Heavy Fuel Oil Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Classification (Low, Medium, High), by Application (Industrial, Non-Industrial), By End-User (Shipping, Others), By Region, Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 71.64 Billion
CAGR (2026-2031)	3.11%
Fastest Growing Segment	Industrial
Largest Market	Asia Pacific
Market Size (2031)	USD 86.09 Billion

Market Overview

The Global Heavy Fuel Oil Market will grow from USD 71.64 Billion in 2025 to USD 86.09 Billion by 2031 at a 3.11% CAGR. Heavy Fuel Oil constitutes a high-viscosity residual fuel derived from crude oil distillation that primarily functions as a cost-effective energy source for marine propulsion and industrial power generation. The market is largely propelled by the sustained expansion of international maritime trade which necessitates reliable bunker fuel and the ongoing requirement for affordable electricity production in developing economies with maturing infrastructure. These fundamental necessities ensure a baseline level of consumption as heavy fuel oil remains an economically viable option for equipping large shipping vessels and operating stationary power plants in price-sensitive regions.

However, the market faces significant impediments due to increasingly rigorous environmental mandates designed to curb sulfur and carbon emissions. The implementation of tighter standards by global regulatory bodies compels fleet operators to transition toward cleaner alternatives like liquefied natural gas or low-sulfur distillates, thereby structurally constraining the long-term expansion of traditional residual fuels. According to the Energy Institute, in 2024, global demand for fuel oil decreased by 2% as these regulatory pressures and the shift toward cleaner energy sources continued to impact consumption patterns.

Key Market Drivers

The increasing adoption of marine scrubber systems acts as a critical enabler for the heavy fuel oil market, allowing fleet operators to bypass the sulfur content restrictions of IMO 2020 without switching to expensive distillates. By retrofitting vessels with Exhaust Gas Cleaning Systems (EGCS), shipping lines can continue to burn high-viscosity residual fuels, thereby capitalizing on the substantial price discount of heavy fuel oil compared to low-sulfur alternatives. This technical workaround sustains substantial base-load demand from the shipping sector, which would otherwise migrate to cleaner fuels. According to Ship & Bunker, January 2025, the number of scrubber-fitted vessels in the global container fleet rose to 1,385 units at the start of the year, driven significantly by major carriers expanding their EGCS capacity to maintain operational cost efficiency.

Concurrently, the growth in global seaborne trade and bunkering activities serves as a primary volume driver, as heavy fuel oil remains the dominant energy source for large-tonnage logistics. As international freight volumes expand, key maritime hubs are recording historically high throughput of bunker fuels to support the extended sailing schedules and vessel utilization rates required by global supply chains. This localized surge in bunkering activity reflects the broader reliance of the maritime economy on cost-efficient residual fuels. According to the Maritime and Port Authority of Singapore, January 2025, in the '2024 Bunker Sales' report, demand for High Sulfur Fuel Oil (HSFO) surged by approximately 21% year-over-year to reach a record 20.2 million tonnes. Similarly, demonstrating the global nature of this trend, according to the Port of Rotterdam Authority, January 2025, HSFO sales at the European hub reached 3.3 million tonnes in 2024, maintaining a leading market share of nearly 37% among fossil fuels.

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Key Market Challenges

Strict environmental mandates designed to curb sulfur and carbon emissions represent a critical impediment to the growth of the Global Heavy Fuel Oil Market. The enforcement of rigorous emission standards by international regulatory bodies obliges fleet operators to transition away from carbon-intensive residual fuels. This regulatory pressure restricts the addressable market for heavy fuel oil, as compliance strategies increasingly favor the adoption of cleaner energy sources such as liquefied natural gas and methanol. Consequently, the sustained demand for heavy fuel oil is being eroded as the maritime sector redirects capital expenditure toward vessels equipped with alternative propulsion technologies to avoid regulatory penalties and operational restrictions.

The structural impact of these mandates is evident in the composition of the global shipping order book, which reflects a clear preference for future-proof assets. According to BIMCO, in 2025, the number of container ships on order capable of utilizing alternative fuels reached 534 vessels by August, accounting for 53% of the total order book capacity. This data illustrates that a significant portion of new tonnage entering the market is designed to bypass traditional heavy fuel oil, thereby capping the potential for long-term volume expansion in this sector.

Key Market Trends

The Integration of Digital Monitoring and Real-Time Tracking in Bunkering is fundamentally altering market operations by addressing long-standing issues of transparency and quantity verification. Port authorities and suppliers are rapidly institutionalizing electronic bunker delivery notes and mass flow metering systems to digitize the custody transfer process, thereby eliminating manual documentation errors and minimizing fraud risks. This digital transition enhances operational efficiency for buyers and sellers by streamlining data exchange and accelerating compliance reporting. According to World Cargo News, October 2024, in the 'Singapore mandates digital bunkering from April 2025' report, the Maritime and Port Authority of Singapore estimates that the full implementation of digital bunkering processes will save the industry approximately 40,000 man-days annually.

