Reports Description
According to Custom Market Insights (CMI), The Global Bunker Fuel Market Size was valued at USD 109.6 in 2021 and is estimated to reach USD 164.9 billion by the end of 2030 at a CAGR of approximately 4.3% during the forecast period 2022-2030.
The fuel which is used in marine vessels is known as bunker fuel. To continue the engines running, bunker fuel is poured. Three different types of marine fuels are used by ships, which consist of high-sulfur fuel oil, diesel oil, and low-sulfur oil. The recent awareness spread regarding environmental pollution has provided the key market players with great opportunities for encouraging the use of fuels such as LNG and LPG. Other fuels available in the market include gasoline which can also act as a substitute for bunker fuels. Bunker fuels play a major role when the proper functioning of bunker vessels comes into play.
The use of liquefied petroleum gas and natural gas as substitute fuels for bunker fuels has been considered an excellent option to prevent global pollution and drastic climate change. The increasing amount of oil released into the water bodies has polluted the oceans to a great extent which has a direct negative impact on the marine life that resides in these waterbodies. Increasing pollution of natural resources has boosted the process of global warming and climate change.
The huge number of marine lives that get destroyed every year due to this spillage of oil and fuels into the water bodies has destroyed the natural ecosystem to a great extent. The rapidly increasing trend of offshore gas and oil activities Has boosted the bunker fuel market worldwide. The shipping community has taken initiatives to reduce the amount of fuel consumed, which emerges as a major challenge for the bunker fuel market.
The pandemic outbreak had a major impact on the growth of the bunker fuel market due to the various restrictions and lockdowns imposed by the government all over the world to reduce the risk of infection and control the mortality rate. The market for marine fuel was hampered to a great extent which turned into a declining phase for the bunker fuel market.
The lack of transportation facilities hampered the demand and supply chain of bunker fuel to a great extent. Export and import activities came to a halt due to the restricted movements imposed by the government. The market was seen to revive itself during the later stages of the pandemic when the restrictions and lockdowns were relaxed to a certain extent. Various alternatives were introduced into the market during the pandemic, which proved to be better options. During the post-pandemic phase, the bunker fuel market regained momentum and captured the market again with the growing demand and supply chain worldwide.
Growth Factors
The increasing demand for bunker fuel in the international market has emerged as a major growth factor. Bunker fuel forms a vital component mainly utilized in bunker vessels and ships, Which proved to be the potential consumers for this product. A huge number of passengers are carried by the big ships, which should require a huge amount of fuel to keep the engine running against the force of the water.
The speed of the machine depends upon the weight imposed on the ship. A better fuel provides additional support to the capacity of the motor by helping it to function smoothly and provides better speed and performance. Huge amounts of cargo carried by the bunker vessels require a huge amount of fuel to produce considerable movement over the surface of the water. Increasing instances of oil spillage into the huge waterbodies have boosted the market for bunker fuels that are managed over the shore of the water bodies.
The demand for bunker fuel is increasing as it is a better-quality fuel with high viscosity and is utilized by cruise liners, container ships, and oil tankers. It is a particular type of heavy oil with a very high viscosity compared to the other varieties available in the market. Using bunker fuel also involves the generation of electricity for huge ships where a greater amount of power is required. A greater amount of heat is acquired on larger ships to facilitate propulsion and movement.
Segmental Insights
Segmentation of bunker fuel market based on Type
Based on type, the segment of low sulfur fuel Has emerged as the largest market with its highest share in the global economy. The market is expected to experience similar domination in the future as well. Reduction in the demand for high-sulfur fuel has helped this segment to record considerable growth over time.
The performance exhibited by low-sulfur fuels has helped to increase the demand in the global market to a great extent. The increasing demand for better fuel alternatives in the market has boosted the demand for low-sulfur fuel options. The low sulfur fuel provides better performance and produces greater work compared to the other options available in the market.
Segmentation of bunker fuel market based on Commercial Distributor
Based on commercial distributors, the segment of oil major has accounted for the largest share in the market as far as revenue is concerned. This segment is expected to uphold its performance building the future and is foreseen to dominate the market similarly. The huge demand for oil majors is attributed to their dominance in the global crude oil tanker business.
The other segments that have been discussed under this category include large independent distributors that supply bunker fuels in very large quantities for commercial purposes. The segment of the small independent distributor is gradually growing its expanse as a result of the growing market and rapidly increasing fuel rates all over the world. The huge demand for bunker fuel in the global market has to be met, while the increasing fuel price has made it difficult for potential consumers to purchase a huge amount of raw material.
