The global bunker fuel market was valued at $109.6 billion in 2020, and is projected to reach $164.9 billion by 2030, growing at a CAGR of 4.3% from 2021 to 2030.
Bunker fuel is the fuel oil supplied to ships that are engaged in international navigation. The international navigation takes place through sea, coastal waters, on waterways, and inland lakes. Bunker fuel is mainly classified into low sulfur fuel oil, high sulfur fuel oil, marine gas oil, and others. Marine gas oil is mostly used in small and highly rated diesel engines, which are found in many different ships. High sulfur fuel oil is the high viscosity fuel oil. Bunkering is the term used to supply bunker fuel to ships or vessels that are further used in the maritime trade operations.
Rise in offshore exploration & production (E&P) activity and increase in seaborne trade are the factors that drive the growth of the global bunker fuel market. In addition, regulations of the international maritime organization (IMO) of sulfur cap for marine fuels drive the growth of the bunker fuel market. Moreover, increase in utilization of liquefied natural gas (LNG) as a marine fuel is anticipated to fuel the growth of the bunker fuel market during the forecast period. High investment cost involved in development of bunker fuel infrastructure and regulatory framework is anticipated to hamper the growth of the bunker fuel market. On the contrary, building & construction of international marine trade and sea trade routes is anticipated to fuel the market growth in future.
The global bunker fuel market is segmented on the basis of type, commercial distributor, application, and region. Depending on type, the market is categorized into high sulfur fuel oil (HSFO), low sulfur fuel oil (LSFO), marine gasoil, and others. On the basis of commercial distributor, it is classified into oil major, large independent, and small independent. As per the application, it is fragmented into container, bulk carrier, oil tanker, general cargo, chemical tanker, fishing vessels, gas tankers, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Bunker fuel is the fuel oil supplied to ships that are engaged in international navigation. The international navigation takes place through sea, coastal waters, on waterways, and inland lakes. Bunker fuel is mainly classified into low sulfur fuel oil, high sulfur fuel oil, marine gas oil, and others. Marine gas oil is mostly used in small and highly rated diesel engines, which are found in many different ships. High sulfur fuel oil is the high viscosity fuel oil. Bunkering is the term used to supply bunker fuel to ships or vessels that are further used in the maritime trade operations.
Rise in offshore exploration & production (E&P) activity and increase in seaborne trade are the factors that drive the growth of the global bunker fuel market. In addition, regulations of the international maritime organization (IMO) of sulfur cap for marine fuels drive the growth of the bunker fuel market. Moreover, increase in utilization of liquefied natural gas (LNG) as a marine fuel is anticipated to fuel the growth of the bunker fuel market during the forecast period. High investment cost involved in development of bunker fuel infrastructure and regulatory framework is anticipated to hamper the growth of the bunker fuel market. On the contrary, building & construction of international marine trade and sea trade routes is anticipated to fuel the market growth in future.
The global bunker fuel market is segmented on the basis of type, commercial distributor, application, and region. Depending on type, the market is categorized into high sulfur fuel oil (HSFO), low sulfur fuel oil (LSFO), marine gasoil, and others. On the basis of commercial distributor, it is classified into oil major, large independent, and small independent. As per the application, it is fragmented into container, bulk carrier, oil tanker, general cargo, chemical tanker, fishing vessels, gas tankers, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
KEY BENEFITS FOR STAKEHOLDERS
- The report includes in-depth analysis of different segments and provides market estimations between 2020 and 2030.
- A comprehensive analysis of the factors that drive and restrict the growth of the global bunker fuel market is provided.
- Porter’s five forces model illustrates the potency of buyers & sellers, which is estimated to assist the market players to adopt effective strategies.
- Estimations and forecast are based on factors impacting the global bunker fuel market growth, in terms of value.
- The key market players are profiled to gain an understanding of the strategies adopted by them.
- This report provides a detailed analysis of the current trends and future estimations from 2021 to 2030, which help to identify the prevailing market opportunities.
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Key Market Segments
By Type
- High Sulfur Fuel Oil
- Low Sulfur Fuel Oil
- Marine Gas Oil
- Others
By Commercial Distributor
- Oil Majors
- Large Independent
- Small Independent
By Application
- Bulk Carrier
- Oil Tanker
- General Cargo
- Chemical Tanker
- Fishing Vessels
- Gas Tankers
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- France
- Germany
- Italy
- Spain
- UK
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Australia
- Rest of Asia-Pacific
- LAMEA
- Brazil
- South Africa
- Saudi Arabia
- UAE
- Rest of LAMEA
Key Market Players
- BP p.l.c.
- TotalEnergies
- Neste
- Shell plc
- Exxon Mobil Corporation
- LUKOIL
- Petroliam Nasional Berhad (PETRONAS)
- Chevron Corporation
- Hindustan Petroleum Corporation Limited
- Indian Oil Corporation Ltd.
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: BUNKER FUEL MARKET, BY TYPE
CHAPTER 5: BUNKER FUEL MARKET, BY COMMERCIAL DISTRIBUTOR
CHAPTER 6: BUNKER FUEL MARKET, BY APPLICATION
CHAPTER 7: BUNKER FUEL MARKET, BY REGION
CHAPTER 8: COMPETITIVE LANDSCAPE
CHAPTER 9: COMPANY PROFILES
LIST OF TABLES
LIST OF FIGURES
Executive Summary
According to this report titled, 'Bunker Fuel Market,' the bunker fuel market size was valued at $109.6 billion in 2020, and is estimated to reach $164.9 billion by 2030, growing at a CAGR of 4.3% from 2021 to 2030.Bunker fuel is a type of fuel oil used on ships that travel internationally. It is put into the bunkers of ships to fuel the engines. Bunker fuel gets its name from tanks on ports and in ships that it is stored in. It was known as coal bunker initially, but now it is called as bunker fuel tank. Bunker fuels are used to power their motors, engine, drive, and other equipment in the marine vessels. In January 2020, key players operating in this market focused on utilization of low sulfur fuel oil with the implementation of IMO-2020 regulations on sulfur content in the marine fuel. However, heavy fuel oil or high sulfur fuel oil can be used on the ships where scrubbers are installed.
