Very Low Sulphur Fuel Oil Market Research Report By End User (Shipping, Power Generation, Industrial Boilers, Other Industries), By Sulphur Content (0.5% Sulfur, 0.1% Sulfur), By Application (Main Engine, Auxiliary Engine, Boiler), By Viscosity Grade (IFO

The market for very low sulfur fuel oil is anticipated to expand at a compound annual growth rate (CAGR) of approximately 7.15% over the course of the forecast period.

As international laws to reduce marine emissions tighten, there is a surge in demand for Very Low Sulphur Fuel Oil (VLSFO). The allowable sulphur level in ship fuel has been drastically reduced by the International Maritime Organization's (IMO) 0.5% global sulphur cap on marine fuels. Demand for VLSFO, which satisfies the new requirements, has increased as a result.

The development of new VLSFO sources, research on alternative low-sulfur fuels, and investments in VLSFO refineries and blending facilities are some recent trends. As the maritime industry works to adhere to environmental standards and lessen its carbon footprint, these factors contribute to a growing market for VLSFO.

One of the main factors propelling the market for very low sulfur fuel oil is the growing need for cleaner fuel sources. Governments throughout the world are enforcing stronger laws on ship emissions of sulfur as environmental concerns grow. Due to this, there is now a greater need for very low sulphur fuel oil (VLSFO), which has far less sulphur than conventional bunker fuels. VLSFO enhances air quality and lowers air pollution, especially in ports and coastal regions.

The market for very low sulfur fuel oil is expanding as a result of technological developments in fuel manufacturing. In order to create VLSFO that satisfies the ever-tougher environmental criteria, refineries are investing in innovative technologies. These technologies provide cleaner fuel products by removing sulfur from crude oil through advanced refining procedures.

Perspectives on Market Segments
In 2024 and beyond, the shipping sector is expected to account for a sizable portion of the global Very Low Sulphur Fuel Oil (VLSFO) market. Stricter rules enforced by the International Maritime Organization (IMO) to lower sulphur emissions from ships are the main cause of the growing demand for VLSFO in the maritime industry. In the market for very low sulfur fuel oil, the sulfur content sector is quite important.

The market for very low sulfur fuel oil is divided into three application segments: boiler, auxiliary engine, and main engine.

The market's viscosity grade section is divided into three categories: MGO, IFO 180, and IFO 380.

The market for very low sulfur fuel oil is divided into refinery and hydrocracker segments based on source.

Regional Perspectives
The markets for very low sulfur fuel oil are divided into MEA, South America, Europe, Asia Pacific, and North America. APAC is anticipated to develop at the quickest rate among these areas throughout the course of the projection period. Some of the biggest economies in the world, like China and India, are based in this region and are rapidly becoming more industrialized and urbanized. The need for energy, including Very Low Sulfur Fuel Oil, has increased as a result. Furthermore, the region's government laws are getting stricter, which is encouraging the use of greener fuels like Very Low Sulphur Fuel Oil.

The market for very low sulfur fuel oil was estimated to be worth USD 164.11 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 7.15% to reach USD 305.4 billion by 2032. The market's expansion is mostly ascribed to rising demand from the transportation, industrial, and power generating sectors. Furthermore, strict government restrictions aimed at reducing air pollution and growing environmental concerns are anticipated to drive market expansion.

Key Players
Shell, ExxonMobil, Chevron, Shell Gas Power, TotalEnergies, Saudi AramcoNewparaCNOOC, PTT Chemical, Glencore, Trafigura, Vitol, BP, Reliance Industries, Gunvor, and Sinopec are important players in the market for very low sulfur fuel oil.