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

Market Overview

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 refers to the global trade, production, and application of vacuum gas oil, a crucial intermediate feedstock derived during the vacuum distillation of crude oil in refineries. VGO is primarily categorized into two types—light vacuum gas oil (LVGO) and heavy vacuum gas oil (HVGO)—each distinguished by its viscosity and boiling point range. It serves as a key raw material in the production of higher-value refined products such as gasoline, diesel, and other fuels through catalytic cracking and hydrocracking processes. The VGO market operates as an integral part of the downstream oil & gas sector and plays a pivotal role in optimizing refinery economics by enhancing product yield and quality.

The demand for VGO is closely linked to the consumption patterns of transportation fuels and industrial feedstocks, making it sensitive to fluctuations in global energy demand, fuel regulations, and refinery throughput levels. Additionally, advancements in refining technologies and increasing emphasis on ultra-low sulfur fuel production have amplified the strategic importance of VGO in modern refining operations. Regional dynamics, such as North America's extensive refining infrastructure, Asia-Pacific’s rising fuel consumption, and Europe’s shift toward cleaner energy sources, significantly influence market trends and trade flows. Market participants include oil refiners, petrochemical companies, and commodity traders who engage in long-term contracts and spot trading of VGO, influenced by crude oil prices, refining margins, and geopolitical factors.

Key Market Drivers

Rising Global Demand for Transportation Fuels

One of the primary drivers for the vacuum gas oil (VGO) market is the escalating global demand for transportation fuels such as diesel and gasoline, especially in emerging economies. VGO serves as a crucial feedstock for fluid catalytic cracking (FCC) units and hydrocrackers in refineries, processes that break down the heavy oil fractions into lighter, more valuable products like gasoline, diesel, and jet fuel. As global urbanization accelerates and economic development propels vehicle ownership in countries such as India, China, Brazil, and Southeast Asian nations, the need for refined petroleum products continues to surge. While developed regions like North America and Europe exhibit moderate growth due to fuel efficiency regulations and the rise of electric vehicles, the sheer volume of fuel consumption in populous and industrializing regions ensures a persistent demand for VGO as refiners optimize output to meet this need. Furthermore, international shipping and air travel have rebounded post-pandemic, reinvigorating jet fuel consumption. 

VGO’s role in producing these fuels makes it indispensable to the refining value chain, and refiners globally are expanding capacity or upgrading units to process heavier crudes and VGO more efficiently. In parallel, as many refineries transition from simple to more complex configurations, the capacity to convert VGO into lighter, cleaner-burning products is becoming a strategic priority. With the global vehicle fleet expected to grow significantly through the next decade, particularly in markets with lower EV adoption rates, VGO's relevance will remain high, supporting its demand across regions. Additionally, fluctuating crude oil qualities and the tightening supply of light sweet crudes push refiners toward heavier crudes and their derivatives like VGO, reinforcing the feedstock’s importance in maximizing margins through refined product yield flexibility. Transportation accounts for nearly 60% of global oil consumption, with demand continuing to rise, especially in developing economies. Global consumption of transportation fuels (gasoline, diesel, jet fuel) has increased by about 15% over the past decade, driven by growing vehicle ownership and air travel. The number of vehicles on the road worldwide has surpassed 1.5 billion, with projections to reach over 2 billion by 2040, significantly increasing fuel demand. Aviation fuel demand has rebounded strongly post-pandemic, with global jet fuel consumption increasing by more than 25% between 2021 and 2024.

Increasing Complexity and Upgradation of Refineries:

The global refining sector is undergoing a notable transformation, characterized by increased complexity and modernization to handle heavier feedstocks like vacuum gas oil (VGO) and meet stringent product quality standards. As environmental regulations become more stringent—especially regarding sulfur content in fuels—refiners are investing heavily in secondary processing units such as hydrocrackers and FCCs that utilize VGO as a feedstock to produce ultra-low-sulfur diesel (ULSD) and high-octane gasoline. These investments are particularly evident in Asia-Pacific and the Middle East, where several refineries are undergoing capacity additions and technological upgrades. For instance, India and China are expanding their refining footprints to cater to growing domestic demand while meeting export opportunities.

