rss icon Subscribe
desktop mobile

Bunker Fuel Mkt to Reach $273bln by 2025

Image: BP

Laxman Pai

The global bunker fuel market, which was valued at $137.21 billion in 2017, is expected to reach $273.05 billion by 2025, growing at a CAGR of 9.4% during the forecast period, 2018-2025.

Increased offshore hydrocarbon exploration activities in offshore destinations and growth in marine trade due to rise in import-export activities contribute to the overall growth of the global bunker fuel market, said a report published by Allied Market Research.

However, stringent government regulations regarding the use of bunker fuel such as residual fuel oil (RFO) containing pollutants such as sulfur and nitrogen that are capable enough to disturb the marine life cycle restrain the market growth.

Conversely, expansion of bunker fuel business by the market players in emerging economies such as India and China would create lucrative opportunities for the market.

Marine gas oil (MGO) segment would witness the fastest CAGR through 2025. Oil majors segment to remain dominant while large independents segment would witness the fastest growth through the study period. North America to grow the fastest through 2025.

The residual fuel segment was the largest in 2017, holding a market share of 60% and would maintain its dominance through 2025. This is because the fuel is cheaper than alternative fuel MGO and so is widely used by shipping companies in their transport vessels.

Nevertheless, the marine gas oil (MGO) segment would witness the fastest CAGR of 14.5% from 2018 to 2025. This is due to the environmental regulation imposed by the international maritime organization (IMO) on the use of sulfur in the marine fuel in order to reduce the marine pollution, leading to the growing use of MGO as alternative marine fuel.

The oil majors segment grabbed the largest share of 41.5% in 2017 and would maintain its revenue lead throughout 2025. This is because it is involved in trading of marine fuel across the world as well as the production of marine fuel.

The large independents segment would witness the fastest CAGR of 9.9% through 2025 because these distributors trade marine fuel across the main regions in the world including Asia Pacific (Singapore), Middle East (UAE), Europe (Rotterdam), Americas (US gulf), which are responsible for around 60% of all bunker sales globall

Regionally, Asia-Pacific grabbed 46% of the overall market share in 2017 and would dominate the market through 2025. This is due to the presence of world's major commodity consumption centers in this region. However, North America would register the fastest CAGR of 10.2% through 2025, owing to rise in sea borne trading of chemical products as well as surge in need for plastic feedstock in the region.

May 22, 2019

 

Bunkering

China's New LSFO Contract Jumps in Debut Trade

© Igor Groshev / Adobe Stock

China’s new low-sulphur fuel oil (LSFO) futures contract made strong gains in its debut trade on

New TFG Marine CEO to Leave in September

Anders Gronborg (Photo: Trafigura)

The new chief executive of Trafigura's marine fuels joint venture TFG Marine will leave the

China to Be Self-reliant in IMO-compliant Fuel

© masterskuz55 / Adobe Stock

Chinese refiners have the capacity to produce 18.1 million tonnes of low-sulphur fuel oil (LSFO)

Fuel

Tax Quirk Sees Russia Buy Diesel From China and S.Korea

Port of Nakhodka  © alexhitrov/ Adobe Stock

Rare cargoes of diesel from China and South Korea have started to arrive in Russia due to a quirk

UAE Bans Ship Over Fuel Breach

© beketoff / Adobe Stock

The world's number two container line MSC is in talks with the United Arab Emirates after the Gulf

BW LPG Retrofits 12 VLGCs

Image: BW LPG

World's largest gas shipping company BW LPG has exercised another option for the delivery and

Maritime Apps