Singapore Bunker Fuel Market

Singapore Bunker Fuel Market Outlook - 2030

The Singapore bunker fuel market size was valued at $17.6 billion in 2020, and is projected to reach $24.5 billion by 2030, growing at a CAGR of 3.5% from 2021 to 2030. Bunker fuel is a fuel oil used in marine vessels. It is poured into the ship bunkers to power its engines. Ships use mainly three types of marine fuels, which include high sulfur fuel oil, low sulfur fuel oil, and diesel oil. Nowadays, growth in awareness toward reducing environmental pollution and stringent government regulations are expected to create opportunities for the fuels, including LNG, gasoil, LPG, and others, as a substitute to the above-mentioned bunker fuels.

COVID-19 pandemic outbreak across the globe has resulted in decline in demand for bunker fuel from marine industry which also affected Singapore bunker fuel market in the year 2020.

Rise in maritime trade has increased the demand for bunker fuel and bunkering services. Increase in oil & gas exploration activities in emerging oil regions drives the growth of the bunker fuel market, as many bunker fuel suppliers changed their focus of operation to these offshore resource sites. In addition, fuel reduction initiatives by shipping industries are expected to hamper the market growth. Therefore, due to stringent environmental regulations regarding marine environment, the shipping industry has decided to reduce the use of residual fuel oil that contains contaminants such as nitrogen and sulfur. The shipping industry is focusing toward new alternative such as LNG, which is less harmful to the marine environment. Hence, rise in investment toward LNG bunkering infrastructure is anticipated to provide lucrative opportunity for key players operating in the market.

For the purpose of analysis, the Singapore bunker fuel market is segmented on the basis of type, commercial distributor, and application. Depending on type, the market is categorized into high sulfur fuel oil (HSFO), low sulfur fuel oil (LSFO), marine gasoil, and others. On the basis of commercial distributor, it is classified into oil major, large independent, and small independent. The applications covered in the study include container, bulk carrier, oil tanker, general cargo, chemical tanker, fishing vessels, gas tankers, and others.

The key players operating in the Singapore bunker fuel market are BP Plc, Exxon Mobil Corporation, Equatorial Marine Fuel Management Services Pte. Ltd., Glencore Singapore Pte. Ltd., PetroChina International (Singapore) Pte. Ltd., Royal Dutch Shell Plc, Sentek Marine & Trading Pte. Ltd., SK Energy International Singapore Pte. Ltd., Total Energies, and Vitol Marine Fuels Pte. Ltd.

These key players are adopting various strategies, such as acquisition, agreement, collaboration, business expansion, and product launch to stay competitive in the bunker fuel market.

For instance, in September 2021, BP plc. collaborated with NYK Line (a part of NYK Group). This collaboration aimed at working together on marine fuels such as biofuels, LNG, hydrogen and ammonia, and explore participation in supply chains for ammonia and hydrogen for heavy industry and power generation.

In addition, in March 2021, Total Energies received a bunker supplier license from the Maritime and Port Authority of Singapore (MPA) to develop Singapore into a major LNG maritime hub for Asia. Through this achievement followed by the agreement between Total Energies and MPA, Singapore, the company is expected to develop a LNG bunker supply chain in the port of Singapore.

Other players operating in the value chain of the Singapore bunker fuel market are Global Energy Trading Pte. Ltd., Chevron Singapore Pte. Ltd., Eng Hua Company Pte Ltd., Maersk Oil Trading Singapore Pte Ltd., and others. 

The Singapore bunker fuel market is analyzed and estimated in accordance with impacts of the drivers, restraints, and opportunities. The period studied in this report is 2020–2030. The report includes the study of the Singapore bunker fuel market with respect to the growth prospects and restraints based on the product analysis. The study includes Porter’s five forces analysis of the industry to determine the impact of suppliers, competitors, new entrants, substitutes, and buyers on the market growth.

Singapore bunker fuel market, by type

By type, the LSFO segment held the largest market share in 2020. This is attributed to rise in demand for marine fuel from shipping companies and implementation of IMO 2020 i.e., the use of low sulfur fuel oil (<0.5% S content) across the globe. In addition, rise in maritime trade activities between Asia-Pacific, Europe, North America, and LAMEA region is further projected to increase the demand for LSFO from 2021 to 2030.

Singapore bunker fuel market, by commercial distributor

On the basis of commercial distributor, the oil majors segment dominated the Singapore bunker fuel market in 2020, in terms of share, owing to dominance of oil majors in the crude oil tanker chartering business across the globe. In addition, developments adopted by oil majors in the bunker fuel industry such as product launch, agreement, and others, are further anticipated to drive the growth of the market during the analyzed timeframe.

Singapore bunker fuel market, by application

By application, the container segment dominated the highest Singapore bunker fuel market share in 2020, and is expected to maintain the same during the forecast period. This is attributed to increase in demand for cargo transportation through ships and rise in trade-related agreements. In addition, rise in number of manufacturing units and factories in the region such as Asia-Pacific, is anticipated to drive the growth of the Singapore bunker fuel market for container shipping in the coming years.

COVID-19 impact on the market

Lockdown imposed due to the outbreak of the COVID-19 pandemic resulted in temporary ban on the import and export, thereby disrupting the supply chain and hampering the Singapore bunker fuel market growth in the second, third, and fourth quarter of 2020. In addition, there will be some impact on the growth of the market in 2021, owing to the second wave of COVID-19 pandemic across the globe. However, the market is expected to recover by the end of 2021, as the production in various industries restarts with rapid vaccination across the globe. In addition, rise in maritime trade activities after the ease of ban on import and export is anticipated to fuel the market growth in the coming years.

Key Benefits For Stakeholders

• The report includes in-depth Singapore bunker fuel market analysis of different segments and provides market estimations between 2021 and 2030.
• A comprehensive analysis of the factors that drive and restrict the Singapore bunker fuel market growth is provided.
• Porter’s five forces model illustrates the potency of buyers & sellers, which is estimated to assist the market players to adopt effective strategies.
• Estimations and Singapore bunker fuel market forecast are based on factors impacting the growth in terms of value.
• Key market players are profiled to gain an understanding of the strategies adopted by them.
• This report provides a detailed analysis of the current Singapore bunker fuel market trends and future estimations from 2021 to 2030, which helps identify the prevailing market Singapore bunker fuel market opportunities.

 Singapore Bunker Fuel Market Report Highlights