Global Vaccum Gas Oil Market, By 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) - Industry Trends and Forecast to 2029.
Vaccum Gas Oil Market Analysis and Size
The vacuum gas oil majorly used in the form of feed-in cracking units such as the hydrocracker or the fluid catalytic cracker. These cracking units uplift the vacuum gas oil by the creation of other products such as gasoline and diesel. If this gas oil is not upgraded, then it will blend into the residual fuel oil. Furthermore, the growing need for fossil fuels across several industries along with the upsurge in efforts to produce a large amount of oil and gas is projected to positively affect the growth of the vaccum gas oil market.
Data Bridge Market Research analyses that the vaccum gas oil market is expected to undergo a CAGR of 5.60% during the forecast period. This indicates that the market value, which was USD 1,003.20 million in 2021, would rocket up to USD 1,551.31 million by 2029. 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.
Vaccum Gas Oil Market Scope and Segmentation
|
Report Metric
|
Details
|
|
Forecast Period
|
2022 to 2029
|
|
Base Year
|
2021
|
|
Historic Years
|
2020 (Customizable to 2014 - 2019)
|
|
Quantitative Units
|
Revenue in USD million, Volumes in Units, Pricing in USD
|
|
Segments Covered
|
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)
|
|
Countries Covered
|
U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part 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), China Petrochemical Corporation. (China)
|
|
Market Opportunities
|
|
Market Definition
Vacuum gas oil (VGO) is a major feedstock for fluid catalytic crackers which is used to form transportation fuels and many other derivatives. Vacuum gas oil is also known as cat feed. This feedstock for fluid catalytic cracker is used to manufacture gasoline, gas oil and many other by-products. VGO is an important element of petroleum hydrocarbon distillate family that contains hydrocarbon material, which is denser than diesel.
Vaccum Gas Oil Market Dynamics
Drivers
- Rising use of diesel indirectly boosts market growth
The vacuum gas oil is mainly used in the manufacture of diesel, which boosts the demand for the vaccum gas oil in the market. The increase in the investment in research and development in fluid catalytic cracking process and hydrocracking and process help to increase the output. Therefore, vacuum gas oil can aid to recover the demand for diesel in the market, which are expected to drive the market's growth rate.
- Rising demand of fossil fuels
Rising demand for fossil fuels across several sectors is expected to positively impact the vaccum gas oil market outlook and increase the bulk supply bulk supply of oil and gas. The vacuum gas oil is mainly used as an intermediate feedstock to upsurge diesel and gasoline output from the refineries. The utilization of vacuum gas oil in manufacturing diesel, kerosene and other fossil fuels is expected to increase the demand for vaccum gas oil in the market.
Opportunities
- Government initiatives and increased research activities
The extensive research and development activities by major market players in collaboration with government authorities improve output quality by using fluid catalytic cracking and hydrocracking processes. Also, the technological advancements in producing vaccum gas by using different fossil fuels are profiting end-users, creating immense opportunities for market growth.
Moreover, the increasing urbanization and the growing disposable income of various individuals over all the world have led to an increase in the production of vaccum gas oil in the market. Hence, these factors will significantly shape the growth of the vaccum gas oil market.
Restraints/Challenges
However, the changing costs of fossil fuel may obstruct the growth of the global vaccum gas oil market. Furthermore, the toxicity which has caused by the prolong use of vaccum gas oil for example stinging, irritation, redness, etc. these are another factors that could affect the demand of the vaccum gas oil in the market and obstruct the growth rate of the market.
This vaccum gas oil 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 vaccum gas oil 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.
COVID-19 Impact on Vaccum Gas Oil Market
The outbreak of COVID-19 has adversely affected the vacuum gas oil market's growth. Due to the COVID-19 pandemic, the vaccum oil gas market saw a decline in the economic growth in several major countries, thus affecting customer spending patterns. Due to the lockdown which has imposed by the government in many countries, national and international transport have been significantly disrupted the supply chain overall the globe. Thus, insufficiency in raw material supply is anticipated to obstruct the production rate of vaccum gas oil, which has negatively impacted the growth of the vaccum gas oil market.
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.
Recent Development
- In January 2019, Indian Oil Corporation Ltd, close its vacuum gas oil hydrotreating unit at its refinery for 50 days which is located at Vadodara to increase its capacity to 2.2 million mt/year, up 4.8% from the current capacity. The company plans to increase the capacity of its catalytic reformer at the same time to 780,000 mt/year, up 30% from the current capacity.
Global Vaccum Gas Oil Market Scope
The vaccum 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 vaccum gas oil market is analysed and market size insights and trends are provided by country, product, sulfur content and application as referenced above.
The countries covered in the vaccum gas oil market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.
North America dominates the vaccum gas oil market during the forecast period due to the high volume of automobiles and the need for high octane gasoline in this region.
Asia-Pacific will continue to project the highest compound annual growth rate during the forecast periodof 2022-2029 due to the growth in investment in the petroleum sector upsurge in demand for automobile in this region.
The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts 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 vaccum gas oil 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 vaccum gas oil market.
Some of the major players operating 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)
- China Petrochemical Corporation. (China)
SKU-