Heavy Fuel Oil Market

Global Heavy Fuel Oil Market Size (2024 to 2032)

The size of the global heavy fuel oil market was valued at USD 82.4 billion in 2023. The global market is anticipated to grow at a CAGR of 3% from 2024 to 2032 and be worth USD 107.51 billion by 2032 from USD 84.87 billion in 2024.

Current Scenario of The Global Heavy Fuel Oil Market

The global heavy fuel oil market has been experiencing steady growth from the last few years and the same trend is likely to continue throughout the forecast period. Heavy fuel oil is employed primarily to generate electricity for blast furnaces and fire boilers in various end-use industries. In addition to this, heavy fuel oil is also employed to provide heat, typically in residential, commercial, and institutional buildings. Heavy fuel oil is an important fuel source for a variety of end-use industries, and therefore, the heavy fuel market is predicted to see significant expansion in the coming years. This inferior heavy fuel oil is a high sulfur and carbon product and is employed in large quantities to produce electricity. It is also employed on many boats. Although the heavy fuel oil market is going through some changes, manufacturers will continue to see great opportunities to gain maximum share soon due to the growing calls for ferries, cruise ships, and others. Efficiency improvement will be the dominant trend in the global heavy fuel oil market in the short term.

MARKET DRIVERS

The growing usage of heavy fuel oil from the shipping industry is primarily driving the growth of the global market.

Heavy fuel oil is employed primarily in the shipping industry as a marine fuel. It is used to generate movement as well as heat and has high density and viscosity. Also, shipping is a key element of globalization that enables international trade and supports supply chains, and it plays a crucial role in cross-border shipping. In addition, it promotes industrial development by supporting manufacturing expansion, uniting consumers and industries, and promoting regional economic and trade integration. Additionally, the expansion in the availability of shipping data and the application of big data analytics in the shipping industry is also providing escalated market visibility as well as pricing trends. Escalated maritime business activities will significantly influence the expansion of the heavy fuel oil market during the foreseen period.

The heavy fuel oil market is likely to create substantial market opportunities in the near future. There are several factors responsible for the expansion of the heavy fuel oil market, such as reduced emissions, environmental safety concerns, and the call for reduced transportation costs. The main driver of the heavy fuel oil market is the incorporation of new and innovative products that are energy efficient, high quality, and offer flexible solutions with advanced technologies.

MARKET RESTRAINTS

The main limiting factor for the heavy fuel oil market is the environmental regulations in place to protect marine life.

There are several negative factors that will create challenges for the expansion of the heavy fuel oil market. For example, heavy fuel oil emits dangerous chemicals, such as sulfur, which are harmful to aquatic animals. Apart from that, this fuel also adds various other chemicals that can destroy the pH of the water in lakes and seas.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Heavy Fuel Oil Market Analysis By Classification

The low segment accounted for 34.6% of the global market share in 2023 and is anticipated to witness the fastest CAGR in the global market during the forecast period. Low Heavy Fuel Oil (LHFO) has been gaining significant traction worldwide. The stringent environmental regulations aimed at reducing sulfur emissions is propelling the growth of the low segment in the global market. For instance, as per the 2020 regulation of the International Maritime Organization (IMO), marine fuels have a mandate of 05% of sulfur cap. Such type of regulatory mandates is fueling the demand for low-heavy fuel oil in shipping and industrial applications and boosting the expansion of the low segment in the global market.

The high segment is another major segment and held a substantial share of the worldwide market in 2023. However, the high segment is predicted to witness a moderate CAGR during the forecast period. The growing number of environmental restrictions and the adoption of cleaner alternatives are favoring the high segment in the global market. Countries that have less stringent regulations and in specific industrial applications, in which, cost considerations are plays a significant role are finding use of high heavy fuel oil.

The medium segment is predicted to showcase a steady CAGR during the forecast period in the global market. The medium heavy fuel oil has substantial demand in countries that have moderate sulfur emission regulations.

