DNV Data Shows Alternative-Fuel Newbuild Share Holding at 38% in 2025 Despite Order Slowdown

Annual data from DNV’s Alternative Fuels Insight (AFI) platform indicates that 2025 was marked by regulatory uncertainty and a recalibration in global shipbuilding markets, with overall newbuilding activity easing sharply from the previous year’s peak.

According to AFI data, new orders for alternative-fuelled vessels declined significantly in absolute terms, but their share of total gross tonnage (GT) remained stable at 38%. This was largely underpinned by continued strength in the container segment, with additional support from passenger vessels and pure car and truck carriers (PCTCs).

Alternative-fuel orders fall, but market share holds

A total of 275 orders for alternative-fuelled vessels were placed in 2025, representing a 47% year-on-year decline. This mirrored a broader contraction in the global newbuild market, where total orders fell to 2,403 vessels, down from 4,405 in 2024.

Despite the overall slowdown, container ship contracting remained resilient. New container ship orders increased to 547 units in 2025, compared with 447 the previous year. The segment accounted for approximately 49% of total gross tonnage ordered and 68% of all alternative-fuel newbuild orders.

Within the container segment, alternative fuels dominated the orderbook. By gross tonnage, the fuel mix comprised roughly 58% LNG, 36% conventional fuels, and 6% methanol.

Knut Ørbeck-Nilssen, CEO Maritime at DNV, said:

“While indicative of a turbulent year where strategic choices were harder to make, the slowdown in 2025 also reflects a natural reduction after several years of extraordinary ordering activity. Still, in select segments the momentum toward use of alternative fuels remains. Looking ahead, progress will depend on effective and global regulations that incentivize alternative fuel uptake, create a level playing field, and foster fair competition and implementation.”

LNG leads alternative-fuel ordering in 2025

Reflecting container shipping’s performance, LNG-fuelled vessels led the alternative-fuel market across all ship types in 2025. LNG accounted for 188 orders, representing 31% of total gross tonnage ordered during the year.

Methanol-fuelled vessel orders declined to 61 units, down from 149 in 2024, while ammonia and LPG recorded only limited uptake. Orders for LPG and ethane tankers fell by 73% year on year.

Bulk carriers, crude oil tankers, and oil and chemical tankers also experienced pronounced declines in alternative-fuel ordering, highlighting a continued focus on cost efficiency and limited near-term incentives to adopt new fuels. Car carrier contracting slowed sharply after several years of strong activity, with orders falling by around 90% compared with 2024.

Jason Stefanatos, Global Decarbonization Director at DNV, said:

“The resilience of the alternative fuels orderbook in 2025 is mainly driven by cargo owners who have set their own emissions reduction goals despite market slow-down and regulatory uncertainty. We see them prioritizing investments where there is a strong alignment between fuel infrastructure, regulatory certainty, and commercial viability, particularly in container shipping, where LNG and methanol are supported by established supply chains and customer demand.

“In contrast, segments like bulk and tanker are more sensitive to market cycles and capital costs, leading to a preference for conventional fuels until further clarity emerges on fuel lifecycle emissions and regulatory incentives. Practically, this environment should encourage owners to focus on scalable solutions, invest in fuel flexibility, and adopt targeted energy efficiency measures that can be adapted as policy and market conditions evolve.”

Bunkering and efficiency technologies continue to advance

Investment in supporting infrastructure continued in parallel with vessel ordering. The AFI data shows that 22 LNG bunker vessels were added to the orderbook in 2025, alongside new bunkering vessels capable of supplying methanol and biofuels. These developments point to growing confidence in LNG supply chains and emerging multi-fuel bunkering capabilities.

Wind-assisted propulsion systems (WAPS) also recorded incremental growth. In 2025, 24 vessels equipped with wind-assist technologies were delivered, with a total of 63 sails installed. This compares with 22 vessel deliveries and 49 sails installed in 2024.