Bunker Fuel Market Forecasts from 2023 to 2028

The bunker fuel market was evaluated at US$119.140 billion in 2021 and the market is set to grow at a CAGR of 5.13% reaching a market size of US$169.086 billion by the year 2028.

The surge in demand for transportation and freight delivery coupled with booming marine vessel sales are the key factors driving the demand for bunker fuel. For instance, according to the data published by the International Energy Agency, the demand for marine bunker fuel has increased significantly. In recent years the demand for unscrubbed HSFO dropped leading to a rise in the demand for VLFSO in 2022, this is anticipated to rise further in 2024.

LNG as a bunker fuel is gaining popularity

The growing desire for clean energy and efforts to lower greenhouse gas emissions have all contributed to the market demand for LNG bunker solutions during the forecast period. LNG-powered ships are being ordered and delivered at a higher rate. Further, according to the US Energy Information Administration, the export of LNG from the US has significantly increased from 3, 560.82 in 2021 to 3, 865.64 in the year 2022. This increase in exports will further impact the bunker fuel industry.

Product innovation for LNG fuel

Various manufacturers' focus on product innovation and acquisition is an important bunker fuel market driver. For example, Titan LNG and Brittany Ferries inked a long-term bunkering arrangement in May 2022 for the provision of LNG and Liquefied Bio Methane (LBM) to two new hybrid Ro-Pax boats powered by LNG that Brittany Ferries is scheduled to sail between England and France starting in 2025. In March 2023, one of the biggest PCTCs in the world, NYK's Jasmine Leader, successfully finished her LNG bunkering with FueLNG Bellina. Further, in July 2023, Following Russia's invasion of Ukraine, fuel costs skyrocketed, making LNG approximately five times more expensive than VLSFO.

China is anticipated to be the fastest-growing country in the Asia-Pacific region

The market is growing owing to the increased maritime potential of China. Moreover, the country is observed as one of the most prominent destinations for oil production firms to locate their setup. Major ports in China such as Ningbo-Zhoushan, Guangzhou, Shanghai, Shenzen, and others represent lucrative potential as they include cargo ships, a large number of vessels, and passenger boats that need frequent bunker fuel supply to carry their operations. Furthermore, China’s storage of fuel and rising hydrocarbon resource development activities in offshore areas of the country are expected to present favourable outcomes for the growth of the bunker fuel market in the upcoming years. According to an estimate from the Ministry of Transport of the People’s Republic of China, in container throughput Shanghai Port ranked first. Further, the overall container throughput of the Chinese ports reached 282.7 million TEU in 2021 which is around a 7% increase from the year 2020. This highlights that the China bunker fuel industry will witness a rising demand till the forecast period owing to increased port trade in the country.

Market Key Developments

• In February 2023, a EUR 500 million project to manufacture sustainable maritime fuels in northern France was unveiled by Engie SA and the US engineering firm Infinium Holdings.
• In November 2022, the natural gas trader Nimofast BrasilS.A. and the Norwegian firm KanferShipping AS signed a partnership agreement under which Nimofast will offer small- and medium-scale LNG shipping, small-scale floating storage units (FSU), and LNG bunkering solutions for Kanfer's Brazilian clients.

Segmentation:

By Type

• High Sulphur
• Low Sulphur
• Marine Gas Oil
• Others

By Vessel

• Bulk Container
• General Cargo
• Tankers
• Others

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• United Kingdom
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Indonesia
• Taiwan
• Others