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The bunker fuel market size is estimated to grow at a CAGR of 4.23% between 2022 and 2027. The market size is forecast to increase by USD 29.32 billion. The growth of the market depends on several factors, such as the increasing naval expenditure, the increase in global seaborne trade, and the growth of the shipping industry.
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The growing LNG market is a key trend in the bunker fuel market. There is a growing demand for LNG to be used as fuel onboard ships. LNG is used to reduce emissions of greenhouse gases (GHG), as it is odorless, non-toxic, and non-corrosive. It also evaporates quickly when exposed to air, leaving no residue behind. The number of vessels that are using LNG as fuel is increasing rapidly, which is spurred by the many LNG projects that are under execution and as well as being planned.
Another important advantage that LNG fuel engines offer is the cAPACity for retrofitting. A lot of companies are going into LNG bunkering by looking at future energy needs and emission regulations. Many container shipping companies are developing LNG-powered ships to reduce harmful emissions. Hence, the increase in the use of LNG will magnify the growth of the global bunker fuel market during the forecast period.
The MGO segments are estimated to witness significant growth during the forecast period. Marine gas oil (MGO) is a distillate fuel oil derived from crude oil through a refining process used in ships and other marine vessels. Moreover, it has a lower sulfur content than other types of bunker fuel, MGO is commonly used as a marine fuel, making it compliant with stricter emissions regulations.
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MGO is known for its cleaner-burning properties, resulting in lower emissions of sulfur dioxide (SO2), nitrogen oxides (NOx), and particulate matter. This is important for environmental reasons, as a significant step to mitigate air pollution and combat climate change, it is an important reduction of ship emissions.
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APAC is estimated to contribute 30% 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 majority of the global seaborne trade is contributed by APAC, which is a major driver for the bunker fuel market in the region. APAC is home to some of the largest ports in the world.
Moreover, the increasing fuel demand in China and India is driving the crude oil and petroleum products trade in these countries. This will be a huge opportunity for the introduction of bunker fuel in marine vessels. In addition, the increasing preference for LNG-based vessels, as well as the growing LNG trade, is also a driving growth factor driving the demand for bunker fuels in the region. Australia is one of the biggest exporters of LNG worldwide. It is expected to create the opportunity for the growth of the market in focus in the region during the forecast period.
China and India were the most affected countries in the region by the COVID-19 pandemic in 2020. However, in 2021, the initiation of large-scale vaccination drives lifted the lockdown and travel restrictions. Market players were then able to resume their routine operations by adhering to COVID-19 guidelines that mandated social distancing measures and restrictions on the entry of non-essential visitors at their facilities. In the workplace, the interplay between people has been limited, and daily monitoring of temperature has been required at all entry points. Such initiatives are expected to help companies remain operational and allow the regional market to recover slowly and grow during the forecast period.
The growth of the shipping industry is driving growth in the bunker fuel market. The shipping industry serves as an important part of the global freight transportation system and contributes to more than four-fifths of global trade. The global bunker fuel market has also been growing as the shipping sector's role in global trade continues to increase year on year. In freight transport applications, which are an important part of the global trade supply chain, it is common for commercial container ships or vessels to be used.
Moreover, after facing a steep decline during the financial crisis of 2008-2009, the global market has witnessed growth in global trade and logistics activities. Therefore, the growth in cargo volumes at shipping ports is driving the demand for bunker fuel, which, in turn, will drive the growth of the market in focus during the forecast period.
The fluctuations in oil and gas prices are a major challenge in a bunker fuel market. Crude oil price is a direct link to the prices of bunker fuel and 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 crude oil prices gradually stabilizing, the cost of bunker fuel 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 bunker fuel 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.
Global Bunker Fuel Market 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 bunker fuel market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Bunker Fuel Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.23% |
Market growth 2023-2027 |
USD 29.32 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.85 |
Regional analysis |
APAC, Europe, Middle East and Africa, North America, and South America |
Performing market contribution |
APAC at 30% |
Key countries |
US, Saudi Arabia, China, India, and Germany |
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 inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for 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. |
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