Global Bunker Fuel Market Is Estimated To Witness High Growth Owing To Rising Research And Development Activities And Increasing Number Of Shipping Vessels

 

Bunker Fuel Market

Overview:

Bunker fuel is the fuel used on ocean-going ships to power their engines. The name comes from the area of a ship where the fuel is stored, called a bunker. Bunker fuel is often high-viscosity oil and must be heated to a lower, 'burnable' temperature before it can be pumped into the ship's engine to be burned as fuel. It is usually a residual product from the refinery processes after the lighter diesel and distillate fractions are removed. Other alternatives to bunker fuel include Liquefied Natural Gas (LNG), biomethane, and hydrogen. However, these fuels are currently too expensive to be competitive with high sulphur bunker fuels. They require additional infrastructure which would increase costs and make them suitable only for certain routes or specific ships such as ferries or cruise ships.

Market Dynamics:

Rising product launches are estimated to augment growth of the global bunker fuel market during the forecast period. For instance, a new “ECO Bunkers B30” biofuel was launched by PRIO, in February 2023. This newly launched biofuel is 30% blend of waste feedstock that was produced at their biodiesel plant. Moreover, rising fuel reduction initiatives and increasing concerns regarding carbon footprint are anticipated to restrain growth of the global bunker fuel market during the forecast period.

Impact of COVID-19:

The pandemic was first reported in China. In 2020, it was declared as a global public health emergency by the WHO. The pandemic also hampered the growth of several sectors across the globe. Trade was severely hampered due to the pandemic. Many nations imposed strict restrictions so as to prevent transmission of the virus. This led to shutting down of manufacturing units globally. Export and import activities were also banned owing to strict nationwide lockdowns in many countries. Travel bans were impose din many nations. This had a negative impact on the growth of global bunker fuel market. However, the market is estimated to witness growth as several restrictions have been resumed in the post-pandemic era.

Key Takeaways:

The global bunker fuel market is expected to witness significant growth, exhibiting CAGR of 5.4 % over the forecast period, due to increasing mergers among key players. For instance, KPI Bridge Oil and OceanConnect Marine, completed their merger in August 2020. This merger will help in solidifying their position in the market.

Asia-Pacific is anticipated to witness high growth in the global bunker fuel market during the forecast period, due to growing export of products and rising development of automotive industry.

Key players operating in the global bunker fuel market are Bright Oil and Sinopec, Gazpromneft Marine Bunker LLC, BP PLC, ExxonMobil Corporation, China Marine Bunker, Chemoil, Exxon Mobil, Bunker Holding, BP, and Bright Oil and Sinopec.