Bunker Fuel Market

Global Bunker Fuel Market Size (2024-2029):

The Global Bunker Fuel Market is estimated at US$ 173.54 billion in 2023 and is anticipated to reach US$ 235.90 billion by 2029 from US$ 182.65 billion in 2024, with a current CAGR of 5.25% over the forecast period of 2024 to 2029.

MARKET SCENARIO

The shipping industry was under huge strain to check destructive emissions and utilize marine or bunker fuels with low sulphur content for quite some time. However, ongoing advancements in the bunker fuel market recommend that accomplishing a greener marine environment soon be a reality. The strain on the marine industry is primarily driven by the developing need to control air contamination and a huge ascent in the quantity of youth asthma cases around the world. Freight, holder, and enormous haulier armada assume a significant part in adding to the air contamination across the globe. These significant wellsprings of air contamination, which run on bunker fuels loaded down with sulphur, have additionally made critical harm networks that live near shipping channels.

Notwithstanding endeavours to utilize low-sulfur fuels, emissions from freight ships keep on representing a significant danger to the environment. Following these developing worries, tough air quality guidelines have been planned, which are probably going to establish the rhythm for developing the bunker fuel market during the forecast time frame (2024-2029). The increase in globalization and urbanization has supported the interest in different items across the globe. Seaborne exchange is affordable; subsequently, it is generally polished worldwide. Various kinds of ships, for example, container fleets, tanker fleets, and bulk and general cargo fleets are utilized for the end goal of shipping. Subsequently, an increase in shipping activities across the globe is expected to fuel the bunker fuel market.

Stakeholders in the current bunker fuel market are investing their assets in working on the accessibility of marine diesel bunker fuels and condensed petroleum gas. The guidelines set somewhere near the International Marine Organization will keep on fuelling the development of the bunker fuel market during the forecast time frame, as a shift from high sulfur fuel oils toward LNG and marine diesel oils can be noticed.

MARKET DRIVERS

The increase in Production Activities and offshore Exploration is the major factor that drives the bunker fuel market. 

Quick extension in the exploration sector and expansion popularity for new hydrocarbon reserves have prompted a progressive shift from coastal to offshore reserves. This is helping the global bunker fuel market. The offshore oil and gas sector has been extending essentially. As of now, a massive piece of the creation of hydrocarbons is obtained from offshore locations. Fast technological advancement has increased oil and gas exploration activities at profound offshore locations and other peripheral oil and gas fields. This is expanding the global interest in bunker fuel. In addition, bunker-supplying companies have decisively opened bunkering divisions in ports that are near major offshore hydrocarbon bowls, as bunkering necessities are altogether high for some offshore help vessels. Subsequently, expansion in offshore exploration and creation activities will probably drive the global bunker fuel market.

As the International Marine Organization consented to limit the sulfur content in bunker fuels to around 0.5% by 2020, the stage was set for a change in outlook in the bunker fuel market toward utilizing low-sulphur bunker fuels. While the interest in high-sulphur fuel oils will observe a steady decline, it will lift the interest in low-sulphur fuel oils and liquefied natural gas (LNG).

MARKET RESTRAINTS

The LNG/LPG used as Alternative Fuel is likely to hamper the Global Bunker Fuel Market during the forecast period. 

LNG fuelling is an experienced innovation that might be used to comply with the impending MARPOL guidelines, which force limitations on sulphur emissions from marine vessels. LNG bunkering is the main practical choice that empowers consistency with the NOx Emission Control Area (NECA) and Sulphur Emission Control Area (SECA) prerequisites without using expensive marine gas oil. LNG Fuelled Vessels Working Group is an extraordinary gathering explicitly settled to support the utilization of LNG as a marine fuel. Improvement of the LNG bunkering foundation and the authorization of emission control areas (ECAs) and other sulphur standards in every area referenced show a high degree of relationship. Subsequently, the accessibility of LNG/LPG as elective fuel is expected to negatively influence the global bunker fuel market.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Bunker Fuel Market Analysis By Fuel Type

Low Sulphur Fuel is expected to have a large share and demand in the Global Bunker Fuel Market as the rising concerns about the environmental safety of sulphur emission fuels are leading the market. Low sulphur fuel oil should be utilized broadly to beat the sulphur dioxide emission from ships. Under the International Convention for the Prevention of Pollution from Ships (known as the MARPOL Convention), the International Maritime Organization has carried out guidelines on sulphur emission from ships. In this manner, ships need to utilize fuel oil with intrinsically low sulphur content to comply with the IMO MARPOL guideline. Treatment facilities can add added substances and mix the fuel oil to decrease sulphur content. Added substances are additionally projected to upgrade different properties like lubricity. Thus, interest in low-sulphur fuel oil and substitute fuel will probably increment sooner rather than later to comply with the emission standards.

Following LSFO, Marine Gas Oil and LNG are expected to note the second-largest market share. This is because they are very few sulphur and CO2 emission fuels that rely on the International Marine Organization Norms to use fuels emitting fewer sulphur gases into the air, which is harmful to Humans.

HSFO is expected to have less market share as it does not go by the regulated norms to emit less sulphur.

Global Bunker Fuel Market Analysis By Vessel Type

The Container and the Cargo Segment are expected to have the largest share in the Global Bunker Fuel Market and are also expected to grow with a healthy CAGR during the forecast period as most of the fuel shipping import and export businesses are done via cargo and the containers so this segment is expected to have a high share in the forecast period.

Tankers and Bulk Carriers are expected to note a recognizable share in the market as they are used as fuel transportation within the nations, which regulates comparatively less income following less share.

REGIONAL ANALYSIS

Asia-Pacific is expected to have the largest share of the Global Bunker Fuel Market in the forecast period. The bunker fuel market in the area is assessed to grow at high speed during the forecast time frame. The economic improvement of Japan, Singapore, and South Korea has been huge. The United Nations Conference on Trade and Development indicates that the global seaborne exchange has arrived at around 11 billion tons, with around 62% going through Asia. This is relied upon to push the interest for the bunker fuel market in the Asia Pacific.

Europe is expected to represent a significant portion of the global bunker fuel market. Besides, the region is home to the world's biggest shipping fleet. Expansion in seaborne exchange with the Asia Pacific is expected to move the bunker fuel market in the district during the forecast time frame.

KEY PLAYERS IN THE GLOBAL BUNKER FUEL MARKET

Companies playing a prominent role in the global bunker fuel market include BP, Saudi Arabian Oil Co., Gazprom, LUKOIL, BP Sinopec Marine Fuels, Chevron U.S.A. Inc., Exxon Mobil Corporation, Royal Dutch Shell plc, World Fuel Services Corporation., GAC, BUNKER HOLDING, and Others.

RECENT HAPPENINGS IN THE GLOBAL BUNKER FUEL MARKET

• With the help of the Danish Marine Time Authority, BP partnered with Maersk Tankers and has completed their trials in using biofuel-blended marine fuel in product tankers to demonstrate the less emission of carbon from ships.
• After closing its firms in London, marine fuels company Bunker Holding has merged LQM into its Dan-Bunkering brand.

DETAILED SEGMENTATION OF THE GLOBAL BUNKER FUEL MARKET INCLUDED IN THIS REPORT

This global bunker fuel market research report has been segmented and sub-segmented based on fuel type, vessel type, and region.

By Fuel Type

• High Sulphur Fuel Oil (HSFO)
• Low Sulphur Fuel Oil (LSFO)
• Marine Gas Oil
• Liquified Natural Gas (LNG)

By Vessel Type

• Containers
• Tankers
• General Cargo
• Bulk Carriers

By Region

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