Marine bunker oil market to reach $280.7 billion, globally, by 2033 at 6.5% CAGR: Allied Market Research
The surge in maritime transportation demand, driven by expanding global trade and e-commerce, significantly boosts the marine bunker oil market expansion. Concurrently, the expansion of LNG bunkering infrastructure supports the shift toward cleaner fuels, meeting stricter environmental regulations. Together, these factors enhance the availability and adoption of diverse fuel options, driving the growth and evolution of the marine bunker oil market.
Allied Market Research published a report, titled, "Marine Bunker Oil Market by Type (High Sulfur Fuel Oil, Low Sulfur Fuel Oil, Marine Gas Oil and Others), by Commercial Distributor (Oil Majors, Large Independent and Small Independent), and Application (Oil Tanker, Chemical Tanker, Gas Tanker and Others): Global Opportunity Analysis and Industry Forecast, 2024-2033". According to the report, the marine bunker oil market was valued at $151.0 billion in 2023, and is estimated to reach $280.7 billion by 2033, growing at a CAGR of 6.5% from 2024 to 2033.
Prime determinants of growth
The global marine bunker oil market has experienced growth due to several factors such as the growing shipbuilding industry trends and shift toward low sulfur & cleaner fuels. However, the high cost of compliance with low-sulfur requirements hinders market growth. Moreover, government incentives for cleaner fuel use opens avenues for the development of innovative, eco-friendly solutions present additional opportunities for the marine bunker oil market.
Low Sulfur Fuel segment held the highest market share in 2023.
By type, the low sulfur fuel oil segment held the highest market share in 2023 and is estimated to dominate during the forecast period. This dominance is primarily driven due to International Maritime Organization's (IMO) 2020 regulations. These rules mandate that ships reduce sulfur emissions by switching to fuels with a maximum sulfur content of 0.5%. This shift away from high sulfur fuel oil (HSFO) to LSFO has been driven by the need to comply with these stringent environmental standards. LSFO's widespread adoption is also supported by its availability and compatibility with existing ship engines, making it the preferred choice for most of the global maritime fleet.
Oil Majors segment held the highest market share in 2023.
By commercial distributor, the oil majors segment held the highest market share in 2023 and is estimated to dominate during the forecast period. This dominance stems from companies like Shell, BP, and ExxonMobil which control significant upstream oil production, refining, and distribution networks. This vertical integration allows them to offer competitive pricing and reliable fuel supply, crucial for large shipping companies. Their global presence and infrastructure enable them to serve major ports and shipping routes efficiently. In contrast, while large and small independents also play vital roles, especially in niche or regional markets, they often lack the scale and breadth of operations to compete directly with oil majors on a global scale.
Oil Tankers segment held the highest market share in 2023.
By application, the oil tankers segment held the highest market share in 2023 and are estimated to dominate during the forecast period. This dominance is due to the sheer volume of crude oil and refined petroleum products transported globally. Oil tankers are some of the largest vessels, requiring significant quantities of bunker oil for propulsion and operations. In addition, the oil trade's high demand and consistent activity ensure a steady and substantial consumption of bunker fuel. In comparison, chemical and gas tankers, while important, do not match the oil tankers' scale in terms of fuel usage. The robust global oil trade and the extensive fleet of oil tankers drive the dominance of this segment in the marine bunker oil market.
Asia-Pacific held the highest market share in 2023.
By region, Asia-Pacific held the highest market share in 2023. This leadership is primarily due to the region's extensive maritime trade activities and its strategic location along major shipping routes. Key ports such as Singapore, Shanghai, and Hong Kong serve as critical bunkering hubs, facilitating substantial fuel supply to the vast number of vessels traversing these routes. In addition, the rapid industrialization and economic growth in countries such as China and South Korea drive significant demand for marine bunker oils. The region's robust infrastructure and investment in port facilities further consolidate its dominance in the marine bunker oil market.
The report provides a detailed analysis of these key players in the global marine bunker oil market. These players have adopted different strategies such as new product launches, collaborations, expansion, joint ventures, agreements, and others to increase their market share and maintain dominant shares in different regions. The report is valuable in highlighting business performance, operating segments, product portfolio, and strategic moves of market players to highlight the competitive scenario.
Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Wilmington, Delaware. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of "Market Research Reports" and "Business Intelligence Solutions." AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.
