Bunker Fuel Market: Growing Sea Commerce to Drive Growth
The bunker fuel market is expected to register slow but steady growth in the near future. The bunker fuel market is likely to grow significantly, thanks to the growing international commerce through sea routes. The market is expected to register a 3.1% CAGR during 2014-2020. Bunker fuel is made up of various oil extracts such as diesel, petroleum products among others. Bunker fuel is a loosely coined term, used for various energy resources which make way for operating naval vessels. Bunker fuels consist of major operating expenses for a ship and the high-reliance of ships on conventional forms of energy for reliability and cost-efficiency are likely to drive the bunker fuel market further in the near future.
Additionally, the cost-effectiveness of transporting goods through large sea shipments are also expected to drive growth of the bunker fuel market. Increasingly global commerce is making way for more commercial cooperation and opportunities for several countries across the world. This is expected to run into a few roadblocks as well. Growing environmental regulations, closely monitored trade routes, and dangers across unstable regions of the world can limit the growth of the bunker fuel market in the near future. However, despite the limitations, the bunker fuel market will reach 460 mn tons of volume by 2020, according to a new report by Transparency Market Research.
Bunker Fuel Market: Offshore Exploration a Key Opportunity
Offshore exploration has become extremely important for major players in the bunker fuel market. Declining reserves of oil, growing prices, and lack of feasible alternatives to petroleum are driving offshore exploration. This activity is taking place across the world, however the activity is rampant in North Sea and Atlantic Ocean. Major countries like the US have provided incentives through national policy to explore oil reserves. Many key economies in the world are dependent on oil reserves to drive various commercial activities. Additionally, countries like the US with several Oil extracting giants with advanced technology stand to gain significantly from the current explorations. The growing demand for oil, rising oil exploration activity, and booming exploration in Africa and Middle East is also expected to drive growth for the bunker fuel market in the near future.
However, tightening environmental regulations like measures such as reduction in sulfur compounds can be a threat to market prospects. Sulfurous compounds make a up a significant amount of bunker fuel products. Hence, this regulation like the one recently passed in EU are expected to lower sulfur compound compositions and limit the growth of the market.
Global Bunker Fuel Market: Asia Pacific and Europe to Create New Opportunities
The global bunker fuel market is expected to register steady growth. Asia Pacific and Europe may play a key role in this development. Singapore is becoming a leading hub for global commerce and it is likely to remain important in the near future. Additionally, China’s various commercial activities and its growing clout as a manufacturing hub are expected to drive significant growth in the bunker fuel market.
Moreover, Europe is also expected to play a key role as rising trade activity in North Sea, Mediterranean, and Baltic are expected to result in significant advances for global commerce. Additionally, the large capacity of EU markets to accommodate several new players is also expected to result in growth of commercial activity through growth in the bunker fuel market. Many European companies are also undertaking large initiatives to up the oil exploration and offshoring activity, which will drive growth in the bunker fuel market.
This research study analyzes the market for bunker fuel in terms of volume and revenue. The bunker fuel market has been analyzed on the basis of fuel grade, end-user, seller type, and geography. For the research, the base year is 2013, while the forecast is for the period 2014–2020. Market data for all the segments have been provided on the regional level for the period 2013–2020. A comprehensive competitive landscape has also been included in the report, comprising companies involved in the bunkering business. Value chain analysis and Porter’s Five Forces model have also been included for the market, to provide a clear understanding regarding the dynamics of the industry.
Porter’s Five Forces and value chain analysis have been carried out with respect to suppliers of bunker fuel. These high level analyses provide detailed insights into the business of bunker suppliers, traders, and brokers globally. Major drivers, restraints, and opportunities of the bunker fuel market were analyzed in detail with supporting graphs and tables. There are currently numerous drivers for the bunker fuel industry. One of the most prominent drivers is the growing demand for fuel for container ships and tanker vessels. The rapidly evolving demand patterns for various fuel grades due to implementation of sulfur emission norms in different regions was analyzed in detail in the report. Market attractiveness analysis was carried out for the bunker fuel industry based on geography. In the market attractiveness analysis, the bunker fuel industry was analyzed regionally and ranked on the basis of a number of parameters that directly impact the attractiveness of the market. Port market share has also been included in this report to offer a better overview of major bunkering destinations. In this segment, the major bunkering ports were analyzed on the basis of bunker volume traded in 2013. Apart from this, a separate segment has been incorporated for port analysis. Also, the three largest bunkering ports in the world – Singapore, Rotterdam, and Fujairah – have been analyzed separately in this segment.
The fuel grades traded at different ports comprises IFO 380, IFO 180, IFO Others, and MGO/MDO. The IFO Others segment includes IFO 500, IFO 700, LS 380, and LS 180 fuel grades. The seller segment of the bunker market has been segmented into major oil companies, leading independent distributors, and small independent distributors. Key end-users for bunker fuel were identified as container vessels, tanker fleets, bulk & general cargo vessels, and other vessels. The bunker market was analyzed across five geographies: North America, Europe, Asia Pacific, the Middle East, and Rest of the World (RoW). The RoW segment comprises South and Central America, and Africa. Regional data has been provided for each sub-segment of the bunker market. The bunker consumption figures for each region have been sub-segmented on the basis of fuel grade, end-use, and seller type. Key market participants in the bunkering business include Chemoil Energy Limited, Aegean Marine Petroleum Network, Inc., and World Fuel Services Corporation. The report provides an overview of these companies, followed by their financial revenue, business strategies, and recent developments.
The market size for bunker fuel has been estimated by studying the possible future environmental regulation trends in the market. Detailed research of sulfur regulations in different regions has been undertaken to estimate and forecast the consumption and investments in the bunker fuel industry. The global bunker fuel market has been segmented as below:
Bunker Fuel Market: Fuel Grade Analysis
- IFO 380
- IFO 180
- IFO Others
Bunker Fuel Market: End User Analysis
- Container Vessels
- Tankers Vessels
- Bulk & General Cargo Vessels
- Other Vessels
Bunker Fuel Market: Seller Type Analysis
- Major Oil Companies
- Leading Independent Distributors
- Small Independent Distributors
Bunker Fuel Market: Regional Analysis
- North America
- Asia Pacific
- Middle East
- Rest of the World (RoW)