The Singapore bunker fuel market, valued at $17.6 billion in 2020, is projected to grow to $24.5 billion by 2030, with a compound annual growth rate (CAGR) of 3.5% from 2021 to 2030, according to a new report by Allied Market Research.
Singapore stands as one of the world’s largest bunkering ports, making it a key global hub for bunker fuel supply and trading. Bunker fuel, also known as marine fuel, powers ships and is a crucial part of the global shipping industry. The city-state’s prime location along major shipping routes, its efficient port facilities, and competitive pricing make it an attractive destination for bunker fuel. Additionally, Singapore’s well-established bunkering infrastructure supports a wide network of licensed suppliers and traders operating in its port.
Major players in the Singapore bunker fuel market include industry giants such as BP Plc., Exxon Mobil Corporation, Equatorial Marine Fuel Management Services Pte. Ltd., Glencore Singapore Pte. Ltd., PetroChina International (Singapore) Pte. Ltd., and Royal Dutch Shell Plc., among others. These companies, along with others in the value chain like Chevron Singapore Pte. Ltd. and Maersk Oil Trading Singapore Pte. Ltd., help maintain Singapore’s position as a key player in the global marine fuel market.
The Maritime and Port Authority of Singapore (MPA) regulates the quality of bunker fuel to ensure it meets international standards for safety and environmental protection. Bunker fuel suppliers must adhere to strict guidelines on fuel quality, handling, and delivery, ensuring ships receive safe and reliable fuel.
Among the various segments in the market, gas tankers are the fastest-growing application, expected to grow at a CAGR of 4.1% from 2021 to 2030. Meanwhile, the container segment held the largest share of the market in 2020, accounting for 23.14% of revenue.
The low sulfur fuel oil segment led the market in 2020 and is expected to retain its dominance through the forecast period. Additionally, the oil majors segment held a 40.63% market share in 2020 and is anticipated to maintain its leading position.
The large independent distributor segment accounted for 34.47% of the market share in 2020 and is expected to grow at a rate of 3.9% in terms of revenue, further expanding its influence in the market.
Key factors driving the growth of the Singapore bunker fuel market include the rise in offshore exploration and production (E&P) activities and the increase in seaborne trade across the Asia-Pacific region. Furthermore, the International Maritime Organization’s (IMO) sulfur cap regulations for marine fuels are expected to contribute to the market’s expansion.
However, the rapid development of bunkering ports in the Asia-Pacific region, along with the availability of compliant marine fuel, may pose a challenge to the growth of Singapore’s bunker fuel market in the coming years.
COVID-19 Impact
The COVID-19 pandemic significantly impacted global marine fuel demand. According to the International Energy Agency (IEA), the demand for fuel oil, including marine bunker fuel, declined by 6.3% in 2020. The pandemic, along with the IMO’s sulfur regulation, led to a collapse in demand for high sulfur fuel oil. While the first half of 2020 saw a decline in market growth, the market began to recover in the latter half of the year, with the overall growth of Singapore’s bunker fuel market remaining steady.
As the global shipping industry recovers from the pandemic and adjusts to new regulatory standards, Singapore’s position as a key bunkering hub is expected to remain strong in the years ahead.
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