The bunker fuel market size was valued at $109.6 billion in 2020, and is estimated to reach $164.9 billion by 2030, growing at a CAGR of 4.3% from 2021 to 2030, says an article published on whatech website.
Market Growth And Trends
The bunker fuel market, valued at $109.6 billion in 2020, is poised for substantial expansion, with an estimated reach of $164.9 billion by 2030, exhibiting a CAGR of 4.3% from 2021 to 2030, according to a recent report by Allied Market Research.
Defining Bunker Fuel
Bunker fuel, integral for ships engaged in international travel, is stored in bunkers aboard ships to power their engines. Originating from storage tanks on ports and ships, it was initially referred to as coal bunker but is now commonly known as a bunker fuel tank.
Market Drivers And Challenges
The rise in marine trade and oil & gas exploration activities in emerging regions has spurred demand for bunker fuel. However, initiatives by the shipping industry to reduce fuel consumption, coupled with stringent environmental regulations, are challenging market growth. The shift towards alternative fuels like liquefied natural gas (LNG) is a notable response to environmental concerns.
Segmentation And Regional Analysis
Low sulfur fuel oil, accounting for 65.17% of the market share in 2020, is expected to dominate due to the implementation of IMO-2020 regulations. Commercially, oil majors, particularly dominant in crude oil tanker chartering, lead in revenue. The container segment, driven by increased cargo transportation demand, holds the largest share and is projected to grow at a CAGR of 4.6%.
Asia-Pacific emerged as the dominant region in 2020, with over 47.04% of the market share, attributed to a substantial consumer base and increased maritime trade activities, particularly in China, Japan, Singapore, South Korea, and India.
Key Players And COVID-19 Impact
Major industry participants include BP, Exxon Mobil, Royal Dutch Shell, Lukoil, Sinopec Group, Gazprom Neft, Chevron, PETRONAS, Total, and Neste. The COVID-19 pandemic affected the market, leading to a decline in marine fuel demand and fluctuations in low sulfur bunker fuel sales. Despite challenges, the implementation of IMO-2020 regulations drove demand for very low sulfur fuel oil.
Conclusion And Future Outlook
The bunker fuel market faces challenges from both industry initiatives for reduced fuel consumption and stringent environmental regulations. However, the focus on alternative fuels and opportunities in developing countries, such as India, Japan, and China, presents avenues for growth. The industry’s key players are employing various strategies to navigate these challenges and influence market dynamics.
Key Findings Of The Study
- In 2020, low sulfur fuel oil dominated the global bunker fuel market and is expected to continue its dominance.
- The oil major segment accounted for a significant share in 2020 and is anticipated to maintain dominance.
- The container segment held a substantial market share in 2020 and is projected to grow at a rate of 4.6% in terms of revenue.
- Low sulfur fuel oil is the fastest-growing fuel type in the Asia-Pacific bunker fuel market.
- Asia-Pacific is expected to register the fastest growth throughout the forecast period.
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Source: whatech
