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Global Vaccum Gas Oil Market – Industry Trends and Forecast to 2031

Chemical and Materials

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Global Vaccum Gas Oil Market – Industry Trends and Forecast to 2031

  • Chemical and Materials
  • Upcoming Report
  • May 2024
  • Global
  • 350 Pages
  • No of Tables: 220
  • No of Figures: 60

Global Vaccum Gas Oil Market – Industry Trends and Forecast to 2031

Market Size in USD Billion

CAGR :  % Diagram

Diagram Forecast Period 2023–2031
Diagram Market Size (Base Year) USD 1.12 Billion
Diagram Market Size (Forecast Year) USD 1.73 Billion
Diagram CAGR %

Global Vacuum Gas Oil Market, By Product (Heavy Vacuum Gas Oil and Light Vacuum Gas Oil), SulfurContent (Low Sulfur VGO and High Sulfur VGO), Application (Gasoline Production and Diesel Oil or Kerosene Production) – Industry Trends and Forecast to 2031.

Vaccum Gas Oil Market

Vaccum Gas Oil Market Analysis and Size

The market is influenced by various factors, including the global demand for refined petroleum products, the availability of crude oil feedstocks, and regulatory policies impacting the refining industry. VGO is a key intermediate product in the refining process and it is used to produce gasoline, diesel, and other valuable products. The market for VGO is closely tied to the overall demand for transportation fuels, which is driven by economic growth, industrial activities, and consumer preferences. Another factor influencing the VGO market is the availability of crude oil feedstocks. Variations in the quality and composition of crude oil between regions affect the yield and quality of VGO produced during the refining process. Changes in crude oil prices and availability can therefore have a significant impact on the VGO market, affecting refining margins and profitability.

The global vaccum gas oil market size was valued at USD 1.12 billion in 2023 and is projected to reach USD 1.73 billion by 2031, with a CAGR of 5.60% during the forecast period of 2024 to 2031. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.

Report Scope and Market Segmentation

Report Metric

Details

Forecast Period

2024 to 2031

Base Year

2023

Historic Years

2022 (Customizable to 2016-2021)

Quantitative Units

Revenue in USD Billion, Volumes in Units, Pricing in USD

Segments Covered

Product (Heavy Vacuum Gas Oil and Light Vacuum Gas Oil), Sulfur Content (Low Sulfur VGO and High Sulfur VGO), Application (Gasoline Production and Diesel Oil or Kerosene Production)

Countries Covered

U.S., Canada, Mexico, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, Saudi Arabia, U.A.E., South Africa, Egypt, Israel, Rest of Middle East and Africa, Brazil, Argentina, and Rest of South America

Market Players Covered

TAIF-NK (Russia), Kuwait Petroleum Corporation (Kuwait), KazMunayGas (Kazakhstan), Shell (U.S.), Zhejiang Petroleum & Chemical Co Ltd, (China), Neste (Finland), Vertex (U.S.), LUKOIL (Russia), Exxon Mobil Corporation (U.S.), Saudi Arabian Oil Co. (Saudi Arabia), China National Petroleum Corporation (China), BP plc (U.K.), Shell plc (U.K.), PDVSA - Petróleos de Venezuela, SA. (Venezuela), Gazprom (Russia), Chevron Corporation. (U.S.), Petrobras (Brazil), LUKOIL (Russia), ROSNEFT (Russia), Abu Dhabi National Oil Company (U.A.E.), and China Petrochemical Corporation (China)

Market Opportunities

  • Technological Advancements in Refining Processes       
  • Growing Petrochemical Industry

Market Definition

Vacuum gas oil (VGO) is a type of petroleum distillate that is typically produced during the vacuum distillation process in an oil refinery. Vacuum distillation is used to separate the heavier components of crude oil, such as VGO, from lighter fractions such as gasoline and diesel. VGO is a versatile feedstock used in various refining processes to produce gasoline, diesel, and other refined petroleum products.

Vacuum Gas Oil Market Dynamics

Drivers

  • Increasing Demand for Refined Petroleum Products  

With developing economies and growing populations, there is a corresponding rise in the consumption of transportation fuels and other refined products. VGO serves as a crucial feedstock in the refining process, playing a vital role in meeting this escalating demand. The expansion of the automotive sector, particularly in emerging markets, further fuels the need for VGO as a fundamental component in the production of essential fuels and petroleum-based products. The growing global demand for gasoline, diesel, and other refined petroleum products is a key driver behind the increasing demand for vacuum gas oil (VGO).            

