Bunker Fuel Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Bunker Fuel Market is segmented by Fuel Type (High Sulfur Fuel Oil (HSFO), Very Low Sulfur Fuel Oil (VLSFO), Marine Gas Oil (MGO), Liquefied Natural Gas (LNG), and Other Fuel Types), Vessel Type (Containers, Tankers, General Cargo, Bulk Carrier, and Other Vessel Types), and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

Market Snapshot

Bunker Fuel Market - Market Summary
Study Period: 2019-2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: >13 %

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Market Overview

The global bunker fuel market was valued at USD 97 billion in 2019, and it is expected to reach USD 210 billion by 2027, registering a CAGR of more than 13% during the forecast period of 2022-2027. The pandemic slowed down and delayed shipping and ship crew movements in many countries and due to this, the logistics and supply chain industry was disrupted, resulting in major losses to the transportation sector, including shipping industry. This disruption was caused on both sides, i.e. demand side and supply side and thus it is likely to pave a way for permanently shutting down of some industrial manufacturing facilities leading to reduced global trade. This factor is expected to have a negative impact on the demand for global bunker fuel market. However, the increasing preference for LNG-based vessels and growing LNG trade is a significant factor in driving the bunker fuel market demand during the forecast period. Moreover, with the imposed restriction on HSFO, post-2020, VLSFO is expected to create substantial market demand. However, with increasing trade tension between different countries like the United States and China, high tariffs and other trade barries are being imposed on various goods. This factor is likely to hinder the market growth during the forecast period.

  • With International Maritime Organization's intervention to decrease the share of high sulfur fuel oil, the demand for LNG as a bunker fuel is expected to rise significantly during the forecast period.
  • Developing sea trade routes and rising international marine trade is expected to offer tremendous opportunities for marine fuel suppliers in the coming years.
  • Asia-Pacific is expected to dominate the market during the forecast period, with majority of the demand coming from countries like China, India, etc.

Scope of the Report

The bunker fuel market report includes:

Fuel Type
High Sulfur Fuel Oil (HSFO)
Very Low Sulfur Fuel Oil (VLSFO)
Marine Gas Oil (MGO)
Liquefied Natural Gas (LNG)
Other Fuel Types
Vessel Type
Containers
Tankers
General Cargo
Bulk Carrier
Other Vessel Types
Geography
North America
Asia-Pacific
Europe
South America
Middle-East and Africa

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Key Market Trends

LNG as Bunker Fuel to Witness Significant Growth

  • The global LNG bunkering market evolved over the past decade, driven by the growth in global LNG usage, clean energy demand, and its ability to reduce greenhouse gas emissions. The order and delivery of LNG-powered vessels are increasing, and the reduced natural gas prices in 2014 marked the beginning of expanding opportunities for such vessels.
  • LNG-based vessels' operational cost is expected to be the least among all the fuel alternatives as the new emission regulation is being implemented as mandated by International Maritime Organization.
  • Further, a gradual shift to LNG for propulsion is more advantageous than the traditional methods of fueling ships with heavy fuel oil, marine gas oil, marine diesel oil, etc. LNG-based propulsion reduces carbon footprint significantly and increases the ship's operational efficiency.
  • As of 2021, there are 229 LNG-fueled ships in operation, while 404 ships were in order (according to Sea LNG). This indicates the shipping industry’s commitment to the adopt LNG as a marine fuel across the globe.
  • The LNG bunkering industry also registered significant investments in the construction of infrastructure. As a result, the ship owners, particularly the ones that are operating in the European or American Sea, now prefer LNG-based vessels over conventional vessels. Furthermore, the LNG fueled ships have not penetrated the market for bulk carriers to a significant extent, as these ships are designed to carry heavy loads, and LNG technology is relatively new to apply for this type of vessels. The bulk carriers amount to the largest share of the in-operation ships.
  • Although, LNG presents an impressive use case as a bunker fuel ,it has not penetrated deeply in the bulk carrier sector which amounts to the largest share of the in-operation ships across the globe.
  • Thus, LNG as a bunker fuels presents an impressive picture and is likely to witness a widspread adoption as fuel of choice.
Bunker Fuel Market - Revenue Share by Fuel Type

Asia-Pacific to Dominate the Market

  • Asia-Pacific is expected to dominate the bunker fuel market due to the immense maritime trade potential of countries like India, China, Singapore, Japan, and other countries.
  • As of 2021, China ranks first for the exporter goods and second for the imported goods by value. China's major exports are mechanical and electric machinery and equipment, automotive products including vehicle parts, chemicals and plastics, iron and steel articles, furniture, etc.
  • Australia is among the biggest exporter of LNG globally. The rising LNG exports supported the international trade of Australia in 2019, however it contracted in 2020 due to pandemic as with every other country. The export volume is likely to go up again in the coming times as the pandemic eases all over the world.
  • To increase the share of the marine sector in international and domestic trade, the Indian government announced an investment of USD 22 billion by 2035 to modernize the existing ports and build new ports. The port infrastructure development is expected to increase the demand for the maritime industry and marine fuel suppliers in Asia-Pacific during the forecast period.
  • Therefore, based on the above-mentioned factors, Asia-Pacific is expected to dominate the global bunker fuel market during the forecast period.
Bunker Fuel Market - Growth Rate by Region

Competitive Landscape

The bunker fuel market is fragmented. Some of the major players in the market include Gazpromneft Marine Bunker LLC, Exxon Mobil Corporation, Royal Dutch Shell PLC, TotalEnergies SE, and BP PLC.

