technological advancements in fuel processing are driving the growth of the Very Low Sulphur Fuel Oil Market at a CAGR of 7.20% during the forecast period 2025 to 2035

Market Research Future (MRFR) has published a cooked research report on the “Global Very Low Sulphur Fuel Oil Market” that contains the information from 2019 to 2035.

The Global Very Low Sulphur Fuel Oil Market is estimated to register a CAGR of 7.20 % during the forecast period of 2025 to 2035.

MRFR recognizes the following companies as the key players in the Global Very Low Sulphur Fuel Oil Market — Shell, ExxonMobil, Chevron, TotalEnergies, China Petrochemical Corporation / Sinopec Group and others.

The Global Very Low Sulphur Fuel Oil Market accounted for registering a CAGR of 7.20 % during the forecast period and is estimated to reach USD 260.85 billion by 2035.

The global maritime industry has undergone a paradigm shift in its approach to fuel standards, driven by the imperative to reduce its environmental footprint and adhere to evolving regulatory frameworks. The introduction of stringent marine fuel standards, particularly the International Maritime Organization's (IMO) 2020 regulation, has been a seminal development, positioning Very Low Sulphur Fuel Oil (VLSFO) as a critical compliance option. The IMO 2020 regulation mandated a substantial reduction in the maximum allowable Sulphur content in marine fuels used outside Emission Control Areas (ECAs) from 3.5% to 0.5%. This landmark directive has catalyzed the adoption of VLSFO globally, as it offers a practical and accessible solution to meet compliance requirements without necessitating significant modifications to existing vessel engines. The shipping industry has long been a major contributor to global Sulphur oxide (SOx) emissions, which have detrimental effects on human health and the environment. SOx emissions contribute to respiratory illnesses and the formation of acid rain, which damages ecosystems and infrastructure. The shift to VLSFO has helped reduce these emissions significantly, supporting international efforts to combat air pollution and climate change.

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Segmental Analysis

The Global Very Low Sulphur Fuel Oil Market has been segmented based on Source, by Viscosity Grade, by Sulphur Content, by Application and by End-User.

Based on Source, this segment includes Refinery and Hydrocracker. The Refinery segment dominated the global market in 2024, while the Hydrocracker segment is projected to be the fastest–growing segment during the forecast period. The refinery segment is another essential source of VLSFO production. Refineries utilize a combination of distillation and desulfurization processes to produce a wide range of fuels, including VLSFO. The ability of a refinery to produce high-quality, compliant VLSFO depends largely on its refining configuration, capacity, and the quality of crude oil feedstocks available. Refining crude oil involves several key steps, including distillation, cracking, and desulfurization. The distillation process separates the crude oil into various fractions based on boiling points, with heavier fractions used to create fuel oil. The cracking process further breaks down heavier hydrocarbons into lighter, more valuable products, including VLSFO. Desulfurization processes such as hydrodesulfurization (HDS) remove sulfur from the fuel fractions, making them suitable for marine use.

Based on Viscosity Grade, this segment includes IFO 180, IFO 380, MGO. The IFO 180 segment dominated the global market in 2024, while the IFO 380 segment is projected to be the fastest–growing segment during the forecast period. IFO 180 refers to a type of intermediate fuel oil with a maximum viscosity of 180 centistokes (cSt) at 50°C. It is a blended product comprising residual and distillate fuels, offering a balance between efficiency and cost. Before the introduction of IMO 2020 regulations, IFO 180 was widely used in medium-speed and auxiliary engines, particularly in smaller vessels or ships operating in areas with stricter emissions regulations.

Based on Sulphur Content, this segment includes 0.5% Sulfur and 0.1% Sulfur. The 0.5% Sulfur segment dominated the global market in 2024, while the 0.1% Sulfur segment is projected to be the fastest–growing segment during the forecast period. The 0.5% sulfur content in marine fuel refers to the sulfur limit introduced by the IMO 2020 regulations, which came into effect on January 1, 2020. This regulation mandates that all ships must use fuel with no more than 0.5% sulfur by weight, as opposed to the previous cap of 3.5% sulfur content. The goal of this regulation is to reduce sulfur oxide emissions, which are major contributors to air pollution, acid rain, and health problems.

Based on Application, this segment includes Main Engine, Auxiliary Engine, Boiler. The Main Engine segment dominated the global market in 2024, while it is projected to be the fastest–growing segment during the forecast period. The main engine is the primary power source for a vessel, responsible for propelling the ship through the water. It is typically the largest and most powerful engine onboard, designed to drive the ship’s propeller and, in some cases, provide electrical power to the ship’s systems. In the context of the Global Very Low Sulphur Fuel Oil (VLSFO) Market, the compatibility of the main engine with low-sulfur fuels is paramount due to the IMO 2020 sulfur cap regulations, which mandate that ships must use fuels with a sulfur content of no more than 0.5% or install exhaust gas cleaning systems (scrubbers).

Based on End-User, this segment includes Shipping, Power Generation, Industrial Boilers, Others. The Shipping segment dominated the global market in 2024, while it is projected to be the fastest–growing segment during the forecast period. Shipping is essential for global trade and transportation, moving over 80% of the world’s commodities across oceans. Traditionally, vessels have used high-sulfur fuel oil (HSFO), a low-cost fuel derived from residual oil left over after refining. However, under the IMO 2020 regulations, sulfur content in marine fuels had to be drastically reduced from 3.5% to 0.5%. VLSFO, with sulfur content within this new limit, has emerged as a vital fuel solution for the industry. Shipping vessels, including container ships, tankers, bulk carriers, and cruise ships, now rely heavily on VLSFO for their main engines, auxiliary engines, and boilers. The adoption of VLSFO allows shipping companies to avoid the additional costs of installing exhaust gas cleaning systems (scrubbers) or transitioning to alternative fuels like liquefied natural gas (LNG), which can be more expensive and logistically challenging to implement.

Regional Analysis

Geographically, the Global Very Low Sulphur Fuel Oil Market has been segmented into North America, Europe, Asia-Pacific, South America, Middle East & Africa.

Major demand factors driving the Asia-Pacific market are the increasing marine fuel standards and rising demand from the shipping industry and technological advancements in fuel processing. The region is home to some of the world's largest economies, such as China and India, which are experiencing rapid industrialization and urbanization. This has led to an increase in demand for energy, including very low Sulphur fuel oil. Additionally, government regulations in the region are becoming increasingly stringent, which is driving the adoption of cleaner fuels such as Very Low Sulphur Fuel Oil.

Key Findings of the Study

• The Global Very Low Sulphur Fuel Oil Market is expected to reach USD 260.85 billion by 2035, at a CAGR of 7.20% during the forecast period.


• The Asia-Pacific region accounted for the fastest-growing global market.


• Based on the Source, the Refinery segment was attributed to holding the largest market in 2024.


• Shell, ExxonMobil, Chevron, TotalEnergies, China Petrochemical Corporation / Sinopec Group and Fanuc Corporation are some of the players in the market.