Bunker Fuel Market By Fuel Type (High Sulfur Fuel Oil, Low Sulfur Fuel Oil, Marine Diesel Oil (MDO), Marine Gas Oil (MGO), Intermediate Fuel Oil, Others), By Vessel Type (Commercial Shipping, Passenger Shipping, Offshore & Support Vessels, Naval & Defense Vessels, Fishing Vessels), By Grade (Residual Fuel Oils, Distillate Fuel Oils, Blended Fuels), By Sulfur Content (High Sulfur Fuel, Low Sulfur Fuel, Ultra-Low Sulfur Fuel, Sulfur-Free Fuels), and By End-User (International Shipping Companies, Passenger Shipping Operators, Exploration Companies, Coast Guard Authorities, Inland Waterway Transport Companies, Fishing Industry Operators), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

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What trends will shape the Bunker Fuel Market in the coming years?

The Bunker Fuel Market accounted for USD 129.54 Billion in 2024 and USD 135.27 Billion in 2025 is expected to reach USD 208.46 Billion by 2035, growing at a CAGR of around 4.42% between 2025 and 2035. A bunker fuel market is a market of global trade and supply of fuel that is used by ships to propel and provide cargo operations on the ship. It mainly consists of marine gas oil (MGO), marine gas/marine diesel, and heavy fuel oil (HFO), which drives big commercial ships such as cargo ships and tankers. The international trade, shipping channels, and regulatory regimes created by government agencies such as the International Maritime Organisation (IMO) are the major drivers of this market. New trends are the legislation of low-sulphur fuel and alternative energy because of stricter environmental regulations. Key operators in this industry are the fuel vendors or the shipping industries and ports.

What do industry experts say about the Bunker Fuel market trends?

"We are encouraged to see progress toward climate proofing global trade. With growing support for a universal greenhouse gas price... that will ensure the success of a just and equitable transition for the industry.”

• Panos Spiliotis, EU Transport Senior Manager, Environmental Defense Fund (EDP)

Which segments and geographies does the report analyze?

What are the key drivers and challenges shaping the Bunker Fuel market?

Is increasing global maritime trade boosting bunker fuel demand internationally?

The growth in international trade through maritime transport is escalating the bunker fuel market demand in the international market. The increase in the amount of goods transported along the shipping routes leads to an increase in vessels that operate globally, which translates to increased use of marine fuels. The International Maritime Organisation (IMO) estimates that global trading activities conducted via sea span about 90% of trading quantity, which underscores the importance of the sector in international trade.

According to the United Nations Conference on Trade and Development (UNCTAD), the increase of maritime trade and shipping activity has been a steady qualifier with an average growth of 4.3 per annum, until the most recent upheavals. With this boom, there is a need to increase the use of bunker fuel to propel vessels, particularly in bulk carriers, container carriers, and tankers. Nevertheless, tighter environmental policies such as the IMO 2020 sulphur limit are shaping the makeup and demand for cleaner bunker fuels. However, the absolute growth in the amount of maritime trade remains one of the main reasons that is boosting the total consumption of bunker fuel on a global scale.

Are advancements in ship engines enhancing fuel consumption efficiency trends?

The rising innovations in ship engines are considerably increasing the fuel consumption efficiency, and this growth in the bunker fuel market is increasing the overall demand for the fuel and encouraging efficient and cleaner fuel usage. Contemporary marine engines use energies that are able to receive fuel injection in systems linked up electronically, be turbocharged, and have efficient combustion processors that collectively enhance fuel economy by between 10 and 15%, according to the Office of Energy Efficiency & Renewable Energy, U.S. Department of Energy.

The International Maritime Organisation (IMO) points out that the design of newer engines leads to a reduction of emissions and fuel efficiency, and it helps to switch to low-sulphur and alternative fuels in the industry. Such technological advancement has allowed the shipping companies to mitigate their operational expenses and adopt strict environmental statutes, which have made fuel consumption efficiency an essential phenomenon in the changing scenario in the bunker fuel market.

Do rising concerns over emissions discourage heavy fuel oil consumption?

The bunker fuel market has witnessed a reduction in the usage of heavy fuel oil (HFO) due to increasing concerns over emissions. The IMO 2020 regulation cut marine fuels (even heavy marine fuel oil, or HFO) to a 0.5% limit, a substantial decrease in the consumption of high-sulphur marine fuel, which is standard at about 3.5% sulphur. The Environmental Protection Agency (EPA) of the United States shows that shipping accounts for approximately 2.6% of all greenhouse gas emissions across the world and indicating the environmental concern of this sector.

The European Environment Agency notes that SOx gases caused by ships are acid prey and aggravate respiratory illness, thus necessitating lower emission tiers. Such regulations are compelling operators of ships to replace their usage of dirty fuels with cleaner options, i.e., low-sulphur fuels or scrubber systems, thus reducing HFO usage and affecting its demand in the bunker fuel sector. Moreover, ship-port facilities’ attitudes have also entered a decisively fading-down period, with several port authorities now having fines and restrictions in place on ships that utilise high-sulphur fuels. The increasing normative pressure has established the presence of an obvious disincentive to persist in using heavy fuel oil in marine operations.

Will alternative low-sulfur fuels create new compliant marine segments?

The move to alternative low-sulphur fuels will see the emergence of new compliant strata in the marine bunker fuel market, largely due to the 2020 sulphur cap rule, issued by the International Maritime Organisation (IMO), that capped marine fuel sulphur levels at 0.5%. This provision has spurred demand for cleaner grades of fuel like marine gas oil (MGO), liquefied natural gas (LNG), and biofuels.

The U.S. Energy Information Administration (EIA) depicts LNG as a marine fuel that will expand significantly compared to other gas types due to its minimal sulphur amount and minimal emissions profile. Further, another study conducted by the European Maritime Safety Agency (EMSA) points out that utilisation of these alternative fuels considerably reduces emissions of sulphur oxide (SOx), which is beneficial for improving the air quality of the globe.

These environmental requirements are also promoting innovation and investment in compliant fuel technologies, ultimately developing new market segments based on sustainability and compliance with regulations that are set to transform the bunker fuel market in the long run.

Can emerging port infrastructure developments support fuel distribution innovation?

New port infrastructure ventures are vital in making the bunker fuel market very innovative in terms of fuel distribution. The United States Department of Transportation estimates that the Port Infrastructure Development Program has spent more than $650 million improving facilities at ports, making them better able to accommodate cleaner fuels and to smooth the bunkering process.

According to the Ministry of Shipping in India, the current efforts have already elevated the efficiency of facilitating cargoes at ports, and various ports are working towards upgrading their bunkering facilities to accommodate low-sulphur fuels to meet the forthcoming International Maritime Organisation (IMO) 2020 requirements. Studies of various institutions, such as MIT, emphasise the adoption of digital solutions in modernised ports to enhance the efficiency in tracking fuel and its distribution. Such innovations aid in safer, more transparent, and environmentally sustainable fuel supply chains that are a key concern to the maritime industry today.

What are the key market segments in the Bunker Fuel industry?

Based on the Fuel Type, the Bunker Fuel Market is classified into High Sulfur Fuel Oil, Low Sulfur Fuel Oil, Marine Diesel Oil (MDO), Marine Gas Oil (MGO), Intermediate Fuel Oil, and Others. The High Sulphur Fuel Oil (HSFO) has been the most popular and dominant area in the bunker fuel market mainly because of its low cost and widespread availability, particularly among the large ocean-going ships. HSFO has also proved to be important regardless of the environmental policies promoting the use of cleaner fuels, due to the fact that not every vessel uses a strict sulphur emission regime or scrubber to implement it. Nevertheless, low-sulphur alternatives, including Marine Gas Oil (MGO), are slowly gaining popularity in the market due to IMO 2020 requirements, though high-sulphur fuel oil (HSFO) still dominates, given the high-cost savings on compliant vessels designed with the use of exhaust cleaning systems.

Based on the Vessel Type, the Bunker Fuel Market is classified into Commercial Shipping, Passenger Shipping, Offshore & Support Vessels, Naval & Defense Vessels, and Fishing Vessels. The biggest and most dominant market in the bunker fuel market is the commercial shipping segment. This sector comprises massive cargo ships, container vessels, and bulk carriers, which constitute the spine of international trade, bringing huge volumes of fuel as they run endless operations and large distances. The enormity of fuel consumption of commercial vessels outweighs other sectors of emissions, and it is the major contributor to bunker fuel consumption in the global market. The regulatory compliance and the choice of fuel type in commercial shipping are other factors that extensively impact the general trend and specification of fuel in the market in general.

Which regions are leading the Bunker Fuel market, and why?

The North American bunker fuel market stands at the forefront because of the huge maritime infrastructure and the magnitude of international trade. Key refuelling stations are the major port facilities on the Gulf Coast of U.S. cities such as Houston and New Orleans, which have become major gateways for ships travelling between the Atlantic and Pacific Oceans. The accessibility and availability of well-established shipping industries, good port facilities, and the regulatory framework that would support these industries are a boost to the capacity of the region to support and cater to the rising demand for bunker fuels.

