In 2017, the global market for bunker fuel reflected a value higher than US$ 140 Bn and it is projected to grow at a high CAGR of 7.4% throughout the period of assessment, 2017-2025. This high growth is attributed towards increasing hydrogen resource development activities in offshore areas resulting in increased requirement for bunker fuel and rapidly increasing bunker requirements in crude oil and product tankers. On the other hand, factors like fuel reduction initiatives by global shipping industry and emergence of LNG fuel technology as an alternative to bunker fuel are expected to challenge the growth of the global bunker fuel market in the coming years.
Other IFO segment to cement its dominance in the global market over the period of assessment
Type category is one of the most important categories defining the bunker fuel market. Other IFO segment in the type category is the largest segment with a high market share and valuation. In 2017, this segment was the second largest with a value of around US$37 Bn. However, it is expected to gain high traction in the coming years and is estimated to reach a value higher than US$ 170 Bn by the end of the year of assessment (2025). This segment is projected to grow at the highest value CAGR of 21.1% during the period of forecast. Additionally, the other IFO segment is also expected to show a high volume CAGR during the 2017 – 2025 timeline. By 2025 end, the other IFO segment is expected to reflect a high market share of about 70% thus dominating the global market and significantly contributing to its revenue growth.
IFO 180 to lose growth points in the coming years; a huge decrease in BPS to strike IFO 180
IFO (Intermediate Fuel Oil) 180 segment in the type category is anticipated to lose its market value in the coming years. This segment lead the market in 2017 with a high value of US$ 77 Bn. It is also anticipated to continue its dominance till 2019.
However, after 2019, IFO 180 is poised to lose its market share. 2020-2025 timeline is expected to be unhealthy for the growth of this segment. IFO 180 is projected to grow at a negative value CAGR during this period and is anticipated to lose 4110 BPS by the end of the assessment period. IFO (Intermediate Fuel Oil) 380 segment in this category is also expected to grow at negative rate to reach an estimate of around US$ 5 Bn by the end of the assessment year. This major reason for these segments to witness negative growth is strict emission norms regarding sulfur emission and hence shipping companies are exploring different options of other fuel alternatives that reflect lower sulfur content.
Global Bunker Fuel Market: Competitive Landscape
The research report on the global market for bunker fuel covers competitive landscape that includes intelligence on various companies operating in the global market. Information including the company overview, SWOT analysis, product portfolio, geographical spread, key developments, expansion plans and various strategies is covered in the competitive assessment chapter. Some of the top companies such as ExxonMobil Corporation, Total S.A., Royal Dutch Shell Plc., Neste Oyj, Saudi Arabian Oil Company, Marathon Petroleum, Corporation, Valero Energy Corporation, Lukofil-Bunker LLC, OAO Gazprom and China Petroleum & chemical Corp (Sinopec Corporation) are profiled in this research report.