Market Size of Vacuum Gas Oil Industry
| 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 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 | ||||||||
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Vacuum Gas Oil Market Size Summary
The vacuum gas oil (VGO) market is poised for substantial growth over the forecast period, driven by the increasing global demand for gasoline and the expanding automotive industry. VGO serves as a crucial intermediate feedstock in refineries, enhancing the production of gasoline and diesel. The market is experiencing a surge in demand due to the rising consumption of diesel in developing nations like India and China, fueled by economic development and increased mobility. However, the market faces challenges from stringent regulations on VGO composition and emissions. Despite these constraints, the growing marine industry presents significant opportunities, particularly in the use of VGO for bunker fuels in deep-sea cargo ships. The Asia-Pacific region is expected to dominate the market, supported by rising oil and gas production and increasing urbanization and industrialization in countries such as China, India, Japan, and Indonesia.
Recent developments in the industry further underscore the market's growth potential. Notable projects, such as Honeywell's collaboration with SPEC Energy DMCC and Chevron's partnership with Shandong Yulong Petrochemical Co., Ltd., highlight the ongoing efforts to enhance VGO's value through advanced refining technologies. Additionally, India's strategic move to increase VGO exports to countries like the United States and Canada is expected to bolster market expansion. The market is characterized by a semi-fragmented landscape, with major players including Shell Plc, BP Plc, Chevron Corporation, Exxon Mobil Corporation, and China National Petroleum Corporation. These dynamics, coupled with strategic investments and technological advancements, are set to drive the vacuum gas oil market's growth in the coming years.
Vacuum Gas Oil 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, till 2028
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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 Demand for Gasoline and Diesel Across the Globe
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1.5.1.2 Rapid Expansion of Automotive Industry
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1.5.2 Restraints
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1.5.2.1 Strict Mandates by the Global Organizations on VGO Composition
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1.6 Supply Chain Analysis
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1.7 Porter's Five Forces Analysis
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1.7.1 Bargaining Power of Suppliers
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1.7.2 Bargaining Power of Consumers
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1.7.3 Threat of New Entrants
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1.7.4 Threat of Substitutes Products and Services
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1.7.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Product
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2.1.1 Low Sulfur Content
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2.1.2 High Sulfur Content
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2.2 Type
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2.2.1 Light Vacuum Gas Oil
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2.2.2 Heavy Vacuum Gas Oil
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2.3 By Application
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2.3.1 Gasoline Production
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2.3.2 Diesel Oil Production
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2.4 Geography
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2.4.1 North America
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2.4.1.1 United States
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2.4.1.2 Canada
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2.4.1.3 Mexico
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2.4.1.4 Rest of North America
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2.4.2 Asia-Pacific
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2.4.2.1 China
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2.4.2.2 India
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2.4.2.3 Japan
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2.4.2.4 Rest of Asia-Pacific
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2.4.3 Europe
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2.4.3.1 United Kingdom
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2.4.3.2 Germany
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2.4.3.3 France
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2.4.3.4 Rest of Europe
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2.4.4 South America
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2.4.4.1 Brazil
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2.4.4.2 Argentina
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2.4.4.3 Colombia
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2.4.4.4 Rest of South America
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2.4.5 Middle-East and Africa
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2.4.5.1 United Arab Emirates
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2.4.5.2 Saudi Arabia
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2.4.5.3 South Africa
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2.4.5.4 Qatar
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2.4.5.5 Kuwait
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2.4.5.6 Rest of Middle-East and Africa
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Vacuum Gas Oil Market Size 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.
