Very Low Sulphur Fuel Oil (VLSFO) Market
Get a free sample of this report
Your inquiry has been received. Our team will reach out to you with the required details via email. To ensure that you don't miss their response, kindly remember to check your spam folder as well!
Form submitted successfully!
Error submitting form. Please try again.
Request Sectional Data
Your inquiry has been received. Our team will reach out to you with the required details via email. To ensure that you don't miss their response, kindly remember to check your spam folder as well!
Form submitted successfully!
Error submitting form. Please try again.
The global very low sulphur fuel oil market was valued at USD 68.4 billion in 2024 and is estimated to grow at a CAGR of 20% from 2025 to 2034. The International Maritime Organization's (IMO) implemented strict regulations in 2020 to reduce sulfur emissions in marine fuels. These regulations require shipping companies to transition to VLSFO for their vessels. Refineries have enhanced their production capabilities to manufacture compliant fuel that aligns with the new sulfur content limits further augmenting the business landscape.
Companies investing in infrastructure and technology to ensure continuous supply of VLSFO along with initiatives toward ensuring availability of VLSFO across bunkering ports will further influence the business dynamics. For instance, in April 2024, Kuwait Petroleum Corporation (KPC) has established a term agreement with Qatar Energy (QE) for the supply of very-low sulphur fuel oil (VLSFO). The agreement covers loadings from July 2024 through June 2025. The contract specifies a supply volume of 1.2 million tonnes per year (21,000 barrels per day).
| Report Attribute | Details |
|---|---|
| Base Year: | 2024 |
| Very Low Sulphur Fuel Oil Market size in 2024: | USD 68.4 Billion |
| Forecast Period: | 2025 to 2034 |
| Forecast Period 2023 - 2032 CAGR: | 20 |
| 2023 Value Projection: | USD 397.1 Billion |
| Historical Data for: | 2021 – 2024 |
| No of Pages: | 110 |
| Tables, Charts & Figures: | 28 |
| Segments Covered: | Region |
| Growth Drivers: |
|
| Pitfalls Challenges: |
|
The very low sulphur fuel oil industry is expanding due to the increasing adoption of low emission and cleaner fuel. Shifting focus toward reducing oceanic pollution along with stringent mandates introduced by respective authorities toward emission reduction, will complement the industry landscape.
For instance, during International Energy Week 2024 in London, industry experts discussed maritime emission reduction methods. ExxonMobil introduced several bio marine fuel blends for ships, including B25 ULSFO, B30 VLSFO, B7 MGO, B10 HSFO, and B25 VLSFO. These fuels help vessel operators reduce emissions without compromising engine efficiency. The company's technical staff assists operators in adopting these fuels, which require no engine changes. ExxonMobil will return to International Energy Week in 2025 to present its fuel solutions.
Expanding maritime sector supported by increased environmental consciousness, with focus on reducing carbon emissions and implementing sustainable practices, further complementing the business landscape. The widespread availability of bunkering facilities, coupled with increased vessel traffic at ports throughout Europe and the Asia-Pacific regions, contributing to the industry growth. Companies are investing in eco-friendly fuel alternatives and innovative technologies to meet stringent environmental regulations while maintaining operational efficiency further augmenting the industry landscape.
The increasing retrofitting activities along with installation of low sulphur propulsion technologies across ship engines are driving the product demand. Continuous expansion of seaborne passenger traffic coupled with the development of local ports further contribute to the industry growth. Additionally, increased government investments in naval fleet expansion, including submarines, aircraft carriers, and other military vessels, will further accelerate the product deployment.
The U.S. very low sulphur fuel oil market is set to cross over USD 35 billion by 2034. Introduction of stringent sulfur emission regulations, proximity to refineries, local regulations, transportation infrastructure, and consumption patterns is increasing the demand for low-sulfur fuels as the primary marine fuel. Increasing demand for ships that offer operational reliability while reducing emissions and focus on removing seaborne pollution will complement the industry landscape. Growing inclination toward comfort, luxury, and dependable engines, combined with expansion in seaborne transport and economic stability, will drive the product adoption.
Fluctuations in oil prices and regulatory mandates along with geopolitical developments and evolving trade patterns will positively influence the business dynamics. For instance, in May 2024, the International Standards Organization (ISO) introduced its seventh edition of marine fuel specifications, ISO 8217:2024, replacing the old version. The updated standard now includes specifications for 0.50% very low sulphur fuel oil grades, which became essential after IMO 2020 implementation. The revision adds four RM grades for low-sulfur fuels and five RF grades for biofuel bunkers, addressing the market's shift toward alternative fuel options.
The very low sulphur fuel oil (VLSFO) industry is experiencing increasing competition driven by stringent environmental regulations. Major oil refiners, bunker suppliers, and shipping companies are competing for market share by enhancing their VLSFO offerings, focusing on quality control and compliance with environmental standards. Key players including ExxonMobil, Chevron, Saudi Aramco, and BP, alongside regional players who are investing in refining infrastructure and technology to produce low-sulfur fuels efficiently.
Major players operating across the industry include:
The information has been provided for the following regions and countries:
Key players in the market include BP, Chevron, Exxon Mobil, Hindustan Petroleum, Indian Oil, Marathon Petroleum, Mediterranean Fuels, Phillips 66, Rosneft, Saudi Aramco, Shell, Sinopec, TotalEnergies, Viva Energy, and Vitol.
The global very low sulphur fuel oil market is anticipated to reach USD 397.1 billion by 2034, led by the expansion of seaborne trade and heightened focus on emission reductions.
The U.S. very low sulphur fuel oil market is expected to exceed USD 35 billion by 2034, supported by local regulations, proximity to refineries, and increasing focus on reducing seaborne pollution.
The global market for very low sulphur fuel oil was reached USD 68.4 billion in 2024 and is projected to grow at a 20% CAGR from 2025 to 2034, driven by stringent sulfur emission regulations implemented by the IMO.