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

Market Overview

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 (Large Gas Carrier) and VLGC (Very Large Gas Carrier) LPG Shipyard Carrier Market refers to the global industry focused on the design, construction, and delivery of large and very large vessels specifically built for transporting liquefied petroleum gas (LPG) across international waters. This market encompasses shipyards and maritime engineering companies that specialize in producing high-capacity LPG carriers, typically ranging from 50,000 to over 85,000 cubic meters in cargo capacity, to support the growing global trade of liquefied gases such as propane and butane.

These vessels are essential components in the global energy supply chain, facilitating the bulk movement of LPG from major exporting regions—such as the United States, the Middle East, and Africa—to high-demand import markets including Asia Pacific, Europe, and Latin America. The market is driven by the expansion of LPG production through shale gas and natural gas liquids, increased energy consumption in emerging economies, and the shift towards cleaner-burning fuels for residential, commercial, and industrial applications. The shipyards operating in this space are responsible not only for building new LPG carriers but also for upgrading existing fleets with advanced propulsion technologies, emission-reduction systems, and enhanced cargo-handling capabilities to meet evolving regulatory and environmental standards. Furthermore, the market is closely linked to innovations in ship design, such as dual-fuel engines, enhanced hull structures, and digital monitoring systems that improve fuel efficiency, operational safety, and real-time cargo management.

Key Market Drivers

Rising Global Demand for LPG as a Cleaner Energy Source

The growing global demand for liquefied petroleum gas (LPG) as a cleaner, cost-effective energy alternative is a key driver for the expansion of the LGC and VLGC LPG shipyard carrier market. As countries intensify efforts to transition away from coal and oil-based fuels, LPG has emerged as a strategic interim solution due to its lower carbon emissions, flexibility in applications, and existing infrastructure compatibility. It is increasingly being adopted in residential, commercial, and industrial sectors for cooking, heating, and power generation, particularly in emerging economies where grid-based energy infrastructure remains limited. The ability of LPG to reduce particulate matter and greenhouse gas emissions makes it a more environmentally acceptable option, supporting global climate action objectives.

Additionally, developed nations are encouraging LPG usage in transport and marine sectors, further expanding demand. This rising global consumption necessitates the expansion of maritime transport capacity, especially for large-scale, long-distance shipments. VLGCs, with their high-volume capacity of over 80,000 cubic meters, are ideally suited to serve this growing global LPG trade by transporting large cargoes between production hubs in the United States, Middle East, and Australia to major demand centers in Asia and Europe.

As demand continues to surge, shipowners and operators are under pressure to modernize fleets with larger, more efficient carriers to meet trade requirements and maintain profitability amid fluctuating freight rates. This growing demand profile is prompting shipyards to ramp up construction and innovation in LGC and VLGC segments, integrating more fuel-efficient designs, enhanced cargo handling systems, and regulatory compliance features. As a result, the rising global appetite for LPG as a transitional energy source is directly fueling investment and activity within the LGC and VLGC carrier market. Global LPG consumption surpassed 330 million metric tons annually, driven by increasing adoption across residential, commercial, and industrial sectors. Over 3 billion people worldwide rely on LPG for cooking and heating, especially in emerging economies. LPG use in transportation is growing, with over 27 million Autogas vehicles operating globally. LPG demand is rising at an average annual growth rate of 3–4%, fueled by its cleaner-burning properties compared to coal and diesel. The residential sector accounts for approximately 45% of global LPG consumption, followed by industrial and chemical feedstock applications. Asia-Pacific remains the largest consumer, accounting for nearly 40% of global LPG demand.

Expansion of U.S. and Middle Eastern LPG Export Infrastructure

The continued expansion of LPG export infrastructure in the United States and the Middle East is a major driver of growth for the LGC and VLGC shipyard carrier market. The U.S., propelled by its shale gas revolution, has rapidly become one of the world’s top LPG exporters, shipping large volumes of propane and butane to Asia, Europe, and Latin America. Similarly, Middle Eastern nations such as Qatar, Saudi Arabia, and the UAE have expanded their LPG output as part of broader downstream diversification strategies. These regions are investing heavily in terminals, liquefaction plants, and storage facilities designed to boost export capacity and secure long-term contracts with international buyers.