Rise in marine trade increased the demand for bunker fuel and bunkering services. Increase in oil & gas exploration activities in emerging oil regions drives the growth of the bunker fuel market as many bunker fuel suppliers changed their focus of operation to these offshore resource sites. In addition, fuel reduction initiatives by shipping industries hamper the market growth. Therefore, due to stringent environmental regulations regarding marine environment, the shipping industry decided to reduce the use of residual fuel oil that contains contaminants, including nitrogen and sulfur. The shipping industry focus toward new alternative such as liquefied natural gas (LNG), which is less harmful to the marine environment. Growth in opportunities for market players to expand business in the developing countries such as India, Japan, and China is expected to provide lucrative growth opportunities for the global bunker fuel market, due to exploration of untapped hydrocarbon reserves in these oil emerging countries.
Depending on the type, the low sulfur fuel oil segment held the highest bunker fuel market share of around 65.17% in 2020, and is expected be dominant during the forecast period. This is due to implementation of IMO-2020, hence there will be decrease in demand for HSFO, which, in turn, is expected to fuel the market growth for low sulfur fuel oil in the future.
Depending on commercial distributor, the oil major segment holds the largest share, in terms of revenue, and is expected to maintain its dominance during the forecast period. This growth is attributed to dominance of oil majors in the crude oil tanker chartering business across the globe.
By application, the container segment holds the largest share, in terms of revenue, and is expected to grow at a CAGR of 4.6%. This is attributed to increase in demand for cargo transportation through ships and rise in trade-related agreements. In addition, rise in number of manufacturing units and factories in the region such as Asia-Pacific and LAMEA drive the growth of the bunker fuel market for container shipping.
Region wise, the market is analyzed across four major regions such as North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific garnered the dominant share in 2020, and is anticipated to maintain this trend during the forecast period. This is attributed to numerous factors such as presence of huge consumer base and increase in maritime trade activities in the region. Moreover, presence of the developing countries such as China, Japan, Singapore, South Korea, and India contribute toward the growth of the bunker fuel market in Asia-Pacific.
The global bunker fuel market analysis covers in-depth information of the major industry participants. The key players operating and profiled in the report include BP p.l.c., Exxon Mobil Corporation, Royal Dutch Shell PLC., Lukoil, Sinopec Group, Gazprom Neft PJSC, Chevron Corporation, PETRONAS, Total SE, and Neste.
Other players operating in the value chain of the global bunker fuel market are Saudi Arabian Oil Company, Marathon Petroleum Corporation, Valero Energy Corporation, Minerve Bunkering, World Fuel Services Corporation, Gac Bunker Fuels Limited, and Bomin Bunker Oil Corp.
COVID-19 Impact on the Market
The demand for marine fuel decreased, owing to COVID-19 pandemic across the globe. According to the International Energy Agency (IEA), fuel oil demand for end uses including marine bunker, power generation, and industrial uses is expected to decline by 6.3% in 2020. Furthermore, as LNG and crude oil prices declined in the 2nd quarter of 2020, thus, the overall revenue of bunker fuel diminished in the second quarter of 2020. Owing to the implementation of IMO-2020 in January, there was increase in demand for very low sulfur fuel oil, but with the supply chain disruptions there were ups and down in the low sulfur bunker fuel sales throughout 2020. In addition, high sulfur fuel oil demand collapsed due to IMO regulation along with COVID-19 pandemic,restraining the market growth in 2020-2021.Key findings of the Study
- In 2020, low sulfur fuel oil segment accounted for majority of the share of the global bunker fuel market, and is expected to down throughout the bunker fuel market forecast period.
- In 2020, the oil major segment accounted for about 44.9% of the share in the global bunker fuel market, and is expected to maintain its dominance till the end of the forecast period.
- The container segment is accounted for 22.8% market share in the year 2020, and is anticipated to grow at a rate of 4.6% in terms of revenue, increasing its share in the global bunker fuel market.
- Low sulfur fuel oil is the fastest-growing fuel type in the Asia-Pacific bunker fuel market, expected to grow at a CAGR of 5.2% during 2021-2030.
- Asia-Pacific is expected to grow at the fastest rate, registering a CAGR of 4.7%, throughout the forecast period.
- In 2020, Asia-Pacific dominated the global bunker fuel market with more than 47.04% of the share, in terms of revenue.
Companies Mentioned
- BP p.l.c.
- TotalEnergies
- Neste
- Shell plc
- Exxon Mobil Corporation
- LUKOIL
- Petroliam Nasional Berhad (PETRONAS)
- Chevron Corporation
- Hindustan Petroleum Corporation Limited
- Indian Oil Corporation Ltd.
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 360 |
| Published | September 2024 |
| Forecast Period | 2020 - 2030 |
| Estimated Market Value ( USD | $ 109.6 billion |
| Forecasted Market Value ( USD | $ 164.9 billion |
| Compound Annual Growth Rate | 4.3% |
| Regions Covered | Global |
| No. of Companies Mentioned | 10 |
