The bunker fuel market comprises fuels used aboard vessels to power main and auxiliary engines, generators, and boilers. bunker fuel oils possess high viscosity and density that are used as combustible fuels in ship engines. They are used to power cargo ships, tankers, bulk carriers, and container ships. The adoption of fuel oils for shipping activities is growing owing to availability at lower prices as compared to other marine fuels such as liquefied natural gas (LNG).
The global Bunker Fuel Market is estimated to be valued at US$ 104 billion in 2023 and is expected to exhibit a CAGR of 6.6% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Digitization is one of the key trends propelling the growth of the global bunker fuel market. The implementation of advanced technologies across marine shipping industry has enabled real-time monitoring of bunker quality, optimized procurement, and improved supply chain management. Use of cloud computing, Internet of Things (IoT), and blockchain is growing to streamline digital processes involved in marine fuel procurement. This is helping shipping companies make well-informed decisions, minimize risks of fuel contamination, improve supply chain transparency, and drive operational efficiencies. Growing use of digital solutions to optimize bunker fuel management is expected to support the market growth over the forecast period.
SWOT Analysis
Strength: Bunker fuel has a well-established supply chain and distribution infrastructure across major ports. It is a widely available and cost-effective fuel for marine vessels.
Weakness: Bunker fuel is one of the dirtiest fuels and emits toxic pollutants like sulfur oxides upon combustion. Stringent environmental regulations to curb emissions pose operational challenges.
Opportunity: The international maritime organization's regulations to reduce bunker fuel sulfur content from January 2020 create opportunities for companies involved in production and distribution of compliant low-sulfur fuels.
Threats: Alternative clean fuels like LNG for ships and stringent emission norms across countries threaten the demand and consumption of conventional bunker fuel. Adoption of new fuel technologies by shipping lines can disrupt the bunker fuel market.
Key Takeaways
The global bunker fuel market is expected to witness high growth.
Regional analysis: Asia Pacific dominates the global bunker fuel demand and consumption. The region accounts for over 60% of worldwide bunker fuel sales led by countries like China, Singapore, India and Japan. Major shipping lanes and busiest ports in the world along with growing seaborne trade have made Asia Pacific the centre of bunker fuel market.
Key players operating in the bunker fuel market are Shell International BV, BP PLC, China Marine Bunker, Bunker Holding, World Fuel Services, Exxon Mobil, Sentek Marine & Trading, and Southern Pec. Stringent IMO regulations have led to reconstitution of the industry. Leading suppliers are focused on expanding low sulfur fuel production and build infrastructure for handling multiple cleaner fuels to adapt to the changing dynamics. Regional mid-tier companies are exploring strategic partnerships for sourcing and supply of compliant fuels globally.
For more Insights, Read –
Check more trending articles related to this topic:
Arabic
French
Spanish
Portuguese
Deutsch
Turkish
Dutch
Italiano
Russian
Romaian
Portuguese (Brazil)
Greek