Vacuum Gas Oil Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented, By Product, By Type, By Application, By Region, By Competition, 2020-2030F

Description

The Global Vacuum Gas Oil (VGO) Market was valued at USD 454.2 Billion in 2024 and is projected to reach USD 649.35 Billion by 2030, growing at a CAGR of 5.98%. VGO is a key intermediate feedstock produced through vacuum distillation of crude oil and plays a central role in modern refining operations. It is categorized into Light Vacuum Gas Oil (LVGO) and Heavy Vacuum Gas Oil (HVGO), both of which are crucial inputs in catalytic cracking and hydrocracking processes to produce refined fuels such as gasoline and diesel. The demand for VGO is strongly driven by trends in global fuel consumption and shifts in refinery strategies toward maximizing output of high-value products. Refineries around the world are increasingly focusing on processing heavier crudes and improving product yields, with VGO emerging as a strategic asset. Regional markets like Asia-Pacific are experiencing surging transportation fuel consumption, while Europe focuses on clean fuel initiatives, influencing trade patterns. Additionally, technological advancements and stricter fuel specifications are reinforcing the importance of VGO in achieving both economic efficiency and regulatory compliance within the refining sector.

Market Overview
Forecast Period	2026-2030
Market Size 2024	USD 454.2 Billion
Market Size 2030	USD 649.35 Billion
CAGR 2025-2030	5.98%
Fastest Growing Segment	High Sulfur Content
Largest Market	North America

Key Market Drivers

Rising Global Demand for Transportation Fuels

The increasing global requirement for transportation fuels such as gasoline, diesel, and jet fuel is a core driver of the VGO market. As urbanization accelerates and vehicle ownership rises in developing countries like India, China, and Brazil, refineries are under pressure to meet surging demand. VGO serves as an essential feedstock in processes like fluid catalytic cracking and hydrocracking, which convert heavy fractions into lighter, high-value fuels. This has made VGO critical to meeting the rising energy needs of expanding vehicle fleets and recovering sectors like aviation and shipping. Moreover, refiners are upgrading operations to enhance VGO conversion efficiency, particularly in regions where energy consumption is growing rapidly. Despite the gradual uptake of electric vehicles in developed markets, overall fuel demand is expected to remain strong, especially in areas with slower EV adoption. VGO continues to be a preferred choice as refiners look to maximize fuel yield and adapt to heavier crude slates due to changing global oil supply profiles.

Key Market Challenges

Volatility in Crude Oil Prices and Its Ripple Effect on VGO Market Stability

The VGO market faces significant challenges due to the volatility of global crude oil prices, which directly impacts production costs, pricing strategies, and overall market stability. Since VGO is a byproduct of crude distillation, fluctuations in crude prices-driven by geopolitical disruptions, OPEC decisions, or economic downturns-can cause uncertainty in supply and demand forecasts. This instability makes it difficult for refiners and traders to plan operations and investments in advanced processing units like hydrocrackers. High price volatility can lead to contract uncertainties, strained buyer-supplier relationships, and reduced refinery throughput, especially for smaller market players lacking financial resilience. Additionally, speculative trading often amplifies price swings, distorting real market conditions. Refiners may shift toward more cost-predictable feedstocks, decreasing demand for VGO. In regions where fuel subsidies or tax structures are linked to crude pricing, policy changes triggered by volatility may alter the competitive landscape, further complicating market planning and investment strategies for VGO stakeholders.

Key Market Trends

Shift Toward Cleaner Fuel Production Driving Hydrocracking Demand in VGO Market

A key trend in the VGO market is the increasing shift toward cleaner fuel production, which is boosting demand for hydrocracking processes over traditional catalytic cracking. As environmental regulations tighten globally-driven by policies like IMO 2020 and Euro VI standards-refineries are investing in hydrocracking technologies that convert VGO into ultra-low sulfur fuels more efficiently. Hydrocracking not only yields a higher proportion of clean middle distillates such as diesel but also helps meet global sustainability goals. This shift is particularly evident in Asia-Pacific and the Middle East, where large-scale integrated refineries are deploying advanced hydrocrackers to align with evolving fuel standards and maximize operational flexibility. As transportation fuel consumption grows, especially in emerging markets, the demand for VGO as a preferred feedstock in hydrocracking units is expected to rise. The trend reflects a broader industry transition toward refining configurations that can accommodate both economic and regulatory pressures while producing cleaner fuels for growing markets.

