LGC and VLGC LPG Shipyard Carriers

Global LGC and VLGC LPG Shipyard Carriers Market to Reach US$3.5 Billion by 2030

The global market for LGC and VLGC LPG Shipyard Carriers estimated at US$3.0 Billion in the year 2024, is expected to reach US$3.5 Billion by 2030, growing at a CAGR of 2.8% over the analysis period 2024-2030. Large Gas Carriers, one of the segments analyzed in the report, is expected to record a 2.1% CAGR and reach US$2.3 Billion by the end of the analysis period. Growth in the Very Large Gas Carriers segment is estimated at 4.2% CAGR over the analysis period.

The U.S. Market is Estimated at US$806.2 Million While China is Forecast to Grow at 5.2% CAGR

The LGC and VLGC LPG Shipyard Carriers market in the U.S. is estimated at US$806.2 Million in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$673.9 Million by the year 2030 trailing a CAGR of 5.2% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 1.1% and 2.1% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 1.5% CAGR.

Global LGC And VLGC LPG Shipyard Carriers Market - Key Trends & Drivers Summarized

What Is Driving the Demand Surge for LGC and VLGC LPG Carriers in Global Maritime Transport?
The market for Large Gas Carriers (LGC) and Very Large Gas Carriers (VLGC) is witnessing renewed momentum, fueled by the sharp rise in global liquefied petroleum gas (LPG) trade volumes, new demand geographies, and increasing long-haul exports from North America and the Middle East. VLGCs, typically with capacities between 70,000 to 95,000 cubic meters, are designed for transoceanic transport of LPG, while LGCs-smaller but still substantial at 40,000 to 70,000 cubic meters-offer mid-range flexibility ideal for regional and intra-Asia trade. As global energy transition efforts prompt diversification away from coal and oil, LPG has emerged as a cleaner-burning transitional fuel, triggering a buildout in maritime logistics and long-distance shipping capacity.

North American LPG production from shale gas processing has significantly outpaced domestic demand, creating a strong export market primarily to Asia-Pacific countries like China, India, and South Korea. VLGCs are the primary vessels employed for these routes, offering economies of scale over intercontinental distances. In parallel, smaller Asian economies and island nations, which lack pipeline infrastructure or LNG import terminals, are increasingly relying on LGCs for more flexible LPG supply. This bifurcated growth in long-haul and regional demand is sustaining high utilization rates across both vessel classes and triggering a new wave of shipyard orders globally.

How Are Shipyard Innovations and Design Trends Enhancing Fleet Efficiency and Sustainability?
Modern LGC and VLGC carriers are being designed with next-generation features to meet evolving environmental regulations, fuel efficiency targets, and operational flexibility. Dual-fuel propulsion systems capable of operating on LPG, low-sulfur fuel oil (LSFO), and marine gas oil (MGO) are becoming standard, allowing shipowners to align with International Maritime Organization (IMO) regulations on greenhouse gas emissions and sulfur limits. LPG-fueled engines not only reduce emissions but also lower operating costs, since LPG is often available as part of the cargo and can be used as a cost-effective onboard fuel.

Hull designs are being optimized through computational fluid dynamics (CFD) to reduce drag and improve hydrodynamic performance. Shipbuilders in South Korea, China, and Japan-such as Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering, and Jiangnan Shipyard-are leading in delivering new VLGCs with enhanced cargo tank materials, boil-off gas management systems, and increased cargo-handling efficiency. Advanced insulation and containment systems, including Type A, Type B, and membrane tanks, are enabling greater cargo flexibility, faster turnaround times, and reduced refrigeration energy requirements.

Another critical innovation is the digitalization of fleet operations. Shipyards are integrating remote monitoring, predictive maintenance, and voyage optimization software into the vessels, allowing real-time visibility into engine performance, cargo temperatures, and route efficiency. This digital overlay is helping operators achieve better fleet economics, minimize demurrage risks, and comply with IMO’s Carbon Intensity Indicator (CII) and Energy Efficiency Existing Ship Index (EEXI) mandates. These improvements are driving higher ordering preferences for modern LGC/VLGC builds over retrofitting older tonnage.

