Bunker Fuel Market

Market Definition

The market encompasses the supply, distribution, and consumption of marine fuels used by commercial and industrial vessels. It includes Marine Gas Oil (MGO), High Sulfur Fuel Oil (HSFO), Low Sulfur Fuel Oil (LSFO), and Liquefied Natural Gas (LNG), catering to varying regulatory and operational needs. Market participants consist of oil majors, large independents, and small independents, each playing a role in global fuel supply chains.

Bunker Fuel Market Overview

The global bunker fuel market size was valued at USD 134.67 billion in 2023 and is projected to grow from USD 139.17 billion in 2024 to USD 190.73 billion by 2031, exhibiting a CAGR of 4.61% during the forecast period.

The market is driven by rising maritime trade, increasing fuel demand from major shipping routes, and regulatory shifts toward low-sulfur and alternative fuels. The market is undergoing a transformation toward greener, more cost-effective fuel solutions, with shipping companies prioritizing fuel efficiency and emission compliance.

Major companies operating in the bunker fuel industry are Indian Oil Corporation Ltd, PETRONAS, Hindustan Petroleum Corporation Limited, BP p.l.c., Shell, CHIMBUSCO, KPI OceanConnect, Vitol Bunkers, Chevron Corporation, Minerva Bunkering, LUKOIL, Neste, Petrobras, Exxon Mobil Corporation, and TotalEnergies.

The market is projected to expand, due to rising maritime trade, regulatory shifts, and investments in low-sulfur and alternative fuels like LNG & biofuels. Major bunkering hubs are enhancing infrastructure, while shipping firms prioritize fuel efficiency and emissions compliance, driving a transition toward sustainable and cost-effective fuel solutions.

Major bunkering hubs are enhancing infrastructure, while shipping firms prioritize fuel efficiency and emissions compliance, driving a transition toward sustainable and cost-effective fuel solutions.

• In June 2023, Bunker One introduced its first methanol-ready bunker tanker, enhancing its capabilities in alternative marine fuels. This milestone supports the industry's transition to lower-emission fuels, reinforcing Bunker One’s role in advancing cleaner bunkering solutions for the evolving maritime sector.

Key Highlights:

1. The bunker fuel industry size was valued at USD 134.67 billion in 2023.
2. The market is projected to grow at a CAGR of 4.61% from 2024 to 2031.
3. Asia Pacific held a market share of 33.82% in 2023, with a valuation of USD 45.55 billion.
4. The high sulfur fuel oil segment garnered USD 36.07 billion in revenue in 2023.
5. The oil majors segment is expected to reach USD 73.43 billion by 2031.
6. The containers segment is expected to reach USD 51.12 billion by 2031.
7. The market in North America is anticipated to grow at a CAGR of 5.09% during the forecast period.

Market Driver

"Increasing Global Maritime Trade"

The bunker fuel market is registering significant growth, driven by the expansion of global maritime trade. The demand for shipping services is increasing as international trade volumes continue to rise, directly impacting the need for marine fuel.

The growing demand for containerized cargo, bulk commodities, and energy shipments is fueling the need for bunker fuel. Additionally, the expansion of major shipping routes and infrastructure investments, such as port expansions and canal developments, further stimulate market growth.

The increasing adoption of larger, fuel-efficient vessels also plays a role in optimizing fuel consumption while maintaining high trade volumes. The market is poised for sustained growth as global economic activity continues to expand, particularly in emerging economies.

• In 2023, global maritime trade expanded by 2.4%, reaching 12.3 billion tons, marking a strong recovery from the previous year’s decline. Growth is expected to continue at 2% in 2024, with a projected 2.4% annual increase through 2029, highlighting sustained demand for shipping and global supply chain resilience.

Market Challenge

"Regulatory Pressure on Emissions Compliance"

A key challenge in the bunker fuel market is the increasing regulatory pressure to reduce emissions from marine fuels. Many shipping companies face difficulties in sourcing compliant fuels while maintaining operational efficiency and cost-effectiveness.

