Latest News- Vacuum Gas Oil Market: Lower sulphur content is expected to lead the Product segment during 2024-2028

The Vacuum Gas Oil Market is being driven by Increase in demand for gasoline and diesel

The Vacuum Gas Oil Market is expected to grow at a CAGR of 5.15% during 2023 and 2028. During this period, the market is also expected to show a growth of USD 115.5 billion. In the oil and gas sector, there is a persistent drive to optimize refining processes for enhanced operational efficiency. Vacuum Gas Oil (VGO), a heavy distillate, has witnessed escalating demand due to its utilization in diverse applications, including diesel fuel, gasoline, and petrochemical products. To augment VGO production, refineries are integrating advanced technologies and processes, such as Fluid Catalytic Cracking (FCC) and hydrocracking, for improved separation of heavy and light components. Furthermore, the growing emphasis on cleaner fuels necessitates refinery upgradation to cater to evolving market demands and regulatory requirements. 

Get more information on Vacuum Gas Oil Market by requesting a sample report

Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Product
  • Lower sulphur content
  • High sulphur content
• Type
  • Light VGO
  • Heavy VGO
• Geography
  • North America
    • Canada
    • US
  • APAC
    • China
    • India
  • Middle East and Africa
  • Europe
  • South America

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Increase in demand for gasoline and diesel
• Rising demand for fossil fuels across various industries
• Rise in use of vacuum gas oil in supplier bunker fuels aids

However, the market also witnesses some limitations, which are as follows:

• Fluctuation of quality in vacuum gas oil
• Stringent regulation on vacuum gas oil
• Fluctuations in raw material demand affecting global vacuum gas oil market

Benefits of Buying Global Vacuum Gas Oil Market Research Report by Technavio

Rich Experience: 20+ years leading global market research, trusted insights across industries.

Unlock Business Potential with Technavio: Maximize ROI with Technavio's tailored market research: deep dives and actionable insights.

Your Guide to Market Success: Empower your business with Technavio's market research and future-proof your decisions.

Market Scope in Vacuum Gas Oil Market Research Report

Request Free Sample

Find out which segment is leading the market by accessing the free PDF report

Research Analysis Overview

The Vacuum Gas Oil (VGO) market is significantly influenced by the petrochemical sector, as it serves as a crucial intermediate feedstock in the production of transportation fuels like gasoline and diesel. Energy demand, environmental regulations, and technical advancements shape the industry outlook for VGO. In refinery operations, VGO is derived from crude oil through vacuum distillation, making it an essential component of fossil fuel processing. Fluid Catalytic Crackers (FCCs) and bunker fuels also utilize VGO as a raw material. The emission content of VGO is a critical factor in meeting automotive demand and adhering to environmental regulations.

Market Research Overview

The petrochemical sector's downstream market, specifically the oil and gas refining and marketing industry, experiences significant growth due to several key drivers. These include the escalating energy demand, particularly in emerging economies, and the increasing need for cleaner fuels to meet environmental regulations. Furthermore, advancements in refinery operations, such as the utilization of Fluid Catalytic Crackers (FCCs) and Vacuum Gas Oil (VGO) processing, contribute to the expansion of this market. The global oil and gas refining and marketing market size is determined by the consolidated revenue generated by entities involved in the refining, production, and distribution of oil, gas, refined products, and related services. This sector is a crucial component of the complete oil and gas value chain.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/