for versatile mid-sized vessels capable of operating in both short-haul and long-haul markets.

The medium segment also serves a critical bridging role between small-scale distribution and long-haul transportation, ensuring end-to-end connectivity in the global LPG value chain. This strategic positioning enhances its relevance in the current market landscape, where logistical agility and operational cost optimization are top priorities for carriers. Furthermore, increased activity in emerging markets—particularly in Southeast Asia, Africa, and Latin America—where port infrastructure is still developing, creates a favorable environment for medium-sized LPG carriers to gain market traction.

As these economies expand their LPG consumption base, mid-sized vessels provide a viable solution to support regional supply chains and enhance energy access. Collectively, these factors are reinforcing the momentum of the Medium (50,000 to 100,000 cubic meters) segment in the LGC and VLGC LPG Shipyard Carrier Market, making it a critical component in meeting evolving global energy transportation demands while addressing economic, environmental, and logistical imperatives.

Based on region, Asia Pacific is the fastest-growing region in the LGC and VLGC LPG Shipyard Carrier Market, driven by strong shipbuilding capabilities and rising demand for LPG across key economies such as China, India, South Korea, and Japan. Regional shipyards are benefiting from a steady influx of global orders, supported by cost-efficient manufacturing and advanced technological expertise. Additionally, increasing energy consumption, urbanization, and industrial growth are fueling LPG imports, necessitating the expansion of carrier fleets. Government initiatives to promote cleaner fuels and the region’s strategic position in global maritime trade further strengthen Asia Pacific’s role as a leading hub for LPG carrier construction.

Major companies operating in the Global LGC And VLGC LPG Shipyard Carrier Market are:

• Hyundai Heavy Industries Co., Ltd. (HHI)
• Daewoo Shipbuilding & Marine Engineering Co., Ltd. (DSME)
• Samsung Heavy Industries Co., Ltd.
• China State Shipbuilding Corporation (CSSC)
• Hyundai Samho Heavy Industries Co., Ltd.
• Mitsubishi Heavy Industries, Ltd.
• Kawasaki Heavy Industries, Ltd.
• Namura Shipbuilding Co., Ltd.
• Japan Marine United Corporation (JMU)
• Imabari Shipbuilding Co., Ltd.

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“The Global LGC And VLGC LPG Shipyard Carrier Market is expected to rise in the upcoming years and register a significant CAGR during the forecast period. The LGC and VLGC LPG Shipyard Carrier Market is experiencing strong growth potential, supported by the increasing global demand for liquefied petroleum gas as a cleaner energy alternative. Rising exports from the U.S. and Middle East, along with expanding consumption across Asia and Europe, are driving the need for high-capacity carriers. Shipyards with expertise in constructing LGC and VLGC vessels are well-positioned to capitalize on long-term fleet expansion and vessel replacement cycles. Furthermore, the integration of fuel-efficient and dual-fuel propulsion technologies presents a strategic opportunity to deliver next-generation carriers that meet evolving environmental regulations and global decarbonization targets. Therefore, the Market of LGC And VLGC LPG Shipyard Carrier is expected to boost in the upcoming years.,” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based global management consulting firm.

“LGC And VLGC LPG Shipyard Carrier Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented, By Vessel Type (Large Gas Carriers (LGC), Very Large Gas Carriers (VLGC)), By End-User (New Build Construction, Retrofit Projects), By Capacity (Small (less than 50,000 cubic meters), Medium (50,000 to 100,000 cubic meters), Large (over 100,000 cubic meters)), By Region &Competition, 2020-2030F”, has evaluated the future growth potential of Global LGC And VLGC LPG Shipyard Carrier Market and provides statistics & information on the Market size, structure, and future Market growth. The report intends to provide cutting-edge Market intelligence and help decision-makers make sound investment decisions., The report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the Global LGC And VLGC LPG Shipyard Carrier Market.

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