Market Overview:
Bunker fuel is a type of fuel used by ships and other marine vessels to power their engines. It is crucial for the smooth operation of the global shipping industry. Bunker fuels provide various advantages, such as high energy density and cost-effectiveness, making them ideal for long-distance transportation. The growing demand for international trade and the increasing number of container ships and bulk carriers are driving the market's growth. Additionally, strict environmental regulations are pushing the demand for cleaner bunker fuel options, such as low sulfur fuel oil and liquefied natural gas (LNG), further stimulating market expansion.
Market Key Trends:
One key trend in the bunker fuel market is the shift towards low sulfur fuel oil (LSFO) due to environmental regulations. The International Maritime Organization (IMO) has implemented stricter sulfur emissions limits for ships, requiring them to reduce emissions to 0.5% sulfur content beginning in 2023. This has led to an increased adoption of LSFO, which contains sulfur within the permissible limits. LSFO reduces sulfur dioxide emissions, helping to minimize the environmental impact of shipping activities. Moreover, the use of LSFO can also lead to compliance with existing and upcoming regulations, such as the Emission Control Areas (ECAs), further promoting market growth. As a result, various market players, including Chemoil Energy Limited, Aegean Marine Petroleum Network, Inc., and World Fuel Services Corporation, are focusing on developing and supplying LSFO to meet the growing demand for cleaner bunker fuels.
The Bunker Fuel Market is estimated to be valued at US$ 26.93 Billion in 2023 and is expected to exhibit a CAGR of 7.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Segment Analysis:
Based on fuel grade, the market can be divided into marine gas oil (MGO), intermediate fuel oil (IFO), and others. In 2023, the IFO segment dominated the market due to its cost-effectiveness and widespread usage in the shipping industry. However, the MGO segment is expected to witness significant growth during the forecast period. This can be attributed to the increasing environmental regulations and the shift towards cleaner and low-sulfur fuels. The MGO segment is being preferred by ship owners to comply with the emission standards set by the International Maritime Organization (IMO).
Based on application, the market can be categorized into container vessels, tankers, bulk & general cargo vessels, and others. The container vessel segment dominated the market in 2023 and is expected to maintain its dominance during the forecast period. The growth of this segment can be attributed to the increasing global trade activities and the rising demand for container transportation. Container vessels are extensively used for transporting goods across regions, driving the demand for bunker fuel.
Key Takeaways:
The global bunker fuel market is expected to witness high growth, exhibiting a CAGR of 7.1% over the forecast period. This growth can be attributed to several factors. Firstly, the increasing maritime trade activities and the expansion of the shipping industry are driving the demand for bunker fuel. Growing international trade has led to an increase in the number of vessels, which, in turn, boosts the consumption of bunker fuel.
Regionally, Asia Pacific is the fastest-growing and dominating region in the global bunker fuel market. This can be attributed to the presence of major shipping hubs such as China, Japan, South Korea, and Singapore in the region. These countries have a significant share in global maritime trade, driving the demand for bunker fuel. Additionally, increasing industrialization and infrastructure development in countries like India and Indonesia further contribute to the growth of the market in this region.
Key players operating in the bunker fuel market include Chemoil Energy Limited, Aegean Marine Petroleum Network, Inc., World Fuel Services Corporation, Gulf Agency Company Ltd., Gazpromneft Marine Bunker LLC, BP Marine Ltd., Exxon Mobil Corporation, Royal Dutch Shell plc, Bunker Holding A/S, and Lukoil-Bunker LLC. These key players have a strong presence in the market and utilize various strategies such as mergers, acquisitions, and collaborations to strengthen their market position.
Read More: https://www.ukwebwire.com/bunker-fuel-market-growing-maritime-industry-trend-and-share-analysis/