Shipping operators are adopting alternative fuels such as LNG, biofuels, and LSFO. The integration of advanced fuel management systems and investment in fuel-efficient vessel designs can further help shipping companies navigate the regulatory landscape while ensuring cost efficiency.

Market Trend

"Growing Adoption of Alternative Marine Fuels"

A major trend shaping the bunker fuel market is the increasing shift toward alternative marine fuels to meet environmental regulations and sustainability goals. The maritime industry is exploring options such as Liquefied Natural Gas (LNG), biofuels, ammonia, and hydrogen as potential replacements for conventional bunker fuel.

LNG bunkering, in particular, has gained traction, due to its lower sulfur and carbon emissions compared to traditional fuels. Moreover, advancements in ammonia and hydrogen fuel technologies are positioning these alternatives as viable long-term solutions for decarbonizing the shipping sector.

Leading bunker fuel suppliers are investing in infrastructure to support the distribution and storage of these alternative fuels, ensuring a smoother transition for shipping companies.

The demand for sustainable bunker fuel alternatives is expected to reshape the market as regulatory bodies push for stricter emissions targets, driving innovation and investment in greener fuel solutions.

• In August 2024, Bharat Petroleum Corporation Limited (BPCL) introduced a biofuel-blended High Flash High Speed Diesel (HFHSD) bunker at Mumbai Port. This strategic initiative reinforces BPCL’s commitment to sustainable energy solutions, offering a lower-emission alternative to conventional marine fuels and advancing global maritime decarbonization efforts.

Bunker Fuel Market Report Snapshot

Segmentation	Details
By Type	High Sulfur Fuel Oil, Low Sulfur Fuel Oil, Marine Gas Oil, Liquefied Natural Gas, Others
By Distributor	Oil Majors, Large Independent, Small Independent
By Application	Containers, Tankers, General Cargo, Bulk Carriers, Others
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, UAE, Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation:

• By Type (High Sulfur Fuel Oil, Low Sulfur Fuel Oil, Marine Gas Oil, Liquefied Natural Gas, and Others): The high sulfur fuel oil segment earned USD 36.07 billion in 2023, due to its continued usage in vessels equipped with scrubbers, cost advantages over low-sulfur alternatives, and strong demand from bulk carriers and tankers operating on long-haul routes.
• By Distributor (Oil Majors, Large Independent, Small Independent): The oil majors segment held 38.45% share of the market in 2023, due to their extensive global supply networks, strong refining capabilities, and ability to provide a diversified range of bunker fuel options.
• By Application (Containers, Tankers, General Cargo, Bulk Carriers, Others): The containers segment is projected to reach USD 51.12 billion by 2031, owing to the rapid expansion of global trade, increasing demand for efficient logistics, and the deployment of larger container vessels with optimized fuel consumption.

Bunker Fuel Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.

Asia Pacific bunker fuel market is accounted for a market share of around 33.82% in 2023, with a valuation of USD 45.55 billion. The market in the region is driven by major bunkering hubs such as Singapore, China, South Korea, and Japan, which serve as key refueling points for global shipping routes.

Singapore, in particular, remains the world’s largest bunkering port, benefiting from its strategic location and well-established infrastructure. The region's leadership is further supported by robust trade volumes, increasing seaborne freight activities, and the rapid expansion of port infrastructure.

China’s aggressive investments in maritime logistics, coupled with rising energy exports from Australia and Indonesia, contribute significantly to the demand for bunker fuel.

India is strengthening its bunker fuel infrastructure through port modernization, LNG bunkering facilities, and expanded storage capacities. Key ports like Mumbai and Chennai are enhancing fuel supply networks to support rising maritime trade, positioning India as a competitive bunkering hub.

• In February 2024, Vitol Bunkers launched Marine Future, an IMO Type 2 bunker tanker in Singapore, strengthening its foothold in Asia’s biofuel bunker market. The vessel facilitates the supply of B24, B30, and B100 biofuel blends, supporting the maritime sector’s transition toward sustainable fuel solutions.

