Heavy fuel oil, also known as residual fuel oil, is a by-product of crude oil refining. It consists of sulfur, iron, hydrogen, and certain impurities such as metals, ash, and small quantities of vapor. Owing of its lower cost compared to cleaner sources of fuel such as distillates, heavy fuel oil is majorly used as a fuel source for marine vessel propulsion. Heavy fuel oil has many layering, and therefore it should be used, maintained, and stored at high temperature. Heavy fuel oil is primarily used in various end-use industries to produce power for blast furnaces and fire boilers. It is often used to provide electricity in domestic, industrial, and institutional constructions. The compounds of heavy fuel oil are less susceptible to environmental deterioration, and are thus considered as environmentally persistent. However, it emits gasses, such as sulfur dioxide and other contaminants into the atmosphere after its complete combustion, which contributes to increase in greenhouse gas emission.
Key Drivers of Heavy Fuel Oil Market
Rise in seaborne trade activities is a major factor that drives the growth of the heavy fuel oil market. This is attributed to the fact that the accelerated industrialization and liberalization of national economies boos the demand for consumer goods. This, in turn, leads to increased commercial activity. Thus, shipping is becoming an effective and accelerated form of transport. Furthermore, in cross-border transport, seaborne transport plays a crucial role, as it enables international trade and supports the supply chain. This drives the demand for heavy fuel oil, as it is majorly used in approximately all marine vessels and low-speed marine diesel engines. Upsurge in use of fuel oil in petroleum refineries, building materials, metallurgy, and the energy industry is expected to significantly contribute toward the growth of the heavy fuel oil market.
Market Scenario: Opportunities and Challenges
In the coming years, the global heavy fuel oil industry is projected to grow at a considerable rate. This is attributed to surge in demand for heavy fuel oil, which is projected to generate significant growth opportunities in the future. However, many negative factors acts as challenges for heavy fuel oil market growth. For instance, heavy fuel oil releases toxic chemicals such as sulfur and is harmful to marine animals. Moreover, heavy fuel oil contains many other contaminants, which result in fluctuation of pH of water in lakes and seas. Furthermore, the key limiting factor of the heavy fuel oil market is the enforcement of environmental legislation to preserve marine life. On the contrary, manufacturers are likely to witness strong opportunities to gain maximum share in the near future, owing to surge in demand for heavy fuel oil from ferries and cruises.
COVID-19 scenario analysis
The global heavy fuel oil market is expecting slowdown during the forecast period, owing to the outbreak of the COVID-19 pandemic. The lockdown implemented by government and public authorities have brought industries to a standstill. Companies are struggling with missed sales and disrupted supply chains, as production shutdowns and quarantine policies extend across the world, limiting travel and exchange, which, in turn, has negative impacted the growth of the global heavy fuel oil market. Furthermore, the outbreak has led to dampened demand for oil, contributing to dropping oil prices and declining supply.
Key benefits of the report
This study presents the analytical depiction of the global heavy fuel oil industry along with the current trends and future estimations to determine the imminent investment pockets.
The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the global heavy fuel oil market share.
The current market is quantitatively analyzed to highlight the global heavy fuel oil market growth scenario.
Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
The report provides a detailed global heavy fuel oil market analysis depending on competitive intensity and how the competition will take shape in coming years.
Questions answered in the heavy fuel oil market research report
What are the leading market players active in the heavy fuel oil market?
What the current trends will influence the market in the next few years?
What are the driving factors, restraints, and opportunities in the market?
What are the projections for the future that would help in taking further strategic steps?
Heavy Fuel Oil Market Report Highlights
Key Market Players
ExxonMobil, Valero Energy, Reliance Industries, Marathon Petroleum, Shell, Petrobras, Pertamina, Chevron, BP, Total