Bunkering Services Market to Grow with a CAGR of 5.22% through 2029

Expansion of global trade and rising energy demand are likely to drive the market in the forecast period.

According to TechSci Research report, “Bunkering Services Market – Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2029”, the Global Bunkering Services Market is expected to grow at a CAGR of 5.22% in the forecast period. Stringent environmental regulations are a significant driver of the bunkering services market, as they compel the maritime industry to adopt cleaner and more sustainable fuel options. Regulatory bodies, such as the International Maritime Organization (IMO), have implemented strict rules to reduce the environmental impact of shipping activities, leading to increased demand for compliant marine fuels and associated bunkering services.

One of the most impactful regulations is the IMO 2020 sulfur cap, which mandates a reduction in the sulfur content of marine fuels to 0.5% from the previous limit of 3.5%. This regulation aims to reduce sulfur oxide emissions, which contribute to air pollution and pose health risks. To comply with this regulation, shipping companies must switch to low-sulfur fuels, such as very low sulfur fuel oil (VLSFO) and ultra-low sulfur fuel oil (ULSFO), or install exhaust gas cleaning systems (scrubbers) on their vessels. The increased demand for low-sulfur fuels has driven the growth of bunkering services that can supply these specialized products. Regulations targeting greenhouse gas (GHG) emissions are shaping the bunkering market. The IMO has set ambitious targets to reduce the carbon intensity of international shipping by at least 40% by 2030 and to cut total GHG emissions from shipping by at least 50% by 2050 compared to 2008 levels. These targets encourage the adoption of alternative fuels, such as liquefied natural gas (LNG), biofuels, and hydrogen, which have lower carbon footprints compared to traditional marine fuels. The growing interest in alternative fuels drives the demand for bunkering infrastructure and services that can support their supply and distribution.

Regional and national regulations also impact the bunkering market. For instance, the European Union's Emission Control Areas (ECAs) require ships operating in designated zones to use fuels with a sulfur content of no more than 0.1%. Similar regulations are in place in North America and other regions. Compliance with these regulations necessitates the availability of suitable fuels and bunkering services in these areas, driving the growth of the market.

 

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Based on Bunkering Method, The Ship-to-Ship (STS) segment held the largest Market share in 2023 Ship-to-Ship (STS) transfer dominates the global bunkering services market due to several key advantages that it offers over traditional bunkering methods. STS transfer involves the direct transfer of fuel between vessels while at sea, providing flexibility and efficiency that are crucial for the modern maritime industry.

One of the primary reasons for the dominance of STS bunkering is its operational efficiency. STS transfers can be conducted without the need for a vessel to dock at a port, saving time and reducing logistical complexities. This is particularly beneficial for large vessels such as tankers and bulk carriers that may face challenges docking at smaller or congested ports. By eliminating the need for port calls solely for refueling, STS transfers minimize downtime and allow ships to continue their voyages with minimal disruption.

A significant advantage of STS bunkering is its flexibility. STS operations can be conducted at various locations, including high seas and sheltered anchorages, depending on the requirements and conditions. This adaptability ensures that vessels can receive fuel at the most convenient and strategic points along their routes, optimizing operational schedules and reducing costs associated with detours and delays.

Cost-effectiveness is also a major factor contributing to the popularity of STS bunkering. By bypassing port facilities, STS transfers reduce port fees and related expenses. This cost advantage is particularly appealing in an industry where fuel costs constitute a substantial portion of operational expenses. Additionally, the competitive nature of STS bunkering services often leads to favorable pricing and terms for shipping companies.

Advancements in STS transfer technology and safety protocols have enhanced the reliability and safety of these operations. Modern STS equipment and procedures are designed to minimize risks such as spills and accidents, ensuring compliance with stringent environmental and safety regulations.

 

Major companies operating in the Global Bunkering Services Market are:

• Peninsula Group Limited
• Bunker Holding Group (BH Group)
• Bomin Bunker Holding GmbH & Co. KG
• ExxonMobil Corporation
• Shell plc
• TotalEnergies SE
• Chevron Corporation
• KPI OceanConnect A/S

 

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“The Global Bunkering Services Market is expected to rise in the upcoming years and register a significant CAGR during the forecast period. The global bunkering services market presents significant opportunities driven by the increasing adoption of cleaner fuels, such as LNG and biofuels, due to stringent environmental regulations. The expansion of global trade and rising energy demand further boost the need for efficient and reliable fuel supply chains. Additionally, advancements in digitalization and technological innovations offer prospects for enhancing operational efficiency and transparency. The ongoing shift towards sustainable practices and infrastructure investments in key maritime hubs create favorable conditions for growth and development, positioning the bunkering services market as a critical component of the evolving maritime industry.” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

“Bunkering Services Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Fuel Type (Heavy Fuel Oil (HFO), Marine Gas Oil (MGO), Low-Sulfur Fuel Oil (LSFO), Liquefied Natural Gas (LNG), Very Low-Sulfur Fuel Oil (VLSFO), Others), By Vessel Type (Tankers, Container Ships, Bulk Carriers, Cruise Ships, Others), By Bunkering Method (Ship-to-Ship (STS), Port-to-Ship (PTS), Barge-to-Ship (BTS)) By Region & Competition, 2019-2029F”, has evaluated the future growth potential of Global Bunkering Services Market and provides statistics & information on Market size, structure and future Market growth. The report intends to provide cutting-edge Market intelligence and help decision-makers make sound investment decisions., The report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the Global Bunkering Services Market.

 

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