Vacuum Gas Oil Market

Market Synopsis:

The Global Vacuum Gas Oil Market was valued at USD 388.44 Billion in the year 2022 and is projected to reach a value of USD 560.91 Billion by the year 2030. The Global Market is anticipated to grow to exhibit a Compound Annual Growth Rate (CAGR) of 4.70% over the forecast period.

The Vacuum Gas Oil is generally utilized as an intermediate feedstock in refineries to boost gasoline and diesel output. VGO is produced in a fractionating vacuum column using several methods such as hydrogenation and cracking. The use of Vacuum Gas Oil in the manufacturing of diesel is projected to increase the market demand for the oil. The growth in the market for Vacuum Gas Oil in bunker fuel is driving up demand in the marine market. Increased maritime traffic and marine research are expected to boost the Vacuum Gas Oil Market.

In addition, the expanding demand for fossil fuels in various sectors and increased efforts to produce a bulk output of oil and gas is expected to boost the industry outlook. The rapidly expanding gasoline sector, as well as the auto sector, are critical drivers of Global Vacuum Gas Oil development. Due to the increased demand in the commercial market, the need for Vacuum Gas Oil in bunker fuel is increasing. Rising demand for fossil fuels across many industries, as well as increased efforts to develop a bulk supply of oil and gas, are likely to benefit the industry outlook.

The Vacuum Gas Oil is generally utilized as an intermediate feedstock in refineries to boost gasoline and diesel output. VGO is produced in a fractionating vacuum column using several methods such as hydrogenation and cracking. Vacuum refining separates light and significant gas oil components, leaving vacuum residue that can be further processed by a cooker unit or sold as fuel oil. Based on these characteristics, the Global Vacuum Gas Oil Market is expanding at a rapid pace. The expanding demand for fossil fuels in various sectors and increased attempts to create a substantial oil and gas output is expected to boost the industry outlook.

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Market Segmentation:

The Vacuum Gas Oil Market is segmented into Sulphur Content, Application, Product Type, and Region. Based on Sulphur Content, the market is classified into Low Sulphur VGO and High Sulphur VGO. Furthermore, based on the Product Type segment, the market is further fragmented into Heavy Vacuum Gas Oil and Light Vacuum Gas Oil. Furthermore, based on the Applications segment, the market is further segmented into Gasoline Production and Diesel Oil/Production.

Based On Sulphur Content:

The Low Sulphur VGO holds a significant share in the market during the forecast period. Because of its low sulfur concentration, Low Sulfur VGO is an attractive blending feedstock for producers seeking to meet IMO bunker fuel specifications.

Based On Product Type:

Based on product type, the market is segmented as Heavy Vacuum Gas Oil and Light Vacuum Gas Oil. The Light Vacuum Gas Oil segment is anticipated to grow at the highest rate during the forecast period. This increasing growth can be ascribed to an expansion in the use of light Vacuum Gas Oil in splitting to produce gasoline and diesel. The use of hydrocarbon in the transition of LVGO into light and middle distillation, applying compulsion and hydrogen, is more continuous.

Asia Pacific is Expected to Hold a Significant Share in the Market During the Forecast Period

Asia Pacific is expected to grow at the highest Compound Annual Growth Rate (CAGR) and gain a significant share in the market during the forecast period. The Asia Pacific retained a substantial market share during the forecast period owing to the region's high automotive production and increased demand for high octane fuel. Furthermore, there are well-established cracking and refining facilities in the area. Again, with increased consumer purchasing power in both established and emerging countries, the consumption of luxury vehicles is expanding, contributing to industry growth.

The increasing urbanization and rapid industrialization in these countries are pushing up oil demand, which favors the worldwide Vacuum Gas Oil business. In Addition, the rise in the need for automobiles and development in expenditure in the petroleum zone are the other major factors responsible for the growth in this region.

Competitive Landscape:

The key players in the Global Vacuum Gas Oil Market include- TAIF-NK, Kuwait Petroleum Corporation, Exxon Mobil Corporation, KazMunayGas, Axeon Specialty Products, U.S. Oil & Refining Co., Royal Dutch Shell, Zhejiang Petrochemical Corporation, Neste, Solis Oil, Vertex Energy Inc., LUKOIL, and others.

Segmentation of the Global Vacuum Gas Oil Market: