Bunker Fuel Market

Bunker Fuel Market Outlook (2023 to 2033)

The global bunker fuel market stands at US$ 121.20 billion in 2023, according to Fact.MR. Worldwide demand for bunker fuel is predicted to rise at a CAGR of 4.4% to reach a market value of US$ 186.5 billion by the end of 2033.

Rising awareness of hazards of environmental pollution and implementation of stringent regulations are projected to boost demand for cleaner fuels, including gasoil, LNG (liquefied natural gas), LPG (liquefied petroleum gas), and others.

Global seaborne trade has increased significantly in recent years. In addition, increasing activities related to offshore exploration and production are expected to drive growth opportunities for players in the coming decade. Bunker fuel comes with a low carbon footprint compared to conventional fuel. Increasing investments by industry players in enhancing bunker fuel production influence market growth.

Demand for LNG bunkering is growing due to companies' and governments' commitment to achieving sustainability goals. The increasing need for marine transportation, coupled with a rising number of operational ships, is expected to drive the demand for bunker fuel over the next decade. Key players in the industry are investing in expanding their operations into new areas to diversify their revenue streams.

Bunker fuel is commonly utilized to power the engine of ships, aircraft, and other vehicles. The cost-effectiveness of this fuel compared to other available options is expected to drive its global demand in the next decade. Currently, emerging economies are witnessing an increase in demand for crude oil, which in turn affects the sales of tankers transporting crude oil. The growing number of shipping vessels is projected to directly impact the demand for bunker fuel.

Certain highly toxic elements, including sulfur, threaten the environment of marine life, which hinders market expansion opportunities.

Fact.MR, a provider of market research and competitive intelligence, offers dynamics of the bunker fuel market in its newly published market research report. Key products, growth opportunities, key limitations, a regional overview, new developments, etc. are prominent factors covered in the research report.

Report Attributes	Details
Bunker Fuel Market Size (2023)	US$ 121.2 Billion
Forecasted Market Value (2033)	US$ 186.5 Billion
Global Market Growth Rate (2023 to 2033)	4.4% CAGR
Containers Segment Growth Rate (2023 to 2033)	4.5% CAGR
Revenue Share of Low Sulfur Fuel Oil (2022)	66%
Key Companies Profiled	ExxonMobil Corporation BP PLC Royal Dutch Shell PLC Sinopec Group Chevron Corporation Lukoil Titan LNG Gazprom Neft Corporation Neste Oyj Petronas Chevron Corporation TotalEnergies

What are the Prominent Growth Drivers Influencing the Bunker Fuel Market?

“Extensive Use of Bunker Fuel in Shipping and Power Industries”

The shipping industry uses bunker fuel extensively. Bunker fuel is primarily utilized in large and high-performance vessels that are in high demand, particularly for transporting a significant number of people. These vessels are preferred due to their speed and cargo capacity. Bunker fuel is commonly used by oil tankers, container ships, cruise liners, and other ships due to its high viscosity.

Bunker fuel finds applications as a fuel source for electricity generation and heating purposes. It is also used for power generation on larger vessels. These vessels have substantial load-bearing capacities compared to other modes of transportation, resulting in increased demand for bunker fuel for refueling purposes.

“Increasing Oil & Gas Exploration Activities Boosting Sales of Bunker Fuel”

Exploration and development activities related to hydrocarbon resources in certain offshore regions are increasing. This rise in exploration efforts, coupled with the establishment of new hydrocarbon reserves, is leading to growth in oil and gas production. Consequently, the expansion of oil and gas exploration in deep offshore locations is expected to create favorable market growth opportunities.

What’s Predicted to Hinder the Demand Growth for Bunker Fuel?

“Fuel Reduction Initiatives by Global Shipping Community”

The global shipping community is placing significant emphasis on initiatives aimed at reducing fuel consumption. In response, many shipping companies are prioritizing the adoption of efficient technologies to minimize their fuel usage. These initiatives are driven by the need to comply with international environmental protection standards and reduce carbon emissions associated with vessel operations.

A decline in fuel consumption because of the introduction of various fuel-efficient vessels is predicted to limit opportunities for industry players in the coming 10 years.

How are Start-ups Projected to Evolve in This Market?

“Presence of Unexplored Reserves in Emerging Oil-producing Nations”

The growing oil & gas exploration activities in some emerging oil-producing regions, especially in the Indo-Pacific region, are estimated to offer opportunities for start-ups. Presence of vast unexplored reserves in new oil-producing regions is projected to boost the demand for shipping vessels and fuel the need for storage containers, thereby allowing new entrants to gain some share in this market.

Country-wise Insights

Why is the United States a Lucrative Market for Bunker Fuel Producers?