As export capacity increases, so does the need for a robust and efficient transportation fleet capable of moving large volumes of LPG across oceans to meet global demand. VLGCs are essential to this logistical network due to their ability to transport massive cargo volumes over long distances with economic viability. Their role becomes even more critical in light of rising LPG demand in Asia, particularly from China, India, Japan, and South Korea, where domestic production is limited. This dynamic has created long-haul trade routes that require frequent, high-volume shipping, putting pressure on fleet availability and efficiency.

As exporters look to maintain supply reliability and optimize logistics, the demand for newly built, technologically advanced VLGCs continues to grow. Shipyards are responding by offering vessels with larger cargo holds, dual-fuel engines, and improved hydrodynamic designs that reduce operational costs and emissions. The strategic expansion of export infrastructure in key production regions thus acts as a catalyst, driving continuous demand for newbuild LGC and VLGC carriers and enhancing growth opportunities for global shipbuilders focused on gas transportation. Global LPG trade volume is expected to surpass 160 million metric tons annually. The U.S. contributes over 40% of global LPG exports, with terminal capacity continuously expanding. Middle East export capacity accounts for more than 30% of global LPG supply, led by countries like Saudi Arabia, UAE, and Qatar. Over 10 new LPG export terminals are under development globally, with a majority concentrated in the U.S. Gulf Coast and Arabian Gulf. Global demand for seaborne LPG transport is projected to grow at over 5% CAGR in the next five years. Investment in liquefaction and storage infrastructure is expected to exceed $15 billion globally over the next decade.

Technological Advancements and Regulatory Push for Energy Efficiency

Technological innovation and tightening international maritime regulations aimed at improving fuel efficiency and reducing emissions are significantly influencing the growth of the LGC and VLGC LPG shipyard carrier market. Regulatory frameworks such as the IMO’s Energy Efficiency Existing Ship Index (EEXI) and Carbon Intensity Indicator (CII) are pushing shipowners to either retrofit existing fleets or invest in newbuild vessels that meet these stringent environmental standards. As a result, shipbuilders are under increasing pressure to deliver advanced designs that incorporate energy-efficient technologies, such as dual-fuel engines capable of running on LPG or LNG, optimized hull forms, and enhanced cargo containment systems that reduce boil-off and improve safety.

The demand for eco-friendly ship designs is also being driven by the commercial benefits they offer, including lower operating costs, better fuel economy, and enhanced charter attractiveness. Moreover, innovations such as shaft generators, air lubrication systems, and digital performance monitoring tools are being integrated into new LGC and VLGC carriers to meet evolving customer expectations and regulatory requirements. These advancements are making the next generation of gas carriers not only more sustainable but also more commercially competitive.

In parallel, financiers and charterers are increasingly prioritizing sustainability metrics when evaluating new vessels, which is influencing shipowners’ purchasing decisions and accelerating the adoption of greener shipbuilding technologies. As the global shipping industry continues to transition toward a low-carbon future, the role of technologically advanced and regulation-compliant LPG carriers becomes central. This shift is prompting a wave of investment in newbuilds at global shipyards, particularly in Asia, where expertise and capacity in constructing large-scale gas carriers are well established. Consequently, the convergence of innovation and regulatory compliance is propelling demand in the LGC and VLGC shipyard carrier market, offering sustained momentum for shipbuilders and technology providers alike.

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Key Market Challenges

High Capital Investment and Financial Risk

One of the primary challenges facing the LGC and VLGC LPG shipyard carrier market is the substantial capital investment required for the construction and operation of these large-scale vessels, which poses significant financial risk to both shipbuilders and shipowners. Building LGCs and VLGCs involves advanced engineering, compliance with complex regulatory standards, specialized materials, and highly skilled labor, all of which contribute to high production costs that can range into hundreds of millions of dollars per vessel.

For shipyards, the need to maintain cutting-edge dry dock facilities, specialized assembly lines, cryogenic handling systems, and rigorous quality control mechanisms further escalates operational expenses. Moreover, the long construction lead times—often spanning 18 to 24 months—tie up capital and increase exposure to market fluctuations in demand, fuel prices, steel costs, and foreign exchange rates. The economic viability of each vessel depends on long-term freight rates and utilization, which are influenced by volatile global LPG supply-demand dynamics, geopolitical developments, and macroeconomic conditions. A downturn in the shipping industry or delays in vessel deployment can result in project cost overruns, revenue shortfalls, and loss of investor confidence.

