USD 177.3 billion
Furnace Oil Market Size, Share, Growth Analysis, By Type(Heavy Oil and Light Oil), By Application(Power generation, Industrial, and Residential sectors), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG10C2007 |
Region:
Global |
Published Date: February, 2024
Pages:
157
|Tables:
61
|Figures:
75
Furnace Oil Market Insights
Furnace Oil Market size was valued at USD 177.3 billion in 2021 and is poised to grow from USD 184.75 billion in 2022 to USD 256.75 billion by 2030, growing at a CAGR of 4.2% in the forecast period (2023-2030).
Furnace oil, also known as fuel oil, is a dark and viscous liquid that is widely used as a fuel for heating and other industrial processes. It is derived from crude oil or other sources of petroleum and can be obtained as a residue after the distillation process or by heating liquid oil in a boiler. The characteristics of Furnace oil include high energy density, viscosity, and a high sulfur content which raises environmental concerns. Despite these concerns, Furnace oil is still used in several application areas such as ships, petrochemical, electricity generation, agriculture, and heating in residential and commercial buildings. However, the use of Furnace oil is facing scrutiny due to its environmental impact, which is contributing to climate change and air pollution. Consequently, many countries are imposing regulations to limit the use of Furnace oil and promote the adoption of cleaner energy sources.
The global Furnace oil market is driven by the rising demand for crude oil for various applications worldwide, including the production of Furnace oil. The Furnace oil is usually delivered to end-users through bunker ships, retail fuel outlets, and pipelines. One of the main drivers for the Furnace oil market is the increasing production of crude oil in leading economies worldwide. This trend is expected to lead to an increase in the production of Furnace oil, which could boost market growth in the future. Additionally, the growth of the electricity sector is expected to contribute to the overall Furnace oil market's expansion in the coming years. The increasing economic development, particularly in under-developed regions of the world, could also boost the demand for Furnace oil in the future. The marine application segment is expected to make the largest contribution to the overall Furnace oil market due to increased product deployment in different marine-related activities.
However, the Furnace oil market faces several challenges, particularly related to its environmental impact. The burning of Furnace oil releases significant amounts of carbon dioxide and other pollutants, leading to climate change and air pollution. Therefore, many countries are imposing regulations to limit the use of Furnace oil and encourage the adoption of cleaner energy sources. Despite these challenges, the global Furnace oil market is expected to continue growing in the coming years. The market is likely to see continued innovation and evolution as companies seek to adapt to changing market conditions and regulations. The growth of the global furnace oil market is also driven by the continued use of furnaces in various industries and the need for heating in colder regions. However, the market may face challenges from increasing concerns over environmental impact and the growing popularity of alternative energy sources such as natural gas and renewable energy. As such, the market is likely to see continued innovation and evolution in the years ahead as companies seek to adapt to changing market conditions and regulations.
US Furnace Oil Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2023-2030
Global Market Size
Largest Segment
Heavy Oils
Fastest Growth
Heavy Oils
Growth Rate
4.2% CAGR
Global Furnace Oil Market, 2022-2030 ($ Bn)
Country Share for North America Region- 2022 (%)
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Furnace Oil Market Segmental Analysis
Global Furnace Oil market is segmented by type, application, and end-user. Based on type, the market can be segmented into heavy oil, and light oil. Based on application, the market can be segmented into power generation, industrial, and residential sectors. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Furnace Oil Market Analysis by Type
By type, the market can be segmented into the market heavy oil and light oil. Heavy oil is a type of fuel oil with a high density and viscosity, and it is also known as residual fuel oil. It is typically used in industrial applications such as power generation and ship propulsion due to its high energy content. Heavy oil is produced by the refining process after all other products have been removed. On the other hand, light oil, also known as distillate fuel oil, is a type of fuel oil that is lighter and less viscous than heavy oil. It is produced by refining crude oil and is typically used in residential and commercial heating systems, as well as in diesel engines for transportation.
The heavy oil segment of the market is expected to have a larger share due to its widespread use in various industrial applications. It is particularly well-suited for use in power generation plants and marine vessels due to its high energy density and viscosity. The growth of the heavy oil segment is likely to be driven by the increasing demand for energy worldwide, particularly in developing economies that are industrializing and urbanizing rapidly.
The light oil segment is expected to have a smaller share of the market, but it is also expected to see steady growth due to the increasing demand for residential and commercial heating systems, particularly in colder regions of the world. Additionally, the use of light oil in transportation is expected to increase as more countries adopt stricter emissions standards for diesel engines.
Furnace Oil Market Analysis by Application
By Application, the market can be segmented into power generation, industrial, and residential sectors. The power generation segment is the largest consumer of furnace oil. This is because furnace oil is used as a fuel source in various types of power plants, including diesel generators, gas turbines, and combined-cycle power plants. The power generation sector is vital for the growth and development of various industries, and hence the demand for furnace oil in this segment is expected to remain steady in the coming years.
