Combination Vacuum Gas Oil Market: By Type, Heavy Vacuum Gas Oil, By Application, Hydrocracking, Others), By End User and Region Forecast 2020-2031
Combination Vacuum Gas Oil Market size was valued at US$ 1,639.4 million in 2024 and is projected to reach US$ 2,276.2 million by 2031 at a CAGR of 4.8% from 2025-2031. The market refers to the global trade and utilization of vacuum gas oil a heavy petroleum fraction derived during the vacuum distillation process of crude oil. This product, typically categorized into light and heavy VGO, serves as a crucial feedstock for fluid catalytic cracking (FCC) units in refineries, which convert it into higher-value products such as gasoline, diesel, and other middle distillates. The term “combination” VGO usually denotes blends or grades suitable for processing in multiple refining configurations or tailored to specific end-use requirements.
Based on the type
Based on type, Heavy Vacuum Gas Oil (HVGO) holds the leading share in the market due to its critical role in producing high-value fuels through complex refining processes such as fluid catalytic cracking and hydrocracking. HVGO is preferred in modern high-conversion refineries as it yields greater volumes of gasoline, diesel, and other middle distillates compared to lighter fractions. A key driver behind its dominance is the increasing global demand for transportation fuels and petrochemical feedstocks, particularly in regions like Asia-Pacific and the Middle East. HVGO’s higher carbon content and suitability for deep conversion make it an essential feedstock in advanced refining systems.
Based on the application
Based on application, Fluid Catalytic Cracking (FCC) holds the dominant share in the Combination Vacuum Gas Oil (VGO) market. FCC is widely used in refineries to convert heavy fractions like VGO into lighter, more valuable products such as gasoline, diesel, and olefins. The primary driver for FCC’s leading position is its high efficiency in processing HVGO and LVGO into fuel-grade outputs with greater yield and profitability. This process is especially prevalent in regions with high fuel demand, such as Asia-Pacific, where refineries are designed to maximize output from heavy feedstocks. FCC's operational flexibility and cost-effectiveness further reinforce its widespread adoption globally.
Based on the end user
Based on end user, Refineries account for the largest share in the market. VGO serves as a crucial intermediate feedstock in refining operations, primarily used in catalytic cracking and hydrocracking units to produce high-demand products like gasoline, diesel, and jet fuel. The growing global energy consumption and the need to maximize yield from heavier crude oils are key drivers of VGO utilization in refineries. Additionally, the development of high-conversion and integrated refinery complexes, particularly in Asia-Pacific and the Middle East, further strengthens this segment's dominance. Refineries rely heavily on VGO to maintain production efficiency and profitability.
Study Period
2025-2031Base Year
2024CAGR
4.8%Largest Market
Asia-PacificFastest Growing Market
Middle East and Africa
A major driver of the market is the global expansion of refining capacities, particularly in developing and energy-intensive regions. Countries such as China, India, and Saudi Arabia are heavily investing in new refinery infrastructure and upgrading existing plants to meet rising domestic and export demands for fuels. VGO, a heavy intermediate product from crude oil, is a critical input for fluid catalytic cracking (FCC) units that produce gasoline, diesel, and other high-value petroleum products. The rapid pace of urbanization and industrialization in these regions has significantly increased the demand for transportation fuels and petrochemical derivatives, leading to higher consumption of VGO. Furthermore, the shift toward complex, high-conversion refineries that can maximize yield from heavy crudes reinforces the strategic importance of VGO as a versatile feedstock. This structural growth in refining capabilities continues to create consistent and long-term demand for VGO in global markets.
The market faces a notable restraint in the form of stringent environmental regulations and growing mandates for cleaner fuel production. Regulatory bodies in several countries have introduced limits on sulfur content and emissions from fuel combustion, requiring refiners to invest in additional processing to upgrade VGO into compliant end-products. As VGO contains significant amounts of sulfur, nitrogen, and other impurities, its treatment requires advanced desulfurization and hydrocracking processes, which raise operational costs. This challenge is compounded by the rising preference for lighter, sweeter crudes that require less refining and align more easily with environmental standards. In some markets, the focus on decarbonization and alternative energy sources further reduces the reliance on heavy petroleum-based inputs like VGO. Over time, the cumulative impact of these environmental pressures may lead to a gradual shift away from conventional VGO usage, particularly in regions adopting aggressive climate and emissions targets.