Key Market Players

Kuwait Petroleum Corporation
Vertex Energy Inc.
Shell PLC
Chevron Corporation
Exxon Mobil Corporation
China National Petroleum Corporation
BP International Limited
CANA LLC
PJSC Lukoil Oil Company
Zhejiang Petrochemical Co., Ltd.

Report Scope:

In this report, the Global Vacuum Gas Oil Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Vacuum Gas Oil Market, By Product:

Low Sulfur Content
High Sulfur Content

Vacuum Gas Oil Market, By Type:

Light Vacuum Gas Oil
Heavy Vacuum Gas Oil

Vacuum Gas Oil Market, By Application:

Gasoline Production
Diesel Oil Production

Vacuum Gas Oil Market, By Region:

North America
- United States
- Canada
- Mexico
Europe
- France
- United Kingdom
- Italy
- Germany
- Spain
Asia-Pacific
- China
- India
- Japan
- Australia
- South Korea
South America
- Brazil
- Argentina
- Colombia
Middle East & Africa
- South Africa
- Saudi Arabia
- UAE
- Kuwait
- Turkey

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Vacuum Gas Oil Market.

Available Customizations:

Global Vacuum Gas Oil Market report with the given Market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

1. Product Overview

1.1. Market Definition
1.2. Scope of the Market
- 1.2.1. Markets Covered
- 1.2.2. Years Considered for Study
1.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study
2.2. Baseline Methodology
2.3. Formulation of the Scope
2.4. Assumptions and Limitations
2.5. Sources of Research
- 2.5.1. Secondary Research
- 2.5.2. Primary Research
2.6. Approach for the Market Study
- 2.6.1. The Bottom-Up Approach
- 2.6.2. The Top-Down Approach
2.7. Methodology Followed for Calculation of Market Size & Market Shares
2.8. Forecasting Methodology
- 2.8.1. Data Triangulation & Validation

3. Executive Summary

3.1. Overview of the Market
3.2. Overview of Key Market Segmentations
3.3. Overview of Key Market Players
3.4. Overview of Key Regions/Countries
3.5. Overview of Market Drivers, Challenges, and Trends

4. Voice of Customer

5. Global Vacuum Gas Oil Market Outlook

5.1. Market Size & Forecast
- 5.1.1. By Value
5.2. Market Share & Forecast
- 5.2.1. By Product (Low Sulfur Content and High Sulfur Content)
- 5.2.2. By Type (Light Vacuum Gas Oil and Heavy Vacuum Gas Oil)
- 5.2.3. By Application (Gasoline Production and Diesel Oil Production)
- 5.2.4. By Region
5.3. By Company (2024)
5.4. Market Map

6. North America Vacuum Gas Oil Market Outlook

6.1. Market Size & Forecast
- 6.1.1. By Value
6.2. Market Share & Forecast
- 6.2.1. By Product
- 6.2.2. By Type
- 6.2.3. By Application
- 6.2.4. By Country
6.3. North America: Country Analysis
- 6.3.1. United States Vacuum Gas Oil Market Outlook
  - 6.3.1.1. Market Size & Forecast
    - 6.3.1.1.1. By Value
  - 6.3.1.2. Market Share & Forecast
    - 6.3.1.2.1. By Product
    - 6.3.1.2.2. By Type
    - 6.3.1.2.3. By Application
- 6.3.2. Canada Vacuum Gas Oil Market Outlook
  - 6.3.2.1. Market Size & Forecast
    - 6.3.2.1.1. By Value
  - 6.3.2.2. Market Share & Forecast
    - 6.3.2.2.1. By Product
    - 6.3.2.2.2. By Type
    - 6.3.2.2.3. By Application
- 6.3.3. Mexico Vacuum Gas Oil Market Outlook
  - 6.3.3.1. Market Size & Forecast
    - 6.3.3.1.1. By Value
  - 6.3.3.2. Market Share & Forecast
    - 6.3.3.2.1. By Product
    - 6.3.3.2.2. By Type
    - 6.3.3.2.3. By Application

