Bunker Fuel Market to receive overwhelming hike in Revenues by 2024 - Credence R

Posted by Robson Tolson on March 24th, 2017

In the latest report published by Credence Research, Inc. “Bunker Fuel industry: Growth, Future Prospects and Competitive Analysis, 2015-2020,” the  global bunker fuel industry was valued at US$ 244 Bn in 2014, and is expected to reach US$ 288.3 Bn by 2020, expanding at a CAGR of 2.8% from 2015 to 2020.

Industry Insights

The progress of the global bunker fuel industry is majorly attributed to the growing demand for fuel from tanker vessels and containers. Large-scale bunkering ports situated at strategic locations account for a significant share in the overall industry. Asia Pacific is observed to be the largest industry for bunker fuel both in terms of industry revenue and volume due to large commodity consumption in the region.

The complete report is available at http://www.credenceresearch.com/report/bunker-fuel-market

The European industry for bunker fuel is growing at a competitive growth rate due to existence of some of the busiest trade routes and choke points in the region. Furthermore, growing imports of goods and fuel oil in the region further contribute to the dominance of Asia Pacific in the global bunker fuel industry.

Bunker fuel is majorly utilized by shipping corporations, where residual fuel and distillate fuel are used for fueling fleets. Residual fuel currently dominates the bunker fuel industry among the available fuel types. Based on fuel grades, the global bunker fuel industry is majorly categorized into MDO/MGO, IFO 380, IFO 180, Other IFO (IFO 500 & 700), LS 380 and LS 180. IFO fuel are the most preferred fuel grades as against others due to their cheaper price. IFO 380 segment is further anticipated to continue to dominate the industry over the forecast period because a significant number of ship engines are fitted to combust IFO 380 fuel. Furthermore, as the expansion of emission control areas is progressing the demand for MDO/MGO type fuels is anticipated to grow.

Based on the sellers of bunker fuel, this industry is categorized into major oil companies, Leading independent distributors and small Independent distributors. Some industry players such as Chemoil Energy Limited and World Fuel Services Corp. function worldwide; whereas players such as Gazpromneft Marine Bunker LLC lead in regional industrys alone. Independent distributors have a critical advantage over small distributors that they have assets like strategically located storage terminals and blending facilities at various ports. In addition, leading independent distributors have an advantage over their counterparts that they have the financial stability to fund geographical expansion and also acquire small independent distributors.

Among the end users, bulk and general cargo vessels occupy the largest industry share in the global bunker fuel industry. However, since cargo vessels require significant manpower for operation these vessel type are being perpetually replaced by container vessels, thus contributing to their fastest growth rate during the forecast period. The major drivers of the global bunker fuel industry are swift increase in bunker requirements in product and fuel transport, and growing hydrocarbon resource development activities in offshore areas. On the other hand, increasing initiatives to reduce fuel consumption and emissions are challenging the growth of this industry.

The complete report is available at https://goo.gl/XhEBLu