The global fuel oil market is projected to reach $273 billion in 2025.

On the morning of April 23, 2019, Hafei International and Daesun Shipbuilding held a grand naming and handover ceremony for the new 1011TEU container ship "Hafei Shidao" in Busan, South Korea.
Mr. Xiao Senyuan, Vice President of Haifeng Shipping Group, Mr. Soo Keun Lee, President of Da Xian Shipbuilding Co., Ltd., Mr. Ke Changli, Deputy General Manager of Shidao New Port Port Authority Co., Ltd., Mr. Zheng Min, Audit Services Partner of Ernst & Young, Mr. Lee Bok Gyun, CEO of DongYang Shipping, and his wife all attended the ceremony together.
The global fuel oil market is projected to reach $273 billion in 2025. Valued at $137.21 billion in 2017, the market is expected to reach $273.05 billion by 2025, with a compound annual growth rate of 9.4% during the forecast period from 2018 to 2025.
A report released by Allied Market Research states that the increase in offshore oil and gas exploration activities, as well as the growth in maritime trade due to the rise in import and export activities, have both contributed to the overall growth of the global fuel oil market.
However, the strict government control over fuel oil, such as residual fuel oil, has restricted the market growth. Residual fuel oil contains pollutants like sulfur and nitrogen, which are sufficient to disrupt the marine life cycle.
On the contrary, market participants from emerging economies such as India and China expanding their fuel oil business will create lucrative opportunities for the market.
By 2025, the marine gas oil (MGO) segment is expected to have the fastest compound annual growth rate. The oil majors segment will continue to dominate, while the large independents segment will witness the fastest growth during the study period. By 2025, North America is projected to be the fastest-growing region.
Residual fuel had the largest market share in 2017, reaching 60%, and will maintain its dominant position until 2025. This is because this type of fuel is cheaper than the alternative fuel MGO and is thus widely used by shipping companies for transporting vessels.
However, from 2018 to 2025, the compound annual growth rate of marine gas oil (MGO) will reach 14.5%, the fastest. This is due to the environmental regulations imposed by the International Maritime Organization (IMO) on the use of sulfur in marine fuels, leading to an increasing use of marine gas oil as an alternative marine fuel.
In 2017, the oil giants held the largest share of 41.5% and will maintain their leading position in terms of revenue until 2025. This is because they are involved in the marine fuel trade and production around the world.
By 2025, the compound annual growth rate of large independent fuel tanks will reach 9.9%, as these distributors engage in marine fuel trade in major global regions, including the Asia-Pacific region (Singapore), the Middle East region (UAE), the European region (Rotterdam), and the Americas region (US Gulf), which account for approximately 60% of the total global fuel tank sales.
From a regional perspective, the Asia-Pacific region held a 46% market share in 2017 and is expected to maintain its leading position until 2025, mainly due to the presence of the world's major commodity consumption centers in this region. However, by 2025, North America's CAGR will reach 10.2%, the fastest, driven by the growth of marine chemical product trade in the region and the surging demand for plastic raw materials.

(Source: Sinopec News Network)