The global fuel oil market, estimated at $137.21 billion in 2017, is expected to reach $273.05 billion by 2025, with a projected annual cagr of 9.4 percent over the 2018-2025 period.

An increase in offshore oil and gas exploration, as well as increased offshore trade as a result of increased imports and exports, has contributed to the overall growth of the global fuel oil market, according to a report by Allied market Research.

However, strict government controls on fuel oil, such as residual fuel oil, have limited the growth of the market. Residual fuel oil contains pollutants such as sulphur and nitrogen, enough to disrupt the life cycle of the oceans.

Instead, the expansion of the fuel oil business by market participants in emerging economies such as India and China will create lucrative opportunities for the market.

By 2025, the Marine light diesel (MGO) segment will have the fastest cagr. The oil majors will continue to dominate, while the large independent sectors will see the fastest growth during the study period. By 2025, North America will be the fastest growing region.

The surplus fuel market is the largest, at 60 percent in 2017, and will remain dominant until 2025. This is because the fuel is cheaper than alternative fuel MGO and is widely used by shipping companies to transport ships.

However, Marine light diesel (MGO) will grow at the fastest cagr of 14.5 per cent from 2018 to 2025. This is because the international maritime organization (IMO) has imposed environmental regulations on the use of sulfur in Marine fuels to reduce Marine pollution, leading to the increasing use of Marine light diesel as an alternative fuel.

In 2017, oil majors had the lion's share of 41.5 percent and will maintain their revenue lead through 2025. This is because it involves the worldwide trade in Marine fuels and the production of Marine fuels.

By 2025, a large independent compound annual growth rate will reach 9.9% of the fuel tank, that is because these distributors in the world's major areas (including the asia-pacific region (Singapore), the Middle East (uae), Europe, the americas region (Rotterdam) (American bay) for Marine fuel trade, the region accounted for about 60% of the world's fuel tank sales.

Regionally, the asia-pacific region accounted for 46 percent of the market in 2017 and will dominate by 2025, thanks to the presence of major commodity consumption centers in the region. However, by 2025, the CAGR in North America will reach 10.2 percent, the fastest, due to the growth of the region's offshore chemical trade and surging demand for plastic raw materials.

(source: China petrochemical news)