LONDON--(BUSINESS WIRE)--The bunker oil market size is set to grow by 104.44 million MT accelerating at a CAGR of over 4%, during the period spanning over 2020-2024. One of the key factors driving growth is the increasing naval expenditure. Increasing security concerns and external threats have led many countries to increase their expenditure on enhancing defense capabilities. The growing LNG market is a significant trend that will further stimulate market growth. LNG is steadily gaining prominence among end-users due to its odorless, non-toxic, and non-corrosive nature.
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Parent Market Analysis
Technavio categorizes the global bunker oil market as a part of the global oil and gas storage and transportation market, within the global oil and gas market. The global oil and gas storage and transportation market covers companies engaged in the transportation and/or storage of gas, oil, and/or refined products. The oil and gas midstream or storage and transportation market is one of the three links in the overall oil and gas value chain. Growth in the global oil and gas market will be driven by the increasing global demand for energy.
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Bunker Oil Market: Geographic Segmentation
The report segments the market by geography: APAC, North America, Europe, MEA, and South America. About 43% of the market’s growth will originate from APAC during the forecast period. Increasing demand for fuel in China and India is driving the growth of the market in APAC. Singapore and China are the key markets for bunker oil in APAC.
Bunker Oil Market: Segmentation by Product
The residual fuel segment was the leading the market in 2019. Heavy fuels such as residual fuel are highly preferred in large ships. This is because larger engines can only efficiently burn fuels that have higher proportions of heavy fuel oil. These factors are crucial in driving the growth of the segment. This report provides an accurate prediction of the contribution of all the segments to the growth of the bunker oil market size.
Bunker Oil Market: Growth Drivers
The market is driven by increasing naval expenditure. Rising incidents of terrorist attacks and border disputes have led many countries to focus on strengthening their defense capabilities. This has increased the expenditure in the defense sector, which has also increased the overall naval spending. For instance, in March 2017, the People's Liberation Army (PLA) Navy division announced its plans to secure substantial new funding in China’s defense budget in 2017. Similarly, other countries such as Indonesia and South Korea have also increased their spending on the military during the past few years. Therefore, the increase in naval spending will positively influence the demand for bunker oil during the forecast period.
Bunker Oil Market: Challenges to Overcome
The adoption of slow-steaming is increasingly becoming popular in the shipping industry as it helps shipping companies to reduce fuel costs by up to one-seventh. Also, speed reduction has a direct impact on the drag of the vessel while sailing. This is leading to reduced fuel consumption, which is affecting the growth of the global bunker oil market.
Bunker Oil Market: Vendor landscape
This report provides information on revenue, organizational developments, and key go-to-market strategies of several leading bunker oil companies, including:
- BP Plc
- Chevron Corp.
- Exxon Mobil Corp.
- Hindustan Petroleum Corp. Ltd.
- Marquard & Bahls AG
- PetroChina Co. Ltd.
- Public Joint Stock Company Gazprom
- Royal Dutch Shell Plc
- Total SA
- Toyota Tsusho Petroleum Pte. Ltd.
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Technavio reports cover the following key research areas:
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- Market opportunity by segments
- Analysis of drivers of price sensitivity
- Key purchase criteria
- Customer purchase basket
- Impact of drivers and Challenges
- Factors of differentiation
- Landscape disruption
- Key industry risks
- Market position of vendors
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