Vacuum Gas Oil Market Report 2026

Vacuum Gas Oil Market Overview

• Vacuum Gas Oil market size has reached to $461.73 billion in 2025 • Expected to grow to $627.12 billion in 2030 at a compound annual growth rate (CAGR) of 6.5% • Growth Driver: Fossil Fuel Demand Boosting Vacuum Gas Oil Market Growth • Market Trend: Advancements In Refining Technologies To Enhance Heavy Feedstock Conversion Efficiency • North America was the largest region in 2025 and Asia-Pacific is the fastest growing region.

What Is Covered Under Vacuum Gas Oil Market?

Vacuum gas oil is referred to as a semi-liquid form of oil gas produced by a vacuum refinement unit in a distillery. It is a key feedstock for fluid catalytic crackers used to make transportation fuels and many by-products. Vacuum gas oil is processed through different processes, like hydrogenation and cracking. The main types of vacuum gas oil are heavy vacuum gas oil and light vacuum gas oil. Heavy vacuum gas oil refers to a heavy and viscous combination of hydrocarbons produced by the vacuum distillation of the residue from the atmospheric distillation of crude oil, which is used as a feedstock for fluid catalytic cracking and in the production of petroleum products. Based on sulfur content it is available as low-sulfur vacuum gas oil and high-sulfur vacuum gas oil used for gasoline production, diesel oil/kerosene production, and others.

What Is The Vacuum Gas Oil Market Growth Forecast?

The vacuum gas oil market size is expected to see strong growth in the next few years. It will grow to $627.12 billion in 2030 at a compound annual growth rate (CAGR) of 6.5%. The growth in the forecast period can be attributed to tightening fuel sulfur regulations, increasing refinery complexity, demand for higher distillate yields, optimization of heavy crude processing, investment in advanced upgrading units. Major trends in the forecast period include increasing use of vgo in fcc feedstock, rising demand for low sulfur vgo, growing processing of heavy vgo streams, expansion of hydrocracking capacity, increasing optimization of refinery feed blends.

Global Vacuum Gas Oil Market Segmentation

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

What Is The Driver Of The Vacuum Gas Oil Market?

The increase in demand for fossil fuels is expected to propel the growth of the vacuum gas oil market going forward. Fossil fuels refer to hydrocarbon-containing materials that are formed naturally in the earth's crust from the remains of dead plants and animals such as coal, petroleum, natural gas, oil shale, bitumen, tar sands, and heavy oils. The demand for fossil fuels is rising because rapid industrialization and urbanization continue to drive higher energy consumption for manufacturing, transportation, and infrastructure development, especially in growing economies. Vacuum gas oil, as a heavy fraction of crude oil obtained through the vacuum distillation process, serves as a crucial feedstock in the production of diesel, lubricants, and other middle distillates, thereby directly supporting the fossil fuel industry by enabling the refinement of high-value petroleum products that power transportation, industry, and energy generation. For instance, in August 2024, according to the Department of Climate Change, Energy, the Environment, and Water, an Australia-based Government department, energy consumption rose 2.0% in 2022–23 to 5,882 petajoules, an increase of 117 petajoules. Therefore, the increase in demand for fossil fuels is driving the growth of the vacuum gas oil industry.

What Is The Driver Of The Vacuum Gas Oil Market?

Increasing disposable income is expected to propel the growth of the vacuum gas oil market going forward. Disposable income refers to the total income an individual or household has available for spending and saving after taxes and other mandatory deductions have been subtracted. Disposable income may impact overall energy consumption trends, which can influence the demand for refined products like gasoline and diesel. For instance, in 2023, according to the Trading Economics, a US-based economic indicator, disposable income in Japan increased from 412.82 JPY thousand ($3,014.64) in March 2022 to 463.91 JPY thousand ($3,387.76) in February 2023. Therefore, increasing disposable income drives the vacuum gas oil industry.

Key Players In The Global Vacuum Gas Oil Market

Major companies operating in the vacuum gas oil market are 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)

Global Vacuum Gas Oil Market Trends and Insights

Major companies operating in the vacuum gas oil (VGO) market are focusing on developing innovative solutions such as advanced hydrocracking and hydrotreating refining units to meet the rising demand for low-sulfur fuels and high-value middle distillates. Advanced hydrocracking and hydrotreating refining units are processing systems that treat heavy vacuum gas oil feedstocks under hydrogen and catalyst-enhanced conditions, helping refineries remove impurities such as sulfur and break down larger molecules into cleaner-burning fuels with higher yields and improved quality compared to traditional thermal cracking methods. For instance, in July 2025, PJSC TATNEFT n.a. V.D. ShashinTatneft, a Russia-based integrated oil producer, launched a hydrocracking unit at its TANECO refinery, an advanced processing asset designed to convert vacuum gas oil into low-sulfur Euro-6 grade diesel and naphtha with greater efficiency and output. The unit itself features a high-capacity vacuum gas oil feed system capable of processing around 1.2 million metric tons per year, enhanced hydrogen addition for sulfur reduction, and automated controls to optimize throughput and compliance with fuel specifications, supporting both regulatory compliance and improved refinery margins.

Regional Outlook

North America was the largest region in the vacuum gas oil market in 2025. 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 this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain

What Defines the Vacuum Gas Oil Market?

The vacuum gas oil market consists of sales of medium vacuum gas oil (MVGO) and heavy atmospheric gas oil (HAGO). Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in the Vacuum Gas Oil Market Report 2026?

The vacuum gas oil market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the vacuum gas oil industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.