Global Heavy Fuel Oil Market Analysis By Application

The industrial segment led the heavy fuel oil market by accounting for 30.9% of the global market share in 2023 and is projected to grow at a healthy CAGR during the forecast period. The industrial segment is the largest consumer of heavy fuel oil. The growing demand for energy-intensive processes such as manufacturing, power generation, and large-scale heating is primarily fueling the growth of the industrial segment in the global market. According to the International Energy Agency, heavy fuel oil is responsible for 40% of the energy used in industrial boilers worldwide. As per the U.S. Energy Information Administration, the industrial sector consumed nearly 200 million barrels of heavy fuel oil in 2023.

The shipping and contracting segment is predicted to witness the fastest growth in the global market during the forecast period. The shipping and contracting segment is also one of the largest consumers of heavy fuel oil and is primarily used for maritime fuel. For instance, heavy fuel oil accounts for more than 80% of the fuel in the shipping industry, as per the International Maritime Organization. The growth in global trade and the increasing number of shipping activities worldwide are further contributing to the expansion of the shipping and contracting segment in the global market.

REGIONAL ANALYSIS

The main factor responsible for the expansion on which a region depends to a large extent is the Gross Domestic Product (GDP), which also denotes the economic health of any region. Currently, China and India have experienced significant GDP expansion thanks to positive expansion in the industrial, agricultural, and service sectors. The growing expansion of the regional economy escalated foreign investment, and easy access to cheap labor are some of the main factors likely to drive market expansion in the Asia-Pacific region.

North America and Europe are also estimated to present lucrative opportunities in the heavy fuel oil business because of the improving regional economy and the advent of innovative technologies that will shorten the process time span. Etc. APAC had the largest market share for heavy fuel oil in 2019. Escalating energy needs and expansion in maritime trade will affect the call for heavy fuel oil in this area. 37% of the declining market expansion will come from APAC during the foreseen period. Singapore and China are the main markets for heavy fuel oil in the APAC region. The call for higher-quality fuel oil is escalating in all regions.

Since good quality oil improves productivity and engine life, its call is supposed to increase in various end-use industries. With a growing call, key companies are striving to produce higher-quality fuel oil. The volatility of crude prices and the shortage of crude have led many research and development centers to find alternative sources of fuel. With this, key companies are predicted to meet the growing call from various end-use industries. The worldwide fuel oil market is likely to grow at a rapid pace in the coming years. Among regions, the worldwide heavy fuel oil market is currently dominated by Asia-Pacific. This is due to the growing call for fuel oil from industries operating in China, Japan, and India. The United States is likely to contribute significantly to the expansion of the global heavy fuel oil market.

KEY PLAYERS IN THE GLOBAL HEAVY FUEL OIL MARKET

Companies playing a prominent role in the global heavy fuel oil market include Verona Products Pvt. Ltd., Alicid Organic Industries Ltd., Shangqiu Donghe Special Equipments Co. Ltd., OOO Oil-Garant, Moletech International Technology Limited, Sazeh Pardaz Simorgh Company, Concord Overseas, Ningling Lanning Technology Co. Ltd., Honari Co., and Bell Performance Inc, and Others.

RECENT HAPPENINGS IN THE GLOBAL HEAVY FUEL OIL MARKET

• Quadrise launches bioMSAR. It is a synthetic alternative to heavy fuel oil that produces 20-30% less carbon dioxide emissions, as well as fewer nitrogen oxide particles.
• GoodFuels launches zero-emission heavy fuel oil. Ultra-low sulfur marine biofuels take a step forward. GoodFuels Marine and the shipping company NORDEN have conducted tests in what they call "the world's first zero emissions," reducing the equivalent of heavy oil to marine biofuel "and reducing almost all emissions of carbon and sulfur.

DETAILED SEGMENTATION OF THE GLOBAL HEAVY FUEL OIL MARKET INCLUDED IN THIS REPORT

This research report on the global heavy fuel oil market has been segmented and sub-segmented based on classification, application and region.

By Classification

• Low
• Medium
• High

By Application

• Industrial
• Oil And Gas
• Mining
• Shipping And Contracting
• Non-Industrial
• Residential
• Commercial
• Institutes

By Region

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