Financing these high-value vessels also requires strategic partnerships with banks, leasing firms, or export credit agencies, all of whom may adopt a conservative approach in uncertain economic climates. Additionally, regulatory changes related to decarbonization—such as carbon taxation or stricter emissions standards—can further impact vessel value and require mid-project design modifications, leading to added costs and delays. Small and mid-sized shipyards often struggle to compete due to limited financial bandwidth and lack of access to advanced technologies, consolidating orders among a few major players and creating entry barriers.

These high capital thresholds not only restrict innovation and competition but also heighten exposure to contractual risks, such as penalties for late delivery or cost disputes with clients. As shipowners become more cautious with their fleet expansion strategies due to uncertain LPG demand projections and the potential oversupply of tonnage, shipyards face a more competitive pricing environment, margin pressures, and the growing need to offer financing or flexible contract terms—further complicating the risk-reward dynamics of participating in this segment of the maritime industry.

Regulatory Complexity and Environmental Compliance

Another significant challenge for the LGC and VLGC LPG shipyard carrier market lies in navigating the growing complexity of international maritime regulations and meeting stringent environmental compliance requirements. As the global shipping industry moves toward decarbonization and enhanced environmental performance, shipbuilders are increasingly pressured to design and deliver vessels that align with evolving emissions standards, such as the IMO's Energy Efficiency Design Index (EEDI), Carbon Intensity Indicator (CII), and potential carbon pricing mechanisms. These evolving regulations demand the integration of advanced technologies, including dual-fuel engines capable of burning LPG or LNG, hybrid propulsion systems, carbon capture capabilities, and low-emission auxiliary systems.

While such technologies offer long-term environmental benefits, their development and integration require substantial R&D investment, complex engineering, and collaboration with a limited pool of technology providers. The rapid pace of regulatory evolution often outpaces the design cycles of VLGCs, creating uncertainty for shipowners regarding fuel choices, retrofitting needs, and vessel lifespan. Additionally, varying interpretations of regulations across jurisdictions and flag states introduce compliance risks and increase the need for specialized legal, technical, and classification advisory services during vessel construction. For shipyards, this regulatory uncertainty creates design challenges, particularly when clients request future-proofed vessels capable of adapting to yet-to-be-finalized rules or emission limits.

The lack of standardization in emissions reporting frameworks, performance monitoring tools, and alternative fuel infrastructure further complicates compliance. Moreover, securing timely approval from classification societies and regulatory bodies can delay production schedules and add administrative burdens. There is also growing pressure from environmental stakeholders, financial institutions, and cargo owners to build green-certified vessels, increasing expectations for lifecycle emissions transparency and responsible sourcing of materials. Smaller shipyards often struggle to keep up with these technical and regulatory demands, leading to increased reliance on third-party consultants or forming alliances with technology firms, which can erode profitability.

The added compliance requirements also necessitate crew training and the implementation of digital monitoring systems onboard the vessels, which must be factored into the design and construction process. All these variables contribute to rising costs, schedule delays, and design uncertainties that ultimately reduce shipyard competitiveness and make the decision-making process more complex for both builders and buyers. As environmental regulations continue to tighten and international pressure mounts to decarbonize maritime transport, the ability to remain compliant without compromising on delivery timelines, cost efficiency, or technical performance will remain a critical challenge for stakeholders in the LGC and VLGC LPG shipyard carrier market.

Key Market Trends

Increasing Demand for Dual-Fuel Propulsion Systems in LPG Carriers

A prominent trend in the LGC and VLGC LPG shipyard carrier market is the rising demand for dual-fuel propulsion systems, particularly those capable of operating on liquefied petroleum gas (LPG) alongside conventional marine fuels. With growing environmental regulations and mounting pressure on the maritime industry to decarbonize, shipowners and operators are increasingly prioritizing vessel designs that offer fuel flexibility and emissions compliance. Dual-fuel engines allow carriers to switch between LPG and conventional fuels such as marine gas oil (MGO) or low-sulfur fuel oil, depending on availability and cost-effectiveness.

