Global bunker fuel market is projected to witness a CAGR of 3.51% during the forecast period 2025–2032, growing from USD 145.12 billion in 2024 to USD 191.24 billion in 2032. The bunker fuel market has experienced significant growth in recent years due to rising maritime transport volumes, expanding fleets, and increasing trade activities, particularly in emerging economies which is expected to maintain a strong pace of expansion in the coming years. Bunker fuels are used in large vessels such as tankers, bulk carriers, and cargo ships. With the rising investment in the deployment of large vessels by shipping companies leads to rising demand for bunker fuel in the market.
Currently, the bunker fuel industry is undergoing a significant transformation due to the implementation of stricter environmental regulations in various countries, such as IMO 2020 sulphur cap and upcoming carbon intensity (CII) regulations. The ongoing regulations mandate the use of lower emissions and encourage the adoption of cleaner fuels such as low-Sulphur and biofuel in the market. The industry is moving towards decarbonization which drives the demand for the low-Sulphur fuels in the bunker fuel market in the forecast period.
The push for decarbonization has spurred investment in low-carbon and zero-emission solutions which boosted the demand for biofuels in bunker fuels in the market. Several oil producers are looking to investing in bunkering digital solutions, sustainable fuel production, and emission-cutting technologies which create the opportunity for bunker fuels in the market. In addition, the growth of bunkering infrastructure in major ports, and alliances between energy corporations and shipping companies will increase the bunker fuel market size in the next few years.
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Expansion of Shipping Fleets and Maritime Trade Driving Market Growth
The global demand for bunker fuel is being propelled by the rapid expansion of shipping fleets and rising maritime trade activities. Bunker fuel is the primary energy source powering vessels that transport goods worldwide. With growing import-export volumes, shipping companies are expanding fleets with larger cargo ships to handle increasing trade, directly boosting fuel demand. Emerging economies play a significant role by facilitating higher trade flows, which in turn necessitates greater shipping capacity. The growth of tankers, bulk carriers, and container ships to meet global logistics requirements further accelerates bunker fuel consumption.
For instance, in March 2025, CMA CGM Group announced an investment of approximately USD 20 billion in the U.S. marine transportation sector to strengthen the domestic supply chain over the next four years. This move underscores how fleet expansions are poised to increase bunker fuel demand globally.
Shipping firms are increasingly investing in larger vessels such as container and bulk carriers, which consume substantial amounts of fuel. In parallel, upgrades in port facilities and the development of new shipping routes are enhancing maritime connectivity and boosting bunker fuel usage. Additionally, offshore oil and gas exploration activities requiring support vessels are contributing to rising bunker fuel demand.
Stricter Emission Regulations Creating New Market Opportunities
The introduction of stringent emission control measures, such as the International Maritime Organization’s (IMO) sulphur cap and greenhouse gas reduction targets, is reshaping the bunker fuel market. These policies have accelerated the shift toward cleaner and more sustainable fuels. IMO 2020, which limits sulphur content in marine fuel to 0.5%, has driven the adoption of very-low sulphur fuel oil (VLSFO) and liquefied natural gas (LNG). These fuels reduce harmful sulphur oxide (SOx) and nitrogen oxide (NOx) emissions, making them the preferred alternatives.
VLSFO, in particular, has gained traction as a cost-effective transitional fuel, offering lower emissions without requiring extensive retrofitting of ship systems. Meanwhile, long-term research into alternative fuels such as ammonia and hydrogen is gaining momentum, supported by energy companies and shipbuilders. As environmental regulations tighten, innovation in cleaner fuel solutions continues to create fresh growth avenues.
For example, beginning January 2025, the European Union will only allow ships that reduce bunker fuel emissions by 2% annually between 2025–2029 to enter its ports, setting a baseline of 91.16 grams of CO₂ equivalent. Such measures are expected to accelerate demand for low-sulphur fuels and biofuels in the coming years.
Rising Adoption of Very-Low Sulphur Fuel Oil (VLSFO)
The VLSFO segment is gaining significant market share, driven by regulatory compliance and cost-effectiveness. In line with IMO 2020 regulations, VLSFO offers shippers a compliant and practical solution to meet sulphur emission limits. Compared to marine gas oil (MGO) and high-sulphur fuel oil (HSFO), VLSFO is more economically viable and compatible with a wide range of ship engines. Advances in refining technology have further enhanced its quality, while infrastructure investments in storage and distribution have expanded its availability across key ports worldwide.
Growing focus on sustainability, coupled with strict compliance requirements, is expected to further fuel VLSFO adoption over the forecast period.
Asia-Pacific Leading the Global Bunker Fuel Market
Asia-Pacific dominates the global bunker fuel market and is expected to maintain its leadership position. The region’s prominence in international trade, coupled with high marine traffic through major ports in Singapore, China, and South Korea, drives robust demand. These ports handle billions of tons of cargo annually, requiring substantial volumes of bunker fuel for long-haul maritime transportation.
Rising energy demand in China and India, along with increased crude oil and natural gas trade, further amplifies fuel requirements. Governments across the region are also investing in port infrastructure, digital modernization, and adoption of low-sulphur fuels, reinforcing the region’s market leadership.
For instance, in March 2025, India’s Ministry of Ports, Shipping & Waterways announced plans to complete 150 marine-related projects by September 2025, with investments of around USD 11.7 million. Key initiatives include inland waterways expansion, maritime startups, and the creation of green shipping corridors. Such initiatives will significantly boost bunker fuel demand across Asia-Pacific.
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