Technological progress in refining methods presents a significant opportunity for the market. Innovations in fluid catalytic cracking, hydrocracking, and residue upgrading have greatly improved the efficiency and environmental performance of processing VGO. New generations of FCC units, equipped with advanced catalysts and integrated with hydro processing technologies, enable refiners to convert a larger share of VGO into cleaner, higher-value products such as ultra-low sulphur diesel and high-octane gasoline. These developments allow refiners to optimize feedstock flexibility and adapt to regulatory requirements without compromising yield or profitability. Additionally, the integration of digital technologies and process automation enhances real-time decision-making, resulting in more efficient VGO conversion and reduced emissions. As refineries across the globe adopt these advancements, the demand for VGO as a viable, flexible feedstock is expected to increase. This technological shift ensures that VGO remains competitive and relevant in an evolving energy landscape focused on efficiency and environmental compliance.
A key trend in the market is the increasing integration of refining and petrochemical operations. As fuel demand growth slows in many developed economies due to vehicle electrification and energy efficiency measures, refiners are reconfiguring their plants to produce more petrochemical feedstocks. VGO plays an essential role in this transition, as it can be processed not only into transport fuels but also into valuable chemicals such as olefins and aromatics. Integrated refinery-petrochemical complexes are being designed to maximize conversion and flexibility, enabling companies to shift output based on market demand. In regions like Asia-Pacific and the Middle East, large-scale projects are underway to enhance VGO utilization for both fuel and petrochemical production. This trend supports long-term market resilience for VGO, ensuring its continued relevance as a key input in diverse sectors including plastics, synthetic fibers, and packaging materials. The multifunctional utility of VGO strengthens its position in the global energy and chemical value chain.
Report Benchmarks |
Details |
Report Study Period |
2025-2031 |
Market Size in 2024 |
US$ 1,639.4 million |
Market Size in 2031 |
US$ 2,276.2 million |
Market CAGR |
4.8% |
By Type |
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By Application |
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By End User |
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By Region |
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According to PBI Analyst, the market is witnessing steady growth, driven by rising global demand for transportation fuels and petrochemical feedstocks. As a critical intermediate in the refining process, VGO is primarily utilized in catalytic cracking units to produce gasoline, diesel, and other light hydrocarbons. PBI analysts note that the market is being supported by expanding refining capacities in Asia-Pacific and the Middle East, along with technological advancements in upgrading heavy crude.
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Combination vacuum gas oil market size was valued at US$ 1,639.4 million in 2024 and is projected to reach US$ 2,276.2 million by 2031 at a CAGR of 4.8%.
Combination VGO is a heavy petroleum fraction obtained during the vacuum distillation of crude oil. It is commonly used as a feedstock in refining processes such as fluid catalytic cracking (FCC) and hydrocracking to produce gasoline, diesel, and other valuable fuels.
The rising demand for transportation fuels and petrochemical feedstocks, along with expanding refining capacities in emerging economies, is a major driver of global VGO consumption.
Fluid Catalytic Cracking (FCC) dominates the market by application due to its efficiency in converting heavy VGO into lighter, high-value products like gasoline and olefins.
Asia-Pacific holds the largest market share, supported by large-scale refining infrastructure, growing fuel consumption, and ongoing petrochemical integration.
Stricter environmental regulations, the push toward cleaner fuels, and the shift to alternative energy sources present key challenges to VGO market growth over the long term.
