Market Size of Japan Bunker Fuel Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 3.46 Billion |
Market Size (2029) | USD 5.35 Billion |
CAGR (2024 - 2029) | 9.11 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Japan Bunker Fuel Market Analysis
The Japan Bunker Fuel Market size is estimated at USD 3.46 billion in 2024, and is expected to reach USD 5.35 billion by 2029, growing at a CAGR of 9.11% during the forecast period (2024-2029).
- In the medium period, factors such as rising demand for cleaner bunker fuels due to implementing more restrictive environmental regulations and the growing trade of LNG for the power sector in the regions are expected to drive the market between 2024 and 2029.
- On the other hand, changes in the cost of bunker fuel and crude oil are expected to hinder the market's growth.
- Nevertheless, the number of ships in service and the demand for maritime transportation are expected to create several future market opportunities from 2024 to 2029.
Japan Bunker Fuel Industry Segmentation
Bunker fuel refers to any fuel pumped into a ship's bunkers to power its combustion engines. Deep-sea cargo ships often burn the heavy, residual oil that remains after gasoline, diesel, and other light hydrocarbons are removed from crude oil during the refining process.
The Japanese bunker fuel market is segmented by capacity and vessel type. By type, the market is segmented into high sulfur fuel oil (HSFO), very low sulfur fuel oil (VLSFO), marine gas oil (MGO), liquefied natural gas (LNG), and other fuel types. By vessel type, the market is segmented into containers, tankers, general cargo, bulk carriers, and other vessel types. For each segment, the market sizing and forecasts have been done based on revenue (USD).
By Fuel Type | |
High Sulfur Fuel Oil (HSFO) | |
Very-low Sulfur Fuel Oil (VLSFO) | |
Marine Gas Oil (MGO) | |
Other Fuel Types |
By Vessel Type | |
Containers | |
Tankers | |
General Cargo | |
Bulk Carrier | |
Other Vessel Types |
Japan Bunker Fuel Market Size Summary
The Japan bunker fuel market is poised for significant growth over the forecast period, driven by increasing demand for cleaner fuels and the expansion of LNG trade for power generation. The implementation of stringent environmental regulations has heightened the demand for very low sulfur fuel oil (VLSFO), which is expected to replace a substantial portion of the high-sulfur fuel oil market. Japan's focus on enhancing refinery capacity and the strategic increase in the number of refineries are key initiatives aimed at meeting this demand. The country's refining sector is actively working to boost capacity, supported by collaborations and technological advancements, which are anticipated to fulfill the rising need for VLSFO. Despite challenges such as fluctuating fuel costs, the growing number of ships and the demand for maritime transportation present promising opportunities for market expansion.
The LNG bunkering industry in Japan is also experiencing growth, fueled by the global shift towards cleaner energy and the need to reduce greenhouse gas emissions. The transition from traditional fuels to LNG propulsion is gaining traction, with LNG-powered vessels becoming increasingly popular due to their lower operational costs and reduced carbon footprint. The introduction of LNG-powered ships, such as the first Capesize LNG-fueled bulk carrier constructed at a Japanese shipyard, underscores the country's commitment to decarbonizing its supply chain. Strategic investments and partnerships, such as those involving the Scarborough natural gas project, are expected to enhance LNG capacity and drive demand in the coming years. The semi-consolidated market landscape, featuring major players like PetroChina and Shell Eastern Trading, further supports the anticipated growth and development of the bunker fuel market in Japan.
Japan Bunker Fuel Market Size - Table of Contents
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1. MARKET OVERVIEW
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1.1 Introduction
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1.2 Market Size and Demand Forecast in USD billion, till 2029
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1.3 Recent Trends and Developments
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1.4 Government Policies and Regulations
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1.5 Market Dynamics
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1.5.1 Drivers
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1.5.1.1 Increasing LNG Trade
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1.5.1.2 Rising Marine Transportation
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1.5.2 Restraints
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1.5.2.1 Fluctuations in Crude Oil Prices
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1.6 Supply Chain Analysis
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1.7 PESTLE Analysis
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2. MARKET SEGMENTATION
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2.1 By Fuel Type
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2.1.1 High Sulfur Fuel Oil (HSFO)
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2.1.2 Very-low Sulfur Fuel Oil (VLSFO)
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2.1.3 Marine Gas Oil (MGO)
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2.1.4 Other Fuel Types
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2.2 By Vessel Type
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2.2.1 Containers
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2.2.2 Tankers
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2.2.3 General Cargo
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2.2.4 Bulk Carrier
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2.2.5 Other Vessel Types
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Japan Bunker Fuel Market Size FAQs
How big is the Japan Bunker Fuel Market?
The Japan Bunker Fuel Market size is expected to reach USD 3.46 billion in 2024 and grow at a CAGR of 9.11% to reach USD 5.35 billion by 2029.
What is the current Japan Bunker Fuel Market size?
In 2024, the Japan Bunker Fuel Market size is expected to reach USD 3.46 billion.