Press Releases

Bunker Fuel Market Size to Worth Around USD 180 Bn by 2030

Share This Article

The global Bunker Fuel market size is expected to reach USD 180 billion by 2030 and is expected to expand at a CAGR of 3% from 2021 to 2030.

Download Exclusive Sample of Report@ https://www.visionresearchreports.com/report/sample/38441

Some of the factors that are expected to fuel market growth include a significant rise in demand for marine diesel oil and steady adoption of low-sulfur fuel oils. Stakeholders in the current bunker fuel market should invest their resources in improving the availability of marine diesel bunker fuels and liquefied natural gas. The regulations laid down by the International Marine Organization will continue to fuel the growth of the bunker fuel market during the forecast period, as a shift from high sulfur fuel oils toward LNG and marine diesel oils can be observed.

Rise in international seaborne trade is boosting the global bunker fuel market. The global seaborne trade is performing well, supported by the upswing in the world economy. Seaborne trade leads to shipping, intercontinental trade, bulk transport of raw materials, and import/export of affordable food and manufactured goods. Increase in offshore exploration and production, due to the rise in demand for resources such as crude oil, coal, steel, and iron, is estimated to propel the demand for bunker fuel in the near future. Rapid technological development has boosted oil & gas exploration activities at deep offshore locations and other marginal oil & gas fields.

Companies supplying bunker fuel have strategically opened bunkering divisions in ports that are close to major offshore hydrocarbon basins, as bunkering requirements are significantly high for some offshore support vessels. Thus, growth in offshore exploration and production activities is projected to drive the global bunker fuel market in the near future.

Report Highlights

In terms of seller, the leading independent sellers segment accounted for a dominant share of the global bunker fuel market in 2020. Leading independent distributors have well-established setup that includes blending facility, storage terminals, and own physical assets.

Based on application, the tanker fleet segment constituted prominent share of the global bunker fuel market in 2020, due to the rise in demand for crude oil, petroleum products, chemicals, and liquid raw material in various regions. The tanker fleet segment comprises specialized purpose-built vessels designed to carry liquefied petroleum gas (LPG) or liquefied natural gas (LNG) under pressure. The bunker fuel market in Asia Pacific is likely to expand at a substantial pace during the forecast period, owing to rapid urbanization and industrialization in the region.

Asia Pacific is anticipated to be a highly attractive region of the global bunker fuel market during the forecast period, due to rapid industrialization and urbanization in the region, especially in countries such as China, India, and Japan. Furthermore, ports in China account for nearly a third of global container traffic. The country has the largest merchant fleet in the world in terms of number of ships. However, Singapore dominates the bunker fuel market in Asia. Around 48 million metric tons to 50 million metric tons of bunker fuel were sold in Singapore in 2020, making it the world’s largest bunkering hub. The country dominates the market due to its vast commercial storage capacity and fuel blending capabilities.

Europe accounted for a major share of the global bunker fuel market in 2020. Furthermore, the region is home to the world’s largest shipping fleet. Increase in seaborne trade with Asia Pacific is anticipated to propel the bunker fuel market in the region during the forecast period.

Rise in Demand for Alternate or Low Sulfur Fuel 

  • Widely used bunker fuel for ships is heavy fuel oil, which is economical and easy available. It is obtained from crude oil distillation.
  • Crude oil contains sulfur, which ends up in ship emissions on combustion. Sulfur dioxide is harmful to human health. It can cause respiratory issues and lung diseases. It may also lead to acid rain and acidification of oceans.
  • Alternate fuel or low sulfur fuel oil needs to be used extensively to overcome the sulfur dioxide emission from ships. The International Maritime Organization, under the annex VI of the International Convention for the Prevention of Pollution from Ships (known as the MARPOL Convention), has implemented regulation on sulfur emission from ships.
  • Sulfur emission from ships has been limited to 0.50% from January 01, 2020. This is estimated to significantly reduce the quantity of sulfur dioxide emission from ships.
  • Thus, ships need to use fuel oil with inherently low sulfur content in order to comply with the IMO MARPOL regulation. Refineries can add additives and blend the fuel oil to lower the sulfur content. Additives are also projected to enhance other properties such as lubricity.
  • Demand for liquefied petroleum gas (LPG) and liquefied natural gas (LNG) as alternate fuels is also increasing. LPG combustion results in lower CO2 emissions vis-à-vis oil-based fuels, due to its lower carbon-to-hydrogen ratio. LPG virtually eliminates sulfur emissions and can comply with low sulfur regulation.
  • Consequently, demand for low sulfur fuel oil and alternate fuel is likely to increase in the near future in order to comply with the emission norms

Key Players

The global bunker fuel market is dominated by multinational as well as small players operating across the globe. Prominent players operating in the global bunker fuel market include Total, Neste, Marathon Petroleum Corporation, Brightoil Petroleum (Holdings) Limited, BP., Saudi Arabian Oil Co., Gazprom, LUKOIL, BP Sinopec Marine Fuels, Chevron U.S.A. Inc., Exxon Mobil Corporation, Royal Dutch Shell plc, World Fuel Services Corporation., GAC, and BUNKER HOLDING.

Market Segmentation

Market By Fuel

  • High Sulfur Fuel Oil (HSFO)
  • Very Low Sulfur Fuel Oil (VLSFO)
  • Marine Diesel Oil (MDO)
  • Liquefied Natural Gas (LNG)

Market By Application

  • Tanker Fleet
  • Glass Container Fleet
  • Bulk & General Cargo Fleet
  • Others (including Passenger Ferries, Cruise Ships)

Market By Seller

  • Major Oil Companies
  • Leading Independent Sellers
  • Small Independent Sellers

Market By Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • U.K.
    • Norway
    • Greece
    • Russia & CIS
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Singapore
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC Countries
    • Turkey
    • Rest of Middle East & Africa

Buy this Research Report study@ https://www.visionresearchreports.com/report/cart/38441

Research Methodology

The research methodology adopted by analysts for compiling the global bunker fuel market report is based on detailed primary as well as secondary research. With the help of in-depth insights of the market-affiliated information that is obtained and legitimated by market-admissible resources, analysts have offered riveting observations and authentic forecasts for the global market.

During the primary research phase, analysts interviewed market stakeholders, investors, brand managers, vice presidents, and sales and marketing managers. Based on data obtained through interviews of genuine resources, analysts have emphasized the changing scenario of the global market.

For secondary research, analysts scrutinized numerous annual report publications, white papers, market association publications, and company websites to obtain the necessary understanding of the global bunker fuel market.

Buy this Research Report study@ https://www.visionresearchreports.com/report/cart/38441

Contact Us:

Vision Research Reports

Call: +1 9197 992 333

Email: sales@visionresearchreports.com

Related Articles

Back to top button