These refineries are being designed or upgraded to be more flexible in processing a wider range of crudes and intermediates, including heavier oils like VGO. Additionally, the need to improve refinery margins in an increasingly competitive landscape is prompting the adoption of more advanced refining technologies that can convert VGO into high-value products more efficiently. The hydrocracking process, which adds hydrogen to VGO under high pressure and temperature, enables refiners to produce cleaner fuels, which are in greater demand due to environmental concerns. Moreover, refinery integration with petrochemical complexes—where VGO is also cracked to produce olefins and aromatics—further enhances the utility of VGO. This integration is especially prominent in the Middle East and Asia-Pacific, aligning with long-term strategic shifts toward high-value chemical production. Therefore, as refineries continue to evolve with advanced configurations and deeper conversion capabilities, the utilization of VGO as a vital intermediate feedstock is poised to expand significantly, driving market growth globally.

Expanding Petrochemical Industry and Feedstock Diversification:

The rapid growth of the global petrochemical industry serves as a significant driver for the vacuum gas oil (VGO) market, as refiners increasingly divert VGO toward steam crackers and other conversion units to produce high-value petrochemical feedstocks such as ethylene, propylene, and aromatics. Driven by rising demand for plastics, synthetic rubbers, and other petrochemical derivatives in packaging, construction, automotive, and electronics industries, especially in Asia-Pacific, the need for reliable and cost-effective feedstocks has intensified. VGO, with its rich hydrocarbon content, serves as an ideal feed for producing light olefins and aromatics when processed through catalytic and hydrocracking methods.

As naphtha prices remain volatile and traditional petrochemical feedstocks face supply constraints, integrated refineries and petrochemical complexes are increasingly leveraging VGO to balance costs and maximize output. Countries like China and Saudi Arabia are aggressively pursuing refinery-petrochemical integration projects, wherein VGO is not only used for transportation fuels but also for producing a spectrum of petrochemicals, providing operational flexibility and improved margins. This trend is further amplified by the shift toward heavier feedstocks due to the global crude slate’s gradual change and the desire to enhance value capture from each barrel of oil.

Innovations in catalyst technologies and process optimization allow refiners to customize the cracking of VGO to yield specific chemical building blocks based on market demand, making it a strategic feedstock. The growing emphasis on circular economies and chemical recycling is also creating pathways for VGO to play a role in closed-loop production systems where heavier oils are repurposed for petrochemical use. Thus, with petrochemicals poised to be the fastest-growing segment of global oil demand over the coming decades, the integration of VGO into this value chain cements its importance and drives its market forward.

Download Free Sample Report

Key Market Challenges

Volatility in Crude Oil Prices and Its Ripple Effect on VGO Market Stability

One of the most critical challenges faced by the Vacuum Gas Oil (VGO) market is the high volatility in global crude oil prices, which directly influences the supply-demand dynamics and pricing of VGO. Since VGO is a derivative of crude oil obtained through vacuum distillation, its production cost and market value are intrinsically tied to fluctuations in the crude oil market. Any significant shifts—whether due to geopolitical tensions in oil-rich regions, decisions by OPEC regarding output cuts, or macroeconomic disruptions such as recessions or pandemics—can severely impact the operational stability and profitability of VGO producers. This volatility hampers long-term planning for refiners and hinders investment in advanced hydrocracking or desulfurization technologies that are essential to process VGO into lighter and more valuable fuels like gasoline and diesel. Additionally, unpredictability in oil prices creates pricing uncertainties in long-term contracts with downstream buyers, leading to strained supply chain relationships.

These conditions can prompt refiners to switch to alternative feedstocks with more stable pricing profiles, which in turn reduces the demand for VGO. Compounding the issue, speculative trading in oil futures often amplifies price movements beyond what fundamentals dictate, causing further instability. Smaller players in the market are especially vulnerable, as they often lack the financial buffers to absorb sudden cost spikes or demand slumps. Moreover, in regions where government subsidies or tax structures are linked to crude prices, policy shifts triggered by price volatility can alter the competitive landscape, putting added pressure on VGO producers.