This capability enables operators to reduce sulfur oxide (SOx), nitrogen oxide (NOx), and carbon dioxide (CO₂) emissions, making it easier to align with IMO 2020 sulfur cap regulations and upcoming greenhouse gas targets. Shipyards across Asia—particularly in South Korea, Japan, and China—are reporting a growing number of VLGC orders that specify dual-fuel capabilities, reflecting a shift in the buyer mindset from cost to long-term regulatory resilience. Technological advancements in engine design, tank materials, and fuel control systems have made dual-fuel propulsion more reliable and commercially viable, accelerating adoption across both newbuild and retrofit segments.

Additionally, oil and gas companies are pushing for greener LPG transport methods to enhance the sustainability of their overall supply chains, further reinforcing this trend. As a result, shipbuilders are refining their engineering capabilities to accommodate these systems at scale, focusing on optimizing vessel hull design for fuel efficiency and long-range performance. Over time, dual-fuel VLGCs are expected to become the new standard, especially for long-haul routes where fuel flexibility is critical. Shipyards that can deliver reliable, compliant, and cost-effective dual-fuel vessels are increasingly favored in new procurement decisions, giving rise to a competitive landscape shaped by technological innovation and environmental stewardship.

Growing Focus on Fleet Modernization and Replacement of Aging Vessels

Another significant trend in the LGC and VLGC LPG shipyard carrier market is the growing emphasis on fleet modernization, driven by the need to replace aging and less-efficient vessels. Many LPG carriers currently in operation are approaching or exceeding their design life of 20 to 25 years, resulting in increased maintenance costs, reduced operational efficiency, and challenges in meeting tightening emissions and safety regulations. This situation is compelling shipping companies to invest in new-generation carriers that incorporate advanced design, automation, and energy-efficient technologies.

The demand is especially pronounced in the VLGC segment, where large-scale global trade routes require vessels that not only carry higher volumes but also offer improved fuel economy and cargo handling systems. Shipowners are now favoring carriers equipped with optimized hull shapes, ballast water treatment systems, real-time monitoring capabilities, and improved loading/unloading technology. This modernized fleet strategy is not only essential for maintaining competitiveness in the global LPG transport sector but also serves as a hedge against future regulatory changes.

Furthermore, access to favorable financing options and subsidies for environmentally compliant ships is encouraging companies to accelerate fleet renewal cycles. As a result, shipyards are witnessing an uptick in design consultations, prototype testing, and long-term construction contracts tailored to replace outdated ships. In addition to improving operational economics, newer vessels enhance chartering prospects, as traders and producers increasingly prioritize carriers that align with their sustainability goals and supply chain performance metrics. Consequently, shipbuilders who can deliver customized, future-ready VLGCs and LGCs with faster lead times and built-in compliance systems are positioned to benefit from a surge in replacement-driven demand over the coming decade.

Expansion of Global LPG Trade Driving Larger and More Specialized Carrier Designs

The continued expansion of global LPG trade is fueling a strong trend toward the construction of larger, more specialized LGC and VLGC vessels. As demand for LPG grows across key markets such as Asia, Africa, and Latin America—driven by rising urbanization, energy diversification strategies, and the shift toward cleaner-burning fuels—there is an increasing need for high-capacity, long-range transport solutions. This trend is prompting shipowners to place orders for VLGCs with enhanced cargo capacities, improved stability, and optimized voyage performance. Shipyards are responding with innovative vessel designs that can accommodate larger volumes while maintaining navigational safety and port accessibility.

Additionally, new VLGC models are being developed with reinforced cargo containment systems, enhanced refrigeration units, and automation technologies to ensure precise temperature and pressure control during long-distance voyages. These technological advancements are critical for minimizing cargo losses, ensuring product integrity, and complying with stringent safety regulations. Moreover, geopolitical developments and the growing establishment of LPG terminals and export hubs—particularly in the United States and the Middle East—are leading to longer trade routes, further emphasizing the need for vessels capable of maximizing cargo per journey.

