A recent report published by Infinium Global Research on very low sulfur fuel oil (VLSFO) market provides in-depth analysis of segments and sub-segments in the global as well as regional very low sulfur fuel oil (VLSFO) market. The study also highlights the impact of drivers, restraints, and macro indicators on the global and regional very low sulfur fuel oil (VLSFO) market over the short term as well as long term. The report is a comprehensive presentation of trends, forecast and dollar values of global very low sulfur fuel oil (VLSFO) market.
Very low sulfur fuel oil (VLSFO), with a sulfur content of 0.50% or less by weight containing up to 40% of the residue, is used primarily in the maritime sector, powering large vessels worldwide. Driven by its benefit of reducing the emissions of sulfur oxide which are harmful to the environment, the VLSFO is gaining its demand worldwide. However, they come with a high risk of instability and can potentially be hypersensitive to mixing with other fuels on board. The global market size of the VLSFO market is projected to grow at a CAGR of 15% expanding the TAM to USD 280 billion by the end of 2032.
The rising demand for VLSFO is being driven by regulations for significant reduction in sulfur emissions from marine ships. This has led to a substantial increase in production and availability of VLSFO, further driving the market. Additionally, the very low sulfur fuel oil (VLSFO) market is being driven by growing concerns regarding harmful emissions, as sulfur emissions are damaging to both human health and the environment.
The volatility in crude oil prices and the development of alternative fuels such as LNG, Hydrogen, and biofuels may restrain the growth of the very low sulfur fuel oil (VLSFO) market. However, technological innovation and infrastructure development offer lucrative opportunities for the VLSFO market, including improved refining procedures, blending innovations, and investment in storage and distribution networks.
Asia Pacific region is anticipated to dominate the very low sulfur fuel oil (VLSFO) market. The implementation of the International Maritime Organization's (IMO) 2020 regulations has led to surging demand for VLSFO in the region. The shipping industry is subject to stricter sulfur limits, augmenting the need for low-sulfur fuels as the primary marine fuel. The regional demand is primarily influenced by closeness to refineries, transportation infrastructure, local regulations, and demand patterns. Additionally, the region is a key trading hub for very low-sulfur fuel oil including Singapore, Hong Kong, and others, which serve as major supply & distribution centers.
Report Coverage | Details |
---|---|
Market Size in 2023 | USD 70 Billion |
Market Size by 2032 | USD 280 Billion |
Growth Rate from 2024 to 2032 | CAGR of 15% |
Largest Market | Asia Pacific |
No. of Pages | 180 |
Market Drivers |
|
Market Segmentation | By Product, and By Application |
Regional Scope | North America, Europe, Asia Pacific, and RoW |
The report on global very low sulfur fuel oil (VLSFO) market provides a detailed analysis of segments in the market based on Product, and Application.
· Heavy Fuel Oil
· Light Fuel Oil
· Petrochemical Industry
· Building Industry
· Transportation
· Others
· Exxon Mobil Corporation
· Shell
· BP
· Marathon Petroleum
· Mediterranean Fuels
· Indian Oil Corporation Ltd
· Saudi Arabian Oil Co.
· TotalEnergies
· Others
The report provides deep insights into demand forecasts, market trends, and micro and macro indicators. In addition, this report provides insights into the factors that are driving and restraining the growth in this market. Moreover, The IGR-Growth Matrix analysis given in the report brings an insight into the investment areas that existing or new market players can consider. The report provides insights into the market using analytical tools such as Porter's five forces analysis and DRO analysis of the very low sulfur fuel oil (VLSFO) market. Moreover, the study highlights current market trends and provides forecasts from 2024-2032. We also have highlighted future trends in the market that will affect the demand during the forecast period. Moreover, the competitive analysis given in each regional market brings an insight into the market share of the leading players.