Which Trade Patterns, Regional Investments, and Stakeholder Strategies Are Shaping Market Growth?
The LGC and VLGC carrier market is closely tied to LPG export-import corridors, which are evolving due to geopolitical realignments, energy security strategies, and petrochemical feedstock demand. U.S. Gulf Coast terminals like Enterprise Products, Targa Resources, and Energy Transfer are exporting record volumes of LPG to Asia, sustaining strong long-haul demand for VLGCs. These volumes are often linked to multi-year offtake agreements with Asian buyers, leading to long-term chartering contracts and further incentivizing new vessel builds.

In the Middle East, Saudi Arabia, Qatar, and the UAE remain key LPG suppliers, shipping primarily to South and East Asia. Expansion projects at ports like Ras Tanura and Ruwais are designed to accommodate larger vessels and higher loading rates. On the import side, China is aggressively expanding its LPG terminal capacity along its coastal provinces, as domestic demand for propane dehydrogenation (PDH) units, heating fuel, and automotive LPG increases. India and Southeast Asian countries are also emerging as strategic import markets with rising household consumption and rural electrification programs favoring LPG over kerosene and biomass.

Shipping companies are aligning with this growth by restructuring their fleets. Firms like BW LPG, Dorian LPG, and Avance Gas are investing in newbuilds with eco-design hulls and LPG dual-fuel propulsion, while Japanese and Korean shipowners are forming joint ventures with charterers to lock in freight capacity. In parallel, private equity and leasing companies are entering the segment to capitalize on favorable time charter rates, fleet renewal cycles, and asset value appreciation-especially as carbon regulations tighten and older tonnage becomes non-compliant.

What Is Fueling Growth in the LGC and VLGC LPG Shipyard Carrier Market?
The growth in the global LGC and VLGC LPG shipyard carrier market is driven by several factors, including rising global LPG production, infrastructure development in emerging economies, and the increasing competitiveness of LPG as a transitional fuel. The surge in shale-derived LPG exports from the United States has redefined global trade routes, establishing long-haul demand corridors that require a continuous fleet of high-capacity, fuel-efficient VLGCs. At the same time, intra-regional LPG trade across Asia, Africa, and the Mediterranean is stimulating demand for nimble, mid-sized LGCs capable of port-to-port flexibility.

Stringent environmental regulations are prompting a generational shift in vessel design, creating strong incentives for newbuild orders. IMO decarbonization goals and emission control area (ECA) rules are accelerating the retirement of older, less efficient carriers. Shipowners are responding by investing in new ships with dual-fuel propulsion, hydrodynamic optimization, and digital voyage management tools that reduce total cost of ownership while ensuring compliance with global mandates. This is translating into a healthy order book at major Asian shipyards and robust multi-year charter agreements with downstream energy players.

The long-term role of LPG in global energy transition strategies-especially as a bridge fuel to hydrogen or renewables-is also anchoring demand. Government-backed clean cooking initiatives, petrochemical industry growth, and the rising middle class in emerging markets are expanding the LPG consumption base, thus driving maritime logistics needs. Strategic fleet expansions, new liquefaction projects, and investment by sovereign wealth funds and global ship financiers are reinforcing this momentum. Combined, these forces are propelling the LGC and VLGC shipbuilding segment into a new phase of sustained global relevance.

SCOPE OF STUDY:

The report analyzes the LGC and VLGC LPG Shipyard Carriers market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Vessel Type (Large Gas Carriers, Very Large Gas Carriers); Construction (New Build Construction, Retrofit Projects); Capacity (Below 50000 Cubic Meters Capacity, 50000 - 100000 Cubic Meters Capacity, Above 100000 Cubic Meters Capacity)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 43 Featured) -

• BW LPG
• China Shipbuilding Industry Corporation (CSIC)
• China State Shipbuilding Corporation (CSSC)
• Daewoo Shipbuilding & Marine Engineering (DSME)
• Dalian Shipbuilding Industry Co., Ltd (DSIC)
• Damen Shipyards Group
• EXMAR
• Hanjin Heavy Industries & Construction
• Hanwha Ocean (formerly DSME)
• HD Hyundai Heavy Industries (HHI)
• Hudong-Zhonghua Shipbuilding Group
• Hyundai Mipo Dockyard
• Jiangnan Shipyard (Group) Co., Ltd
• Kawasaki Heavy Industries
• Keppel Offshore & Marine
• Mitsui E&S Shipbuilding
• Mitsubishi Heavy Industries
• Samsung Heavy Industries
• STX Offshore & Shipbuilding
• Yangzijiang Shipbuilding Group

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