Vacuum Gas Oil Market is expected to Grow with a CAGR of 5.98% through 2030
The Vacuum Gas Oil (VGO)
market is driven by increasing demand for cleaner fuels, refinery optimization,
rising petrochemical production, and expanding transportation infrastructure,
promoting the need for high-quality feedstock in refineries.
According to TechSci Research
report, “Vacuum Gas Oil Market – Global Industry Size, Share,
Trends, Competition Forecast & Opportunities, 2030F”, the Vacuum Gas Oil Market was valued at USD 454.2 Billion in 2024 and is expected to reach USD 649.35 Billion by 2030 with a CAGR of 5.98%. The Vacuum Gas Oil (VGO) market is primarily
driven by the increasing global demand for refined petroleum products and the
growing adoption of advanced refining technologies. As the demand for
high-quality fuel, including diesel and gasoline, continues to rise, refineries
are increasingly turning to VGO as a crucial intermediate product to produce
these fuels. The increasing global industrialization and urbanization,
particularly in emerging economies, fuel the need for refined petroleum
products, further boosting the demand for VGO. Additionally, the development of
more efficient and environmentally friendly refining processes, such as
hydrocracking and catalytic cracking, enhances the utilization of VGO as a
feedstock in the production of high-value products.
Technological advancements in
refining processes are enabling the extraction of more valuable components from
VGO, thus maximizing its potential in producing premium fuels and petrochemical
products. Moreover, the rise in the use of VGO in heavy oils, as well as its
application in the petrochemical industry for producing key chemicals such as
lubricants and solvents, further contributes to its market growth. The
volatility in crude oil prices, while challenging, also plays a role in driving
the market for VGO, as refiners look to maximize their output by optimizing
feedstock choices. Geopolitical factors, such as changes in oil production and
refinery capacity, also influence the supply and demand dynamics of VGO, often
leading to shifts in market trends.
The growing emphasis on
cleaner fuels and the adoption of stricter environmental regulations globally
are encouraging refiners to upgrade their technologies and processes to meet
evolving standards, which in turn supports the demand for VGO. With the continuous
development of refining infrastructure and the need for more complex and
refined products to meet global energy requirements, the VGO market is poised
for sustained growth in the coming years.
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Based on the Application, Gasoline
Production segment held the largest Market share in 2024. The Vacuum Gas Oil
(VGO) market, particularly in the gasoline production segment, is driven by
several key factors that enhance its importance in the refining process. As
global energy demand continues to rise, refineries are under increasing
pressure to optimize their operations and maximize gasoline yield from crude
oil. VGO, which is a heavy fraction obtained during the distillation of crude
oil, plays a critical role in producing high-octane gasoline by undergoing
further processing, such as catalytic cracking or hydrocracking. These
processes break down heavier hydrocarbons into lighter, more valuable products
like gasoline. The rising demand for gasoline, particularly in emerging
economies with growing automotive markets, significantly boosts the VGO market
as refineries seek to meet fuel consumption needs.
Technological advancements in
refining processes, including improvements in cracking technologies, have made
it more efficient to convert VGO into high-quality gasoline. As a result, the
increasing adoption of advanced refining technologies further stimulates the
demand for VGO in gasoline production. Environmental regulations also
contribute to the demand for high-octane gasoline, as refineries aim to meet
stricter fuel specifications and reduce harmful emissions. Moreover, VGO serves
as an essential intermediate in the production of higher-value products,
thereby contributing to the overall profitability of refineries.
The fluctuating crude oil
prices also influence the economics of gasoline production, making VGO a vital
component for maximizing profit margins in a competitive market. This interplay
of technological, economic, and regulatory factors makes the Vacuum Gas Oil
market a crucial player in the gasoline production segment, supporting the
overall growth of the global fuel industry.
Based on region, Asia Pacific
is the fastest-growing region in the Vacuum Gas Oil (VGO) market, driven by the
region's expanding industrial base and increasing energy demand. Rapid
urbanization, coupled with the growing automotive and petrochemical sectors, is
fueling the need for refined fuels and high-quality lubricants, which VGO
provides. Additionally, the region’s refineries are modernizing with advanced
technologies, enhancing VGO’s utility in refining processes. As countries such
as China, India, and Southeast Asian nations continue to experience economic
growth and infrastructural development, Asia Pacific is expected to maintain
its momentum, offering significant opportunities for VGO market expansion in
the coming years.
Major companies operating in
the Global Vacuum Gas Oil Market are:
- Kuwait Petroleum Corporation
- Vertex Energy Inc.
- Shell PLC
- Chevron Corporation
- Exxon Mobil Corporation
- China National Petroleum
Corporation
- BP International Limited
- CANA LLC
- PJSC Lukoil Oil Company
- Zhejiang Petrochemical Co.,
Ltd.,
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“The Global Vacuum Gas Oil
Market is expected to rise in the upcoming years and register a significant
CAGR during the forecast period. The Vacuum Gas Oil (VGO) market presents
substantial growth opportunities, driven by the rising demand for refined
products and the expansion of the petrochemical sector. VGO, a key feedstock
for producing high-value fuels and lubricants, is gaining importance due to its
role in optimizing refinery processes and improving fuel production efficiency.
With global energy demand, particularly in emerging markets, on the rise, there
is a growing need for advanced refining solutions. Furthermore, ongoing technological
innovations in refining processes and the expanding applications within the
petrochemical industry are creating new avenues for VGO utilization, offering
significant market potential. Therefore, the Market of Vacuum Gas Oil is
expected to boost in the upcoming years.,” said Mr. Karan Chechi, Research
Director of TechSci Research, a research-based global management consulting firm.
“Vacuum
Gas Oil Market - Global Industry Size, Share, Trends, Opportunity, and
Forecast, Segmented, By Product (Low Sulfur Content and High Sulfur Content),
By Type (Light Vacuum Gas Oil and Heavy Vacuum Gas Oil), By Application
(Gasoline Production and Diesel Oil Production), By Region, By Competition,
2020-2030F”,
has evaluated the future growth potential of Global Vacuum Gas Oil Market and
provides statistics & information on the 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 Vacuum Gas Oil Market.
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