Global vacuum gas oil market is expected to reach USD 527.21 Billion by 2026, at a CAGR of 5.37% from 2019 to 2026. Factors such as growing demand from the developed economies as well as growing use of vacuum gas oil as feedstock in fluid catalytic cracker are driving the global vacuum gas oil market.
Vacuum Gas Oil or VGO belongs to the petroleum hydrocarbon heavy distillate family. Vacuum Gas Oil is also known as cat feed. VGO is one of the two outputs of the vacuum distillation tower (along with vacuum resid). VGO is the lighter material of the two. The principal use of vacuum gas oil is in the form of feed in cracking units such as the fluid catalytic cracker or the hydrocracker. These cracking units upgrade vacuum gas oil into products having greater value, i.e. gasoline and diesel. If not upgraded, vacuum gas oil is blended into residual fuel oil. Nevertheless, this is quite rare as the value of vacuum gas oil is much greater as a feed for the purpose of upgrading. Increasing demand for the oil from India and China is driving the global vacuum oil gas market.
- The base year for the study has been considered 2018, historic year 2016 and 2017 and, the forecast period considered is from 2019 to 2026. The global vacuum gas oil market is analysed on the basis of value (USD Billion) volume (Kilotons), consumption (Kilotons), imports (Kilotons) and exports (Kilotons).
- The study delivers a comprehensive analysis of global vacuum gas oil market by product, sulfur content, application and regions. The report offers in-depth analysis of driving factors, opportunities, restraints, and challenges for gaining the key insight of the market. The report emphasizes on all the key trends that play a vital role in the enlargement of the market from 2019 to 2026.
- Porter’s Five Forces model is used in order to recognize the competitive scenario in the global vacuum gas oil market. This report incorporates the industry analysis which is focused on providing an extensive view of the vacuum gas oil market.
- The study also includes attractiveness analysis of Product, Sulfur Content, Application and regions which are benchmarked based on their market size, growth rate and attractiveness in terms of present and future opportunity for understanding the future growth of the market.
- The report provides company profile of the key players operating in the vacuum gas oil market and a comparative analysis based on their business overviews, product offering, segment market share, regional presence, business strategies, innovations, mergers & acquisitions, recent developments, joint venture, collaborations, partnerships, SWOT analysis, and key financial information.
- The market estimates have been evaluated by considering the effect of different political, economic, social, technological and legal factors which are based on our extensive secondary research, primary research, and in-house databases.
- Strong recovery in diesel
- Rising use of VGO to supply bunker fuels
- Incompatibility of VGO with other fuels
- Increasing investment on research and development activities
- Increasing demand from the Asia Pacific region
- Environmental regulations on the use of diesel
Global Vacuum Gas Oil Market Key Findings:
All the segments have been analyzed on global, regional and country basis. The study includes the analysis of more than 30 countries for each segment.
The global vacuum gas oil market has been segmented on the basis of product, sulfur content, and application.
- The product segment is divided into heavy vacuum gas oil and light vacuum gas oil. The light vacuum gas oil segment is anticipated to grow at an accelerated CAGR of 7.59% over the forecast period. This increased growth can be attributed to growing use of light vacuum gas oil in cracking in order to obtain gasoline and diesel.
- The sulfur content segment contains low sulfur VGO and high sulfur VGO. The low sulfur VGO segment led the global vacuum gas oil market with a 64.85% share of market revenue in 2018. Due to its low sulfur content, the low sulfur VGO makes an attractive blending feedstock for manufacturers targeting to get on-specification bunker fuel as per the norms of IMO.
- The application segment is fragmented into gasoline production and diesel oil/kerosene production. As low sulfur VGO makes an excellent feedstock for obtaining the gasoline and other high-octane components, the gasoline production segment is projected to grow at the highest CAGR of 7.42% over the forecast period.
Regional Segmentation Analysis:
The regions analyzed for the market include North America, Europe, South America, Asia Pacific, and Middle East and Africa. The North America region emerged as the largest market for the vacuum gas oil with a 39.78% share of market revenue in 2018.
- On account of its huge automobile volume, the North America region is generating a burgeoning demand for the high octane gasoline. Also, presence of the well-developed refining and cracking facilities led the North America region to dominate the global vacuum gas oil market in 2018.
- The Asia Pacific region is expected to grow at an accelerated CAGR of 7.98% over the forecast period. This increased growth rate can be attributed to the rapid industrialization and growing per capita energy demand in the region.
Global Vacuum Gas Oil Market Competitive Analysis:
Key players in the global vacuum gas oil market are Axeon, Kuwait Petroleum Corporation, Shell, Zhejiang Petrochemical Corporation, U.S. Oil and Refining, KazMunaiGaz, TAIF-NK, NESTE, Vertex, Soils Oil and Lukoil among others. In order to remain ahead of the competition major firms are increasingly focusing on ramping up their hydrocracking facilities. For instance in 2017, Zhejiang Petrochemical Corporation, a Chinese firm, announced their decision to embrace process technologies for a new integrated refining and petrochemical complex. The refining portion of this complex will be one of the world’s largest refineries, with a total capacity of 40MMTPA. The deep conversion units will comprise of residue hydro treating, residue fluid catalytic cracking unit and vacuum gas oil hydrocracker.
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This study forecasts revenue and volume growth at global, regional, and country levels from 2016 to 2026. Fior Markets has segmented the global vacuum gas oil market on the basis of below mentioned segments:
Global Vacuum Gas Oil Market by Product:
- Heavy Vacuum Gas Oil
- Light vacuum gas Oil
Global Vacuum Gas Oil Market by Sulfur Content:
- Low Sulfur VGO
- High Sulfur VGO
Global Vacuum Gas Oil Market by Application:
- Gasoline Production
- Diesel Oil/Kerosene Production
Global Vacuum Gas Oil Market by Region:
- North America
- South America
- Middle East and Africa