Recent Developments

  • In January 2022, Titan LNG secured the tender for the delivery of LNG in the Port of Marseille for Corsica Linea's new Ro-Pax LNG fuelled ferry. This partnership indicates the expansion of Titan LNG's operation into the Mediterranean that will enhance the availability of LNG, bioLNG, and in the longer run, hydrogen derived LNG in the region.
  • In December 2021, Minerva Bunkering started offering marine fuels at Saudi Arabia's Red Sea ports of Yanbu and Jeddah. The company is owned by Mercuria Energy Group and is working with Aramco Trading and Saudi Arabian Energy Ministry.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions

  2. 2. EXECUTIVE SUMMARY

  3. 3. RESEARCH METHODOLOGY

  4. 4. MARKET OVERVIEW

    1. 4.1 Introduction

    2. 4.2 Market Size and Demand Forecast in USD billion, till 2027

    3. 4.3 High Sulfur Fuel Oil, Very-low Sulfur Fuel Oil, Marine Diesel Oil, and LNG bunkering Consumption, 2018-2027

    4. 4.4 Scrubbed and Un-scrubbed High Sulfur Fuel Oil Consumption, in million barrels per day, 2018-2027

    5. 4.5 List of the Ship Owners, Global as of 2020

    6. 4.6 List of Bunkering Companies, Global, as of 2020

    7. 4.7 Recent Trends and Developments

    8. 4.8 Government Policies and Regulations

    9. 4.9 Market Dynamics

      1. 4.9.1 Drivers

      2. 4.9.2 Restraints

    10. 4.10 Supply Chain Analysis

    11. 4.11 Porter's Five Forces Analysis

      1. 4.11.1 Bargaining Power of Suppliers

      2. 4.11.2 Bargaining Power of Consumers

      3. 4.11.3 Threat of New Entrants

      4. 4.11.4 Threat of Substitutes Products and Services

      5. 4.11.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Fuel Type

      1. 5.1.1 High Sulfur Fuel Oil (HSFO)

      2. 5.1.2 Very Low Sulfur Fuel Oil (VLSFO)

      3. 5.1.3 Marine Gas Oil (MGO)

      4. 5.1.4 Liquefied Natural Gas (LNG)

      5. 5.1.5 Other Fuel Types

    2. 5.2 Vessel Type

      1. 5.2.1 Containers

      2. 5.2.2 Tankers

      3. 5.2.3 General Cargo

      4. 5.2.4 Bulk Carrier

      5. 5.2.5 Other Vessel Types

    3. 5.3 Geography

      1. 5.3.1 North America

      2. 5.3.2 Asia-Pacific

      3. 5.3.3 Europe

      4. 5.3.4 South America

      5. 5.3.5 Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 Fuel Suppliers

        1. 6.3.1.1 Exxon Mobil Corporation

        2. 6.3.1.2 Royal Dutch Shell PLC

        3. 6.3.1.3 Gazpromneft Marine Bunker LLC

        4. 6.3.1.4 BP PLC

        5. 6.3.1.5 PJSC Lukoil Oil Company

        6. 6.3.1.6 TotalEnergies SE

        7. 6.3.1.7 Chevron Corporation

        8. 6.3.1.8 Clipper Oil

        9. 6.3.1.9 Gulf Agency Company Ltd

        10. 6.3.1.10 Bomin Bunker Holding GmbH & Co. KG

      2. 6.3.2 Ship Owners

        1. 6.3.2.1 AP Moeller Maersk A/S

        2. 6.3.2.2 Mediterranean Shipping Company SA

        3. 6.3.2.3 China COSCO Holdings Company Limited

        4. 6.3.2.4 CMA CGM Group

        5. 6.3.2.5 Hapag-Lloyd AG

        6. 6.3.2.6 Ocean Network Express

        7. 6.3.2.7 Evergreen Marine Corp Taiwan Ltd

        8. 6.3.2.8 Yang Ming Marine Transport Corporation

        9. 6.3.2.9 HMM Co. Ltd

        10. 6.3.2.10 Pacific International Lines Pte Ltd

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Bunker Fuel Market market is studied from 2019 - 2027.

The Bunker Fuel Market is growing at a CAGR of >13% over the next 5 years.

The Bunker Fuel Market is valued at 97 Billion USD in 2019.

The Bunker Fuel Market is valued at 210 Billion USD in 2027.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2021.

Exxon Mobil Corporation, BP Plc, Royal Dutch Shell Plc, Gazpromneft Marine Bunker LLC, TotalEnergies SE are the major companies operating in Bunker Fuel Market.

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