Ultra Low Sulphur Fuel Oil (ULSFO) Market Size, Share, Growth, and Industry Analysis, By Types (Heavy Fuel Oil, Light Fuel Oil), By Applications Covered (Small Oceangoing Ships, Medium Oceangoing Ships, Large and Very Large Oceangoing Ships), Regional Insights and Forecast to 2034

Ultra Low Sulphur Fuel Oil (ULSFO) Market Size

The Global Ultra Low Sulphur Fuel Oil (ULSFO) Market size was valued at USD 741.27 Million in 2024, projected to reach USD 802.8 Million in 2025, and is expected to hit USD 869.43 Million by 2026, further advancing to USD 1,645.36 Million by 2034. This remarkable growth represents a strong CAGR of 8.3% during the forecast period 2025–2034. The Global Ultra Low Sulphur Fuel Oil (ULSFO) Market is primarily driven by stringent environmental regulations, as ULSFO accounts for nearly 63% of compliance fuels in the marine industry.

The US Ultra Low Sulphur Fuel Oil (ULSFO) Market is expected to see rapid adoption, representing almost 28% of total regional demand due to strict emission norms. Globally, 54% of shipping companies have already shifted to ULSFO, while industrial applications make up nearly 19% of the demand. Around 23% of global port authorities have mandated ULSFO use in vessel operations, further accelerating its adoption. Increasing focus on sustainability, reducing sulphur emissions by 80%, and meeting International Maritime Organization (IMO) standards are major contributors to the future growth of this segment.

Key Findings

• Market Size - Valued at 802.8M in 2025, expected to reach 1645.36M by 2034, growing at a CAGR Of 8.3%.
• Growth Drivers - 63% maritime fleets using ULSFO, 27% refiners investing, 23% port mandates, 19% industrial shift, 21% port upgrades.
• Trends - 37% Asia-Pacific growth, 28% Europe demand, 22% North America adoption, 16% refinery innovation, 13% hybrid fleet adoption.
• Key Players - Shell Global, Orim Energy, Bomin Group, TotalEnergies Marine Fuels, CEPSA
• Regional Insights - Asia-Pacific leads with 37% driven by shipping fleets, Europe holds 28% from compliance demand, North America captures 22% with emission zones, while Middle East & Africa contributes 13% via tanker operations.
• Challenges - 34% refiners face cost issues, 22% supply bottlenecks, 19% infrastructure gaps, 17% feedstock shortages, 21% port concerns.
• Industry Impact - 63% fleet reliance, 27% refinery scaling, 24% hybrid adoption, 21% port upgrades, 19% industrial applications.
• Recent Developments - 22% refining expansion, 19% hybrid launch, 14% bunkering growth, 12% additive innovation, 17% export boost.

The Global Ultra Low Sulphur Fuel Oil (ULSFO) Market is a critical segment of the global energy and maritime industries, positioned as the preferred solution to meet tightening sulphur emission regulations. ULSFO is widely used in marine transport, accounting for approximately 63% of compliance fuels in shipping. The US Market continues to expand rapidly, capturing nearly 28% of regional demand due to robust enforcement of IMO 2020 regulations and domestic emission control areas. In Europe, 32% of vessels use ULSFO, while Asia-Pacific represents around 29% of consumption, with rising adoption in China, Japan, and Singapore.

Industrial demand for ULSFO contributes 19% of overall usage, primarily in power generation and heavy machinery requiring low-sulphur solutions. Around 54% of global shipping fleets have already transitioned to ULSFO, driven by the need to reduce sulphur oxide emissions by nearly 80%. Sustainability initiatives have accelerated, with 23% of port authorities mandating ULSFO bunkering facilities and 16% of oil refiners expanding their ULSFO production capacity. In addition, hybrid adoption models are emerging, where 12% of vessels alternate between ULSFO and alternative fuels like LNG. The Global Ultra Low Sulphur Fuel Oil (ULSFO) Market is expected to evolve further as 21% of refiners plan to invest in refinery upgrades dedicated to low-sulphur products.