The absence of price predictability also undermines investor confidence, curtailing capital inflows needed for technological upgrades and capacity expansion. In the long run, persistent volatility could drive consolidation in the industry, as only the most financially resilient firms will be able to withstand prolonged periods of price fluctuation, further reducing competition and innovation in the market. Thus, unless more robust risk management mechanisms and diversified supply strategies are adopted, the VGO market will continue to be susceptible to the uncertainties driven by crude oil price volatility.

Stringent Environmental Regulations Limiting VGO Utilization in Refining

The tightening of environmental regulations globally represents another major challenge for the Vacuum Gas Oil market, particularly in light of growing climate change concerns and the transition towards cleaner energy sources. VGO is typically processed in fluid catalytic cracking (FCC) units and hydrocrackers to produce transportation fuels, but the refining and combustion of VGO-derived fuels contribute significantly to greenhouse gas (GHG) emissions, sulfur dioxide, and other harmful pollutants. As a result, regulatory bodies such as the U.S. Environmental Protection Agency (EPA), the European Union, and agencies in emerging economies are enforcing stricter emission norms and fuel quality standards, including lower sulfur content in fuels. These regulations are compelling refineries to invest in expensive upgrading technologies like hydrotreaters and sulfur recovery units to ensure compliance, significantly raising operational costs.

In many instances, especially for small to mid-sized refiners, the cost of compliance outweighs the economic benefit of processing VGO, prompting a shift towards lighter, cleaner feedstocks or even renewable fuel alternatives. Furthermore, with the global push toward decarbonization and net-zero goals by 2050, countries are actively promoting electric vehicles (EVs) and hydrogen-based transportation systems, thereby diminishing the future demand for gasoline and diesel—key end-products derived from VGO. This structural shift threatens to reduce the relevance of VGO in the long-term energy mix. In parallel, financial institutions and investors are increasingly applying ESG (Environmental, Social, and Governance) criteria in their funding decisions, making it more difficult for VGO-related infrastructure projects to secure capital.

Environmental activism and public opposition to fossil fuel reliance are also influencing political agendas, accelerating legislative changes that could phase out heavy feedstocks like VGO. In such a regulatory environment, the Vacuum Gas Oil market faces the dual challenge of adapting existing operations to meet stricter environmental standards while also navigating a gradual but significant decline in end-user demand. If producers fail to evolve with these shifting expectations—either by investing in cleaner technologies or pivoting towards sustainable alternatives—they risk obsolescence in a rapidly transforming energy landscape..

Key Market Trends

Shift Toward Cleaner Fuel Production Driving Hydrocracking Demand in VGO Market

A major trend shaping the vacuum gas oil (VGO) market is the increasing demand for cleaner fuels, driven by tightening global environmental regulations, which is boosting the adoption of hydrocracking over traditional catalytic cracking. VGO, an intermediate feedstock obtained during the vacuum distillation of crude oil, is rich in long-chain hydrocarbons and typically used as a primary input in both fluid catalytic cracking (FCC) and hydrocracking units to produce gasoline, diesel, and other middle distillates. However, with the rising emphasis on reducing sulfur emissions, especially due to regulations such as the International Maritime Organization’s (IMO) 2020 sulfur cap and Euro VI standards in Europe, refiners are increasingly pivoting to hydrocracking processes that offer higher yields of low-sulfur diesel and other ultra-clean fuels.

Hydrocracking not only facilitates better conversion rates but also aligns with global goals of decarbonization and reduced air pollution. As a result, VGO is gaining more strategic importance, especially among complex refineries with advanced hydrocracking units that can maximize its utility. This is particularly evident in Asia-Pacific and the Middle East, where large integrated refineries are investing in modern technologies to enhance their product slate and environmental compliance. Furthermore, the trend is being reinforced by the growing automotive and transportation sectors in emerging markets, where the demand for high-quality, low-emission fuels continues to climb.

This trend is also pushing refiners to upgrade or retrofit older FCC units with hydrocracking capabilities to maintain operational relevance. Additionally, the shift is driving changes in global trade flows of VGO, with regions rich in high-sulfur VGO increasingly finding export markets among nations with advanced hydrocrackers. In sum, the market’s move toward cleaner fuel production is not only influencing technological investment and regulatory compliance but also altering the traditional dynamics of VGO supply, demand, and utilization across the global refining landscape. Freight and commercial transport sectors now account for over 40% of total transportation fuel use globally. Despite the rise in electric vehicles, internal combustion engine vehicles still make up around 90% of the global vehicle fleet, keeping liquid fuel demand high.

Integration of VGO Processing in Petrochemical Feedstock Value Chains

Another prominent trend in the vacuum gas oil (VGO) market is the growing integration of VGO processing into petrochemical feedstock value chains, as refiners seek to capitalize on higher margins from chemical production amid evolving energy transition dynamics. Traditionally used to produce transportation fuels, VGO is increasingly being diverted to generate high-value petrochemical intermediates such as ethylene, propylene, and aromatics, which are essential in the manufacturing of plastics, synthetic rubber, and resins. This shift is particularly significant in Asia-Pacific, led by China and India, where rapid urbanization and industrialization are generating immense demand for downstream petrochemical products. The trend is further supported by strategic investments in refinery-petrochemical integration (also known as crude-to-chemicals or CTC complexes), where VGO serves as a key intermediary in flexible processing systems capable of producing both fuels and chemicals.

These integrated facilities optimize feedstock utilization and offer operational agility by adapting output to market conditions, thereby enhancing profit margins and supply chain efficiency. In regions like the Middle East, national oil companies are leading the charge with billion-dollar investments in CTC projects, leveraging their access to cost-competitive crude oil and long-term demand for petrochemical products. Additionally, this trend aligns with the decarbonization goals of major players, as chemicals offer a longer carbon life cycle and face fewer decarbonization challenges compared to fuels.

The incorporation of advanced catalytic reforming, steam cracking, and olefin conversion technologies further enables refiners to extract greater value from VGO, positioning it as a cornerstone of future-ready refinery operations. In the long term, as demand for transportation fuels plateaus and petrochemical consumption surges, the role of VGO as a strategic bridge between traditional refining and chemical manufacturing is set to deepen, redefining its value and utility in a transforming energy landscape.

Global VGO Trade Dynamics Influenced by Regional Refining Capacities and Crude Slate Variations

The third major trend impacting the vacuum gas oil (VGO) market is the evolving pattern of global trade flows, driven by disparities in regional refining capacities, complexity, and crude slate compositions. As VGO is an intermediate product requiring further upgrading in secondary refining units, its production and consumption are heavily influenced by the configuration of local refineries. Countries with simple refineries lacking FCC or hydrocracking units often export VGO, while regions with complex and conversion-heavy refineries import it for further processing into light-end fuels and chemicals. This dynamic is particularly visible in the transatlantic and transpacific markets. For instance, the United States, with its vast and advanced refining infrastructure, remains a significant importer of VGO, especially from Latin America and Russia, to supplement domestic feedstock.

Geopolitical factors such as sanctions on Russian crude and refined products have disrupted traditional trade routes, prompting refiners to seek alternative suppliers in the Middle East and Asia. Meanwhile, in Asia, rapid refinery expansions in China, India, and Southeast Asia are boosting domestic VGO utilization, but demand-supply imbalances occasionally result in spot market imports. Similarly, in the Middle East, where countries like Saudi Arabia and the UAE operate some of the most sophisticated refineries, VGO is increasingly consumed in integrated complexes, reducing export volumes and altering global availability.

The growing trend of crude-to-chemicals integration also impacts trade dynamics, as refiners prioritize VGO for internal conversion into chemicals rather than fuels, thus shrinking the pool of tradable VGO. Additionally, shifts in crude slate—such as the rising use of light tight oil (LTO) in the U.S. and heavier crudes in Asia—affect VGO yield and quality, thereby influencing import-export strategies. In this context, global refiners and traders are compelled to adapt sourcing strategies, diversify suppliers, and invest in feedstock optimization technologies. Consequently, the VGO market is becoming increasingly complex and regionally nuanced, with trade flows reflecting not just economic considerations but also political, regulatory, and technological factors.

Segmental Insights

Product Insights

The Low Sulfur Content segment held the largest Market share in 2024. The Vacuum Gas Oil (VGO) market in the Low Sulfur Content segment is witnessing robust growth, driven by increasingly stringent environmental regulations and fuel quality standards aimed at reducing sulfur emissions globally. Governments and regulatory bodies such as the International Maritime Organization (IMO) and the Environmental Protection Agency (EPA) have enforced strict limits on sulfur content in fuels to curb air pollution and mitigate health risks associated with sulfur oxide emissions. The IMO 2020 regulation, in particular, which mandates a sulfur content of no more than 0.5% in marine fuels, has significantly increased the demand for low-sulfur feedstocks such as Low Sulfur VGO.

Refineries are prioritizing the production and procurement of Low Sulfur VGO to ensure compliance with these environmental standards while meeting the rising demand for cleaner transportation fuels, especially in developed markets like North America, Europe, and parts of Asia Pacific. Moreover, Low Sulfur VGO plays a crucial role as a feedstock in hydrocracking and fluid catalytic cracking (FCC) units to produce ultra-low sulfur diesel (ULSD) and other high-value refined products. The growing demand for ULSD in both on-road and off-road applications is further enhancing the consumption of Low Sulfur VGO. Technological advancements in refining processes are also enabling more efficient desulfurization techniques, making it economically viable for refiners to process and upgrade Low Sulfur VGO to premium fuel grades.

The shift toward sustainable refining practices and cleaner fuel alternatives has prompted investments in refinery upgrades and expansions tailored to handle low sulfur content feedstocks. This trend is particularly evident in emerging economies undergoing rapid industrialization and urbanization, where the demand for clean energy and fuels is accelerating. Furthermore, rising public and governmental awareness regarding the environmental impact of high-sulfur fuels has influenced fuel procurement strategies among transportation and logistics providers, further stimulating market demand. The global transition to cleaner energy sources, alongside efforts to meet carbon neutrality and emission reduction goals, is amplifying the strategic importance of Low Sulfur VGO as a transitional feedstock that aligns with short- to medium-term decarbonization targets.

The consistent growth in automotive and maritime transportation, coupled with stricter emission norms, is reinforcing the need for compliant fuels and by extension, for refining intermediates like Low Sulfur VGO that enable their production. In summary, the Low Sulfur Content segment of the Vacuum Gas Oil market is expanding significantly due to environmental regulation-driven demand for cleaner fuels, technological advancements in refining, and strategic shifts across the energy and transportation industries toward sustainability and compliance with global emission standards.

Type Insights

The Light Vacuum Gas Oil segment held the largest Market share in 2024. The Light Vacuum Gas Oil (LVGO) segment of the Vacuum Gas Oil (VGO) market is experiencing significant growth, driven by increasing demand for cleaner-burning transportation fuels, ongoing refinery upgrades, and the expansion of petrochemical industries globally. As governments across various regions enforce stricter fuel quality standards to reduce sulfur emissions and promote environmental sustainability, refiners are increasingly utilizing LVGO as a feedstock in hydrocracking and catalytic cracking units to produce high-value, low-sulfur diesel, gasoline, and jet fuel. LVGO’s favorable properties—such as lower density and sulfur content compared to heavy vacuum gas oil—make it more suitable for conversion into light distillates, enhancing its attractiveness to refiners aiming for operational efficiency and regulatory compliance. Furthermore, the global rise in automotive ownership, particularly in emerging economies, and the recovery of air travel are spurring consumption of refined fuels, subsequently boosting the demand for feedstocks like LVGO.

