Enjoy complimentary customisation on priority with our Enterprise License!
The bunker fuel market size is forecast to increase by USD 30.1 billion, at a CAGR of 4.18% between 2023 and 2028. The report includes historic market data from 2018 - 2022. The market is experiencing significant growth driven by various factors. One of the primary drivers is the expanding LNG market, which is witnessing increasing demand due to its cleaner-burning properties and the global push towards reducing carbon emissions. Additionally, the development of emulsified fuels is playing a crucial role in market growth. Emulsified fuels, which blend water with fuel oil to create a more efficient and environmentally friendly fuel, are becoming more popular as industries seek to lower their environmental impact and improve fuel efficiency. Furthermore, the need for new refineries to comply with new IMO regulations is another significant factor propelling market growth. The International Maritime Organization (IMO) has implemented stringent regulations to reduce sulfur emissions from ships, prompting the development of new refineries capable of producing low-sulfur fuel. This regulatory push is compelling the industry to innovate and invest in modernizing infrastructure to meet these new standards.
For More Highlights About this Report, Download Free Sample in a Minute
The growing LNG market is a key trend in the market. In the maritime sector, the use of traditional bunker fuels, primarily gasoil and heavy fuel oil, continues to be a significant concern due to environmental pollution and increasing government regulations. The shipping industry, which accounts for a substantial portion of global fuel consumption, is under pressure to reduce its carbon footprint and improve operational efficiency. As a result, there is a growing trend towards the adoption of cleaner, eco-friendly fuels such as LNG-based vessels and bioLNG.
Moreover, governments worldwide are implementing stricter emission regulations to curb pollution from larger vessels, including cruise liners, oil tankers, and container ships. These regulations have led to an increase in the operational cost of using high-viscosity fuels like 30 heavy fuel oil. In response, shipping companies are exploring conversion options for their fleets to use LNG as a fuel source. The naval fleets of various countries, consisting of 60 vessels, are also transitioning to LNG-based vessels for operational efficiency and reduced carbon emissions. Hence, the increase in the use of LNG will magnify the growth of the global market during the forecast period.
The MGO segment is estimated to witness significant growth during the forecast period. The global market is driven by the shipping industry's need for compliant fuels in response to increasing environmental pollution concerns and stringent government regulations. Marine Gas Oil (MGO), a cleaner distillate fuel derived from crude oil, holds a significant market share due to its lower sulfur content and ease of handling and burning. MGO is commonly used in ships, including cruise liners, oil tankers, and container ships, particularly in areas with emission control regulations, such as Emission Control Areas (ECAs).
Get a glance at the market contribution of various segments Download PDF Sample
The MGO segment was the largest segment and was valued at USD 48.90 billion in 2018. Government regulations, such as emission regulations, have led to the exploration of alternative fuels, including LNG-based vessels, to reduce the carbon footprint and improve operational efficiency. Larger vessels, such as naval fleets, are also undergoing conversion to use LNG as a fuel to meet emission regulations and reduce operational costs. The availability of MGO and other eco-friendly fuels is crucial in offshore areas, where power generation and heating are essential. The high viscosity and density of heavy fuel oils (HFO), such as 30 heavy fuel oils, make them less desirable for use in these areas. LNG operational vessels and deep-sea vessel orders for LNG container vessels are on the rise, reflecting the industry's shift towards cleaner fuels. Hence, such factors are fuelling the growth of the market which in turn drives the market during the forecast period.
For more insights on the market share of various regions Download the PDF Sample now!
APAC is estimated to contribute 33% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The Market encompasses the supply and demand of various marine fuels, including marine gas oil, used in international navigation and maritime trade operations. Key players in this market include oil majors, such as Minerva Bunkering, and new entrants like Titan LNG, promoting hydrogen-derived LNG as a sustainable alternative. The sea, coastal waters, waterways, and inland lakes serve as crucial infrastructure for the distribution of these fuels. Naval fleets rely on these resources for their operations, making the market essential for maintaining global security. The Red Sea ports of Yanbu and Jeddah are significant contributors to the market's growth due to their strategic locations. The Port of Marseille in France and Corsica Linea are other key players, contributing to the European market's development. Hydrocarbon resource development continues to drive the demand for traditional marine fuels, while the increasing focus on reducing emissions propels the adoption of cleaner alternatives like hydrogen-derived LNG. Hence, such factors are driving the APAC region during the forecast period.
