Vacuum Gas Oil Global Market Report 2026

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.

Tariffs have influenced the vacuum gas oil market by increasing costs associated with cross border trade of intermediate refinery feedstocks and processing equipment. These impacts have been most significant for regions dependent on imported crude and intermediate products such as Asia Pacific and Europe. Higher tariffs have affected refinery margins and altered feedstock sourcing strategies. At the same time, tariffs have encouraged domestic refining, improved utilization of local crude streams, and strengthened regional refining value chains.

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 scenario of the industry.

The vacuum gas oil market size has grown strongly in recent years. It will grow from $461.73 billion in 2025 to $486.82 billion in 2026 at a compound annual growth rate (CAGR) of 5.4%. The growth in the historic period can be attributed to growth of gasoline and diesel demand, expansion of refining capacity, reliance on vgo as cracking feedstock, historical availability of high sulfur crude, development of vacuum distillation units.

The vacuum gas oil market size is expected to see strong growth in the next few years. It will grow to $627.12 billion in 2030 at a compound annual growth rate (CAGR) of 6.5%. The growth in the forecast period can be attributed to tightening fuel sulfur regulations, increasing refinery complexity, demand for higher distillate yields, optimization of heavy crude processing, investment in advanced upgrading units. Major trends in the forecast period include increasing use of vgo in fcc feedstock, rising demand for low sulfur vgo, growing processing of heavy vgo streams, expansion of hydrocracking capacity, increasing optimization of refinery feed blends.

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.

Rising disposable income is expected to drive the growth of the vacuum gas oil market in the coming years. Disposable income is the total income an individual or household has available for spending and saving after taxes and other mandatory deductions. Changes in disposable income can influence overall energy consumption patterns, affecting the demand for refined products such as gasoline and diesel. For example, in 2023, Trading Economics, a U.S.-based economic indicator, reported that disposable income in Japan rose from 412.82 thousand JPY ($3,014.64) in March 2022 to 463.91 thousand JPY ($3,387.76) in February 2023. Consequently, rising disposable income is fueling demand in the vacuum gas oil market.

Leading companies in the vacuum gas oil (VGO) market are focusing on developing innovative solutions, such as advanced hydrocracking and hydrotreating refining units, to address the growing demand for low-sulfur fuels and high-value middle distillates driven by stricter environmental regulations and rising global energy needs. VGO hydrocracking and hydrotreating technologies involve refining heavy vacuum gas oil feedstocks under hydrogen and catalyst-enhanced conditions to remove impurities like sulfur and break down larger molecules into cleaner-burning fuels with improved yield and quality compared to conventional thermal cracking methods. For example, in July 2025, PJSC TATNEFT n.a. V.D. Shashin, a Russia-based integrated oil producer, commissioned a new hydrocracking unit at its TANECO refinery. This advanced processing facility converts vacuum gas oil into low-sulfur Euro-6 grade diesel and naphtha with higher efficiency and output. The unit includes a high-capacity VGO feed system processing approximately 1.2 million metric tons per year, enhanced hydrogen addition for sulfur removal, and automated controls to optimize throughput and ensure compliance with fuel specifications, supporting both regulatory adherence and improved refinery margins.

Major companies operating in the vacuum gas oil market are 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 2025. 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, South East Asia, 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, Taiwan, 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 Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses 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.

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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, including technological disruption, regulatory shifts, and changing consumer preferences? 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, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Type: Heavy Vacuum Gas Oil; Light Vacuum Gas Oil
• 2) By Sulphur Content: Low Sulfur Vacuum Gas Oil; High Sulfur Vacuum Gas Oil
• 3) By Application: Gasoline Production; Diesel Oil Or Kerosene Production; Other Applications
• Subsegments:
• 1) By Heavy Vacuum Gas Oil: Hydrocracking Feedstock; Fuel Oil Blending; Other Applications
• 2) By Light Vacuum Gas Oil: Diesel Production; Naphtha Production; Other Applications
• Companies Mentioned: 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)
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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