The Accelerated Adoption of Very Low Sulfur Fuel Oil Blends is intensifying as fleet operators prioritize drop-in decarbonization solutions that require no vessel modifications. Unlike the initial shift to standard low-sulfur fuels, the current market is witnessing a surge in VLSFO blended with bio-components to satisfy strict Carbon Intensity Indicator requirements while retaining the operational characteristics of residual fuel. This strategic blending allows shipping lines to reduce lifecycle emissions immediately without capital-intensive retrofits. According to Argus Media, January 2025, in the 'Singapore's bunker demand hits record high in 2024' report, sales of bio-blends using very-low sulphur fuel oil surged by 51% year-on-year to reach 779,900 tonnes in 2024.

Segmental Insights

The Industrial segment currently stands as the fastest-growing category within the Global Heavy Fuel Oil Market, driven by rapid industrialization and escalating energy needs in emerging economies. This expansion is primarily fuelled by the widespread utilization of heavy fuel oil in boilers, furnaces, and kilns across the manufacturing and processing sectors, where its high calorific value and cost-effectiveness offer distinct operational advantages. Additionally, in regions lacking extensive natural gas infrastructure, industries rely heavily on this fuel for consistent power generation. Data from the International Energy Agency supports this trend, indicating that heavy fuel oil remains a critical component in meeting global industrial thermal requirements.

Regional Insights

Asia Pacific commands the largest share of the Global Heavy Fuel Oil Market, driven principally by robust maritime trade activities. The region hosts major international bunkering hubs, including Singapore and Shanghai, which creates substantial demand for marine fuel to support global shipping logistics. Additionally, the expanding industrial sector and power generation facilities in developing nations continue to utilize heavy fuel oil as a cost-effective energy source. This market position is sustained by the high volume of container shipping and bulk transport routes traversing the region, establishing Asia Pacific as a critical center for fuel oil consumption.

Recent Developments

• In December 2025, Saudi Aramco, ExxonMobil, and their joint venture SAMREF signed a Venture Framework Agreement to evaluate a significant upgrade of the SAMREF refinery located in Yanbu, Saudi Arabia. The collaboration aims to transform the facility into an integrated petrochemical complex while enhancing its capacity to produce high-quality distillates and marine heavy fuel oil. This project represents a strategic move to maximize operational efficiency and diversify the refinery’s output to meet evolving market demands for energy and chemical products. The agreement includes a preliminary front-end engineering and design phase to assess the technical and economic feasibility of the expansion.
• In July 2025, Peninsula, an independent global supplier of marine energy, announced the expansion of its physical supply operations into the United States Gulf Coast, specifically targeting the Galveston Offshore Lightering Area. This strategic development established a new supply hub designed to provide a comprehensive range of marine fuels, including high-sulfur fuel oil (HSFO), very low-sulfur fuel oil (VLSFO), and marine gasoil, to vessels operating in the region. The expansion was supported by the deployment of a specialized bunker tanker and the company’s Houston-based trading desk, reinforcing its commitment to serving the offshore market with flexible fuel solutions.
• In October 2024, Minerva Bunkering finalized the acquisition of the Bomin Group, a subsidiary of Mabanaft, effectively expanding its physical supply network across the Americas. This transaction integrated Bomin’s existing operations in key locations such as Houston, Norfolk, Panama, and Ecuador into Minerva’s global portfolio. The acquisition allowed the company to strengthen its service capabilities and logistical footprint in the marine fuel market, ensuring reliable delivery of heavy fuel oil and other bunker grades to a broader customer base. The move was described as a significant consolidation step, positioning the company to better navigate the competitive landscape of international fuel supply.
• In September 2024, Wärtsilä secured a contract to supply its newly developed Carbon Capture and Storage-Ready scrubber systems for three container vessels owned by the German shipping company Leonhardt & Blumberg. This order marked a technological breakthrough as it enables the vessels to continue using heavy fuel oil while remaining compliant with current sulfur emissions regulations and preparing for future decarbonization requirements. The systems were designed to allow for the easy integration of carbon capture technology at a later stage, providing a cost-effective pathway for shipowners to manage fuel costs and meet environmental targets without switching to more expensive alternative fuels immediately.

Key Market Players

• ExxonMobil
• Shell plc
• TotalEnergies SE
• Chevron
• PetroChina
• Saudi Arabian Oil Company
• Vitol Holding II S.A
• Bunker Holding

By Classification	By End-User	By Region
Low Medium High	Shipping Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Heavy Fuel Oil Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Heavy Fuel Oil Market, By Classification:

• Low
• Medium
• High

• Heavy Fuel Oil Market, By End-User:

• Shipping
• Others

• Heavy Fuel Oil Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE