Global IMO 2020 Compliant Marine Oil Market Size By Type (Ultra-low Sulfur Fuel Oil (ULSFO)/Distillate/Marine Gas Oil (MGO), Very-low Sulfur Fuel Oil (VLSFO)), By Application (Oil Tankers, Bulk Carriers), By Geographic Scope And Forecast
Published Date: August - 2024 | Publisher: MIR | No of Pages: 320 | Industry: latest updates trending Report | Format: Report available in PDF / Excel Format
IMO 2020 Compliant Marine Oil Market Size And Forecast
IMO 2020 Compliant Marine Oil Market size was valued at USD 26505 Million in 2021 and is projected to reach USD 46217.31 Million by 2030, growing at a CAGR of 7.21 % from 2022 to 2030.
The IMO 2020 Compliant Marine Oil Market will grow owing to improved benefits for the environment and human health. Its advantages in terms of promoting the adoption of new fuel specifications will boost market demand. It has significant potential for the marine oil market because it leads to gradual changes in the environment by reducing the amount of sulphur oxide produced by ships. It has also become a long-term fuel alternative for international shipping’s decarburization. In addition, the industry is undergoing a big shift and is aiming to improve technology in order to achieve future growth.
Global IMO 2020 Compliant Marine Oil Market Definition
Okay, so basically, there's this rule called "IMO 2020" that's making a big difference. It's all about cutting down the sulphur in the fuel ships use when they're out on the open ocean – outside those special emission control areas, of course. We're talking a drop from 3.5 percent to just 0.50 percent m/m (that's mass by mass). Certain areas already had stricter limits, but now, thanks to a change to Annex VI of the International Convention for the Prevention of Pollution from Ships, this new limit is the law of the sea, or MARPOL, as it's known. Speaking of fuel, it all has to meet certain quality standards (regulation 18.3 of IMO MARPOL Annex VI). Like, it can't have extra stuff added in, or chemical waste, that could mess with the ship's safety or make its engines run poorly.
So, how are ships dealing with the new rules about sulfur? Well, they have a few choices. They can install these things called scrubbers on their existing ships – basically, they clean the exhaust from the cheap, dirty High Sulphur Fuel Oil (HSFO), also called bunker fuel. Or, they can switch to cleaner fuels like Very Low Sulfur Fuel Oil (VLSFO), Marine Gas Oil (MGO), or even Liquefied Natural Gas (LNG). Why bother? Because cutting down on sulphur oxide (SOx) emissions from ships is a huge win for everyone's health and the environment, especially for those living near ports and coastlines. Sulphur oxides are nasty stuff – they mess with your breathing, heart, and lungs. Plus, when SOx goes into the air, it causes acid rain that damages crops, forests, and all sorts of aquatic life, and it even contributes to ocean acidification.
Before the new rules kicked in, almost every ship was chugging along on heavy fuel oil. This stuff, basically a leftover from refining crude oil, had a crazy high sulphur content, which meant nasty emissions after it burned in the engine. Now, most ships are using very low sulphur fuel oil (VLSFO) to meet the standard, and the International Maritime Organization (IMO) hasn't heard about any safety problems. It looks like ultra-low Sulphur marine oil will be the big earner in the global IMO 2020 Compliant Marine Oil Market because it's just better at cutting pollution. Plus, let's be real, switching to liquefied natural gas or installing scrubbers is expensive, and with all the uncertainty around how the rules will actually be enforced, it's making people hesitant. And who knows what's going to happen with liquid natural gas pricing and whether you can even get it at all the ports you need in the future?
Global IMO 2020 Compliant Marine Oil Market Overview
Since the IMO 2020 rules came into play, the market for compliant maritime oil has become a pretty big deal. Think about itit could actually help the marine climate by cutting down on those nasty sulphur oxide emissions from ships! Plus, it might be a viable, long-term fuel option as we try to decarbonize global transportation. Honestly, the IMO 2020 guideline is super important to get those climate and human well-being wins we're after. I mean, we need it! But, this switch to lower sulfur limits? It's bound to shake things up for the global shipping and refining industries big time. Speaking of which, Sinopec Corp. is already producing low-sulfur fuel oil (VLSFO) at 10 refineries in China, including Zhenhai Refining and Chemicals Co, Jinling Petrochemical Co, and Hainan Petrochemical Co.
By 2020, the organization hopes to reach the annual VLSFO limit of 10 million tonnes, with a goal of increasing it to 15 million tons by 2023. In November, Indian Oil Corporation delivered the first 0.5 percent LSFO dugout conveyances to Kendal, Cochin, and Paradeep ports. The consistent fuel is likewise being made accessible at Mumbai, Mangalore, Tuticorin, Chennai, Visakhapatnam, Paradip, and Haldia Ports. Transportation organizations are pushing ahead with multi-million-dollar ventures to introduce scrubbers, regardless of worries that a narrowing spread among high and low sulfur fuel costs could defer the profit for those speculations.
Things started out great! The "on-off" approach worked well at first. You see, the costs of high-sulfur fuel dropped compared to low-sulfur fuel, and that was a huge help in getting the market going. This really boosted development. However, now we're facing a couple of challenges. The high cost of running ships on IMO 2020 compliant marine oil, and the fact that more and more people are looking for other options, are definitely slowing things down. These are some of the elements that are controlling the market development.
Global IMO 2020 Compliant Marine Oil Market Segmentation Analysis
The Global IMO 2020 Compliant Marine Oil Market is Segmented on the basis of Type, Application, And Geography.
Based on Type, the market is bifurcated into Ultra-low sulfur fuel oil (ULSFO)/Distillate/Marine Gas Oil (MGO) and Very-low sulfur fuel oil (VLSFO). In 2018, the ultra-low sulphur fuel oil category led the global IMO 2020 Compliant Marine Oil Market, and this dominance is expected to continue during the forecast period (2022-2030). Engine manufacturers and regulatory agencies have discovered that using emissions control devices in combination with ULSD can reduce ozone precursor and particulate matter emissions to near-zero levels.
IMO 2020 Compliant Marine Oil Market, By Application
• Oil Tankers• Bulk Carriers• General Cargo• Container Ships• Gas Carriers• Others
Based on Application, the market is bifurcated into Oil Tankers, Bulk Carriers, General Cargo, Container Ships, Gas Carriers, and Others. The Gas Carriers segment is expected to grow at the highest CAGR in the forecast period. Any disruption in the operations of these ships would adversely affect the trade and economy.
IMO 2020 Compliant Marine Oil Market, By Geography
• North America• Europe• Asia Pacific• Rest of the World
On the basis of regional analysis, the Global IMO 2020 Compliant Marine Oil Market is classified into North America, Europe, Asia Pacific, and the Rest of the world. With the highest market share of ~48.14 percent in 2019, Asia-Pacific dominated the global IMO 2020 Compliant Marine Oil Market. The most important region for the IMO 2020 Compliant Marine Oil Market is Asia-Pacific, which includes significant countries such as Singapore and China. Because the majority of the country is in emission-control areas and uses compliant fuel oil, the United States gained a significant market share in North America in 2019.
Key Players
The “Global IMO 2020 Compliant Marine Oil Market” study report will provide valuable insight with an emphasis on the global market. The major players in the market are BP p.l.c., Exxon Mobil Corporation, Chevron Corporation, Royal Dutch Shell plc, China Petrochemical Corporation, Petrobras, PetroChina Company Limited, Indian Oil Corporation Ltd, Total, and Gazpromneft Marine Bunker Ltd.
Our market analysis also entails a section solely dedicated for such major players wherein our analysts provide an insight to the financial statements of all the major players, along with its product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share and market ranking analysis of the above-mentioned players globally.
Key Developments
• In April 2021, BHP completes its first refueling of the ship with biofuel. When compared to conventional residual fuel oils, the biofuel blend utilized is said to minimize well-to-exhaust CO2 emissions by 80% to 90%.
• In October 2020, JERA starts the LNG bunkering business in central Japan. The effort aims to build the infrastructure needed for LNG-fueled carriers and encourage ship conversions to LNG fuels in order to help the IMO meet its goal of halving greenhouse gas emissions from shipping by 2050 compared to 2008.
Report Scope
REPORT ATTRIBUTES
DETAILS
Study Period
2018-2030
Base Year
2021
Forecast Period
2022-2030
Historical Period
2018-2020
UNIT
Value (USD Million)
Key Companies Profiled
BP p.l.c., Exxon Mobil Corporation, Chevron Corporation, Royal Dutch Shell plc, China Petrochemical Corporation, Petrobras, PetroChina Company Limited, Indian Oil Corporation Ltd.
Segments Covered
By Type
By Application
By Geography
Customization Scope
Free report customization (equivalent to up to 4 analysts’ working days) with purchase. Addition or alteration to country, regional & segment scope
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