The industrial sector is another significant application segment for furnace oil. Furnace oil is used in various manufacturing processes, including cement production, steel manufacturing, and other heavy industries. In many cases, furnace oil is used as a backup fuel source to keep industrial processes running during power outages or other unforeseen events. The demand for furnace oil in the industrial sector is likely to remain stable, as these industries continue to grow and expand.
The residential sector is the smallest application segment for furnace oil. Furnace oil is used in residential heating systems, particularly in regions with harsh winters or remote areas where other fuel sources are not readily available. However, the demand for furnace oil in the residential sector is expected to decline in the coming years due to the rising adoption of cleaner energy sources and the increased availability of natural gas.
Global Furnace Oil Market By Type, 2022 (%)
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Furnace Oil Market Regional Insights
North America is the largest regional market for furnace oil, accounting for a significant share of the global market. The market in North America is driven by factors such as cold winters and the need for heating systems in residential and commercial buildings. The region is dominated by the United States, which is one of the largest consumers of furnace oil in the world. The power generation sector is the largest consumer of furnace oil in North America. The sector relies heavily on furnace oil to generate electricity, particularly during peak demand periods. In the United States, several states use furnace oil to generate electricity during peak summer periods when demand for air conditioning is high. The use of furnace oil in power generation is expected to remain stable in the coming years, primarily due to its importance in ensuring the reliability and stability of the power grid. The industrial sector is another significant application segment for furnace oil in North America. Furnace oil is used in various manufacturing processes, including cement production, steel manufacturing, and other heavy industries. The use of furnace oil in the industrial sector is expected to remain stable, driven by factors such as the growth of manufacturing industries and the need for backup fuel sources. The residential sector is the smallest application segment for furnace oil in North America. However, it is still a significant market, particularly in colder regions such as the Northeastern United States and Canada. Furnace oil is used in residential heating systems to keep homes warm during the winter months. However, the demand for furnace oil in the residential sector is expected to decline in the coming years due to the increased adoption of cleaner energy sources such as natural gas and renewable energy. The furnace oil market in North America is expected to witness steady growth in the coming years, driven by its importance in the power generation and industrial sectors. However, the market is also likely to face challenges from increasing environmental regulations and the shift towards cleaner energy sources.
On the other hand, The Asia-Pacific (APAC) region is one of the fastest-growing regions in the furnace oil market. The growth can be attributed to various factors, such as the increasing demand for electricity and rapid industrialization in emerging economies like China, India, and Japan. These countries have significant demand for furnace oil due to their large population and growing energy needs. In addition to this, the growth in the manufacturing sector in the region is also driving the demand for furnace oil. The manufacturing sector in APAC is one of the largest in the world, with China being the largest producer and exporter of goods globally. This sector requires a constant supply of energy for its operations, and furnace oil is one of the primary sources of energy in this sector. Moreover, the increasing demand for transportation in the region is also driving the growth of the furnace oil market. The marine transportation sector in APAC is witnessing significant growth, owing to the increasing trade activities and the development of ports and harbors. Furnace oil is one of the primary fuels used in the marine transportation sector, which is driving the growth of the market. Furthermore, the development of infrastructure in the region is also contributing to the growth of the furnace oil market. Governments in several APAC countries are investing heavily in infrastructure development, such as building new airports, seaports, and highways. These projects require a significant amount of energy, and furnace oil is one of the primary sources of energy used in these construction activities.
Global Furnace Oil Market By Geography, 2022-2030
- Largest
- Fastest
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Furnace Oil Market Dynamics
Furnace Oil Market Drivers
Increasing Technological Advancements and Industrial changes
- The fuel oil market is driven by technological advancements and industrial changes that enable more efficient and effective use of fuel oil in various applications. Technological improvements, such as the development of more advanced furnaces and boilers, have helped to increase the efficiency of fuel oil usage, reducing waste and emissions while also improving productivity. Industrial changes, such as the growth of the petrochemical industry, have created new opportunities for the use of fuel oil in the production of various chemicals and other products. Additionally, increasing demand for electricity and heating in various regions of the world has contributed to the growth of the fuel oil market. As industrial and technological advancements continue to emerge, the fuel oil market is expected to see continued growth and innovation in the coming years. However, it is important to note that the market may also face challenges from increasing concerns over environmental impact, which could lead to stricter regulations and a shift towards cleaner energy sources.
Increasing number of transportation modes and related energy efficiency
- The increasing number of transportation modes and the focus on energy efficiency are important drivers for the furnace oil market. The use of furnace oil as a fuel for transportation modes, such as ships and other maritime vessels, is a significant contributor to the demand for furnace oil. As the number of transportation modes increases, so does the demand for furnace oil. However, the increasing focus on energy efficiency is also leading to a shift towards cleaner energy sources such as natural gas and renewable energy. This shift could pose a challenge to the growth of the furnace oil market in the long run. Nonetheless, the growing demand for transportation and the emphasis on energy efficiency are likely to continue driving the growth of the furnace oil market in the short to medium term.
