Bunker Fuel Market Expected to Reach $192.2 Billion by 2034

According to a new report published by Allied Market Research, titled, “Bunker Fuel Market," The bunker fuel market size was valued at $126.1 billion in 2024, and is estimated to reach $192.2 billion by 2034, growing at a CAGR of 4.41% from 2025 to 2034.

Introduction

Bunker fuel is essential in maritime transport, which is responsible for over 80% of global trade by volume. Ships ranging from container vessels and oil tankers to bulk carriers and cruise ships depend on bunker fuel for propulsion and auxiliary operations. The bunkering market refers to the global trade and supply of marine fuels that power ships and vessels. It plays a critical role in supporting international shipping and global trade efficiency. The bunker fuel market share reflects the proportion of total marine fuel consumption held by different fuel types or suppliers. It indicates competitive positioning and adoption trends across the global shipping industry. The bunker fuel market analysis provides insights into demand-supply dynamics, pricing trends, and regulatory impacts shaping the marine fuel industry. It helps assess growth opportunities, competitive landscape, and evolving energy transition strategies.

High sulfur fuel oil (HSFO) has long served as the traditional fuel choice for large vessels across the globe. Characterized by a sulfur content of more than 0.5%, HSFO was widely used before the implementation of the International Maritime Organization’s (IMO) 2020 regulation. HSFO is typically burned in large, slow-speed marine engines capable of handling its heavier composition due to its high viscosity and sulfur levels. However, environmental concerns, particularly its contribution to emission of sulfur oxides (SOx), have led to stricter regulatory oversight. As the enforcement of the IMO 2020 sulfur cap, vessels can only use HSFO if they are equipped with exhaust gas cleaning systems, commonly known as "scrubbers." These systems reduce sulfur emissions from engine exhaust, enabling continued use of HSFO while complying with international environmental standards. As a result, HSFO usage has declined in regions without scrubber adoption, although it remains in demand among operators who have invested in this technology. The bunker fuel market forecast outlines expected trends in demand, supply, and pricing across global shipping and energy sectors. It provides insights into future growth drivers, regulatory impacts, and regional consumption patterns

Market Dynamics

Surge in offshore oil and gas activities is expected to drive the bunker fuel market growth. The rise in intensity of offshore oil and gas exploration and production activities is a notable driver for increased bunker fuel consumption, particularly through the operation of offshore support vessels (OSVs). These vessels, which include platform supply vessels (PSVs), anchor handling tug supply vessels (AHTSVs), and crew boats, play a critical role in supporting drilling rigs, transporting equipment, and ensuring the smooth operation of offshore platforms. Their continuous movement between shore bases and offshore installations requires large volumes of marine fuel. In January 2025, offshore engineering, procurement, and construction (EPC) values increased from $52 billion in 2024 to around $54 billion in 2025, despite a smaller number of final investment decisions (FIDs) reflecting bigger, costlier projects. Key contracts include Petrobras’s P84 and P85 FPSOs, Shell’s Sparta floating project, and ExxonMobil’s Jaguar floating production storage and offloading (FPSO) in Guyana.

However, risk of oil spills and pollution is expected to hamper the growth of the bunker fuel market. The risk of oil spills and marine pollution presents a major environmental and regulatory concern for the bunker fuel industry. Accidental discharges during fuel bunkering operations or vessel accidents can result in significant ecological damage, particularly in sensitive marine ecosystems. These incidents not only harm marine biodiversity but also lead to high-profile public and governmental scrutiny of marine fuel practices and safety protocols. Oil spill data over recent years highlights the ongoing environmental threat posed by the maritime transportation sector. In 2022, seven spills of more than seven tons were recorded from tanker incidents, with three classified as 'large' spills each releasing over 700 tons of oil, primarily crude, bitumen, and fuel oil. The total oil lost to the marine environment during that year was around 15,000 tons. This was higher than in the previous three years, reflecting continued vulnerability despite long-term downward trends.