Shipowners are increasingly requesting customization based on trade route analysis, fuel availability, and port-specific infrastructure, which is pushing shipyards to refine their modular construction techniques and offer flexible design platforms. In response, shipbuilders are forming strategic alliances with component suppliers and classification societies to accelerate innovation and streamline regulatory approval processes.

The push for scale and specialization in VLGC and LGC design is also driving consolidation in the shipyard market, as only those with advanced engineering capabilities and global reputations are able to meet the rigorous specifications and delivery timelines required by major LPG stakeholders. As global LPG trade volumes continue to rise, the demand for larger, more sophisticated carriers will remain a dominant force shaping the future of shipyard operations and investment in this market segment.

Segmental Insights

Vessel Type Insights

The Large Gas Carriers (LGC) segment held the largest Market share in 2024. The Large Gas Carriers (LGC) segment within the LGC and VLGC LPG Shipyard Carrier Market is witnessing robust growth, driven by a combination of factors aligned with the rising global demand for liquefied petroleum gas (LPG) and the strategic need for mid-size carrier capacity in emerging trade routes. As energy markets increasingly shift toward cleaner alternatives, LPG is gaining prominence as a transitional fuel, particularly in developing economies where access to natural gas infrastructure remains limited. This growing reliance on LPG for residential, commercial, and industrial applications is creating sustained demand for efficient maritime transport, with LGCs serving as a vital link in the supply chain.

LGCs, typically ranging from 20,000 to 60,000 cubic meters in capacity, are ideally positioned for regional and intra-continental trade routes, enabling access to ports that are not suited for larger VLGCs due to draft and size limitations. This operational flexibility enhances their utility in transporting LPG to geographically dispersed markets across Asia, the Middle East, Latin America, and parts of Africa. The increase in localized LPG distribution networks and floating storage and regasification units (FSRUs) is further reinforcing the relevance of LGCs in delivering cargoes efficiently to smaller terminals and remote coastal installations. In addition, geopolitical factors, such as the diversification of energy supply chains and the strategic buildup of regional energy reserves, are prompting countries to invest in resilient mid-sized LPG transport infrastructure, including the deployment of LGCs.

The modernization of aging LPG fleets is another key driver, with shipowners and operators seeking technologically advanced vessels that meet evolving environmental regulations, including IMO 2020 and carbon intensity targets. Modern LGCs are increasingly being equipped with dual-fuel propulsion systems, advanced cargo handling technologies, and enhanced hull designs to improve fuel efficiency and reduce emissions, aligning with the maritime industry's broader decarbonization goals. Furthermore, the expansion of LPG export facilities in North America, the Middle East, and West Africa is encouraging the construction of new LGCs to serve emerging export hubs and optimize fleet utilization for mid-range shipments.

Shipyards are responding to this demand with innovative LGC designs that balance capacity, performance, and compliance, fostering increased shipbuilding activity and investment. The rising interest in time-charter and spot market activity for LGCs is also strengthening the segment's commercial viability, attracting investment from both private and public maritime asset managers. As global LPG trade patterns continue to evolve, the strategic importance of LGCs is becoming increasingly evident, not only as a complementary asset to VLGCs but as a core component of a diversified and resilient LPG shipping fleet. Altogether, these factors underscore the strong market fundamentals supporting growth in the LGC segment, driving increased newbuild orders and positioning LGCs as a critical asset class in the global LPG transportation ecosystem.

End-User Insights

The New Build Construction segment held the largest Market share in 2024. The LGC and VLGC LPG Shipyard Carrier Market in the New Build Construction segment is experiencing strong momentum, driven by the global rise in liquefied petroleum gas (LPG) demand and the strategic need for energy diversification across developed and emerging economies. The increasing use of LPG as a cleaner-burning fuel alternative in residential, commercial, and industrial applications is prompting energy companies to expand their LPG transportation infrastructure, resulting in a growing pipeline of new vessel orders. This demand surge is further reinforced by government initiatives promoting lower-carbon fuels and the gradual transition away from coal and oil-based energy sources. Shipowners and operators are responding to this shift by investing in modern, fuel-efficient LGC and VLGC vessels that comply with evolving environmental regulations, such as IMO 2020 and anticipated decarbonization targets.