Petrochemical demand is also a strong market driver, as LVGO serves as a precursor for producing ethylene, propylene, and other essential building blocks used in plastics, packaging, and industrial chemicals. Many refiners are investing in upgrading their facilities to include advanced cracking technologies that maximize LVGO utilization due to its higher yield potential for desirable products. Additionally, as the energy industry gradually transitions towards more sustainable practices, LVGO offers a bridge fuel solution by enabling the production of relatively cleaner fuels without requiring an abrupt overhaul of existing refining infrastructure. The rising need for energy security and diversification of feedstock sources is encouraging refiners in Asia-Pacific and the Middle East to increasingly adopt LVGO to meet growing domestic and export-oriented fuel demand.

Technological advancements in refinery operations, such as integrated processing units and residue upgrading technologies, are further enhancing the economic viability and processing efficiency of LVGO, thereby fueling its market penetration. Moreover, favorable crude oil price dynamics and the availability of cost-effective crude blends suitable for LVGO production are supporting its supply chain stability. As global refining capacity continues to expand, especially in regions like China, India, and Southeast Asia, the LVGO segment is expected to witness a steady rise in demand, underpinned by its role in meeting both regulatory standards and commercial fuel requirements. In summary, the market drivers for the Light Vacuum Gas Oil segment are multifaceted—anchored in environmental compliance, refinery optimization, rising transportation fuel consumption, and robust petrochemical demand—positioning LVGO as a critical intermediate in the evolving landscape of global energy and chemical production.

Download Free Sample Report

Regional Insights

Largest Region

North America region held the largest market share in 2024. The Vacuum Gas Oil (VGO) market in North America is primarily driven by the robust demand for refined petroleum products, particularly gasoline and diesel, fueled by the region’s well-established transportation and industrial sectors. As VGO serves as a crucial intermediate feedstock in the production of high-value fuels through processes like catalytic cracking and hydrocracking, its importance is amplified by the consistent need for cleaner, higher-octane fuels that meet stringent environmental regulations. The U.S., being home to some of the world’s largest and most technologically advanced refineries, continues to lead the charge in integrating advanced refining technologies that enhance VGO conversion efficiency and output quality, thereby driving market growth. Additionally, the rising shale oil production in North America has led to a stable and economical supply of crude feedstock, promoting continuous operations and expansions within the refining sector.

This domestic abundance of crude has incentivized refinery upgrades and capacity expansions aimed at maximizing output from VGO, especially in the Gulf Coast and Midwest refining hubs. Regulatory frameworks, such as the Renewable Fuel Standard (RFS) and the Corporate Average Fuel Economy (CAFE) standards, have further pushed refiners to optimize VGO usage in producing low-sulfur, high-performance fuels. Furthermore, the growth of petrochemical manufacturing in the region—driven by rising demand for plastics, synthetic materials, and other derivatives—has contributed to the increasing use of VGO as a feedstock for producing olefins and aromatics. The implementation of digital technologies and process automation in refineries is also playing a pivotal role in improving operational efficiency and enhancing the processing of heavy feedstocks like VGO, supporting market expansion. Strategic investments and joint ventures between major oil companies and technology providers to develop more sustainable refining processes are anticipated to further bolster the VGO market.

In addition, the region’s export-oriented refining model, supported by strong logistics infrastructure, allows North American refiners to meet global demand for refined products, thus amplifying the need for VGO as a primary processing material. Moreover, despite growing momentum for energy transition and electrification in transportation, internal combustion engine vehicles remain dominant in North America, ensuring sustained demand for gasoline and diesel, and by extension, for VGO. As such, while the push toward decarbonization and renewable energy may present long-term challenges, in the near to mid-term, the Vacuum Gas Oil market in North America is poised for continued growth driven by refining optimization, technological advancement, robust infrastructure, and consistent downstream demand.