The implementation of cleaner fuel alternatives, such as low-sulphur fuel oil and LNG in North America, makes North America very aggressive in adhering to the IMO 2020 requirements, which enhances market dynamics. A robust refining capability also means that different fuel grades can be supplied to the region consistently. North America has stepped up investments in the modernisation of its ports, as well as environmental compliance, which makes it a leader in the area of sustainable maritime fuel solutions. The need to increase trade relations with Asia and Latin America also contributes to increasing demand for bunker fuels in this area. Fuel consumption and supply chain efficiency play a role in reducing shipping logistics through the integration of digital technologies.

The Asia-Pacific bunker fuel market is leading because of its strategic location in the sea and the large level of international commerce flowing through its major shipping channels, including the Strait of Malacca and the South China Sea. Countries such as China, Singapore, South Korea, and Japan have large ports that act as important points of refuelling in international shipping. The high rate of industrialisation, the growth of naval trade, and the rising need to use marine logistics in other countries, such as India and China, have also contributed to the use of bunker fuel. The emergence of large shipping fleets and shipbuilding industries is a top demand for bunker fuels, making the region the hub of the global market. The current transition to more efficient and environmentally friendly fuel alternatives is unique to the markets in the future.

What does the competitive landscape of the Bunker Fuel market look like?

The bunker fuel market is highly competitive, and it is split between independent suppliers and major energy conglomerations. Other industry leaders such as Bunker Holding, World Kinect Corporation, Mercuria Energy Group, Vitol Group, and Trafigura, among others, have proceeded to expand their operations around the globe by making acquisitions and investments in green bunkering solutions. Recently, there has been the growth of TFG Marine, which has invested in new methanol barges to bunker, a move that indicates that the industry is moving towards alternative, cleaner fuel.

Further, established oil majors like Bertrand-Premier, Shell, and Exxon Mobil are leading towards low-sulphur and alternative fuel integration into their bunkering schemes to satisfy the strict policy of the IMO. Smaller suppliers Monjasa and Peninsula Petroleum are in a good position in the market, as they specialise in more flexible and regionally based supply chains. Generally, the level of competition is changing with the involvement of all players in being compliant with the regulations governing the environment and seasonal demands by customers, which are encouraging innovation and consolidation of the market.

Bunker Fuel Market, Company Shares Analysis, 2024

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Which recent mergers, acquisitions, or product launches are shaping the Bunker Fuel industry?

• In July 2025, TotalEnergies and CMA CGM launched a 50/50 joint venture to build LNG bunkering logistics at the Port of Rotterdam. They planned to deploy a 20,000 m³ LNG bunker vessel by 2028, and TotalEnergies agreed to supply up to 360,000 tonnes of LNG per year through 2040.
• In May 2025, a joint venture between Pilot LNG and Seapath (Libra Group) secured all necessary permits to begin construction of the Galveston LNG Bunker Port (GLBP) on the U.S. Gulf Coast. It was set to become the first LNG bunkering hub in the region, with an initial capacity to supply 360,000 gallons per day, planned to scale up to 720,000 gallons within a year.

Report Coverage:

By Fuel Type

• High Sulfur Fuel Oil
• Low Sulfur Fuel Oil
• Marine Diesel Oil (MDO)
• Marine Gas Oil (MGO)
• Intermediate Fuel Oil
• Others

By Vessel Type

• Commercial Shipping
• Passenger Shipping
• Offshore & Support Vessels
• Naval & Defense Vessels
• Fishing Vessels

By Grade

• Residual Fuel Oils
• Distillate Fuel Oils
• Blended Fuels

By Sulfur Content

• High Sulfur Fuel
• Low Sulfur Fuel
• Ultra-Low Sulfur Fuel
• Sulfur-Free Fuels

By End-User

• International Shipping Companies
• Passenger Shipping Operators
• Exploration Companies
• Coast Guard Authorities
• Inland Waterway Transport Companies
• Fishing Industry Operators

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of Middle East & Africa

List of Companies:

• Bunker Holding
• World Kinect Corporation
• Mercuria Energy Group
• Peninsula Petroleum
• Vitol Group
• Trafigura
• Monjasa
• Integr8
• Fratelli Cosulich Group
• Alpha Trading
• Chemoil Energy Limited
• BP plc
• Exxon Mobil Corporation
• Royal Dutch Shell plc
• Sinopec Group

Frequently Asked Questions (FAQs)