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The bunker fuel market size is estimated to increase by USD 29.32 billion and grow at a CAGR of 4.23% between 2022 and 2027. The expansion of the market hinges on various factors, including rising naval expenditure, the surge in global seaborne trade, and the burgeoning shipping industry. Challenges within the market encompass fluctuations in oil and gas prices, stringent MARPOL regulations, and heightened demand for slow steaming. Significant growth characterizes the market, driven by the shipping industry's expansion. Shipping, an integral part of the global freight transportation system, plays a crucial role in facilitating more than four-fifths of worldwide trade. With the shipping sector's increasing importance in global trade, the market continues to thrive year after year. After a decline during the financial crisis of 2008-2009, the market has bounced back, fueled by the resurgence of global trade and logistics operations.
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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. 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 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 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 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.
The market is influenced by diverse factors within the shipping industry and exploration activities. With liquefied petroleum gas (LPG) and LNG emerging as viable options, carbon footprint and emission regulations drive the demand for cleaner fuels. Vessels ranging from cruise liners to oil tankers seek alternatives to heavy fuel oil (HFO) due to its high viscosity and environmental impact. The market witnesses fluctuations in operational costs, prompting the adoption of very low sulfur fuel oil (VLSFO) and marine gas oil (MGO) for compliance. LNG operational vessels gain traction, especially with LNG container vessels and deep-sea vessel orders rising. Oil majors invest in LNG as a marine fuel to navigate international and coastal waters efficiently, reshaping the future of marine fuels.
The growing LNG market is a key trend in the 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 market during the forecast period.
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. 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.
Global 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 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.
The market is deeply influenced by various factors such as environmental pollution, government regulations, and the emergence of alternative fuels like liquefied natural gas (LNG) and liquefied petroleum gas (LPG). With increasing exploration activities and demand for hydrocarbon resource development, the market witnesses a significant demand for bunker fuels across various sectors, including cruise liners, oil tankers, and power generation. The transition towards clean, eco-friendly fuels like LNG as a marine fuel is driven by environmental concerns and stringent regulations such as MARPOL. As the demand for bunker fuels continues to rise, research and development projects focus on enhancing operational efficiency and reducing the carbon footprint of marine transportation. Notable players in the market include Minerva Bunkering, Titan LNG, and oil majors, catering to international navigation and maritime trade operations across coastal waters and inland lakes.
Moreover, the market is evolving rapidly, driven by various factors such as the demand for gasoil and 30 heavy fuel oil in the shipping industry. With the emergence of larger vessels and the need for high viscosity fuels for propulsion, the market is witnessing significant growth. Additionally, the market is influenced by developments in hydrocarbon resource development activities in offshore areas, leading to increased demand for bunker fuels. Challenges like fluctuations in operational costs and adherence to stringent MARPOL regulations are prevalent. However, the market is responding with innovations such as very low sulfur fuel oil (VLSFO) and bioLNG, catering to the demand for environmentally friendly options. With ongoing research and development (R&D) projects and advancements in LNG operational vessels, the bunker fuel market is poised for further expansion, particularly in deep-sea vessel orders and LNG container vessels.
Electricity, a key factor in heating conversion, significantly impacts operational costs. The average monthly price reflects this, influencing budget planning and energy management strategies. Rising electricity costs prompt businesses and households to seek efficient heating solutions to mitigate expenses. As operational costs fluctuate, optimizing heating systems becomes imperative for financial stability. Monitoring average monthly prices aids in forecasting expenditures and adjusting consumption patterns. Effective conversion technologies contribute to sustainable energy usage, reducing reliance on costly electricity. Embracing energy-efficient practices not only lowers operational costs but also promotes environmental responsibility in the long run.
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 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 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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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