Vacuum Gas Oil Market Size
| Study Period | 2020 - 2029 |
| Market Size (2024) | USD 359.38 Billion |
| Market Size (2029) | USD 473.54 Billion |
| CAGR (2024 - 2029) | 5.70 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Vacuum Gas Oil Market Analysis
The Vacuum Gas Oil Market size is estimated at USD 359.38 billion in 2024, and is expected to reach USD 473.54 billion by 2029, growing at a CAGR of 5.70% during the forecast period (2024-2029).
- Over the medium term, the increasing demand for gasoline globally and the rapidly expanding automotive industry are the major factors driving the market.
- On the other note, the strict mandates by global organizations on VGO composition and emission content will be a major restraint for the market.
- Nevertheless, the growing marine industry is set to surge vacuum gas oil (VGO) requirement in bunker fuels for deep-sea cargo ships and other vessels, which will be a vital opportunity for the market during the forecast period.
- Asia-Pacific is expected to dominate the market, owing to the increasing oil and gas production across the region.
Vacuum Gas Oil Market Trends
Increasing Demand for Gasoline and Diesel Across the Globe to Drive the Market
- Vacuum gas oil is predominantly used as an intermediate feedstock to escalate gasoline and diesel production from refineries. VGO is produced through a vacuum distillation column using processes such as hydrogenation and cracking.
- Diesel has been a primary fuel for transportation, agriculture, and various industrial sectors. However, the use of diesel is banned in some countries. Developing nations, such as India and China, have also experienced significant growth in diesel consumption due to economic development and increased mobility. The growing diesel consumption for various needs will, in turn, drive VGO growth in the near future.
- Gasoline is one of the major fuels consumed in the United States and is the main product that oil refineries produce. In 2022, around 134.55 billion gallons of finished motor gasoline were consumed in the United States, an average of about 369 million gallons per day. Since vacuum gas oil (VGA) is the intermediate feedstock for producing gasoline, the growing consumption of gasoline will, in turn, drive the market's growth.
- Moreover, oil consumption across the globe was around 97.30 million barrels per day in the year 2022, which is comparatively higher than 92.70 million barrels per day in 2015. The growing oil consumption across the region will support the growth of VGO since it is used as a feedstock in the production of gasoil and gasoline.
- In March 2022, Honeywell International Inc. announced that SPEC Energy DMCC, an Oil field equipment supplier in Dubai, was to use a range of Honeywell's process technologies at its refinery to convert low-value vacuum gas oil (VGO) and vacuum residue into high-value products such as gasoline and alkylate. Phase one of the project included the installation of a new UOP Residue Fluidized Catalytic Cracking unit that is tailored to improve gasoline yield, a UOP/Wood Solvent Deasphalting process Unit (SDA) which was expected to improve the feed quality to the RFCC.
- Owing to the above points and the recent developments, the growing usage of Vacuum Gas Oil (VGO) in the production of diesel and gasoline drives the market during the forecast period.
Asia-Pacific Region is Expected to Witness Significant Growth
- Vacuum gas oil refers to heavy oil left over from petroleum distillation, which can be further refined in a cracking unit. It is an intermediate feedstock that can increase the output of diesel and gasoline from refineries.
- The increasing urbanization and rapid industrialization in countries like China, India, Japan, and Indonesia are pushing up oil demand, which will, in turn, favor the growth of vacuum gas oil (VGO) across the region; in addition, the rise in need for automobiles and development in expenditure in the petroleum zone are the major factors responsible for the growth in demand for VGO in this region.
- Moreover, in December 2022, Chevron Corporation Lummus Global LLC announced Shandong Yulong Petrochemical Co., Ltd. had selected EST, which CLG licenses, for a slurry residue hydrocracking unit in Shandong Province, China. The unit will produce diesel, naphtha, and vacuum gas oil (VGO) once it is complete, and with a capacity of 3.0 MMTA, it will be one of the largest in the world.
- Moroever, in November 2022, The Government of India announced they were stepping up vacuum gas oil exports to various countries such as the United States and Canada. Therefore the increasing exports will, in turn, facilitate the growth of the Vacuum Gas Oil Market across the region.
- Owing to the above points and the recent developments, the Asia-Pacific region is expected to witness significant growth in the vacuum gas oil market during the forecast period.
Vacuum Gas Oil Industry Overview
The vacuum gas oil market is semi fragmented. Some of the major players operating in the market (in no particular order) include Shell Plc, BP Plc, Chevron Corporation, Exxon Mobil Corporation, and China National Petroleum Corporation.
Vacuum Gas Oil Market Leaders
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Shell plc
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Chevron Corporation
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Exxon Mobil Corporation
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China National Petroleum Corporation.
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BP PLC
*Disclaimer: Major Players sorted in no particular order
Vacuum Gas Oil Market News
- August 2023, India is poised to purchase a considerable dirty fuels from Russia in years, as a slump in crude flows from the critical producer and looming refinery maintenance threaten supplies. In August, imports of sludgy products from Russia should double from last month to about 269,000 barrels a day. The flows primarily include high-sulfur fuel oil and vacuum gasoil, which can be employed in secondary refining units to improve yields of higher-value products like diesel and gasoline.