  • Stringent Environmental Regulations for Low-Sulfur Products 

VGO is a key component in the production of low-sulfur gasoline and diesel, which are essential to comply with stringent environmental standards aimed at reducing air pollution and emissions. Governments and regulatory bodies worldwide are implementing these regulations to reduce the environmental impact of transportation fuels. As a result, the demand for VGO as a feedstock for producing cleaner fuels is increasing, driving market growth and encouraging refineries to invest in technologies that enable the production of low-sulfur products.                 

  • Increasing Investments in Refinery Expansion and Upgradation 

There is a corresponding rise in the demand for VGO as countries aim to update their refining infrastructure and expand their refining capacity to satisfy escalating energy needs. These investments are aimed at improving efficiency, increasing production capacity, and meeting evolving regulatory requirements. Additionally, advancements in refining technologies are enabling refineries to upgrade their facilities to produce higher-quality products, further driving the demand for VGO as a crucial feedstock.

Opportunities 

  • Feedstock Driving Petrochemical Innovation

VGO serves as a crucial feedstock for producing various chemicals and polymers in the petrochemical sector. As the demand for petrochemical products, such as plastics, resins, and fibers, continues to rise, so does the demand for VGO. The versatility of VGO as a feedstock for a wide range of petrochemical products makes it a valuable commodity in the petrochemical industry. Moreover, the increasing focus on innovation and product development in the petrochemical sector is expected to create significant market opportunity.                  

  • Technological Advancements in Refining Processes       

Ongoing advancements in refining technologies are aimed at increasing the efficiency of VGO conversion into higher-value products, such as gasoline, diesel, and jet fuel. Advanced refining processes, such as hydrocracking and fluid catalytic cracking, enable refineries to maximize the yield of valuable products from VGO, thus enhancing their profitability. In addition, technological advancements are improving the quality of products derived from VGO, making them more competitive in the market. The demand for VGO as a primary feedstock is anticipated to rise, with refineries persisting to invest in upgrading their facilities and embracing advanced technologies, creating new market opportunities for vacuum gas oil (VGO).

Restraints/Challenges

  • Trade Restrictions on Global Supply and Demand Dynamics        

Restrictions on the import or export of crude oil or refined products can disrupt supply chains and limit access to key markets. This can affect the availability of VGO in certain regions, leading to fluctuations in prices and supply. In addition, trade restrictions can create uncertainty in the market, making it difficult for refineries to forecast demand and plan their production accordingly. As countries implement trade policies that affect the flow of crude oil and refined products, the VGO market may experience disruptions and challenges in meeting demand.            

  • Volatility in Crude Oil Prices         

Refineries rely on crude oil as their primary feedstock, and changes in crude oil prices can directly affect their profitability. When crude oil prices are high, refineries may reduce their production or seek alternative feedstocks to mitigate costs, potentially reducing the demand for VGO. Conversely, lower crude oil prices can lead to increased refinery activity and higher demand for VGO as a feedstock. The unpredictable nature of crude oil prices makes it challenging for refineries to plan and invest in VGO production, leading to volatility in the market.

This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays

Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions.

Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.

Expected Impact of Economic Slowdown on the Pricing and Availability of Products

When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.

Vaccum Gas Oil Market Scope

The vacuum gas oil market is segmented on the basis of product, sulfur content, and application. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Product

  • Heavy Vacuum Gas Oil
  • Light vacuum Gas Oil

Sulfur Content

  • Low Sulfur VGO
  • High Sulfur VGO

Application

  • Gasoline Production
  • Diesel Oil or Kerosene Production

Vaccum Gas Oil Market Regional Analysis/Insights

The market is analyzed and market size insights and trends are provided by country, product, sulfur content, and application as referenced above.

The countries covered in the market report are U.S., Canada, Mexico, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, Saudi Arabia, U.A.E., South Africa, Egypt, Israel, Rest of Middle East and Africa, Brazil, Argentina, and Rest of South America.

