How Has the Vacuum Gas Oil Market Size Evolved in Recent Years?
The vacuum gas oil market has seen considerable growth due to a variety of factors.
•In recent times, the vacuum gas oil market has seen significant growth. The size of it is projected to enlarge from a value of $439.43 billion in 2024 to $465.57 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 5.9%.
Factors such as expansion in the refinery sector, development in the petroleum industry, a shift in crude oil grades, adherence to environmental regulations, and a global increase in energy demand have been instrumental in driving the growth during the historical period.
What are the Market Size and Expected Growth Rates for the Vacuum Gas Oil Market?
The vacuum gas oil market is expected to maintain its strong growth trajectory in upcoming years.
• Expectations are high for strong expansion in the vacuum gas oil market size in the upcoming years. The market is forecasted to reach a value of "$587.24 billion by 2029, growing at a compound annual growth rate (CAGR) of 6.0%.
The projected growth during the forecasted period can be associated with trade dynamics, the demand for refined products, worldwide economic development, environmental rules, and energy transition endeavours. Key trends anticipated during this period encompass refining margins optimization, the demand for cleaner energy sources, advancements in upgrading technologies, shifts in crude oil blending, and residue conversion.
Which Key Drivers Are Propelling The Vacuum Gas Oil Market's Growth?
The vacuum gas oil market is anticipated to expand due to the rising demand for fossil fuels. These fuels, which contain hydrocarbons, naturally occur in the earth's crust from the decay of dead flora and fauna, and they include coal, petroleum, natural gas, oil shale, bitumen, tar sands, and heavy oils. Synthesizing bio-oil and vacuum gas oil introduces renewable carbon into fossil fuels and reduces the cost of biofuel production. For example, the Department of Climate Change, Energy, the Environment, and Water, a government department in Australia, reported that energy consumption had increased by 2.0% to 5,882 petajoules in 2022-23, a surge of 117 petajoules. Hence, the growing demand for fossil fuels is propelling the development of the vacuum gas oil market.
What Are The Key Segments Within The Global Vacuum Gas Oil Market?
The vacuum gas oil market covered in this report is segmented –
1) By Type: Heavy Vacuum Gas Oil, Light Vacuum Gas Oil
2) By Sulphur Content: Low Sulfur Vacuum Gas Oil, High Sulfur Vacuum Gas Oil
3) By Application: Gasoline Production, Diesel Oil Or Kerosene Production, Other Applications
Subsegments:
1) By Heavy Vacuum Gas Oil: Hydrocracking Feedstock, Fuel Oil Blending, Other Applications
2) By Light Vacuum Gas Oil: Diesel Production, Naphtha Production, Other Applications
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How Are New Trends Impacting The Size Of The Vacuum Gas Oil Market?
In the vacuum gas oil market, technological innovation is a primary trend gaining momentum. Companies involved in this market are leveraging new technologies to maintain their market standing. For example, in March 2022, US-based technology supplier to petroleum manufacturers, Honeywell, announced that SPEC Energy DMCC is set to utilize various of its technology in its refinery. The aim is to transform less valuable vacuum gas oil and vacuum filtrate into high-value items such as petrol and alkylate. Among the technologies is the UOP Residue Fluidized Catalytic Cracking Technology, employed to enhance gasoline production. These shifts in the market influence refinery layouts. Mild hydrocracking technology supports refiners in converting 20-60% of the VGO feeds, thereby creating top-tier cat cracker feedstocks and a certain amount of middle distillates.
Who Are the Key Players in the Vacuum Gas Oil Market?
Major companies operating in the vacuum gas oil market include:
• Kuwait Petroleum Corporation
• Exxon Mobil Corporation
• KazMunayGas
• Par Pacific Holdings Inc.
• Shell Plc
• Neste Oyj
• Vertex Energy Inc.
• The PJSC Lukoil Oil Company
• Honeywell International Inc.
• Zhejiang Petroleum and Chemical Co. Ltd.
• PJSC Gazprom
• Cenovus Energy Inc.
• Marathon Oil Company
• IRPC Public Company Limited
• Chevron Corporation
• China National Petroleum Corporation
• Eni SpA
• Indian Oil Corp. Ltd.
• Axeon Specialty Products
• U.S. Oil & Refining Co.
• Tatneft
• PJSC Rosneft Oil Company
• PTT Public Company Limited
• S-Oil Corporation
• SK Innovation Co. Ltd.
• Thai Oil Public Company Limited
• Valero Energy Corporation
• Bharat Petroleum Corporation Limited
• Hindustan Petroleum Corporation Limited
• Reliance Industries Limited
• Abu Dhabi National Oil Company
• Bahrain Petroleum Company (Bapco)
What are the Regional Insights into the Vacuum Gas Oil Market?
North America was the largest region in the vacuum gas oil market in 2024. Asia-Pacific is expected to be the fastest-growing region in the global vacuum gas oil market during the forecast period. The regions covered in the vacuum gas oil market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
