LNG Carrier Market Expected to Reach $244.8 Billion by 2033

According to a new report published by Allied Market Research, titled, “LNG Carrier Market," The LNG carrier market size was valued at $135.1 billion in 2023, and is estimated to reach $244.8 billion by 2033, growing at a CAGR of 6.2% from 2024 to 2033.

Introduction

Liquefied Natural Gas (LNG) carriers are specialized vessels designed to transport LNG across long distances via sea routes. These carriers play a crucial role in the global energy trade, ensuring the safe and efficient movement of natural gas from production centers to regions where demand exceeds local supply. LNG carrier market trend are equipped with advanced cryogenic containment systems that maintain the gas in its liquefied state at approximately -162°C (- 260°F), reducing its volume by about 600 times for efficient storage and transport. The vessels come in various sizes, with the most common types being Moss-type spherical tanks, membrane tanks, and self-supporting prismatic tanks. Due to their sophisticated design and technology, LNG carriers are among the most technologically advanced ships in the maritime industry.

LNG carrier market forecast primarily serve the energy and power generation sector, which is the largest consumer of natural gas. Many countries rely on LNG imports to supplement their domestic energy production. LNG-fired power plants are an essential part of modern energy infrastructure, providing a cleaner alternative to coal and oil. These plants depend on a steady supply of LNG transported via carriers from exporting nations like] Qatar, Australia, and the U.S. to major consumers such as Japan, China, South Korea, and Europe.

Market Dynamics

The increasing shift LNG & energy transition sources is expected to drive LNG carrier market growth. The growing emphasis on cleaner energy sources and decarbonization efforts is significantly driving the global demand for liquefied natural gas (LNG). Countries are increasingly shifting away from coal and oil in favor of LNG, which offers a lower-carbon alternative while ensuring energy security. This trend is particularly evident in Asia, where major economies such as China, Japan, South Korea, and India are expanding their LNG imports to meet rising energy demands and comply with stricter environmental regulations. In August 2024, MOL obtained an Approval in Principle (AiP) from Nippon Kaiji Kyokai (ClassNK) for the design of an LNG carrier equipped with the Wind Challenger system. This marked the world's first approval for an LNG carrier with a wind-assisted propulsion system. The vessel, with a cargo tank capacity of approximately 174,000 cubic meters, is designed to enter LNG terminals worldwide and is equipped with two Wind Challenger sails. The detailed design work is underway, aiming for actual installation. LNG’s role as a transition fuel in the global energy landscape is further reinforcing its demand growth. As countries work toward achieving net-zero emissions, LNG serves as a bridge between conventional fossil fuels and renewable energy sources. 

However, high initial capital investment is expected to restraint the growth of LNG carrier market. The LNG carrier market faces high entry barriers due to the substantial capital investment required for vessel construction, infrastructure, and advanced technologies. Building an LNG carrier costs between $200 million and $250 million per vessel, significantly more than conventional oil tankers or dry bulk carriers, due to specialized insulation, safety measures, and onboard reliquefication technology. Additional costs stem from boil-off gas management systems and the extensive infrastructure needed, including liquefaction plants ($5 billion to $30 billion) and regasification terminals. The long payback period and financial risks deter smaller players, resulting in market dominance by large energy firms, specialized shipping companies, and government-backed entities. Fluctuating LNG prices and geopolitical uncertainties further complicate investment decisions. However, rising global demand and innovative financing methods, such as long-term charter agreements and joint ventures, are helping to mitigate risks and sustain investment in LNG shipping.

Moreover, growth in floating LNG (FLNG) project is expected to offer LNG carrier market opportunities in future timelines for LNG for power generation. Floating liquefied natural gas (FLNG) technology is revolutionizing the LNG carrier industry by offering a more cost-effective and flexible alternative to traditional onshore liquefaction plants. FLNG units are self-contained, offshore facilities that extract, liquefy, store, and export natural gas directly from offshore reserves. This eliminates the need for costly pipelines, onshore processing plants, and large-scale terminal developments, making LNG production viable even in remote or deepwater gas fields. On March 19, 2025, the U.S. Department of Energy approved Venture Global's export permit for the CP2 LNG project in Cameron Parish, Louisiana. This marks the fifth LNG-related export permit granted since President Donald Trump lifted the previous administration's freeze on new export permits. Moreover, In March 2025, the U.S. granted Delfin LNG an extension to its free trade permit for a floating LNG project off Louisiana with a capacity of 13.3 million metric tonnes per annum. The extension was necessary due to pandemic-related construction delays.