Segments Overview

Based on region, Asia-Pacific was the highest revenue contributor in the bunker fuel market. The Asia-Pacific region represents a significant share of the global bunker fuel consumption, primarily driven by the presence of some of the busiest international ports and rapidly expanding maritime trade. Countries like China, Singapore, South Korea, Japan, and India play a dominant role in the Asia-Pacific bunker fuel market. The strategic geographic location of major ports such as Singapore, Busan, Shanghai, and Hong Kong has established these hubs as central points for refueling and marine logistics, contributing substantially to the bunker demand in Asia-Pacific.

On the basis of type, the low sulfur fuel oil is the fastest growing segment in the bunker fuel market representing the CAGR of 4.95% during the forecast period. LSFO is now widely used in commercial shipping vessels, including container ships, oil tankers, and bulk carriers, as well as in passenger and cruise ships. Its adoption ensures compliance with environmental regulations while maintaining operational efficiency. Most shipping companies have transitioned to LSFO to avoid the high capital and operational costs associated with installing scrubbers. Major bunkering ports such as Singapore, Rotterdam, Fujairah, and Shanghai have reported increased LSFO sales, reflecting its prominence in the market.

On the basis of commercial distributor, the oil majors is the fastest growing segment in the bunker fuel market growing with the CAGR of 4.61% during the forecast period. Oil majors such as BP, Shell, Chevron, ExxonMobil, and TotalEnergies play a pivotal role in the global bunker fuel market, both as suppliers and consumers. These integrated energy giants have long supplied traditional marine fuels such as high sulfur fuel oil (HSFO), marine gas oil (MGO), and very low sulfur fuel oil (VLSFO) to shipping companies across the world. Oil majors use significant quantities of bunker fuel in their own shipping fleets, which transport crude oil, refined products, and liquefied gases. These logistics operations rely heavily on bunker fuel, though companies are now focusing on fleet decarbonization by retrofitting vessels with scrubbers, transitioning to dual-fuel engines, or investing in vessels powered by LNG or methanol.

On the basis of application, the container lines segment is the fastest growing sector in the bunker fuel market, representing the CAGR of 5.08% during the forecast period. Bunker fuel, traditionally a heavy residual oil derived from crude oil, is the primary fuel source for containerships operating in the global shipping industry. Its usage constitutes a major share of operating costs for container lines, accounting for approximately 60% to 75% of the total running expenses for large container ships. The amount of bunker fuel consumed by a container vessel is heavily influenced by the ship's size and especially by its cruising speed. For example, an 8,000 TEU containership might consume around 225 tons of bunker fuel per day when cruising at 24 knots, but this can drop to about 150 tons per day at 21 knots a significant reduction that highlights the sensitivity of fuel usage to operational speeds.

Regional Analysis

Based on region, Asia-Pacific was the highest revenue contributor in the bunker fuel market. The Asia-Pacific region remains the world’s largest consumer and transshipment area for marine fuels, driven by enormous intra-regional trade and the dense traffic of container, bulk and tanker fleets. International Maritime Organization data show total ship fuel consumption across reporting ships exceeded 200 million tonnes in 2023, underlining the scale of demand in which Asia-Pacific is a leading share. Singapore functions as the dominant bunkering hub for the region, supplying a mix of conventional residual fuels and rapidly growing volumes of alternative marine fuels. Singapore’s bunker sales hit a record in 2024 more than 54 million tonnes and the port has reported a rapid year-on-year rise in alternative fuels (biofuel blends and LNG), reflecting both large transhipment flows and a strategic push to lead “green” bunkering.

Competitive Analysis

The key players operating in the bunker fuel market include Petroliam Nasional Berhad (PETRONAS), BP p.l.c., Hindustan Petroleum Corporation Limited, Indian Oil Corporation Ltd, LUKOIL, Shell plc, Neste, Exxon Mobil Corporation, TotalEnergies, Chevron Corporation, BUNKER HOLDING, Vitol Bunkers, and others.

Key Market Insights

• On the basis of type, low sulfur fuel oil dominated bunker fuel market, growing with the CAGR of 4.95% during the forecast period.
• On the basis of commercial distributor, the oil majors segment was the most lucrative segment representing the CAGR of 4.61% during the forecast period.
• On the basis of application, the bulk carrier segment dominated the bunker fuel market in 2024.
• Region wise, Asia-Pacific dominated the market accounting for more than one third of the market share in 2024.