Ultra Low Sulphur Fuel Oil (ULSFO) Market Trends

The Global Ultra Low Sulphur Fuel Oil (ULSFO) Market is shaped by strong compliance with environmental standards and adoption across marine and industrial sectors. Marine transport remains the largest contributor, with 63% of demand coming from international shipping fleets. Nearly 54% of global vessel operators have already switched to ULSFO to meet International Maritime Organization regulations. The industrial sector contributes 19%, supported by power generation and heavy machinery requirements.

Regionally, Europe accounts for 32% of total consumption, driven by strict sulphur emission limits, while Asia-Pacific represents 29%, supported by expanding port facilities and refinery capacity. The US Market holds 28% of global share, with strict enforcement in emission control areas (ECAs). Additionally, 23% of port authorities worldwide now mandate ULSFO bunkering for docking vessels. Hybrid usage trends are emerging, as 12% of fleets combine ULSFO with LNG and other alternative fuels. Refinery activity is also increasing, with 16% of refiners enhancing capacity for low-sulphur fuel production. Sustainability goals are influencing nearly 27% of corporate shipping strategies, ensuring long-term growth. The Global Ultra Low Sulphur Fuel Oil (ULSFO) Market continues to rise as emission reduction and cleaner shipping drive global transformation in the fuel industry.

Ultra Low Sulphur Fuel Oil (ULSFO) Market Dynamics

OPPORTUNITY

Rising Potential in Alternative Marine Fuels

The Ultra Low Sulphur Fuel Oil (ULSFO) market presents opportunities due to increasing adoption of clean marine fuels. Nearly 54% of shipping companies have already transitioned to ULSFO. Around 27% of global refiners are investing in expanding refining capacity to produce cleaner fuels. In addition, 21% of port authorities are promoting ULSFO bunkering facilities to comply with emission norms. Growth opportunities are also driven by hybrid usage trends, with 13% of fleets using ULSFO in combination with LNG. These developments indicate significant potential for expansion as sustainable marine fuel adoption accelerates worldwide.

DRIVERS

Strict Global Emission Regulations Driving Demand

The primary driver for the Ultra Low Sulphur Fuel Oil (ULSFO) market is strict emission control regulations. Approximately 63% of marine fuel demand is attributed to ULSFO compliance. Nearly 32% of European vessels and 28% of US fleets now operate with ULSFO due to regulatory mandates. Asia-Pacific contributes 29% of adoption, supported by large shipping routes. Around 23% of global port authorities enforce the use of ULSFO at docking stations. Furthermore, 19% of industrial energy producers have shifted towards ULSFO to limit sulphur emissions. These regulatory frameworks strongly drive ULSFO market expansion globally.

RESTRAINTS

High Production and Refining Costs

One of the major restraints in the Ultra Low Sulphur Fuel Oil (ULSFO) market is the high cost of refining low sulphur fuels. Nearly 34% of refiners report increased operating expenses for ULSFO production. Around 22% of producers face limited refinery capacity, creating bottlenecks. Additionally, 18% of smaller refineries struggle to meet sulphur compliance, reducing their ability to supply ULSFO consistently. Approximately 26% of shipping companies note higher fuel procurement costs compared to conventional options, limiting affordability. This cost factor remains a significant restraint that impacts widespread adoption, particularly in emerging economies with smaller refinery infrastructure.

CHALLENGE

Price Volatility and Supply Chain Disruptions

The Ultra Low Sulphur Fuel Oil (ULSFO) market faces challenges from price volatility and supply chain issues. Nearly 31% of fuel suppliers report frequent fluctuations in ULSFO pricing due to refinery adjustments. Around 24% of global shipping companies face delays in bunkering due to limited supply availability. In addition, 17% of refiners experience feedstock shortages impacting consistent production. Approximately 21% of port authorities have raised concerns about infrastructure gaps in storage and distribution. These challenges create uncertainty for 19% of fleet operators who rely on predictable supply. Volatility and supply risks remain key challenges for stable ULSFO adoption worldwide.

Segmentation Analysis

The Global Ultra Low Sulphur Fuel Oil (ULSFO) Market size was USD 741.27 Million in 2024 and is projected to reach USD 802.8 Million in 2025, expanding to USD 1,645.36 Million by 2034 at a CAGR of 8.3%. Heavy Fuel Oil dominates with the largest share, while Light Fuel Oil shows strong growth potential. By application, medium oceangoing ships lead the segment, followed by large and very large oceangoing ships, and small oceangoing vessels, with each category demonstrating varied adoption levels and growth opportunities across regions.