Furnace Oil Market Restraints
Increasing Fuel Cost
- One of the major restraints for furnace oil is the increasing fuel costs. As the cost of crude oil continues to rise, the cost of producing and delivering furnace oil also increases. This can lead to higher prices for end-users, which may prompt them to seek alternative energy sources or more efficient heating solutions. In addition, increasing awareness of the environmental impact of fossil fuels such as furnace oil may lead to stricter regulations and higher taxes, further increasing costs for users. As such, companies in the furnace oil market may need to focus on improving efficiency and exploring alternative, more sustainable energy sources to remain competitive in the face of rising fuel costs.
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Furnace Oil Market Competitive Landscape
Global furnace oil market is characterized by several companies operating in the market, with different levels of market share and specialization. The market is highly fragmented, with no single company dominating the industry. The companies are focusing on various strategies such as product innovation, mergers and acquisitions, and partnerships to expand their market share and gain a competitive advantage. Some of the key factors that are expected to influence the competitive landscape of the furnace oil market in the coming years include government regulations, environmental concerns, and the shift towards cleaner energy sources.
Furnace Oil Market Top Player’s Company Profiles
- Exxon Mobil Corporation
- Royal Dutch Shell plc
- BP plc
- Chevron Corporation
- Reliance Industries Limited
- Hindustan Petroleum Corporation Limited (HPCL)
- Bharat Petroleum Corporation Limited (BPCL)
- Indian Oil Corporation Limited (IOCL)
- Total S.A.
- China Petroleum & Chemical Corporation (Sinopec)
- Kuwait Petroleum Corporation
- Abu Dhabi National Oil Company (ADNOC)
- Petron Corporation
- Petróleo Brasileiro S.A. (Petrobras)
- PTT Public Company Limited
- Qatar Petroleum
- Sasol Limited
- SK Innovation Co., Ltd.
- Thai Oil Public Company Limited
- YPF S.A.
Furnace Oil Market Recent Developments
- In February 2022, BP announced that it would invest $1.5 billion over the next decade to develop new technologies to reduce emissions from its operations and products, including fuel oil.
- In January 2022, Shell announced that it had started supplying a new low-carbon fuel oil to customers in the Netherlands, Belgium, and France.
- In December 2021, Japan's Ministry of Land, Infrastructure, Transport, and Tourism (MLIT) announced that it would introduce new regulations to limit the use of high-sulfur fuel oil in ships operating in the country's waters.
- In November 2021, TotalEnergies announced that it had developed a new low-carbon fuel oil for use in the shipping industry.
- In October 2021, the Indian government announced a plan to phase out the use of furnace oil and petcoke as fuels in the country's industrial sector.
Furnace Oil Key Market Trends
- One market trend in the fuel oil market is the increasing shift towards cleaner energy sources and the adoption of more sustainable practices. This trend is driven by growing concerns over climate change and environmental impact, as well as changing regulations and policies. As a result, there is a growing emphasis on the development and use of alternative energy sources such as natural gas, renewables, and biofuels. Companies in the global market are also investing in technologies to reduce emissions and improve efficiency, such as carbon capture and storage and fuel cells. Additionally, there is a growing focus on circular economy principles, which aim to minimize waste and maximize the reuse of resources.
Furnace Oil Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global furnace oil market analysis, the market is expected to witness moderate growth in the coming years, driven by increasing demand for energy and the growth of various end-use industries such as power generation, cement, and steel. The market is segmented by application, end-use industry, and region, with power generation, marine fuel, and industrial heating being the major application areas. The Asia-Pacific region is expected to lead the market in terms of growth due to the rapidly growing industrialization and urbanization in countries such as China and India. However, the market faces certain challenges such as the increasing adoption of alternative energy sources and regulations promoting the use of cleaner fuels. To stay competitive in the market, key players are focusing on strategic partnerships and collaborations, research and development activities, and investments in emerging markets. The market is dominated by a few major players such as ExxonMobil, BP Plc, Royal Dutch Shell Plc, Total SA, and Chevron Corporation. These players have a strong global presence and offer a wide range of products to cater to the diverse needs of end-users.
| Report Metric | Details |
|---|---|
| Market size value in 2021 | USD 177.3 billion |
| Market size value in 2030 | USD 256.75 billion |
| Growth Rate | 4.2% |
| Base year | 2023 |
| Forecast period | 2023-2030 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Furnace Oil Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Furnace Oil Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Furnace Oil Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Furnace Oil Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Furnace Oil Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Furnace Oil Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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