“Presence of Prominent Ports Generating High Demand for Bunker Fuel”

The presence of major ports in the United States is projected to contribute to the growing demand for bunker fuel. Currently, there are approximately 360 shipping ports across the United States. The increasing volume of international trade, coupled with the growing focus on offshore wind projects, is anticipated to create opportunities for industry players in the United States.

How is Demand for Bunker Fuel Evolving in the United Kingdom and Germany?

“High Demand for Bunker Fuel Due to Wide Availability of Cost-effective Transport Services and Presence of Busy Marine Trading Routes”

The United Kingdom and German markets are projected to occupy a substantial market share. These countries provide diverse and cost-effective transport services for importing and exporting a wide range of products. They house popular and busy trading routes, leading to an increased demand for bunker fuel to support these trade activities.

Which Countries Account for High Sales of Bunker Fuel in Asia Pacific?

“Increased Hydrocarbon Resource Development in India, China, and Japan to Support Growing Manufacturing Activities”

Demand for bunker fuel has witnessed a notable rise due to increased activities related to hydrocarbon resource development in offshore areas, including India and China. The Indian market has emerged as an attractive destination for bunker fuel producers, supported by the growing number of manufacturing units in the country.

Japan, on the other hand, is providing essential support to bunker fuel manufacturers to facilitate their growth in this competitive market.

Category-wise Insights

Which Bunker Fuel Type is Most Widely Utilized across the World?

“Implementation of Stringent Environmental Regulations Driving Adoption of Low-sulfur Fuel Oil over High-sulfur Variants”

Based on type, the global market is segmented into high-sulfur fuel oil, low-sulfur fuel oil, and marine gasoil. Among these, demand for low-sulfur fuel oil is predicted to increase due to the implementation of IMO-2020 which limits the use of sulfur in fuel oil for ships. Therefore, there is a significant decline in the use of high-sulfur fuel oil in a wide variety of ships. This segment held 66% share of the global market in 2022.

How are Containers Contributing to Increased Sales of Bunker Fuel?

“Rapid Globalization and Escalating Seaborne Trade Boosting Demand for Bunker Fuel for Containers”

Containers, oil tankers, bulk carriers, fishing vessels, general cargo, gas tankers, and chemical tankers are some key application areas of bunker fuel. Bunker fuel is predominantly used in containers due to increasing globalization. In addition, escalating requirements for global seaborne trade are also predicted to lead to increased import and export activities across the globe.

Containers are widely used for the transportation of metal products, electrical machinery, accessories, and various other goods. Bunker fuel is used by various shipping corporations to fuel their respective marine fleet. Demand for bunker fuel for use in containers is predicted to progress at a CAGR of 4.5% from 2023 to 2033.

Which Distribution Channel is Widely Preferred by Bunker Fuel Suppliers?

“Extensive Use of Oil Majors for Bunker Fuel Delivery”

Oil majors, small independent distributors, and large independent distributors are some widely used distribution channels by manufacturers for the supply of bunker fuel globally. Among these, oil majors are predicted to hold a significant share of the global market.

The increasing use of oil tankers for bunker fuel supply can be attributed to the dominance of oil majors in the chartering business.

Key Market Players

Maintaining product standards, quality control, and strengthening supply chain management systems are initiatives undertaken by producers of bunker fuel to expand their footprints globally while adding value to their existing portfolio.

The bunker fuel landscape is consolidated in nature due to the presence of very few large-scale vendors that are controlling the entire landscape. Prominent vendors are investing heavily in expanding their reach to global consumers. Partnerships, mergers & acquisitions, collaborations, etc. are some strategies that are adopted by players to enhance their reach.

For instance :

• In January 2022, Titan LNG was awarded a tender to deliver LNG (liquefied natural gas) to the Port of Marseille for Corsica Linea's new LNG-fueled ferry, called Ro-Pax. This expansion of operations by Titan LNG marks its entry into the Mediterranean market to ensure the availability of bio-LNG, LNG, and LNG derived from hydrogen for the longer run.
• Minerva Bunkering, in December 2021, started offering its marine fuel at the Red Sea Ports of Yandu and Jeddah in Saudi Arabia.

Prominent players in the bunker fuel market are ExxonMobil Corporation, BP, Royal Dutch Shell, Sinopec Group, Chevron Corporation, Titan LNG, Lukoil, Gazprom Neft Corporation, Neste Oyj, Petronas, Chevron Corporation, and TotalEnergies.

Segmentation of Bunker Fuel Industry Research

• By Type :

  • High-sulfur Fuel Oil
  • Low-sulfur Fuel Oil
  • Marine Gasoil

• By Application :

  • Containers
  • Bulk Carriers
  • Oil Tankers
  • General Cargo
  • Chemical Tankers
  • Fishing Vessels
  • Gas Tankers

• By Distribution Channel :

  • Oil Majors
  • Large Independent Distributors
  • Small Independent Distributors

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa