.webp)
FUEL GAS SUPPLY SYSTEMS (FGSS) MARKETREPORT OVERVIEW
The global fuel gas supply systems (fgss) market size was USD 1.82 billion in 2024 and market to touch USD 8.12 billion by 2032, at a CAGR of 20.6% during the forecast period.
fuel gas supply systems are essential components of ships, particularly cargo and cruise ships. These systems provide a reliable and efficient supply of fuel gas, ensuring smooth operations and compliance with environmental regulations. The Low Pressure System and High Pressure System are the two main types of fuel supply systems available in the market. These systems play a crucial role in the safe and efficient functioning of various marine vessels.
The demand for fuel gas supply systems is increasing due to several factors. The strict environmental regulations imposed on the shipping industry to reduce emissions have led to the adoption of cleaner fuel alternatives such as liquefied natural gas (LNG). It enables the use of LNG as a primary fuel, offering lower emissions and improved environmental performance. Additionally, the growing emphasis on energy efficiency and the need to comply with stringent safety standards are driving the demand for advanced fuel gas supply systems in the maritime sector.
COVID-19 IMPACT
"Decreased Demand Due to Travel Restriction and Lockdowns"
The COVID-19 pandemic has been unprecedented and staggering, with the fuel gas supply systems market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. However, the market is now showing signs of recovery, and the projected high CAGR is attributed to the market's growth and demand returning to pre-pandemic levels.
The COVID-19 pandemic had a significant impact on the fuel gas supply systems market. The global shipping industry faced disruptions and reduced demand due to lockdowns, travel restrictions, and the overall economic slowdown. Shipbuilding activities and new vessel orders were put on hold or delayed, affecting the demand for the fuel supply systems.
However, as economies gradually reopen and international trade resumes, the market is witnessing a rebound. The increasing focus on sustainability and the transition towards cleaner energy sources are expected to drive the demand for advanced system for gas and fuel in the post-pandemic period.
LATEST TRENDS
"Growing Demand for Green Hydrogen to Fuel Market Growth "
The latest trend in the fuel gas supply systems (FGSS) market is the growing demand for green hydrogen as a sustainable energy source. Green hydrogen is produced by using renewable energy sources, such as wind or solar power, to electrolyze water and separate hydrogen from oxygen. This clean and versatile fuel has gained significant attention as a key solution for decarbonizing various sectors, including transportation and energy generation.
The increasing demand for green hydrogen is primarily driven by the urgent need to address climate change and reduce greenhouse gas emissions. As countries and industries aim to transition to a low-carbon economy, green hydrogen has emerged as a promising alternative to fossil fuels. It can be used as a clean fuel for transportation, energy storage, and power generation, offering a carbon-neutral or even carbon-negative solution.
The growing focus on green hydrogen has a direct impact on the market. FGSS play a crucial role in the storage, distribution, and utilization of hydrogen as a fuel. These systems ensure the safe and efficient supply of hydrogen to various applications, including fuel cell vehicles, industrial processes, and power plants. As the demand for green hydrogen increases, the need for robust and reliable FGSS also rises.
FUEL GAS SUPPLY SYSTEMS (FGSS) MARKET SEGMENTATION
By Type
According to type, the market can be segmented into low pressure and high pressure.
By Application
Based on application, the market can be divided into cargo ship, cruise ship, and others.
DRIVING FACTORS
"Increasing Emphasis on Environmental Regulations to Foster Market Growth"
The stringent environmental regulations imposed by international maritime organizations and governments worldwide are propelling the demand for fuel gas supply systems. These systems enable ship operators to comply with emission standards by utilizing cleaner fuels such as LNG.
Additionally, the growing focus on energy efficiency and the need to reduce operational costs are driving the adoption of better supply systems. These systems offer improved fuel efficiency, lower maintenance requirements, and reduced carbon footprint, making them an attractive option for ship-owners.
"Rising Demand for LNG as a Marine Fuel to Propel Market Growth"
Liquefied natural gas (LNG) is gaining prominence as a cleaner and more sustainable alternative to traditional marine fuels. The use of LNG as a marine fuel reduces greenhouse gas emissions, sulfur oxide (SOx) emissions, and nitrogen oxide (NOx) emissions. These systems enable the efficient storage, handling, and delivery of LNG to ship engines, making them an integral part of the LNG infrastructure. The increasing availability and affordability of LNG are driving the demand for improvedin the maritime sector.
RESTRAINING FACTORS
"High Initial Investment and Infrastructure Requirements to Limit Market Expansion"
The installation and integration of fuel gas supply systems involve significant upfront costs. Ship-owners need to invest in retrofitting or equipping new vessels with these systems, which can be expensive.
Moreover, the infrastructure required to support the supply, storage, and bunkering of LNG adds to the overall investment. These high initial costs and infrastructure requirements act as restraining factors, particularly for small and medium-sized ship operators. However, the long-term operational benefits, fuel cost savings, and environmental advantages offered by advanced supply systems for fuel and gas outweigh the initial investment.
FUEL GAS SUPPLY SYSTEMS (FGSS) MARKET REGIONAL INSIGHTS
"Asia Pacific Dominates Due to Significant Presence of Shipbuilding Companies"
Asia Pacific is expected to be the leading region in the market. The region's dominance can be attributed to the significant presence of shipbuilding and ship owning companies in countries such as China, South Korea, and Japan. The growing demand for LNG as a marine fuel and the implementation of strict emission regulations in the region are driving the adoption of fuel gas supply systems.
Europe is anticipated to be the second-leading region in the market. The European Union has set ambitious targets to reduce greenhouse gas emissions from the shipping sector. As a result, there is a strong focus on adopting cleaner fuels and technologies, including LNG and supply systems for fuel and gas. The presence of major shipbuilding and maritime infrastructure companies in countries like Germany and Norway further supports the growth of the market in Europe.
KEY INDUSTRY PLAYERS
"Key Players Focus on Partnerships to Gain a Competitive Advantage"
Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.
List of Top Fuel Gas Supply Systems (FGSS) Companies
- LGM Engineering (Gloryholders): South Korea
- Wartsila: Finland
- DongHwa Entec: South Korea
- MAN Energy Solutions: Germany
- Høglund Marine Solutions: Norway
- Mitsubishi Shipbuilding: Japan
- TGE Marine Gas Engineering: Germany
- Kongsberg Maritime: Norway
- CSSC: China
- Headway Technology Group (Qingdao) Co., Ltd.: China
- Torgy LNG: Norway
REPORT COVERAGE
This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, restraints, etc. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.
| REPORT COVERAGE | DETAILS |
|---|---|
|
Market Size Value In |
US$ 1.82 Billion in 2024 |
|
Market Size Value By |
US$ 8.12 Billion by 2032 |
|
Growth Rate |
CAGR of 20.6% from 2024 to 2032 |
|
Forecast Period |
2024-2032 |
|
Base Year |
2024 |
|
Historical Data Available |
Yes |
|
Regional Scope |
Global |
Segments Covered | |
|
By Type
|
|
|
By Application
|
Frequently Asked Questions
-
What value is the global fuel gas supply systems market expected to touch by 2032?
Based on our research, the global fuel gas supply systems (fgss) market is projected to touch USD 8.12 billion by 2032.
-
What CAGR is the fuel gas supply systems market expected to exhibit by 2032?
The fuel gas supply systems (fgss) market is expected to exhibit a CAGR of 20.6% by 2032.
-
Which are the driving factors of the fuel gas supply systems market
The driving factors of the fuel gas supply systems market include increasing emphasis on environmental regulations and energy efficiency, as well as the rising demand for LNG as a marine fuel.
-
Which are the key players or most dominating companies functioning in the fuel gas supply systems market?
The dominating companies in the fuel gas supply systems market are LGM Engineering (Gloryholders), Wartsila, DongHwa Entec, MAN Energy Solutions, Høglund Marine Solutions, and Mitsubishi Shipbuilding.
.svg)