By Type

Heavy Fuel Oil

Heavy Fuel Oil plays a dominant role in the Ultra Low Sulphur Fuel Oil (ULSFO) market, accounting for 62% of total demand. It is extensively used in oceangoing vessels due to compliance with environmental regulations and its adaptability for larger fleets. Around 45% of global cargo ships rely primarily on this type, supported by established infrastructure for supply and bunkering.

Heavy Fuel Oil held the largest share in the ULSFO market, accounting for USD 497.74 Million in 2025, representing 62% of the total market. This segment is expected to grow at a CAGR of 7.9% from 2025 to 2034, driven by increasing international trade, stricter emission standards, and growing reliance on marine transportation.

Top 3 Major Dominant Countries in the Heavy Fuel Oil Segment

• China led the Heavy Fuel Oil segment with a market size of USD 129.42 Million in 2025, holding a 26% share and expected to grow at a CAGR of 8.0% due to fleet expansion and port infrastructure.
• United States recorded USD 104.52 Million in 2025, 21% share, growing at a CAGR of 7.6% supported by compliance zones and port authority mandates.
• Singapore accounted for USD 79.64 Million in 2025, 16% share, growing at a CAGR of 8.1% owing to its role as a global maritime hub.

Light Fuel Oil

Light Fuel Oil contributes 38% of the ULSFO market, with strong adoption in smaller fleets and coastal vessels. Nearly 33% of regional shipping companies prefer this fuel type due to operational efficiency, reduced sulphur emissions, and adaptability for dual-fuel vessels. Its role is expanding in regions emphasizing sustainable maritime operations.

Light Fuel Oil reached USD 305.06 Million in 2025, representing 38% of the total market. This segment is projected to grow at a CAGR of 8.9% from 2025 to 2034, supported by hybrid fuel usage, small ship operators, and regional adoption in Europe and Asia-Pacific.

Top 3 Major Dominant Countries in the Light Fuel Oil Segment

• Japan led the Light Fuel Oil segment with a market size of USD 76.27 Million in 2025, 25% share, expected to grow at a CAGR of 9.0% due to focus on clean energy shipping.
• Germany recorded USD 67.11 Million in 2025, 22% share, growing at a CAGR of 8.7% with strong industrial shipping demand.
• South Korea accounted for USD 58.00 Million in 2025, 19% share, growing at a CAGR of 8.8% backed by advanced shipbuilding and compliance adoption.

By Application

Small Oceangoing Ships

Small oceangoing ships account for 24% of ULSFO demand, supported by regional trade and short-distance maritime transport. Nearly 35% of coastal vessels worldwide utilize ULSFO to reduce sulphur oxide emissions.

Small Oceangoing Ships accounted for USD 192.67 Million in 2025, representing 24% of the total market. This segment is expected to grow at a CAGR of 7.8% from 2025 to 2034, driven by regional shipping and compliance with coastal emission control zones.

Top 3 Major Dominant Countries in the Small Oceangoing Ships Segment

• India led with USD 52.03 Million in 2025, 27% share, growing at a CAGR of 7.9% due to strong regional shipping and port activity.
• Indonesia accounted for USD 46.24 Million in 2025, 24% share, expected to grow at a CAGR of 7.7% driven by domestic trade.
• Philippines recorded USD 38.53 Million in 2025, 20% share, supported by inter-island maritime transport demand.

Medium Oceangoing Ships

Medium oceangoing ships dominate with 46% share of the ULSFO market, representing the majority of international trade fleets. Nearly 52% of container carriers and bulk vessels use ULSFO in this category.

Medium Oceangoing Ships accounted for USD 369.29 Million in 2025, representing 46% of the total market. This segment is projected to grow at a CAGR of 8.5% from 2025 to 2034, supported by growing trade volumes and expanded shipping routes.

Top 3 Major Dominant Countries in the Medium Oceangoing Ships Segment

• China led with USD 96.01 Million in 2025, 26% share, growing at a CAGR of 8.6% due to its global shipping dominance.
• United States recorded USD 81.24 Million in 2025, 22% share, expected to grow at a CAGR of 8.4% supported by ECA enforcement.
• Japan accounted for USD 70.16 Million in 2025, 19% share, growing at a CAGR of 8.3% with container and bulk carrier fleets.

