The Global Bunker Fuel Market Growth Accelerated By Increased Demand From Shipping Industry
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Bunker Fuel Market |
Bunker fuel is a type of fuel oil
used aboard vessels. It is typically used in steam ships and power vessels.
Bunker fuel is composed of the heavy bottom of the barrel during the oil
refining process. It is composed of residues left after gasoline, kerosene, and
diesel oil have been distilled away. Bunker fuel provides the thermal energy
needed for maritime transportation. It is used in diesel engines and boiler
rooms on cargo ships, cruise ships, naval vessels, and other marine vessels to
power their propulsion plants and energy needs. Being less expensive than other
marine fuels, it has emerged as the primary fuel for maritime transport.
The global bunker fuel market is
estimated to be valued at US$ 130 Bn in 2023 and is expected to exhibit a CAGR
of 6.6% over the forecast period 2023 to 2030, as highlighted in a new report
published by Coherent Market Insights.
Market Dynamics:
One of the major drivers for the
growth of the bunker fuel market is the growing international maritime trade.
About 90% of world trade is carried by international shipping and around 80% of
goods are transported by sea. With increasing globalization and trade exchanges
between countries across geographical borders, the demand for maritime
transportation has surged exponentially over the past few decades. Rising
imports and exports of raw materials, parts and components, consumer goods, and
other products via sea routes has stimulated the bunker fuel requirement of
cargo and container ships engaged in long-haul international voyages.
Growing international maritime
trade has led to an increase in the size of merchant fleet, with larger vessels
being constructed to undertake heavy payload shipments to distant global
destinations in a cost-effective manner. This has significantly boosted the
consumption of bunker fuel for powering the main engines and auxiliary systems
onboard mega container ships and very large crude carriers (VLCC). Besides,
greater maritime commerce has also expanded the annual mileage covered by
commercial shipping globally, raising bunker oil usage.
SWOT Analysis
Strength: The bunker fuel market
has seen steady growth over the past few years owing to rising seaborne trade.
As marine vessels are one of the largest consumers of bunker fuel, increasing
marine trade volumes have positively impacted demand. Bunker fuel is also
comparatively inexpensive to produce and transport over long distances via sea
routes.
Weakness: Bunker fuels such as
heavy fuel oil are some of the dirtiest fuels available. Their combustion emits
hazardous sulphur oxides and particulate matter which are detrimental to the
environment. Upcoming regulations for reducing emission of sulphur and other
pollutants from ships pose a major challenge. Additionally, price volatility of
crude oil affects the overall supply dynamics of bunker fuels.
Opportunity: Stringent emission
norms enforced by the International Maritime Organization (IMO) have
necessitated a shift towards cleaner marine fuels. The development and adoption
of alternatives like liquefied natural gas (LNG) as bunker fuel provide new
growth prospects. Hybrid electric engines and fuel cells too create
opportunities. Growing demand for fuel-efficient ships also promotes
eco-friendly technology adoption.
Threats: Volatility in crude oil
prices raises the input cost of bunker fuels. Geopolitical uncertainties and
supply disruptions threaten consistent availability. The COVID-19 pandemic
severely impacted global trade volumes and reduced ship activity, weakening
bunker fuel demand. Technologies like biofuels or electrification of ships, if
commercialized on a mass scale, may displace conventional bunker fuels to an
extent.
Key Takeaways
The Global
Bunker Fuel Market Demand is expected to witness high growth over the
forecast period of 2023-2030. The global Bunker Fuel Market is estimated to be
valued at US$ 130 Billion in 2023 and is expected to exhibit a CAGR of 6.6%
over the forecast period 2023 to 2030.
Asia Pacific currently dominates
the global bunker fuel market share and is projected to maintain its leading
position through 2030. China, Japan, South Korea and Singapore are major bunker
fuel consumers and ports in the region. Regulatory push for cleaner marine
fuels in premier shipping destinations like China and Japan position Asia
Pacific as an early technology adopter.
Key players operating in the bunker fuel market are Shell
International Petroleum Company Limited, Exxon Mobil Corporation, BP p.l.c.,
China Marine Bunker Co., Ltd, Bomin Bunker Oil Corp., GAC, Lukoil, World Fuel
Services Corporation. The market remains consolidated with the top five
companies accounting for over 50% of the global supply. Other smaller players
are increasingly investing in cleaner fuel research to gain first-mover
advantage.
Get More Insights Here
https://allmeaninginhindi.com/fiber-reinforced-concrete-the-construction-material-of-future/
https://www.newswirestats.com/bunker-fuel-market-size-share-growth-outlook-2023/
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