Bunker Oil Market Size, Share, Growth, And Industry Analysis By Type (Residual Fuel and Distillate Fuel) By Application (Container Vessels, Tanker Vessels, and Bulk & General Cargo Vessels), Regional Insights, and Forecast To 2032

Updated On: 22 April 2024

Report Overview

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The Global bunker oil market size was USD 416.9 million in 2022. As per our research, the market is expected to reach USD 530.5 million by 2028, exhibiting a CAGR of 4.1% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the bunker oil market growth and demand returning to pre-pandemic levels once the pandemic is over.

The maritime industry has relied heavily on bunker oil for years. Marine fuel, sometimes called bunker oil, is used to power ships and other boats of various sizes. It is essential to guarantee the efficient operation of the maritime transportation industry, which oversees most global trade. The main component of bunker oil is remaining fuel oil, a complicated blend of various petroleum products. It is uniquely prepared to fulfill the needs of marine engines and provides the energy required for propulsion and other onboard functions. It is becoming increasingly in demand as the transportation industry expands.

The kind of bunker oil that is most frequently utilized is heavy fuel oil (HFO). It is mostly utilized in huge ships and ships with slow-speed engines and has a high viscosity. HFO is economical and has very good fuel efficiency. It is lighter and more refined is called marine diesel oil (MDO). It is utilized in smaller ships and ships with medium-speed engines because of its reduced viscosity. Compared to HFO, MDO has better combustion characteristics and lower emissions. The purest and best grade bunker oil is marine petrol oil. It is used in boats that need low-sulfur fuel to comply with environmental requirements. MGO is excellent for ships with high-speed engines because of its low viscosity.

COVID-19 Impact: Decline In International Trade And Disrupted The Shipping Industry Hampered The Market Growth

The COVID-19 pandemic has significantly impacted this market. The viral pandemic severely reduced international trade and crippled the shipping sector. With travel restrictions and lockdown measures in place, trade volumes decreased, and the need for bunker oil fell. The reduction in oil prices brought on both an abundance of oil and less demand, making the decline in demand even worse. As a result, many oil refineries cut back on production, impacting the supply. Additionally, stronger environmental rules, notably those about sulfur emissions, were implemented due to the pandemic, which had an even greater effect on this market.

Latest Trends

"Shift Towards Cleaner And More Sustainable to Fuel Boosts Market Expansion"

The transition to cleaner and more sustainable fuels is one of the newest developments in this market. There is rising interest in alternative fuels that have lower emissions and adhere to strict standards as concerns about climate change and environmental damage develop. Liquefied natural gas (LNG) is becoming increasingly popular in the marine sector. Compared to conventional bunker oil, LNG emits much less sulfur and particulate matter during combustion. Additionally, it may result in cost savings and lessen the carbon footprint of ships. The creation of biofuels produced from renewable sources is another trend. Since they are created from organic elements like plant and animal lipids, biofuels can replace conventional bunker oil.

Segmentation

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• By Type Analysis

The market can be segmented into residual fuel and distillate fuel.

Among these, the residual fuel is projected to experience rapid growth through 2028.

• By Application Analysis

The market can be divided based on application into container vessels, tanker vessels, and bulk & general cargo vessels.

Container vessels are expected to hold the most bunker oil market share in the upcoming years.

Driving Factors

"Global Trade to Propel Market Expansion"

There is a direct correlation between global trade activity and the need for bunker oil. The requirement rises along with the expansion of global trade and the demand for shipping. Several variables, including economic growth, alterations in consumer behavior, and geopolitical developments, impact global commerce.

"Environmental Regulations to Fuel Market Growth"

There is growing pressure on the maritime sector to lessen its environmental impact. Ships must utilize low-sulfur fuels because of strict rules, including the International Maritime Organization's (IMO) sulfur cap. This prompted a change towards more environmentally friendly bunker oil and the investigation of alternative fuels.

Restraining Factor

"Volatility in Oil Prices, Infrastructure Challenges, And Technological Barriers to Hinder Market Growth"

Oil price volatility has a significant impact on this market. Rapid price swings can impact transportation companies' profitability and breed market uncertainty. Using alternative fuels, such as LNG and biofuels, necessitates considerable infrastructural investments. For alternative fuels to be widely used, refueling stations must be accessible, and supply systems must be established. The sector faces difficulties as it switches to greener fuels and develops new technology. Research, development, and investment are needed to apply emission reduction technology and integrate alternative fuels.

Regional Insights

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"North America To Dominate Market Due To The Global Trade"

North America holds the bunker oil market share, and factors driving the market growth in this region include global trade. The demand is closely correlated with operations in international trade. This oil is more necessary as global trade expands and transportation demand rises. Global trade and, by extension, this industry is impacted by economic expansion, shifting consumer habits, and geopolitical upheavals.

Key Industry Players

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

List of Market Players Profiled

• BP (U.K.)
• Chevron (U.S.)
• Exxon Mobil (U.S.)
• Gazprom (Russia)
• HPCL (India)
• Royal Dutch Shell (U.K.)

Report Coverage

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting factors like segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.