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Very Low Sulphur Fuel Oil (VLSFO) Market Size

Report ID: GMI6304
Published Date: Jul 2023
Report Format: PDF

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Very Low Sulphur Fuel Oil Market Size

Very Low Sulphur Fuel Oil Market size was valued at USD 48.6 billion in 2022 and is anticipated to expand at a CAGR of 19% between 2023 and 2032. The implementation of IMO 2020 regulations requiring a significant reduction in sulfur emissions from ships is a key factor responsible for the increased demand for VLSFO. Shipowners and operators have switched from higher-sulfur fuels to VLSFO to comply with these regulations. This surge in demand has created opportunities for refineries, suppliers, and traders, resulting in a substantial rise in production and availability.

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The shift toward VLSFO aligns with the industry's focus on environmental sustainability. It significantly reduces sulfur emissions, contributing to improved air quality and a lower environmental impact. Shipowners who prioritize compliance with environmental regulations and sustainability initiatives are increasingly interested in adopting VLSFO. Moreover, the technological advancements in fuel treatment and monitoring systems will further propel the very low sulphur fuel oil market dynamics. Businesses are investing in technologies that enhance fuel efficiency, optimize combustion, and ensure compliance with emission regulations.

Very Low Sulphur Fuel Oil Market Report Attributes
Report Attribute	Details
Base Year:	2022
Very Low Sulphur Fuel Oil Market Size in 2022:	USD 48.6 Billion
Forecast Period:	2023 to 2032
Forecast Period 2023 to 2032 CAGR:	19%
2032 Value Projection:	USD 289.5 Billion
Historical Data for:	2019 to 2022
No. of Pages:	135
Tables, Charts & Figures:	132
Segments covered:	Region
Growth Drivers:	Growing concerns regarding emission reduction Expansion in seaborne trade
Pitfalls & Challenges:	Price Volatility

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Authors: Ankit Gupta, Abhishek Chopra

Frequently Asked Questions (FAQ) :

The market size of very low sulphur fuel oil reached USD 48.6 billion in 2022 and will witness 19% CAGR from 2023 to 2032, due to the implementation of IMO 2020 regulations for significant reduction in sulfur emissions from ships.

Asia Pacific market size is estimated to cross USD 131.9 billion by 2032, owing to the adoption of the International Maritime Organization's (IMO) 2020 regulations in the region.

China Petroleum & Chemical Corporation (Sinopec), BP PLC, Shell Plc, Chevron Corporation, Saudi Arabian Oil Co. (Saudi Aramco), Indian Oil Corporation (IOCL), TotalEnergies, Exxon Mobil Corporation, ROSNEFT, and Mediterranean Fuels are some of the key companies.

The COVID-19 pandemic had limited impact on the very low sulphur fuel oil industry owing to the introduction of IMO 2020 norms that made it mandatory for the shipowners to utilize the low sulphur fuel in the ships.