The trend toward fleet renewal and replacement of aging vessels is also driving new build activity, as shipowners seek to optimize fuel efficiency, lower maintenance costs, and improve cargo capacity through state-of-the-art designs and propulsion technologies. Furthermore, advances in shipbuilding technologies and increased automation in shipyards are enabling faster delivery times and cost-effective construction, making it more feasible for buyers to invest in new builds. Leading shipyards in Asia, particularly in South Korea, China, and Japan, are witnessing high volumes of LPG carrier orders due to their proven track record in building high-capacity gas carriers with technological precision. Strategic partnerships between shipping companies and shipbuilders, long-term charter agreements, and strong demand visibility from energy traders are reinforcing the financial viability of new build investments in this segment.

Additionally, the development of new LPG export terminals and loading infrastructure, particularly in the United States, Middle East, and Asia Pacific, is boosting the need for a larger and more advanced LPG carrier fleet to support increasing trade volumes. Market participants are also focused on integrating eco-friendly features into vessel designs, such as dual-fuel engines, LPG-fueled propulsion, and enhanced hull shapes to meet stricter emission norms and increase operational sustainability.

These factors collectively are shaping a favorable environment for new build construction within the LGC and VLGC LPG shipyard carrier market, as stakeholders aim to capitalize on the growing demand for long-haul, bulk LPG transportation. The convergence of energy transition goals, regulatory pressures, aging fleet profiles, and infrastructure expansion initiatives continues to propel investment in this segment, positioning new build activity as a critical growth driver for shipyards and vessel owners alike in the evolving global maritime gas transport landscape.

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Regional Insights

Largest Region

The North America region held the largest market share in 2024. The LGC and VLGC LPG Shipyard Carrier Market in the North America region is experiencing significant growth, primarily driven by the rising production and export of liquefied petroleum gas (LPG), particularly from the United States. The shale gas revolution has transformed the U.S. into one of the world's leading LPG exporters, creating strong demand for large and very large gas carriers capable of transporting high volumes efficiently across long distances. As global demand for cleaner-burning fuels intensifies, LPG is increasingly being adopted as a transitional energy source in various regions, prompting North American producers to expand their export capacities.

This expansion, in turn, is fueling the need for advanced LGC and VLGC vessels that can support long-haul shipments to key markets in Asia and Europe. Additionally, the development of new liquefaction facilities and terminal infrastructure along the U.S. Gulf Coast further supports the market by ensuring steady supply and improved loading efficiencies for gas carriers. Technological advancements in shipbuilding, such as fuel-efficient engines, dual-fuel propulsion systems, and enhanced cargo handling capabilities, are also driving investment in next-generation LPG carriers to meet environmental regulations and optimize operational costs.

North American shipping and energy companies are increasingly entering long-term contracts and joint ventures with global shipyards and logistics providers to secure fleet availability and meet growing international demand. Furthermore, favorable trade agreements and a relatively stable regulatory environment make North America a strategic hub for LPG exports, encouraging more shipbuilding contracts and retrofitting projects to accommodate fleet modernization and capacity expansion. The increasing focus on reducing greenhouse gas emissions across the maritime sector has also led to the integration of eco-friendly technologies in new LGC and VLGC builds, aligning with the region’s push for sustainability.

Port infrastructure upgrades and digitalization initiatives across major North American terminals are improving turnaround times and enhancing vessel traffic management, making the region more attractive for high-frequency LPG transport operations. As geopolitical uncertainties and energy diversification strategies reshape global energy flows, North America’s growing role as a key supplier of LPG further solidifies the demand for efficient, large-capacity gas carriers.

The region’s financial and institutional support for maritime innovation and export competitiveness also strengthens the market outlook for shipbuilders and operators focused on LGC and VLGC segments. Overall, the convergence of increased LPG production, favorable export dynamics, technological innovation, and supportive policy frameworks positions North America as a vital growth engine for the LGC and VLGC LPG shipyard carrier market, offering substantial opportunities for shipbuilding, retrofitting, and fleet expansion activities over the coming years.

