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Very Low Sulphur Fuel Oil (VLSFO) Market Size - Analysis, Share, Growth Forecast, 2025 - 2034

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Very Low Sulphur Fuel Oil Market Size

The global very low sulphur fuel oil market was valued at USD 68.4 billion in 2024 and is estimated to grow at a CAGR of 20% from 2025 to 2034. The International Maritime Organization's (IMO) implemented strict regulations in 2020 to reduce sulfur emissions in marine fuels. These regulations require shipping companies to transition to VLSFO for their vessels. Refineries have enhanced their production capabilities to manufacture compliant fuel that aligns with the new sulfur content limits further augmenting the business landscape.
 

Very Low Sulphur Fuel Oil Market

Companies investing in infrastructure and technology to ensure continuous supply of VLSFO along with initiatives toward ensuring availability of VLSFO across bunkering ports will further influence the business dynamics. For instance, in April 2024, Kuwait Petroleum Corporation (KPC) has established a term agreement with Qatar Energy (QE) for the supply of very-low sulphur fuel oil (VLSFO). The agreement covers loadings from July 2024 through June 2025. The contract specifies a supply volume of 1.2 million tonnes per year (21,000 barrels per day).
 

Very Low Sulphur Fuel Oil Market Trends

The very low sulphur fuel oil industry is expanding due to the increasing adoption of low emission and cleaner fuel. Shifting focus toward reducing oceanic pollution along with stringent mandates introduced by respective authorities toward emission reduction, will complement the industry landscape.
 

For instance, during International Energy Week 2024 in London, industry experts discussed maritime emission reduction methods. ExxonMobil introduced several bio marine fuel blends for ships, including B25 ULSFO, B30 VLSFO, B7 MGO, B10 HSFO, and B25 VLSFO. These fuels help vessel operators reduce emissions without compromising engine efficiency. The company's technical staff assists operators in adopting these fuels, which require no engine changes. ExxonMobil will return to International Energy Week in 2025 to present its fuel solutions.
 

Very Low Sulphur Fuel Oil Market Analysis

Very Low Sulphur Fuel Oil (VLSFO) Market Size, By Region, 2022 - 2034 (USD Billion)

Expanding maritime sector supported by increased environmental consciousness, with focus on reducing carbon emissions and implementing sustainable practices, further complementing the business landscape. The widespread availability of bunkering facilities, coupled with increased vessel traffic at ports throughout Europe and the Asia-Pacific regions, contributing to the industry growth. Companies are investing in eco-friendly fuel alternatives and innovative technologies to meet stringent environmental regulations while maintaining operational efficiency further augmenting the industry landscape.
 

The increasing retrofitting activities along with installation of low sulphur propulsion technologies across ship engines are driving the product demand. Continuous expansion of seaborne passenger traffic coupled with the development of local ports further contribute to the industry growth. Additionally, increased government investments in naval fleet expansion, including submarines, aircraft carriers, and other military vessels, will further accelerate the product deployment.
 

U.S. Very Low Sulphur Fuel Oil (VLSFO) Market Size, 2022 - 2034 (USD Billion)

The U.S. very low sulphur fuel oil market is set to cross over USD 35 billion by 2034. Introduction of stringent sulfur emission regulations, proximity to refineries, local regulations, transportation infrastructure, and consumption patterns is increasing the demand for low-sulfur fuels as the primary marine fuel. Increasing demand for ships that offer operational reliability while reducing emissions and focus on removing seaborne pollution will complement the industry landscape. Growing inclination toward comfort, luxury, and dependable engines, combined with expansion in seaborne transport and economic stability, will drive the product adoption.
 

Fluctuations in oil prices and regulatory mandates along with geopolitical developments and evolving trade patterns will positively influence the business dynamics. For instance, in May 2024, the International Standards Organization (ISO) introduced its seventh edition of marine fuel specifications, ISO 8217:2024, replacing the old version. The updated standard now includes specifications for 0.50% very low sulphur fuel oil grades, which became essential after IMO 2020 implementation. The revision adds four RM grades for low-sulfur fuels and five RF grades for biofuel bunkers, addressing the market's shift toward alternative fuel options.
 

Very Low Sulphur Fuel Oil Market Share

Very Low Sulphur Fuel Oil (VLSFO) Company Market Share Analysis, 2024

The very low sulphur fuel oil (VLSFO) industry is experiencing increasing competition driven by stringent environmental regulations. Major oil refiners, bunker suppliers, and shipping companies are competing for market share by enhancing their VLSFO offerings, focusing on quality control and compliance with environmental standards. Key players including ExxonMobil, Chevron, Saudi Aramco, and BP, alongside regional players who are investing in refining infrastructure and technology to produce low-sulfur fuels efficiently.
 

Very Low Sulphur Fuel Oil Market Companies

Major players operating across the industry include:

  • BP
  • Chevron
  • Exxon Mobil
  • Hindustan Petroleum
  • Indian Oil
  • Marathon Petroleum
  • Mediterranean Fuels
  • Phillips 66
  • Rosneft
  • Saudi Aramco
  • Shell
  • Sinopec
  • TotalEnergies
  • Viva Energy
  • Vitol
     

Very Low Sulphur Fuel Oil Industry News

  • In December 2024, HD Hyundai Oilbank Co., with Aramco's backing, initiated bio very low sulfur fuel oil (VLSFO) deliveries to Yang Ming Marine Transport in Taiwan. This marked the first bio VLSFO export from a South Korean firm to an international client. The company produced the bio VLSFO using base fuel containing 0.5% or less sulfur content.
     
  • In July 2023, BP Marine, operating under bp's trading and shipping division, established a new agreement with StraitNZ to deliver marine biofuels in Wellington port. The company planned to introduce bio-VLSFO fuel delivery through barges in early 2024. The new fuel combines 24% UCOME with VLSFO. The International Sustainability & Carbon Certification System has certified the UCOME portion of this blend.
     

This very low sulphur fuel oil market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD Million” from 2021 to 2034, for the following segments:

The information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada 
  • Europe
    • Spain
    • Russia
    • UK
    • Italy
    • France
    • Germany
    • Belgium
    • Netherlands
  • Asia Pacific
    • China
    • Japan
    • India
    • Australia
    • South Korea
    • Singapore
  • Middle East & Africa
    • Saudi Arabia
    • UAE
    • Turkiye
    • South Africa
  • Latin America
    • Brazil
    • Mexico
    • Argentina

 

Authors: Ankit Gupta, Divyendu Sharma
Frequently Asked Question(FAQ) :
Who are the major players in the very low sulphur fuel oil market?
Key players in the market include BP, Chevron, Exxon Mobil, Hindustan Petroleum, Indian Oil, Marathon Petroleum, Mediterranean Fuels, Phillips 66, Rosneft, Saudi Aramco, Shell, Sinopec, TotalEnergies, Viva Energy, and Vitol.
What is the projected size of the global very low sulphur fuel oil market by 2034?
Why is the demand for very low sulphur fuel oil rising in the U.S.?
How big is the very low sulphur fuel oil market?
Very Low Sulphur Fuel Oil Market Scope
  • Very Low Sulphur Fuel Oil Market Size
  • Very Low Sulphur Fuel Oil Market Trends
  • Very Low Sulphur Fuel Oil Market Analysis
  • Very Low Sulphur Fuel Oil Market Share
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    Premium Report Details

    Base Year: 2024

    Companies covered: 15

    Tables & Figures: 28

    Countries covered: 23

    Pages: 110

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