Segmentation of bunker fuel market based on Application
Based on application, the container segment has emerged as the largest market owing to its share in the global economy as far as revenue is concerned and is expected to continue similarly during the forecast period at a compound annual growth rate of 4.6%. The rapidly increasing trend of cargo transportation with the help of ships has helped the market of containers to capture the global economy. Containers have been used for a very long time to transport goods and materials worldwide, which is expected to continue. An increasing number of industries and manufacturing units worldwide has boosted the demand for bigger containers that can carry huge amounts of goods and materials to different parts of the world.
The region of Asia Pacific and Middle Eastern countries have emerged as the growing markets for containers which are expected to boost the market for bunker fuel to a great extent. The other segments included under this category are oil tankers, chemical tankers, and gas tankers, which carry these materials. Fishing vessels are also used for transportation by many companies. Bulk carriers and general cargo are used to transport a huge amount of goods and materials all over the world.
Report Scope
| Feature of the Report | Details |
| Market Size in 2021 | USD 109.6 Billion |
| Projected Market Size in 2030 | USD 164.9 Billion |
| CAGR Growth Rate | 4.3% CAGR |
| Base Year | 2021 |
| Forecast Period | 2022-2030 |
| Prominent Players | Marathon Petroleum Corporation, Brightoil Petroleum (Holdings) Limited, Total, Neste, BP, Saudi Arabian Oil Co., BP Sinopec Marine Fuels, Chevron U.S.A. Inc., Gazprom, LUKOIL, Exxon Mobil Corporation, Royal Dutch Shell plc, BUNKER HOLDING, World Fuel Services Corporation., GAC, and Others |
| Key Segment | By Type, Commercial Distributor, Application, and Region |
| Report Coverage | Revenue Estimation and Forecast, Company Profile, Competitive Landscape, Growth Factors, and Recent Trends |
| Regional Scope | North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America |
| Buying Options | Request tailored purchasing options to fulfill your requirements for research. |
Regional Insights
Based on geography, the region of Asia Pacific has emerged as the largest market for bunker fuel as far as revenue is concerned and is expected to grow similarly during the forecast period. The rapid increase in the number of industries that have emerged in this region has been attributed to the increasing demand for bunker fuel. The huge amount of goods and materials supplied from this region worldwide has emerged as a major reason for the increasing demand for bunker fuel in the market.
The developing countries that belong to this region have contributed significantly to the growth due to the increasing number of manufacturing units in these countries. The increasing population in this region has proved to be a major factor in the growth in the number of factories to increase the number of job opportunities for the people. The increasing demand for goods and resources among the people resulting from the high disposable income available in the market has helped boost the demand for bunker fuels. The region of North America and the Middle East have also contributed significantly to the growth of the bunker fuel market resulting from a large amount of import and export of goods carried out in various parts of the world.
Recent Developments
- In April 2019 – Sinopec from China launched its first production of marine fuel, which contains a lower concentration of sulfur, to fulfill the International Maritime organization’s conditions. A total of 6800 tons was produced by the month of January.
- In February 2019 – The shipping company PBF logistics and Maersk agreed to produce and store 0.5% sulfur fuel. This deal enabled Maesk oil trading company to supply marine fuel IMO 2020 compliant to its customers.
- In January 2019 – ocean bunkering services were announced as the leading supplier of marine fuel in 2018 biodata which is produced by the maritime port of Singapore.
Key Players
- Marathon Petroleum Corporation
- Brightoil Petroleum (Holdings) Limited
- Total
- Neste
- BP
- Saudi Arabian Oil Co.
- BP Sinopec Marine Fuels
- Chevron U.S.A. Inc.
- Gazprom
- LUKOIL
- Exxon Mobil Corporation
- Royal Dutch Shell plc
- BUNKER HOLDING
- World Fuel Services Corporation.
- GAC
Segments covered in the report on the bunker fuel market
By Type
- Low-sulfur fuel oil
- High-sulfur fuel oil
- Marine gasoline
- Others
By Commercial Distributor
- Large independent distributor
- Oil majors
- Small independent distributor
By Application
- Container
- Bulk carrier
- Oil container
- Oil tanker
- Chemical tanker
- General cargo
- Fishing vessels
- Gas tanker
- Others
On the basis of Geography
North America
- The U.S.
- Canada
- Mexico
Europe
- France
- The UK
- Spain
- Germany
- Italy
- Rest of Europe
Asia Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia Pacific
The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- Kuwait
- South Africa
- Rest of the Middle East & Africa
Latin America
- Brazil
- Argentina
- Rest of Latin America
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