Emerging region:

South America is the emerging region in LGC And VLGC LPG Shipyard Carrier Market. The LGC and VLGC LPG Shipyard Carrier Market in South America is experiencing emerging growth, driven by a combination of expanding energy infrastructure, increasing domestic and international demand for liquefied petroleum gas (LPG), and strategic government initiatives to monetize natural gas reserves. South America holds vast untapped reserves of natural gas and associated liquids, particularly in countries such as Brazil, Argentina, and Venezuela, which are now pushing forward with initiatives to boost extraction, processing, and export of LPG.

This is fueling the need for modern and efficient LPG transportation fleets, including Large Gas Carriers (LGCs) and Very Large Gas Carriers (VLGCs), to support both regional distribution and long-haul exports to high-demand markets in Asia and Europe. As regional governments invest in LPG infrastructure, including new liquefaction terminals and storage facilities, demand for advanced shipping solutions has grown in parallel, opening new opportunities for shipyards to develop carriers tailored to South American ports and trade routes. Furthermore, the shift toward cleaner-burning fuels and the growing transition away from coal and heavy fuel oil is increasing LPG’s appeal as a bridging fuel for power generation and domestic use, particularly in remote and underserved areas of the continent.

This transition is prompting increased inter-country trade within the region and stronger links with global supply chains, thereby supporting the need for a reliable and efficient carrier fleet. The emergence of Brazil and Argentina as major LPG exporters, in particular, has stimulated interest in fleet modernization and newbuild investments that meet international efficiency and emission standards. Moreover, supportive trade policies, export incentives, and joint ventures between South American energy firms and international shipping and shipbuilding companies are further accelerating market activity. The region’s improving shipbuilding capabilities, coupled with interest from established Asian shipyards to serve South American demand through partnerships or direct sales, is creating new momentum in carrier development.

Additionally, as older fleets become less economically viable and increasingly fall short of evolving environmental regulations, there is a growing push for fleet replacement and upgrades, reinforcing demand for new LGC and VLGC carriers. Rising investment from private players, sovereign funds, and international maritime logistics firms is also driving the creation of LPG-specific maritime infrastructure that aligns with modern vessel specifications.

These dynamics, combined with the relatively underdeveloped current LPG transport capacity in the region, position South America as a promising emerging market for LGC and VLGC shipyard carriers. As global demand for LPG continues to climb, especially in Asia and parts of Europe, South America’s geographical positioning and resource base further strengthen its potential as a key supply hub—requiring a corresponding increase in shipping capacity supported by technologically advanced shipyard solutions.

Recent Developments

• Wartsilä Gas Solutions, a division of the technology group Wärtsilä, has been contracted to provide the complete cargo handling system for a new fully pressurized LPG carrier being built for Meghna Fresh LPG, part of the prominent Bangladeshi conglomerate Meghna Group of Industries. This group, one of Bangladesh’s largest industrial conglomerates, not only owns the new vessel but also operates the shipyard where it is being constructed, as well as the energy businesses that the ship will serve. Wärtsilä secured the order in October 2024.
• In April 2025, HD Hyundai Mipo, a subsidiary of HD Hyundai Shipbuilding, unveiled the world’s largest liquefied carbon dioxide (LCO2) carrier at its Ulsan shipyard. The vessel, capable of transporting up to 22,000 cubic meters of LCO2, was launched during a ceremony held at the company’s headquarters. This ship is the first of four LCO2 carriers commissioned by Greece-based Capital Clean Energy Carriers Corp. It measures 159.9 meters in length, 27.4 meters in width, and 17.8 meters in height.

Key Market Players

• 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.

Report Scope:

In this report, the Global LGC And VLGC LPG Shipyard Carrier Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• LGC And VLGC LPG Shipyard Carrier Market, By Vessel Type:

o   Large Gas Carriers (LGC)

o   Very Large Gas Carriers (VLGC)

• LGC And VLGC LPG Shipyard Carrier Market, By End-User:

o   New Build Construction

o   Retrofit Projects  

• LGC And VLGC LPG Shipyard Carrier Market, By Capacity:

o   Small (less than 50,000 cubic meters)

o   Medium (50,000 to 100,000 cubic meters)

o   Large (over 100,000 cubic meters)

• LGC And VLGC LPG Shipyard Carrier Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia-Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Kuwait

§  Turkey

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global LGC And VLGC LPG Shipyard Carrier Market.

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Company Information

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