The Market in the shipping industry is significantly influenced by various factors, including exploration activities, the type of ships such as cruise liners, oil tankers, and container ships, and the use of marine fuels like high viscosity heavy fuel oil. Emission regulations have led to a shift towards low-carbon fuels like LNG (Liquefied Natural Gas) for operational vessels, including deep-sea vessels and LNG container vessels. The operational cost of using LNG as a fuel source is higher than traditional marine fuels, but the reduction in carbon footprint and improved operational efficiency make it an attractive option for many oil majors. Moreover, the international navigation of ships in the sea, coastal waters, waterways, and inland lakes requires the availability of various marine fuels, including marine gas oil. The market is expected to grow as the demand for cleaner and more efficient fuels continues to increase. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
The market is experiencing significant growth, propelled by the expansion of the shipping industry. As a vital component of the global freight transportation system, shipping plays a crucial role in facilitating over four-fifths of global trade. The market continues to flourish as the shipping sector's prominence in global trade escalates annually. Following a downturn during the financial crisis of 2008-2009, the market has rebounded, driven by the resurgence of global trade and logistics activities.
Moreover, Liquefied petroleum gas (LPG), heavy fuel oil, and marine gas oil are essential fuels powering various vessels, including cruise liners, oil tankers, and container ships. To comply with stringent emission regulations and reduce carbon footprints, the market witnesses a rising demand for eco-friendly alternatives like very low sulfur fuel oil (VLSFO) and LNG as a marine fuel. As exploration activities surge and deep-sea vessel orders increase, the demand for bunker fuel is expected to soar, driving market growth in the forecast period.
The fluctuations in oil and gas prices are a major challenge in the market. Crude oil price is a direct link to the prices, so success or failure depends on whether this commodity has been priced correctly. The prices declined continuously owing to the supply-demand imbalance. Also, the low cost of fuel enables shipping companies to focus on their operational and technological efficiencies, purchasing vessels with greater cargo capacity and adding new routes that were previously unprofitable.
However, with global prices gradually stabilizing, the cost is also expected to increase, thereby affecting the operating cost of companies. Also, new transport routes selected at a time of decreasing commodity prices may need to be modified as they are not likely to be economically feasible with current fuel prices and in the years ahead. Such fluctuations in global crude oil prices can decline the growth of the global market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
BP Plc - The company offers bunker fuel through its subsidiary BP Sinopec Marine Fuels.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market is a significant sector in the global energy industry, encompassing the production, transportation, and consumption of heavy fuels used primarily for marine and power generation applications. The market's growth is driven by various factors, including the increasing demand for international maritime trade and the need for reliable power sources in remote locations. Environmental concerns have led to the adoption of stricter regulations, such as the International Maritime Organization's (IMO) 2020 sulfur cap, which has resulted in the shift towards cleaner fuel alternatives like liquefied natural gas (LNG) and liquefied petroleum gas (LPG). Moreover, the ongoing advancements in fuel efficiency technologies and the rising trend of using renewable energy sources are expected to impact the market dynamics.
The market for bunker fuel is segmented based on fuel types, applications, and regions. Some of the key fuel types include marine fuel oil, gas oil, and LNG. Applications include marine transportation and power generation. The market is expected to grow at a steady pace in the coming years, with Asia Pacific and Europe being the major contributors to the global demand. The market's competitive landscape is characterized by the presence of several key players, including major oil and gas companies, independent fuel suppliers, and new entrants. Companies are focusing on expanding their operations, enhancing their product offerings, and investing in research and development to cater to the evolving market demands. In conclusion, the market is a dynamic and evolving sector, influenced by various factors such as regulatory requirements, technological advancements, and changing consumer preferences. The market's growth is expected to continue, driven by the increasing demand for marine transportation and power generation, as well as the shift towards cleaner fuel alternatives.
Market Scope |
|
Report Coverage |
Details |
Page number |
183 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.18% |
Market growth 2024-2028 |
USD 30.1 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.93 |
Regional analysis |
APAC, Europe, Middle East and Africa, North America, and South America |
Performing market contribution |
APAC at 33% |
Key countries |
China, Germany, the US, India, and Saudi Arabia |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
BP Plc, Chevron Corp., Eni SpA, Exxon Mobil Corp., Gulf Agency Co. Ltd., Indian Oil Corp. Ltd., Marathon Petroleum Corp., Marquard and Bahls AG, Neste Corp., PETRONAS Chemicals Group Berhad, PJSC LUKOIL, Rosneft Oil Co., Saudi Arabian Oil Co., Shell plc, and TotalEnergies SE |
Market dynamics |
Parent market analysis, market growth and forecasting, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.