Large and Very Large Oceangoing Ships

Large and very large oceangoing ships represent 30% of the ULSFO market, used in tankers and major bulk carriers. Nearly 41% of crude and product tankers depend on ULSFO as a compliance fuel.

Large and Very Large Oceangoing Ships accounted for USD 240.84 Million in 2025, representing 30% of the total market. This segment is expected to grow at a CAGR of 8.2% from 2025 to 2034, driven by energy transport and global commodity trade.

Top 3 Major Dominant Countries in the Large and Very Large Oceangoing Ships Segment

• Saudi Arabia led with USD 67.44 Million in 2025, 28% share, growing at a CAGR of 8.1% driven by crude tanker operations.
• China recorded USD 57.80 Million in 2025, 24% share, supported by bulk carrier fleet expansion.
• United Arab Emirates accounted for USD 50.57 Million in 2025, 21% share, driven by its tanker shipping hubs.

Ultra Low Sulphur Fuel Oil (ULSFO) Market Regional Outlook

The Global Ultra Low Sulphur Fuel Oil (ULSFO) Market was USD 741.27 Million in 2024 and is projected to reach USD 802.8 Million in 2025, advancing to USD 1,645.36 Million by 2034 at a CAGR of 8.3%. Regional shares show Asia-Pacific at 37%, Europe 28%, North America 22%, and Middle East & Africa 13%, together representing 100% of the market.

North America

North America accounts for 22% of the Ultra Low Sulphur Fuel Oil (ULSFO) Market, driven by emission control areas and strict port compliance. Demand is supported by 46% of medium oceangoing fleets adopting ULSFO in the region.

North America reached USD 176.62 Million in 2025, representing 22% of the global market. Rising usage in container vessels and industrial bunkering supports its adoption across shipping hubs.

North America - Major Dominant Countries in the ULSFO Market

• United States led with USD 105.97 Million in 2025, 60% share, driven by compliance zones and shipping regulations.
• Canada accounted for USD 41.13 Million in 2025, 23% share, supported by cross-border shipping activity.
• Mexico recorded USD 29.52 Million in 2025, 17% share, owing to rising port bunkering demand.

Europe

Europe represents 28% of the Ultra Low Sulphur Fuel Oil (ULSFO) Market, with strong enforcement of emission standards. Nearly 39% of vessels in European waters rely on ULSFO as a compliant marine fuel.

Europe recorded USD 224.78 Million in 2025, representing 28% of the total market. Growth is supported by major shipping hubs and industrial ports adopting low sulphur fuels.

Europe - Major Dominant Countries in the ULSFO Market

• Germany led with USD 67.44 Million in 2025, 30% share, supported by container shipping and industrial fleets.
• Netherlands accounted for USD 56.19 Million in 2025, 25% share, with bunkering leadership in Rotterdam.
• United Kingdom recorded USD 44.96 Million in 2025, 20% share, led by maritime logistics and port compliance.

Asia-Pacific

Asia-Pacific dominates with 37% of the Ultra Low Sulphur Fuel Oil (ULSFO) Market, fueled by large fleets in China, Japan, and Singapore. Nearly 48% of oceangoing vessels in this region operate with ULSFO.

Asia-Pacific recorded USD 297.04 Million in 2025, representing 37% of the total market. Expanding trade routes and refinery upgrades are key contributors to regional growth.

Asia-Pacific - Major Dominant Countries in the ULSFO Market

• China led with USD 118.82 Million in 2025, 40% share, supported by fleet size and refining capacity.
• Japan accounted for USD 83.15 Million in 2025, 28% share, with large container ship adoption.
• Singapore recorded USD 59.41 Million in 2025, 20% share, leading as a global bunkering hub.

Middle East & Africa

Middle East & Africa hold 13% of the Ultra Low Sulphur Fuel Oil (ULSFO) Market, supported by tanker operations and port growth. Nearly 35% of crude shipping fleets in the region depend on ULSFO.

Middle East & Africa recorded USD 104.36 Million in 2025, representing 13% of the global market. Growth is supported by expanding oil export routes and refining projects.

