Global Fuel Oil Market Size By Product (Distillate Fuel Oil, Residual Fuel Oil), By Application (Transportation, Petrochemical Industry), By Geographic Scope And Forecast

Fuel Oil Market Size And Forecast

Fuel Oil Market size was valued at USD 181.3 Billion in 2022 and is presumed to grow to USD 260.1 Billion by 2030, growing at a CAGR of 4.61% from 2023 to 2030.

Major factors which drive the market growth include wide applications of oil in agriculture, the industry, electricity generation, domestic waterways, and road transportation. Moreover, economic development in several countries worldwide is a key factor driving the growth of the market. The Global Fuel Oil Market report provides a holistic evaluation of the market. The report offers a comprehensive analysis of key segments, trends, drivers, restraints, competitive landscape, and factors that are playing a substantial role in the market.

Global Fuel Oil Market Definition

Fuel oil, also known as furnace oil, is yellowish to the light-brown liquid mixture that consists of residues from crude oil distillation. The oil is primarily used for in abroad ships, power plants, and industrial plants. The oil is generally blended with other petroleum fractions in order to produce the desired flash point and viscosity. Fuel oils are generally classified into two types residual and distillate fuel oil. The distillate fuel oil is vaporized and condensed during the distillation procedure, so they have a certain boiling range and do not contain high boiling components. The residual fuel oils comprise deposits from the crude distillation of thermal cracking and generally are more complex in impurities and composition as compared to distillate fuel oils.

The growing demand for electricity for both domestic and commercial purposes combined with increasing applications of oil in furnaces and boilers for residential and commercial buildings are key factors that are projected to drive the market growth. Moreover, increasing industrialization and urbanization in countries in the Asia Pacific region, such as India, China, Singapore, Taiwan, and Hong Kong, among others, is expected to positively support the growth of the market.

Global Fuel Oil Market Overview

The increasing demand for oil among industries such as petroleum refineries and transportation across the globe is expected to drive market growth. For instance, according to an article by U.S. Energy Information Administration, the consumption of liquid fuels is expected to increase from 99.4 million barrels/day in 2022 to 100.9 million in 2023. The article states that China is expected to account for about half of the consumption in 2023. The forecasted consumption of fuel in the country is expected to increase by 0.7 million barrels/day. Despite the revisions by the department, it is expected that the inventory will build over the forecast period, and global oil production is expected to outpace the consumption globally.

Further, the high cost of production of biofuel production, lack of alternative fuels, and technology barriers in combined with the higher costs of the batteries are some of the key factors which are expected to contribute to the demand for oil. The increasing number of transport, commercial and domestic vehicles globally is expected to boost the growth of the market. For instance, according to data published by Gov.UK, the number of vehicles in England increased from 32.9 million in December 2019 to 33,6 million by the end of September 2022.

However, several countries globally are planning to shift from fossil fuel-based energy and power production to renewable sources such as hydro, wind, hydrogen-based, and production, which is projected to restrain the market growth. For instance, the Indian government announced it planned to reduce dependence on fossil fuels to reach net zero emissions by 2070 and meet fifty percent of its electricity demands through renewable sources by 2030.

Global Fuel Oil MarketSegmentation Analysis

The Global Fuel Oil Market is segmented on the basis of Product, Application, And Geography.

Fuel Oil Market, By Product

• Distillate Fuel Oil
• Residual Fuel Oil

To Get Summarized Market Report By Product-

Based on Product, the market is bifurcated into Distillate Fuel Oil and Residual Fuel Oil. The Distillate Fuel Oil segment is expected to dominate the market owing to the clean energy produced by the oil. Further, the cost of these oils per barrel is also higher than the residual fuel oils. The distillate oils, when burned in a boiler, emit low levels of particulate matter, nitric oxide, and Sulphur dioxide. Moreover, these oils have applications in vehicles or engines that are designed to work on diesel, such as jet fuel, diesel fuel DMX, DMA, etc. this is anticipated to further drive the growth of the segment.

Fuel Oil Market, By Application

• Transportation
• Petrochemical Industry
• Petroleum Refineries
• Others

To Get Summarized Market Report By Application-

Based on Application, the market is bifurcated into Transportation, Petrochemical Industry, Petroleum Refineries, and Others. The transportation segment is expected to be the largest contributor in the market owing to its wide applications in various transport vehicles. Vehicles operating on diesel engines, such as automobiles, trucks, railroad locomotive engines, and agricultural machinery, utilize distillate fuel oils which are expected to contribute to the growth of the market. Moreover, the maritime bunkering industry heavily relies on residual fuel oil, which is expected to positively impact market growth.

Fuel Oil Market, By Geography

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• Latin America

Based on Regional Analysis, the Global Fuel Oil Market is classified into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. Asia Pacific held the largest share of the market due to the presence of some of the largest refineries in countries such as India and China. For instance, the Jamnagar Refinery is the world’s largest oil refinery that is present in Gujrat and is operated by Reliance Industries. Despite this, the lucrative growth in the number of transportation vehicles in the region is expected to have a positive impact on the market growth in the region.

For instance, according to an article by AUTOCAR Professional, more than 287,000 passenger cars were sold in India as of 2023, an increase of more than 10% compared to the same period in the previous year. Despite this, North America and Europe are also expected to grow lucratively during the forecast period owing to the technological advancements undertaken by the regional players that considerably lower the time required for the procedures.

Key Players

The “Global Fuel Oil Market” study report will provide valuable insight with an emphasis on the global market. The major players in the market are BP PLC, Chevron Corp., Exxon Mobil Corp, JXTG Holdings Inc., PJSC LUKOIL, P.T. Pertamina, Qatar Petroleum, Reliance Industries Ltd., Shell PLC, SK Innovation Co. Ltd., Gazprom Neft PJSC, Total S.A., Rosneft, PetroChina, and Petrobras, among others. This section provides a company overview, ranking analysis, company regional and industry footprint, and ACE Matrix.

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with product benchmarking and SWOT analysis.

Key Developments

• In January 2023, BP PLC announced it was planning to expand its investment in the onshore oil and gas business in Texas and the Gulf of Mexico. The company will increase its investment by USD 2.4 billion in 2023 and increase by 14% as compared to USD 1.7 billion in 2022. The investment is expected to reduce the cost of fuel in the country.
• In December 2022, Cosmo Energy Holding, a Japanese energy company, announced it had signed a new agreement with Qatar Energy, where the company will continue its operation in A-Structures and Karkara oil fields.
• In April 2022, Shell PLC announced its subsidiary Shell Brasil had signed a production-sharing contract where it will acquire a 25% stake in the Atapu field in Brazil. The contract is expected to strengthen the company’s deep water positions in the country.

Ace Matrix Analysis

The Ace Matrix provided in the report would help to understand how the major key players involved in this industry are performing as we provide a ranking for these companies based on various factors such as service features & innovations, scalability, innovation of services, industry coverage, industry reach, and growth roadmap. Based on these factors, we rank the companies into four categories as Active, Cutting Edge, Emerging, and Innovators.

Market Attractiveness

The image of market attractiveness provided would further help to get information about the region that is majorly leading in the Global Fuel Oil Market. We cover the major impacting factors that are responsible for driving the industry growth in the given region.

Porter’s Five Forc