North America is expected to dominate the market due to the region's high volume of automobiles and the constant demand for high-octane gasoline. The robust automotive industry in North America, coupled with stringent environmental regulations that necessitate cleaner fuels, is expected to sustain the demand for VGO.                      

Asia-Pacific is expected to be the fastest growing due to increasing investments in the petroleum sector and the rising demand for automobiles in countries across Asia-Pacific. The expanding middle-class population, rapid urbanization, and improving living standards are driving the demand for vehicles in this region, thereby boosting the consumption of VGO for gasoline production.

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Vaccum Gas Oil Market Share Analysis

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.

Some of the major players operating in the market are:

  • TAIF-NK (Russia)
  • Kuwait Petroleum Corporation (Kuwait)
  • KazMunayGas (Kazakhstan)
  • Shell (U.S.)
  • Zhejiang Petroleum & Chemical Co Ltd, (China)
  • Neste (Finland)
  • Vertex (U.S.)
  • LUKOIL (Russia)
  • Exxon Mobil Corporation (U.S.)
  • Saudi Arabian Oil Co. (Saudi Arabia)
  • China National Petroleum Corporation (China)
  • BP plc (U.K.)
  • Shell plc (U.K.)
  • PDVSA - Petróleos de Venezuela, SA. (Venezuela)
  • Gazprom (Russia)
  • Chevron Corporation. (U.S.)
  • Petrobras (Brazil)
  • LUKOIL (Russia)
  • ROSNEFT (Russia)
  • Abu Dhabi National Oil Company (U.A.E.)
  • China Petrochemical Corporation (China)


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Research Methodology:

Data collection and base year analysis are done using data collection modules with large sample sizes. The stage includes obtaining market information or related data through various sources and strategies. It includes examining and planning all the data acquired from the past in advance. It likewise envelops the examination of information inconsistencies seen across different information sources. The market data is analysed and estimated using market statistical and coherent models. Also, market share analysis and key trend analysis are the major success factors in the market report. To know more, please request an analyst call or drop down your inquiry.

The key research methodology used by DBMR research team is data triangulation which involves data mining, analysis of the impact of data variables on the market and primary (industry expert) validation. Data models include Vendor Positioning Grid, Market Time Line Analysis, Market Overview and Guide, Company Positioning Grid, Patent Analysis, Pricing Analysis, Company Market Share Analysis, Standards of Measurement, Global versus Regional and Vendor Share Analysis. To know more about the research methodology, drop in an inquiry to speak to our industry experts.

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Data Bridge Market Research is a leader in advanced formative research. We take pride in servicing our existing and new customers with data and analysis that match and suits their goal. The report can be customized to include price trend analysis of target brands understanding the market for additional countries (ask for the list of countries), clinical trial results data, literature review, refurbished market and product base analysis. Market analysis of target competitors can be analyzed from technology-based analysis to market portfolio strategies. We can add as many competitors that you require data about in the format and data style you are looking for. Our team of analysts can also provide you data in crude raw excel files pivot tables (Fact book) or can assist you in creating presentations from the data sets available in the report.

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FREQUENTLY ASK QUESTIONS

The vaccum gas oil market size will be worth USD 1.73 billion by 2031.
The growth rate of the vaccum gas oil market is 5.60%.
Increasing Demand for Refined Petroleum Products & Stringent Environmental Regulations for Low-Sulfur Products are the growth drivers of the vaccum gas oil market.
Product, sulfur content, and application are the factors on which the vaccum gas oil market research is based.
Major companies in the vaccum gas oil market are TAIF-NK (Russia), Kuwait Petroleum Corporation (Kuwait), KazMunayGas (Kazakhstan), Shell (U.S.), Zhejiang Petroleum & Chemical Co Ltd, (China), Neste (Finland), Vertex (U.S.), LUKOIL (Russia), Exxon Mobil Corporation (U.S.), Saudi Arabian Oil Co. (Saudi Arabia), China National Petroleum Corporation (China), BP plc (U.K.), Shell plc (U.K.), PDVSA - Petróleos de Venezuela, SA. (Venezuela), Gazprom (Russia), Chevron Corporation. (U.S.), Petrobras (Brazil), LUKOIL (Russia), ROSNEFT (Russia), Abu Dhabi National Oil Company (U.A.E.), and China Petrochemical Corporation (China).
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