- August 2022: Toyo Engineering India Private Limited, a wholly-owned subsidiary of Toyo Engineering Corporation, was awarded a contract by Indian Oil Corporation Limited for the Engineering, Procurement, Construction, and Commissioning of a 3.6 MMTPA Vacuum Gas Oil Hydrotreater (VGO-HDT) Unit at Panipat in the state of Haryana in India.
Vacuum Gas Oil 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, till 2028
- 4.3 Recent Trends and Developments
- 4.4 Government Policies and Regulations
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4.5 Market Dynamics
- 4.5.1 Drivers
- 4.5.1.1 Increasing Demand for Gasoline and Diesel Across the Globe
- 4.5.1.2 Rapid Expansion of Automotive Industry
- 4.5.2 Restraints
- 4.5.2.1 Strict Mandates by the Global Organizations on VGO Composition
- 4.6 Supply Chain Analysis
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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
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5.1 Product
- 5.1.1 Low Sulfur Content
- 5.1.2 High Sulfur Content
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5.2 Type
- 5.2.1 Light Vacuum Gas Oil
- 5.2.2 Heavy Vacuum Gas Oil
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5.3 By Application
- 5.3.1 Gasoline Production
- 5.3.2 Diesel Oil Production
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5.4 Geography
- 5.4.1 North America
- 5.4.1.1 United States
- 5.4.1.2 Canada
- 5.4.1.3 Mexico
- 5.4.1.4 Rest of North America
- 5.4.2 Asia-Pacific
- 5.4.2.1 China
- 5.4.2.2 India
- 5.4.2.3 Japan
- 5.4.2.4 Rest of Asia-Pacific
- 5.4.3 Europe
- 5.4.3.1 United Kingdom
- 5.4.3.2 Germany
- 5.4.3.3 France
- 5.4.3.4 Rest of Europe
- 5.4.4 South America
- 5.4.4.1 Brazil
- 5.4.4.2 Argentina
- 5.4.4.3 Colombia
- 5.4.4.4 Rest of South America
- 5.4.5 Middle-East and Africa
- 5.4.5.1 United Arab Emirates
- 5.4.5.2 Saudi Arabia
- 5.4.5.3 South Africa
- 5.4.5.4 Qatar
- 5.4.5.5 Kuwait
- 5.4.5.6 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
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6.3 Company Profiles
- 6.3.1 BP PLC
- 6.3.2 Chevron Corporation
- 6.3.3 China National Petroleum Corporation
- 6.3.4 Eni SpA
- 6.3.5 Exxon Mobil Corporation
- 6.3.6 Indian Oil Corp. Ltd.
- 6.3.7 Kuwait Petroleum Corporation
- 6.3.8 NK Rosneft' PAO
- 6.3.9 Shell Plc
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Rapid Growth in Marine Industry
Vacuum Gas Oil Industry Segmentation
Vacuum gas oil (VGO) is a key feedstock for fluid catalytic crackers that make transportation fuels and many other by-products.
The vacuum gas oil (VGO) market report is segmented by Product, Type, Application, and Geography. By Product, the market is segmented by low sulfur content and high sulfur content; by type, the market is segmented by light vacuum gas oil and heavy vacuum gas oil. By application, the market is segmented by gasoline production and diesel oil production. The report also covers the market size and forecasts for the vacuum gas oil market across the major regions. The market size and forecasts have been done for each segment based on revenue (USD).
| Product | Low Sulfur Content | |
| High Sulfur Content | ||
| Type | Light Vacuum Gas Oil | |
| Heavy Vacuum Gas Oil | ||
| By Application | Gasoline Production | |
| Diesel Oil Production | ||
| Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Rest of North America | ||
| Geography | Asia-Pacific | China |
| India | ||
| Japan | ||
| Rest of Asia-Pacific | ||
| Geography | Europe | United Kingdom |
| Germany | ||
| France | ||
| Rest of Europe | ||
| Geography | South America | Brazil |
| Argentina | ||
| Colombia | ||
| Rest of South America | ||
| Geography | Middle-East and Africa | United Arab Emirates |
| Saudi Arabia | ||
| South Africa | ||
| Qatar | ||
| Kuwait | ||
| Rest of Middle-East and Africa |
Vacuum Gas Oil Market Research Faqs
How big is the Vacuum Gas Oil Market?
The Vacuum Gas Oil Market size is expected to reach USD 359.38 billion in 2024 and grow at a CAGR of 5.70% to reach USD 473.54 billion by 2029.
What is the current Vacuum Gas Oil Market size?
In 2024, the Vacuum Gas Oil Market size is expected to reach USD 359.38 billion.
Who are the key players in Vacuum Gas Oil Market?
Shell plc, Chevron Corporation, Exxon Mobil Corporation, China National Petroleum Corporation. and BP PLC are the major companies operating in the Vacuum Gas Oil Market.
Which is the fastest growing region in Vacuum Gas Oil Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Vacuum Gas Oil Market?
In 2024, the Asia Pacific accounts for the largest market share in Vacuum Gas Oil Market.
Vacuum Gas Oil Industry Report
Statistics for the 2024 Vacuum Gas Oil market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Vacuum Gas Oil analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
