North America Bunker Fuel Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 6.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
North America Bunker Fuel Market Analysis
The bunker fuel market in North America is expected to register a CAGR of more than 6.5% during the forecast period (2022-2027), reaching USD 22.21 billion in 2027 from USD 10.77 billion in 2020. In 2020, the COVID-19 outbreak disrupted the logistics and supply chain industry, resulting in major losses to the transportation sector, including the shipping industry. The increasing natural gas production and LNG trade are the major factors that may drive the demand for bunker fuels in North America during the forecast period. However, the increasing trade tensions and tariff escalations between the United States and China are likely to hinder the market's growth during the forecast period.
- With the intervention of IMO, very low sulfur fuel oil (VLSFO) is expected to be the fastest-growing segment during the forecast period.
- Low sulfur fuel oil and LNG are expected to create ample opportunities for the market players. Due to the increasing environmental concerns, the demand for cleaner bunker fuel is expected to increase in the coming years.
- The United States is leading the bunker fuel market due to expanding sea trade. With the expected growth in trade, the country is likely to continue its dominance during the forecast period.
North America Bunker Fuel Market Trends
This section covers the major market trends shaping the North America Bunker Fuel Market according to our research experts:
Very Low Sulfur Fuel Oil (VLSFO) Expected to be the Fastest-growing Segment
- Marine fuel containing less than 0.5% of sulfur is generally termed very-low sulfur (VLSFO) fuel oil. Due to low emissions compared to high sulfur fuel oil (HSFO), VLSFO is expected to witness significant growth.
- Very-low sulfur fuel oil did not witness demand as a bunker fuel till 2020. However, the deadline for IMO 2020 led to an increase in the demand for VLSFO. From January 1, 2020, HSFO can only be used in ships having scrubbers installed to reduce emissions.
- Most of the high-sulfur fuel oil (HSFO) bunker fuel market is expected to be shortly replaced by low-sulfur alternatives. Most of the VLSFO available in the market is blended from residual and distillate components, which are further blended with various cutters of different sulfur and viscosity to create an on-specification product.
- Many US Gulf Coast refiners can process heavy crudes used to make IMO-compliant marine fuels. In 2020, they spent heavily on refurbishing distillation units and cokers to process cheaper, heavy grades. For example, in 2020, Motiva Enterprises overhauled its Port Arthur, Texas, refinery, the country's largest.
- The Port of Vancouver broke the cargo records for the first half of 2021, with overall cargo volumes through Canada's largest port hitting a record high of 76.4 million ton (MMT). This number shows a 7% increase from mid-2020 levels and a 5% increase from 2019. The increasing cargo trade in the country is expected to boost the demand for VLSFO during the forecast period.
- Therefore, due to these factors, VLSFO is expected to be the fastest-growing segment in the North American bunker fuel market during the forecast period.
The United States Expected to Dominate the Market
- The United States is one of the most prominent players in the maritime industry. Almost every state in the country has significant ports. The country is in the middle of the North Pacific and North Atlantic routes, the first and the second biggest routes by trade value globally, respectively.
- From 2011 to 2021, the US export and import values increased by 18.5% and 28.6%, respectively. In 2021, the country reached export and import values of USD 1.75 trillion and USD 2.83 trillion, respectively.
- The maritime industry is the most significant mode of transport for these goods. Hence, in line with the decline in exports and imports, the total container throughput of the country also declined, indicating a slowdown in marine traffic. The downturn in maritime traffic negatively affected the bunker fuel market in the country.
- Further, the refining industry players in the country have indicated that they have enough infrastructure to meet the low-sulfur conventional fuel requirements according to IMO regulations. The LNG bunkering infrastructure in the country is also relatively underdeveloped. Hence, conventional fuel is expected to maintain dominance in the bunker fuel industry during the forecast period.
- Hence, due to these factors, the United States is expected to dominate the North American bunker fuel market during the forecast period.
North America Bunker Fuel Industry Overview
The North American bunker fuel market is moderately fragmented. Some major companies include ExxonMobil Corporation, BP PLC, Shell PLC, TotalEnergies SE, and Chevron Corporation.
North America Bunker Fuel Market Leaders
-
BP PLC
-
Chevron Corporation
-
Shell PLC
-
TotalEnergies SE
-
ExxonMobil Corporation
*Disclaimer: Major Players sorted in no particular order
North America Bunker Fuel Market News
- In September 2021, Chevron USA Inc., a subsidiary of Chevron Corporation, and Caterpillar Inc. announced a collaborative agreement to develop hydrogen demonstration projects in transportation and stationary power applications, including prime power. The goal of the collaboration is to confirm the feasibility and performance of hydrogen for use as a commercially viable alternative to traditional fuels for line-haul rail and marine vessels. The collaboration also seeks to demonstrate hydrogen's use in prime power.
North America Bunker Fuel Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD billion, till 2027
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Fuel Type
5.1.1 High Sulfur Fuel Oil (HSFO)
5.1.2 Very Low Sulfur Fuel Oil (VLSFO)
5.1.3 Marine Gas Oil (MGO)
5.1.4 Liquefied Natural Gas (LNG)
5.1.5 Other Fuel Types
5.2 Vessel Type
5.2.1 Containers
5.2.2 Tankers
5.2.3 General Cargo
5.2.4 Bulk Carrier
5.2.5 Other Vessel Types
5.3 Geography
5.3.1 United States
5.3.2 Canada
5.3.3 Rest of North America
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Repsol SA
6.3.2 BP PLC
6.3.3 Shell PLC
6.3.4 TotalEnergies SE
6.3.5 ExxonMobil Corporation
6.3.6 Clipper Oil
6.3.7 Chevron Corporation
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
North America Bunker Fuel Industry Segmentation
The North American bunker fuel market report includes:
| Fuel Type | |
| High Sulfur Fuel Oil (HSFO) | |
| Very Low Sulfur Fuel Oil (VLSFO) | |
| Marine Gas Oil (MGO) | |
| Liquefied Natural Gas (LNG) | |
| Other Fuel Types |
| Vessel Type | |
| Containers | |
| Tankers | |
| General Cargo | |
| Bulk Carrier | |
| Other Vessel Types |
| Geography | |
| United States | |
| Canada | |
| Rest of North America |
North America Bunker Fuel Market Research FAQs
What is the current North America Bunker Fuel Market size?
The North America Bunker Fuel Market is projected to register a CAGR of greater than 6.5% during the forecast period (2024-2029)
Who are the key players in North America Bunker Fuel Market?
BP PLC, Chevron Corporation, Shell PLC, TotalEnergies SE and ExxonMobil Corporation are the major companies operating in the North America Bunker Fuel Market.
What years does this North America Bunker Fuel Market cover?
The report covers the North America Bunker Fuel Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the North America Bunker Fuel Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
North America Bunker Fuel Industry Report
Statistics for the 2024 North America Bunker Fuel market share, size and revenue growth rate, created by 糖心vlog传媒鈩� Industry Reports. North America Bunker Fuel analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