The bunker fuel industry in North America is poised to grow at a significant CAGR of 5.09% over the forecast period, driven by increasing maritime trade, regulatory compliance initiatives, and investments in alternative marine fuels.

The region is registering a surge in shipping activity, particularly along the U.S. Gulf Coast, East Coast, and major Canadian ports such as Vancouver and Montreal. The expansion of LNG bunkering infrastructure, particularly in the U.S., is positioning North America as a key player in the transition toward cleaner marine fuels.

Rising energy exports, particularly from the U.S., are further driving the demand for bunker fuel, with LNG shipments contributing to increased shipping volumes. With continued investments in port infrastructure, North America is set to strengthen its position in the market, offering competitive pricing and enhanced fuel availability across key maritime hubs.

 Regulatory Frameworks

• In the U.S., the Environmental Protection Agency (EPA) regulates emissions through Emission Control Areas (ECA), requiring vessels within 200 nautical miles of the U.S. coastline to use low-sulfur fuels, reducing air pollution and driving the adoption of cleaner marine fuel alternatives.
• In Singapore, the Maritime and Port Authority (MPA) regulates the market, ensuring fuel quality, licensing, and compliance with international standards. As the world’s largest bunkering hub, MPA enforces strict regulations on fuel transparency, emissions control, and operational safety, driving sustainability and efficiency in the maritime industry.

Competitive Landscape

Established players maintain a stronghold through global supply networks, strategic port operations, and compliance with environmental standards. Meanwhile, emerging market participants are expanding infrastructure and adopting alternative marine fuels to capture demand.

Companies are investing in fuel innovation, storage expansions, and digital bunkering platforms to enhance operational efficiency as the industry transitions toward low-sulfur fuels, LNG, and biofuels.

Market participants are also leveraging strategic alliances, acquisitions, and technology-driven fuel management systems to optimize supply chains. Amid growing pressure for decarbonization and emissions reductions, companies that adapt to evolving fuel regulations and sustainability trends will secure a competitive edge in the market.

• In August 2024, TotalEnergies Marine Fuels expanded its low-carbon fuel offerings by supplying its first B100 biofuel bunker in Singapore, supporting decarbonization efforts in global shipping. Using the IMO Type II bunker tanker MAPLE, 700 metric tons of UCOME-based biofuel were delivered to Hyundai Glovis’ PCTC Glovis Cosmos.

List of Key Companies in Bunker Fuel Market:

• Indian Oil Corporation Ltd
• PETRONAS
• Hindustan Petroleum Corporation Limited
• BP p.l.c.
• Shell
• CHIMBUSCO
• KPI OceanConnect
• Vitol Bunkers
• Chevron Corporation
• Minerva Bunkering
• LUKOIL
• Neste
• Petrobras
• Exxon Mobil Corporation
• TotalEnergies

Recent Developments (Partnerships/Agreements/Product Launch)

• In March 2025, Anglo-Eastern unveiled a state-of-the-art LNG/Ammonia bunkering station skid at its Maritime Academy in Karjat, Mumbai, reinforcing its commitment to advanced maritime training. This facility provides hands-on experience in safe LNG and ammonia fueling, supporting industry professionals in meeting evolving environmental and safety standards.
• In October 2024, Bunker One launched its physical LNG bunker supply, expanding its alternative fuel offerings. This initiative includes the supply of LNG and mass-balanced Liquefied Biomethane (LBM), reinforcing Bunker One’s commitment to diversifying marine fuel solutions and supporting the industry’s transition to lower-carbon energy sources.
• In September 2024, NorthStandard introduced Fuel Insights, a real-time marine fuel intelligence platform, in partnership with Veritas Petroleum Services (VPS). This digital tool provides live fuel quality data, enabling bunkering teams to optimize procurement, mitigate risks, and select fuels with lower environmental impact, enhancing operational efficiency and regulatory compliance.