PUBLISHER: The Business Research Company | PRODUCT CODE: 1668670
PUBLISHER: The Business Research Company | PRODUCT CODE: 1668670
Vacuum gas oil, produced in a distillery's vacuum refinement unit, is a semi-liquid form of oil gas that serves as a crucial feedstock for fluid catalytic crackers, enabling the production of various transportation fuels and by-products. This oil undergoes different processes, including hydrogenation and cracking.
Two primary types of vacuum gas oil are heavy vacuum gas oil and light vacuum gas oil. Heavy vacuum gas oil is a dense and viscous blend of hydrocarbons obtained through the vacuum distillation of residue from the atmospheric distillation of crude oil. It serves as a feedstock for fluid catalytic cracking and plays a role in the production of various petroleum products. Depending on sulfur content, heavy vacuum gas oil is classified into low-sulfur vacuum gas oil and high-sulfur vacuum gas oil, utilized in the production of gasoline, diesel oil/kerosene, and other applications.
The vacuum gas oil market research report is one of a series of new reports from The Business Research Company that provides vacuum gas oil market statistics, including vacuum gas oil industry global market size, regional shares, competitors with a vacuum gas oil market share, detailed vacuum gas oil market segments, market trends and opportunities, and any further data you may need to thrive in the vacuum gas oil industry. This vacuum gas oil market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The vacuum gas oil market size has grown strongly in recent years. It will grow from$439.43 billion in 2024 to $465.57 billion in 2025 at a compound annual growth rate (CAGR) of 5.9%. The growth in the historic period can be attributed to refinery expansion, petroleum industry growth, shift in crude oil grades, environmental regulations, global energy demand
The vacuum gas oil market size is expected to see strong growth in the next few years. It will grow to $587.24 billion in 2029 at a compound annual growth rate (CAGR) of 6.0%. The growth in the forecast period can be attributed to trade dynamics, market demand for refined products, global economic growth, environmental regulations, energy transition initiatives. Major trends in the forecast period include refining margins optimization, demand for cleaner fuels, upgrading technologies, shift in crude oil blending, residue conversion.
The rising demand for fossil fuels is expected to drive the growth of the vacuum gas oil market in the future. Fossil fuels are hydrocarbon-containing materials formed naturally in the earth's crust from the remains of dead plants and animals, including coal, petroleum, natural gas, oil shale, bitumen, tar sands, and heavy oils. Co-processing bio-oil with vacuum gas oil introduces renewable carbon into fossil fuels and reduces the production costs of biofuels. For example, in August 2024, the Department of Climate Change, Energy, the Environment, and Water, an Australian government department, reported that energy consumption increased by 2.0% in 2022-23, reaching 5,882 petajoules, which is an increase of 117 petajoules. Therefore, the rising demand for fossil fuels is fueling the growth of the vacuum gas oil market.
The anticipated growth in the oil and gas industry is poised to drive the vacuum gas oil market in the coming years. The oil and gas industry involves activities related to the exploration, extraction, refining, transportation, and distribution of petroleum products, natural gas, and related resources. Vacuum gas oil (VGO) holds a crucial role in the oil and gas industry, particularly in the refining process. It acts as a vital intermediate feedstock in refineries, contributing to the production of various valuable petroleum products. According to The U.S. Energy Information Administration (EIA) in 2022, the U.S. crude oil production reached 11,910,622 barrels per day, with Texas leading as the top crude oil-producing state, producing 5,060,000 barrels per day. Consequently, the rising demand for oil and gas is a key driver for the vacuum gas oil market.
The anticipated growth in disposable income is poised to drive the vacuum gas oil market in the future. Disposable income, which represents the total income available for spending and saving after deductions, can influence overall energy consumption trends, impacting the demand for refined products such as gasoline and diesel. For instance, in 2023, Trading Economics reported an increase in disposable income in Japan from 412.82 JPY thousand ($3,014.64) in March 2022 to 463.91 JPY thousand ($3,387.76) in February 2023. Consequently, the rise in disposable income is a significant driver for the vacuum gas oil market.
Technological advancements emerge as a key trend gaining traction in the vacuum gas oil market. Companies within the market are embracing new technologies to maintain their market position. In March 2022, Honeywell, a US-based technology provider for petroleum manufacturers, announced that SPEC Energy DMCC would utilize its various technologies to convert less valuable vacuum gas oil and vacuum filtrate into valuable products such as petrol and alkylate at its refinery. One such technology is the UOP Residue Fluidized Catalytic Cracking Technology, which enhances gasoline yield. Refinery configurations are influenced by market changes, and mild hydrocracking technology enables refiners to convert 20-60% of VGO feeds, producing high-quality cat cracker feedstocks along with a certain quantity of middle distillates.
In September 2022, Neste Corporation, a Finland-based oil refining and marketing company, established a 50/50 joint venture with Marathon Petroleum Corporation to produce renewable diesel. Named Martinez Renewables, the partnership involves Neste contributing a total of $1 billion. The joint venture aims to advance the project's objectives, delivering low-carbon-intensity fuels to support California's climate goals and expanding Neste's footprint in the United States. Marathon Petroleum Corporation is a US-based petroleum refining, marketing, and transportation company that sources agricultural feedstocks to produce renewable diesel.
Major companies operating in the vacuum gas oil market include Kuwait Petroleum Corporation, Exxon Mobil Corporation, KazMunayGas, Par Pacific Holdings Inc., Shell Plc, Neste Oyj, Vertex Energy Inc., The PJSC Lukoil Oil Company, Honeywell International Inc., Zhejiang Petroleum and Chemical Co. Ltd., PJSC Gazprom, Cenovus Energy Inc., Marathon Oil Company, IRPC Public Company Limited, Chevron Corporation, China National Petroleum Corporation, Eni SpA, Indian Oil Corp. Ltd., Axeon Specialty Products, U.S. Oil & Refining Co., Tatneft, PJSC Rosneft Oil Company, PTT Public Company Limited, S-Oil Corporation, SK Innovation Co. Ltd., Thai Oil Public Company Limited, Valero Energy Corporation, Bharat Petroleum Corporation Limited, Hindustan Petroleum Corporation Limited, Reliance Industries Limited, Abu Dhabi National Oil Company, Bahrain Petroleum Company (Bapco)
North America was the largest region in the vacuum gas oil market in 2024. Asia-Pacific is expected to be the fastest-growing region in the global vacuum gas oil market during the forecast period. The regions covered in the vacuum gas oil market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the vacuum gas oil market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain
The vacuum gas oil market consists of sales of medium vacuum gas oil (MVGO) and heavy atmospheric gas oil (HAGO). Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Vacuum Gas Oil Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on vacuum gas oil market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for vacuum gas oil ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The vacuum gas oil market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.