Emerging region:

South America is the emerging region in Vacuum Gas Oil Market. The Vacuum Gas Oil (VGO) market in South America's emerging region is primarily driven by the rapid expansion of refining capacities and growing demand for transportation fuels amid ongoing industrialization and urbanization. As economies like Brazil, Argentina, and Colombia witness increasing energy consumption, their refining sectors are evolving to meet rising domestic demand for gasoline and diesel, for which VGO serves as a critical feedstock. This has led to modernization and capacity enhancement initiatives in existing refineries and the development of new facilities focused on hydrocracking and fluid catalytic cracking (FCC) technologies to convert VGO into lighter, high-value petroleum products. Moreover, favorable government policies supporting energy infrastructure development and strategic partnerships with international oil companies are accelerating the adoption of advanced refining technologies.

Another significant driver is South America’s increasing automotive fleet, driven by urban population growth and improving economic conditions, which fuels the need for cleaner, high-performance fuels—products derived from VGO processing. Additionally, the region’s proximity to major crude oil producers facilitates a stable supply of feedstock to support VGO production, while export opportunities to North America and Europe enhance the market's attractiveness. The push for cleaner fuels in response to environmental regulations, particularly low-sulfur diesel, also encourages refiners to invest in upgrading processes that require VGO as a base input. Furthermore, the economic diversification efforts in countries like Brazil are fostering investments in downstream oil and gas sectors, which include the expansion of vacuum distillation units and conversion facilities.

The presence of national oil companies, such as Petrobras, and their strategic focus on increasing refining efficiency and output further propels the regional VGO market. Additionally, the availability of skilled labor, improving logistics infrastructure, and access to capital through foreign direct investment are contributing to the sector's resilience and growth prospects. In essence, a confluence of rising fuel demand, refinery upgrades, supportive policies, and evolving market dynamics is positioning South America's emerging economies as key contributors to the growth of the Vacuum Gas Oil market.

Recent Developments

• In January 2024, Kuwait Petroleum Corporation (KPC) successfully completed the sale of its assets in Norway, marking a significant step in its strategic realignment. This transaction included the exit of KUFPEC (China) Inc., a subsidiary of KPC, from its operations in China. This move is part of KPC's broader efforts to optimize its global portfolio and refocus its investments on key markets and growth areas. The divestiture aligns with the company’s evolving business strategy, which aims to streamline operations and enhance its focus on core assets, ensuring long-term profitability and sustainability in an ever-changing global energy landscape. 
• In October 2024, Pfeiffer Vacuum and Fab Solutions launched the DuoVane series, a new generation of rotary vane vacuum pumps designed for global use. Offering pumping speeds of 6 to 22 m³/h, the DuoVane features IE2 energy-efficient motors, quiet operation, and enhanced safety and vapor handling. It is ideal for applications like freeze drying, HVAC, analytical instruments, and vacuum generation in high-tech industries. 
• In February 2025, Tornado Infrastructure Equipment Ltd. unveiled two new products at the WWETT Show in Indianapolis, underscoring its dedication to innovation, engineering excellence, and growth in the infrastructure equipment sector. Among the launches, the EF4 Tornado Hydrovac and Coring Machine stand out as cutting-edge solutions designed to elevate efficiency and performance. The EF4 Tornado Hydrovac, engineered for enhanced safety and productivity, features high-pressure water and vacuum systems, ergonomic controls, and a sustainable design tailored for construction and industrial excavation tasks.

Key Market Players

• 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.,

Report Scope:

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

• Vacuum Gas Oil Market, By Product:

o   Low Sulfur Content

o   High Sulfur Content  

• Vacuum Gas Oil Market, By Type:

o   Light Vacuum Gas Oil

o   Heavy Vacuum Gas Oil  

• Vacuum Gas Oil Market, By Application:

o   Gasoline Production

o   Diesel Oil Production  

• Vacuum Gas Oil Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia-Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Kuwait

§  Turkey

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Vacuum Gas Oil Market.

Available Customizations:

Global Vacuum Gas Oil Market report with the given Market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional Market players (up to five).

Global Vacuum Gas Oil Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]