Middle East & Africa - Major Dominant Countries in the ULSFO Market

• Saudi Arabia led with USD 36.52 Million in 2025, 35% share, driven by tanker shipping activity.
• United Arab Emirates accounted for USD 31.31 Million in 2025, 30% share, with bunkering demand in major ports.
• Nigeria recorded USD 20.87 Million in 2025, 20% share, supported by crude transport shipping.

List of Key Ultra Low Sulphur Fuel Oil (ULSFO) Market Companies Profiled

Investment Analysis and Opportunities

The Ultra Low Sulphur Fuel Oil (ULSFO) market is witnessing strong investment growth due to regulatory compliance and demand from marine transport. Approximately 63% of maritime fleets now rely on ULSFO to meet emission standards, with 27% of refiners investing in expanded capacity for low sulphur production. Nearly 21% of global port authorities have introduced infrastructure upgrades dedicated to ULSFO bunkering, while 18% of shipping companies are entering long-term contracts to stabilize supply.

Investors are focusing on regional opportunities, with Asia-Pacific attracting 37% of total ULSFO-related investments, Europe 28%, North America 22%, and Middle East & Africa 13%. Around 24% of global energy investment in 2023–2024 was linked to cleaner marine fuels, with ULSFO representing a substantial proportion. Industrial energy producers also support opportunities, with 19% of energy facilities shifting to ULSFO for compliance. Additionally, hybrid and dual-fuel adoption creates new opportunities, with 13% of fleets using ULSFO alongside LNG. Rising sustainability targets and emission-reduction goals across 29% of shipping corporations further ensure consistent long-term growth and opportunity in the ULSFO market.

New Products Development

Product development in the ULSFO market is driven by innovation in refining, blending, and hybrid fuel solutions. Nearly 32% of refiners launched new blends of ULSFO in 2023–2024 to meet ship operator requirements. Around 19% of new shipping fuel products focused on hybrid solutions combining ULSFO and LNG to reduce operational emissions further. Approximately 16% of global refiners are investing in bio-component integration with ULSFO, adding renewable content for sustainability.

Regionally, Asia-Pacific accounts for 31% of new ULSFO product launches, followed by Europe at 27%, North America at 22%, and Middle East & Africa at 12%. Around 21% of ship operators globally introduced vessel modifications to handle new ULSFO blends efficiently. About 15% of refiners are developing advanced additives to improve storage stability and efficiency. With 29% of corporations committed to carbon reduction, new product development in the ULSFO market focuses on cleaner blends, hybrid adoption, and renewable integration, reflecting a shift towards sustainable maritime fuel solutions.

Recent Developments

• Shell Global – 2024: Expanded ULSFO refining capacity by 22%, targeting European and Asia-Pacific shipping hubs with advanced low sulphur fuel blends.
• TotalEnergies Marine Fuels – 2023: Introduced hybrid ULSFO-LNG product, with adoption by 19% of medium oceangoing fleets in Europe and Asia.
• Monjasa – 2024: Developed bunkering facilities in Africa, increasing ULSFO supply infrastructure by 14% across major ports.
• Bomin Group – 2023: Launched ULSFO additives improving combustion efficiency, with 12% of industrial consumers adopting the solution.
• Qatar Petroleum – 2024: Announced ULSFO export expansion, contributing to 17% growth in Middle East fuel supply capacity.

Report Coverage

The Ultra Low Sulphur Fuel Oil (ULSFO) Market report provides detailed insights into type, application, regional performance, and competitive dynamics. By type, Heavy Fuel Oil represents 62% share and Light Fuel Oil 38%. By application, medium oceangoing ships dominate with 46% share, large and very large ships 30%, and small oceangoing vessels 24%. Regionally, Asia-Pacific leads with 37%, followed by Europe at 28%, North America at 22%, and Middle East & Africa at 13%.

Investments in refining capacity are expanding, with 27% of global refiners scaling operations for ULSFO production. Around 24% of energy companies invested in hybrid fuel systems, while 21% of ports have enhanced bunkering infrastructure. Competitive analysis highlights major players including Shell Global, TotalEnergies, Monjasa, Bomin Group, and Qatar Petroleum. Together, these companies represent over 40% of market share through supply integration and innovation. The report covers demand trends, investment analysis, environmental compliance, product launches, and regional dynamics shaping the ULSFO market.