7. Europe Vacuum Gas Oil Market Outlook

7.1. Market Size & Forecast
- 7.1.1. By Value
7.2. Market Share & Forecast
- 7.2.1. By Product
- 7.2.2. By Type
- 7.2.3. By Application
- 7.2.4. By Country
7.3. Europe: Country Analysis
- 7.3.1. Germany Vacuum Gas Oil Market Outlook
  - 7.3.1.1. Market Size & Forecast
    - 7.3.1.1.1. By Value
  - 7.3.1.2. Market Share & Forecast
    - 7.3.1.2.1. By Product
    - 7.3.1.2.2. By Type
    - 7.3.1.2.3. By Application
- 7.3.2. United Kingdom Vacuum Gas Oil Market Outlook
  - 7.3.2.1. Market Size & Forecast
    - 7.3.2.1.1. By Value
  - 7.3.2.2. Market Share & Forecast
    - 7.3.2.2.1. By Product
    - 7.3.2.2.2. By Type
    - 7.3.2.2.3. By Application
- 7.3.3. Italy Vacuum Gas Oil Market Outlook
  - 7.3.3.1. Market Size & Forecast
    - 7.3.3.1.1. By Value
  - 7.3.3.2. Market Share & Forecast
    - 7.3.3.2.1. By Product
    - 7.3.3.2.2. By Type
    - 7.3.3.2.3. By Application
- 7.3.4. France Vacuum Gas Oil Market Outlook
  - 7.3.4.1. Market Size & Forecast
    - 7.3.4.1.1. By Value
  - 7.3.4.2. Market Share & Forecast
    - 7.3.4.2.1. By Product
    - 7.3.4.2.2. By Type
    - 7.3.4.2.3. By Application
- 7.3.5. Spain Vacuum Gas Oil Market Outlook
  - 7.3.5.1. Market Size & Forecast
    - 7.3.5.1.1. By Value
  - 7.3.5.2. Market Share & Forecast
    - 7.3.5.2.1. By Product
    - 7.3.5.2.2. By Type
    - 7.3.5.2.3. By Application

8. Asia-Pacific Vacuum Gas Oil Market Outlook

8.1. Market Size & Forecast
- 8.1.1. By Value
8.2. Market Share & Forecast
- 8.2.1. By Product
- 8.2.2. By Type
- 8.2.3. By Application
- 8.2.4. By Country
8.3. Asia-Pacific: Country Analysis
- 8.3.1. China Vacuum Gas Oil Market Outlook
  - 8.3.1.1. Market Size & Forecast
    - 8.3.1.1.1. By Value
  - 8.3.1.2. Market Share & Forecast
    - 8.3.1.2.1. By Product
    - 8.3.1.2.2. By Type
    - 8.3.1.2.3. By Application
- 8.3.2. India Vacuum Gas Oil Market Outlook
  - 8.3.2.1. Market Size & Forecast
    - 8.3.2.1.1. By Value
  - 8.3.2.2. Market Share & Forecast
    - 8.3.2.2.1. By Product
    - 8.3.2.2.2. By Type
    - 8.3.2.2.3. By Application
- 8.3.3. Japan Vacuum Gas Oil Market Outlook
  - 8.3.3.1. Market Size & Forecast
    - 8.3.3.1.1. By Value
  - 8.3.3.2. Market Share & Forecast
    - 8.3.3.2.1. By Product
    - 8.3.3.2.2. By Type
    - 8.3.3.2.3. By Application
- 8.3.4. South Korea Vacuum Gas Oil Market Outlook
  - 8.3.4.1. Market Size & Forecast
    - 8.3.4.1.1. By Value
  - 8.3.4.2. Market Share & Forecast
    - 8.3.4.2.1. By Product
    - 8.3.4.2.2. By Type
    - 8.3.4.2.3. By Application
- 8.3.5. Australia Vacuum Gas Oil Market Outlook
  - 8.3.5.1. Market Size & Forecast
    - 8.3.5.1.1. By Value
  - 8.3.5.2. Market Share & Forecast
    - 8.3.5.2.1. By Product
    - 8.3.5.2.2. By Type
    - 8.3.5.2.3. By Application

