Global bunker fuel market was valued at US$ 26.93 Billion in 2022 in terms of revenue, exhibiting a CAGR of 7.1% during the forecast period (2023 to 2030).
The increased development of hydrocarbon resources in offshore locations is boosting demand for bunker fuel. Rapidly expanding exploration operations, together with the increasing formation of new hydrocarbon reserves, have resulted in an increase in offshore and onshore reserves. Furthermore, increased oil and gas exploration operations in deep offshore locations are expected to boost bunker fuel market growth.
The conversion of current working vessels to LNG-powered vessels is too expensive. As a result, it is not commercially viable. However, once the new pollution laws take effect, the operational costs of LNG-powered vessels are likely to be the lowest of any fuel choice. Furthermore, a gradual transition to LNG for propulsion is more advantageous than traditional methods of fueling ships with heavy fuel oil, marine gas oil, marine diesel oil, and so on. LNG-powered propulsion greatly reduces the ship's carbon footprint while increasing operational efficiency. For instance, in February 2020, Lukoil Marine Bunker Ltd. (a Lukoil affiliate) purchased G. Puccini and G. Rossini, two bunkering tankers that would operate in Big Port St. Petersburg. This will help the company's reputation.
Bunker Fuel Market Report Coverage
|Market Size in 2022:
|US$ 26.93 Bn
|Historical Data for:
|2018 to 2021
|2023 to 2030
|Forecast Period 2023 to 2030 CAGR:
|2030 Value Projection:
|US$ 46.51 Bn
Chemoil Energy Limited, Aegean Marine Petroleum Network, Inc., World Fuel Services Corporation, Gulf Agency Company Ltd., Gazpromneft Marine Bunker LLC, BP Marine Ltd., Exxon Mobil Corporation, Royal Dutch Shell plc, Bunker Holding A/S, and Lukoil-Bunker LLC
|Restraints & Challenges:
Global Bunker Fuel Market- Impact of Coronavirus (Covid-19) Pandemic
Several refineries have reduced supply of petroleum coke due to refinery production cuts, falling consumption of gasoline and jet fuel amid the coronavirus pandemic. The prices of petroleum coke has fallen due to low crude oil prices. End-use industries can benefit from low petroleum coke prices and help to increase the profit margins of global bunker fuel companies. In March 2020, the Chinese Ministry of Finance offered tariff exemptions on U.S. petcock imports as impact of COVID-19 affected domestic petcock production in the country. According to Coherent Market Insights, in 2020, petroleum coke market is expected to grow at a lower CAGR between 2020 and 2021.021.
Increasing fuel conservation attempts by the shipping industry in response to increased environmental concerns and the need to reduce carbon footprint are likely to stymie market expansion. For this shipping business, efficient technologies (MGO- Marine Gas Oil, MDO- Marine Diesel Oil, IFO- Intermediate Fuel Oil, MFO- Marine Fuel Oil, HFO- Heavy Fuel Oil) are being adopted, which can help to cut fuel consumption.
Manufacture are in innovation
Product innovation by key manufacture in marine fuel is a growing trend in the market and this is expected to augment the market growth of bunker fuel. For instance, in August 2020, Neste, has announced the launch of low-sulfur marine fuels to help ships meet upcoming International Maritime Organization (IMO) regulations on sulfur dioxide emissions. Thus, product innovation by key manufacturers is expected to foster the market growth.
Figure 1. Bunker Fuel Market, By Vessel in 2022
On the basis of vessel type in 2022, the bulk & general cargo segment has accounted the largest market share of 43.30% in terms of value, followed by tankers and container segment respectively.
Figure 2. Bunker Fuel Market, By Region in 2022
On the basis of region type in 2022, Asia pacific region has accounted the largest market share of 39.30% in terms of others, followed by North America, Latin America, Europe, and Middle East & Africa respectively.
*Definition- Bunker fuel is meant to be used by the shipping industry for fueling its marine fleet. Bunker fuel is classified into distillates and residual fuel oils. In general term, bunker fuel is any fuel that is burned in boiler or furnace for the generation of power in the engine.
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