Vacuum Gas Oil Market

Market Overview:

The global vacuum gas oil market size reached US$ 414.3 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 562.7 Billion by 2028, exhibiting a growth rate (CAGR) of 4.9% during 2023-2028. The increasing demand for gasoline and diesel, significant technological advancements, and extensive research and development (R&D) activities represent some of the key factors driving the market.

Vacuum gas oil (VGO), also known as cat feed, is a heavy, residual oil product obtained after the distillation of crude oil that can be further refined in a catalytic cracking unit. It is produced through a vacuum distillation column using different processes, such as hydrogenation and cracking. It is widely used to manufacture gasoline, gas, oil, and other by-products. VGO is also used as feed in cracking systems, including hydrocracker and fluid cracking catalytic cracking. These systems upgrade VGO into products, such as gasoline and diesel; if not upgraded, they can blend into residual fuel oil. VGO is an essential element of the petroleum hydrocarbon distillate family that contains hydrocarbon material, which is denser than diesel.

Vacuum Gas Oil Market Trends:

The increasing demand for gasoline and diesel across the globe is one of the key factors driving the market growth. VGO is processed through various processes to remove impurities and convert them into lighter products such as gasoline and diesel. In line with this, the widespread utilization of diesel and gasoline to fuel internal combustion engines for motorbikes, trucks, boats, and other transport vehicles is favoring the market growth. Moreover, the rapidly expanding automotive industry is acting as another growth-inducing factor. Apart from this, the increasing adoption of the hydrotreating process that uses hydrogen gas to remove impurities, such as sulfur and nitrogen, from VGO and refines and improves the quality of VGO and makes it a more desirable feedstock for the production of transportation fuels is providing an impetus to the market growth. Additionally, the rising demand for fossil fuels across several sectors is propelling the market growth. VGO is extensively used as an intermediate feedstock to upsurge diesel and gasoline output from the refineries. Furthermore, significant technological advancements to introduce new integrated refining and petrochemical techniques that help produce higher quality fuels from VGO are positively influencing the market growth. Other factors, including the rising expenditure capacities of consumers, extensive research and development (R&D) activities in fluid catalytic cracking process and hydrocracking and process help to increase the output, widespread product adoption in cracking systems, and the implementation of various government initiatives to promote the use of lower sulfur VGO, are creating a positive outlook for the market.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global vacuum gas oil market, along with forecasts at the global, regional, and country levels from 2023-2028. Our report has categorized the market based on type, sulfur content, and application.

Type Insights:

• Heavy Vacuum Gas Oil
• Light Vacuum Gas Oil
   

The report has provided a detailed breakup and analysis of the vacuum gas oil market based on the type. This includes heavy and light vacuum gas oil. The report has provided a det According to the report, light vacuum gas oil represented the largest segment.

Sulfur Content Insights:

• Low Sulfur VGO
• High Sulfur VGO
   

A detailed breakup and analysis of the vacuum gas oil market based on the sulfur content has also been provided in the report. This includes low and high sulfur VGO. According to the report, low sulfur VGO accounted for the largest market share.

Application Insights:

• Gasoline Production
• Diesel Oil/Kerosene Production
• Others
   

The report has provided a detailed breakup and analysis of the vacuum gas oil market based on the application. This includes gasoline production, diesel oil/kerosene production and others. According to the report, gasoline production represented the largest segment.

Regional Insights:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America was the largest market for vacuum gas oil. Some of the factors driving the North America vacuum gas oil market included the increasing demand for gasoline and diesel, extensive research, and development (R&D) activities, and the widespread product adoption in cracking systems.

Competitive Landscape:

The report has also provided a comprehensive analysis of the competitive landscape in the global vacuum gas oil market. Competitive analysis such as market structure, market share by key players, player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. Some of the companies covered include Cana LL, Kuwait Petroleum Corporation, PJSC Lukoil Oil Company, TAIF-NK JSC, Vertex Energy Inc., etc. Kindly note that this only represents a partial list of companies, and the complete list has been provided in the report.

Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the vacuum gas oil market from 2017-2028.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global vacuum gas oil market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the vacuum gas oil industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.