9. South America Vacuum Gas Oil Market Outlook

9.1. Market Size & Forecast
- 9.1.1. By Value
9.2. Market Share & Forecast
- 9.2.1. By Product
- 9.2.2. By Type
- 9.2.3. By Application
- 9.2.4. By Country
9.3. South America: Country Analysis
- 9.3.1. Brazil Vacuum Gas Oil Market Outlook
  - 9.3.1.1. Market Size & Forecast
    - 9.3.1.1.1. By Value
  - 9.3.1.2. Market Share & Forecast
    - 9.3.1.2.1. By Product
    - 9.3.1.2.2. By Type
    - 9.3.1.2.3. By Application
- 9.3.2. Argentina Vacuum Gas Oil Market Outlook
  - 9.3.2.1. Market Size & Forecast
    - 9.3.2.1.1. By Value
  - 9.3.2.2. Market Share & Forecast
    - 9.3.2.2.1. By Product
    - 9.3.2.2.2. By Type
    - 9.3.2.2.3. By Application
- 9.3.3. Colombia Vacuum Gas Oil Market Outlook
  - 9.3.3.1. Market Size & Forecast
    - 9.3.3.1.1. By Value
  - 9.3.3.2. Market Share & Forecast
    - 9.3.3.2.1. By Product
    - 9.3.3.2.2. By Type
    - 9.3.3.2.3. By Application

10. Middle East and Africa Vacuum Gas Oil Market Outlook

10.1. Market Size & Forecast
- 10.1.1. By Value
10.2. Market Share & Forecast
- 10.2.1. By Product
- 10.2.2. By Type
- 10.2.3. By Application
- 10.2.4. By Country
10.3. Middle East and Africa: Country Analysis
- 10.3.1. South Africa Vacuum Gas Oil Market Outlook
  - 10.3.1.1. Market Size & Forecast
    - 10.3.1.1.1. By Value
  - 10.3.1.2. Market Share & Forecast
    - 10.3.1.2.1. By Product
    - 10.3.1.2.2. By Type
    - 10.3.1.2.3. By Application
- 10.3.2. Saudi Arabia Vacuum Gas Oil Market Outlook
  - 10.3.2.1. Market Size & Forecast
    - 10.3.2.1.1. By Value
  - 10.3.2.2. Market Share & Forecast
    - 10.3.2.2.1. By Product
    - 10.3.2.2.2. By Type
    - 10.3.2.2.3. By Application
- 10.3.3. UAE Vacuum Gas Oil Market Outlook
  - 10.3.3.1. Market Size & Forecast
    - 10.3.3.1.1. By Value
  - 10.3.3.2. Market Share & Forecast
    - 10.3.3.2.1. By Product
    - 10.3.3.2.2. By Type
    - 10.3.3.2.3. By Application
- 10.3.4. Kuwait Vacuum Gas Oil Market Outlook
  - 10.3.4.1. Market Size & Forecast
    - 10.3.4.1.1. By Value
  - 10.3.4.2. Market Share & Forecast
    - 10.3.4.2.1. By Product
    - 10.3.4.2.2. By Type
    - 10.3.4.2.3. By Application
- 10.3.5. Turkey Vacuum Gas Oil Market Outlook
  - 10.3.5.1. Market Size & Forecast
    - 10.3.5.1.1. By Value
  - 10.3.5.2. Market Share & Forecast
    - 10.3.5.2.1. By Product
    - 10.3.5.2.2. By Type
    - 10.3.5.2.3. By Application

11. Market Dynamics

11.1. Drivers
11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)
12.2. Product Launches (If Any)
12.3. Recent Developments

13. Company Profiles

13.1. Kuwait Petroleum Corporation
- 13.1.1. Business Overview
- 13.1.2. Key Revenue and Financials
- 13.1.3. Recent Developments
- 13.1.4. Key Personnel/Key Contact Person
- 13.1.5. Key Product/Services Offered
13.2. Vertex Energy Inc.
13.3. Shell PLC
13.4. Chevron Corporation
13.5. Exxon Mobil Corporation
13.6. China National Petroleum Corporation
13.7. BP International Limited
13.8. CANA LLC
13.9. PJSC Lukoil Oil Company
13.10. Zhejiang Petrochemical Co., Ltd.,