Segments Overview

The LNG carrier market is segmented into propulsion type, containment type, carrier capacity, application and region. On the basis of propulsion type, the market is divided into dual-fuel diesel electric (DFDE) propulsion, tri-fuel diesel electric (TFDE) propulsion, slow-speed diesel with gas injection (ME-GI), and X-DF (low-pressure dual-fuel engines). On the basis of containment type, the market is categorized into membrane systems, and moss rosenberg. Based on carrier capacity, the market is classified into small carriers (less than 30,000 cubic meters), medium carriers (30,000 – 125,000 cubic meters), large carriers (125,000 – 180,000 cubic meters), very large LNG carriers (180,000+ cubic meters). On the basis of application, the market is divided into transport, defense, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

On the basis of propulsion type, the X-DF (low-pressure dual-fuel engines) segment is expected to be the fastest growing segment in the market, representing the CAGR of 7.2% during the forecast period. LNG carriers equipped with X-DF (low-pressure dual-fuel) engines have gained significant traction in the shipping industry due to their enhanced fuel efficiency and reduced environmental impact. X-DF engines operate on the Otto-cycle principle, using low-pressure gas admission to achieve stable combustion with minimal methane slip. This technology enables LNG carriers to comply with stringent emission regulations, such as the IMO’s Tier III NOx limits and Energy Efficiency Design Index (EEDI) requirements, making them an attractive option for shipowners looking to future-proof their fleets.

On the basis of containment type, the membrane systems segment is expected to dominate the market representing the CAGR of 6.3% during the forecast period. Membrane-based LNG carriers benefit from their ability to integrate with re-liquefaction and boil-off gas management systems, improving overall operational efficiency. As the demand for LNG grows globally, shipbuilders continue to innovate and enhance membrane technologies to improve safety, efficiency, and environmental performance. The adoption of membrane systems aligns with industry trends toward larger LNG carriers, which can transport more gas per voyage while maintaining stringent safety and regulatory standards.

On the basis of carrier capacity, the very large LNG Carriers (180,000+ cubic meters) segment is expected to be the fastest growing segment growing with the CAGR of XX% during the forecast period. Very Large LNG Carriers (VLNGCs) with a capacity exceeding 180,000 cubic meters play a crucial role in the global liquefied natural gas (LNG) supply chain, facilitating the transportation of large LNG volumes across long distances. The usage of VLNGCs is also driven by the increasing trend of long-term LNG contracts and the need for stable energy supplies in countries transitioning from coal to cleaner energy sources. Many of these vessels are equipped with advanced containment and propulsion systems, such as membrane-type tanks and dual-fuel engines, which enhance fuel efficiency and reduce emissions.

Regional Analysis

Based-on region Asia-Pacific region is expected to be the fastest growing region market. The Asia-Pacific region’s LNG carrier usage is evolving beyond traditional long-haul imports, with increasing focus on regional trade, new shipping technologies, and emerging markets. One of the key developments is the rise of short-term and spot LNG shipping contracts, particularly in response to fluctuating demand patterns and supply disruptions. Unlike the past, where LNG shipments were largely driven by rigid long-term contracts, buyers in Asia-Pacific are now leveraging the flexibility of spot cargoes, which has led to a more dynamic LNG carrier deployment strategy. This shift is especially evident in China and India, where buyers adjust their procurement strategies based on seasonal demand, price volatility, and geopolitical factors affecting global LNG supply chains.

Competitive Analysis

The major players operating in the LNG carrier market analysis include Samsung Heavy Industries Co. Ltd, Hyundai Samho Heavy Industries Co. Ltd, Mitsubishi Heavy Industries Ltd, Kawasaki Heavy Industries Ltd, China Shipbuilding Trading Co. Ltd, Japan Marine United Corporation, BW Group, Golar LNG Limited, Flex LNG Ltd, and Knutsen Group.

Key Market Insights

• On the basis of propulsion type, X-DF (low-pressure dual-fuel engines) segment is the fastest growing segment in the LNG carrier market growing with the CAGR of 7.2% during the forecast period.
• On the basis of containment type, membrane systems was the most lucrative segment representing the CAGR of 6.3% during the forecast period.
• On the basis of carrier capacity, very large LNG carriers (180,000+ cubic meters) is expected be the fastest growing segment representing the CAGR of 6.6% during the forecast period.
• On the basis of application, the transport segment dominate the LNG carrier market accounting for more than half of the LNG carrier market share in 2023.
• Region wise, Asia-Pacific dominated the market accounting for half of the market share in 2023.