Marine Gas Oil Market Size (2024 - 2029)

The marine gas oil market is poised for steady growth, driven by the demand for low-sulfur fuels in compliance with the IMO 2020 convention. This regulatory shift has increased the appeal of marine gas oil due to its lower sulfur content, despite its higher cost compared to other marine fuels, which may hinder market expansion. The market's recovery to pre-pandemic levels and the development of advanced chemical additives to enhance engine efficiency present significant opportunities for growth in the marine gas oil sector.

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Market Size of Marine Gas Oil Industry

Marine Gas Oil Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
CAGR 4.00 %
Fastest Growing Market Asia-Pacific
Largest Market Asia-Pacific
Market Concentration High

Major Players

Marine Gas Oil Market Major Players

*Disclaimer: Major Players sorted in no particular order

Marine Gas Oil Market Analysis

The marine gas oil market is expected to register a CAGR of over 4% during the forecast period. In 2020, the market was negatively affected by the COVID-19 pandemic, as international trade and tanker movement fell due to a fall in global demand. However, now the market has rebounded and reached pre-pandemic levels. It is expected to witness steady growth during the forecast period.

  • Because of the IMO 2020 convention that reduced the permissible limit of sulfur content in marine fuels, the demand for marine gas oil, which has a significantly lower sulfur content, is expected to incentivize its usage as a marine fuel. This is expected to drive the market during the forecast period.
  • However, the relatively higher cost of IMO 2020-compliant low-sulfur Marine Gas Oil (MGO), compared to other marine fuels, is expected to restrain the market growth during the forecast period.
  • However, developing new, advanced chemical additives for MGO that would improve engine efficiency and performance is expected to provide a significant growth opportunity for the market during the forecast period.

Marine Gas Oil Industry Segmentation

Marine Gas Oil (MGO) is a marine fuel used on ships that is a blend component of Light Cycle Gas Oil (LCGO), containing about 60% aromatics. 

The Marine Gas Oil Market is Segmented by End-user (Tanker Fleet, Container Fleet, Bulk and General Cargo Fleet, Ferries, Offshore Support Vessel (OSV), and Other End-user Types) and Geography (North America, Europe, Asia-Pacific, South America, Asia-Pacific, Middle East and Africa, and South America). For each segment, the market sizing and forecasts have been done based on revenue (USD million).

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Marine Gas Oil Market Size Summary

The marine gas oil market is poised for steady growth, driven by regulatory changes and recovering global demand. The implementation of the IMO 2020 convention, which mandates lower sulfur content in marine fuels, is expected to boost the demand for marine gas oil due to its compliance with these standards. Despite the higher cost of low-sulfur marine gas oil compared to other fuels, advancements in chemical additives that enhance engine efficiency present significant growth opportunities. The market's recovery from the COVID-19 pandemic and the resurgence of international trade and tanker movement have contributed to its rebound to pre-pandemic levels, with expectations of continued expansion.

The Asia-Pacific region is anticipated to dominate the marine gas oil market, fueled by its status as a major hub for cargo vessels and tankers. The region's significant energy-importing economies, such as China, Japan, South Korea, and India, drive the demand for marine gas oil due to their extensive seaborne trade activities. Additionally, the offshore support vessel segment is expected to experience rapid growth, supported by increased investments in the offshore oil, gas, and wind industries, which are thriving due to rising global energy prices. This growth in the offshore sector is likely to translate into higher demand for marine gas oil, further solidifying the market's expansion during the forecast period.

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Marine Gas Oil Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Market Size And Demand Forecast In USD Billion, Till 2027

    3. 1.3 Recent Trends And Developments

    4. 1.4 Government Policies And Regulations

    5. 1.5 Market Dynamics

      1. 1.5.1 Drivers

      2. 1.5.2 Restraints

    6. 1.6 Supply Chain Analysis

    7. 1.7 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.7.1 Bargaining Power of Suppliers

      2. 1.7.2 Bargaining Power of Consumers

      3. 1.7.3 Threat of New Entrants

      4. 1.7.4 Threat of Substitutes Products and Services

      5. 1.7.5 Intensity of Competitive Rivalry

Marine Gas Oil Market Size FAQs

The Marine Gas Oil Market is projected to register a CAGR of greater than 4% during the forecast period (2024-2029)

Shell PLC, BP PLC, TotalEnergies SE, Gazprom Neft PJSC and Bomin Bunker Fuel Holding GMBH & Co. KG are the major companies operating in the Marine Gas Oil Market.

Marine Gas Oil Report Snapshots

Marine Gas Oil Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)