1.Executive Summary |
2.Global Combination Vacuum Gas Oil Market Introduction |
2.1.Global Combination Vacuum Gas Oil Market - Taxonomy |
2.2.Global Combination Vacuum Gas Oil Market - Definitions |
2.2.1.Type |
2.2.2.Application |
2.2.3.End User |
2.2.4.Region |
3.Global Combination Vacuum Gas Oil Market Dynamics |
3.1. Drivers |
3.2. Restraints |
3.3. Opportunities/Unmet Needs of the Market |
3.4. Trends |
3.5. Product Landscape |
3.6. New Product Launches |
3.7. Impact of COVID 19 on Market |
4.Global Combination Vacuum Gas Oil Market Analysis, 2020 - 2024 and Forecast 2025 - 2031 |
4.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
4.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) |
4.3. Market Opportunity Analysis |
5.Global Combination Vacuum Gas Oil Market By Type, 2020 - 2024 and Forecast 2025 - 2031 (Sales Value USD Million) |
5.1. Light Vacuum Gas Oil (LVGO) |
5.1.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
5.1.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
5.1.3. Market Opportunity Analysis |
5.2. Heavy Vacuum Gas Oil (HVGO) |
5.2.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
5.2.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
5.2.3. Market Opportunity Analysis |
6.Global Combination Vacuum Gas Oil Market By Application, 2020 - 2024 and Forecast 2025 - 2031 (Sales Value USD Million) |
6.1. Fluid Catalytic Cracking (FCC) |
6.1.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
6.1.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
6.1.3. Market Opportunity Analysis |
6.2. Hydrocracking |
6.2.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
6.2.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
6.2.3. Market Opportunity Analysis |
6.3. Others |
6.3.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
6.3.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
6.3.3. Market Opportunity Analysis |
7.Global Combination Vacuum Gas Oil Market By End User, 2020 - 2024 and Forecast 2025 - 2031 (Sales Value USD Million) |
7.1. Refineries |
7.1.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
7.1.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
7.1.3. Market Opportunity Analysis |
7.2. Petrochemical Industry |
7.2.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
7.2.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
7.2.3. Market Opportunity Analysis |
7.3. Others |
7.3.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
7.3.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
7.3.3. Market Opportunity Analysis |
8.Global Combination Vacuum Gas Oil Market By Region, 2020 - 2024 and Forecast 2025 - 2031 (Sales Value USD Million) |
8.1. North America |
8.1.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
8.1.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
8.1.3. Market Opportunity Analysis |
8.2. Europe |
8.2.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
8.2.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
8.2.3. Market Opportunity Analysis |
8.3. Asia Pacific (APAC) |
8.3.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
8.3.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
8.3.3. Market Opportunity Analysis |
8.4. Middle East and Africa (MEA) |
8.4.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
8.4.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
8.4.3. Market Opportunity Analysis |
8.5. Latin America |
8.5.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
8.5.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
8.5.3. Market Opportunity Analysis |
9.North America Combination Vacuum Gas Oil Market ,2020 - 2024 and Forecast 2025 - 2031 (Sales Value USD Million) |
9.1. Type Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
9.1.1.Light Vacuum Gas Oil (LVGO) |
9.1.2.Heavy Vacuum Gas Oil (HVGO) |
9.2. Application Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
9.2.1.Fluid Catalytic Cracking (FCC) |
9.2.2.Hydrocracking |
9.2.3.Others |
9.3. End User Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
9.3.1.Refineries |
9.3.2.Petrochemical Industry |
9.3.3.Others |
9.4. Country Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
9.4.1.United States of America (USA) |
9.4.2.Canada |
10.Europe Combination Vacuum Gas Oil Market ,2020 - 2024 and Forecast 2025 - 2031 (Sales Value USD Million) |
10.1. Type Analysis and Forecast by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
10.1.1.Light Vacuum Gas Oil (LVGO) |
10.1.2.Heavy Vacuum Gas Oil (HVGO) |
10.2. Application Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
10.2.1.Fluid Catalytic Cracking (FCC) |
10.2.2.Hydrocracking |
10.2.3.Others |
10.3. End User Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
10.3.1.Refineries |
10.3.2.Petrochemical Industry |
10.3.3.Others |
10.4. Country Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
10.4.1.Germany |
10.4.2.France |
10.4.3.Italy |
10.4.4.United Kingdom (UK) |
10.4.5.Spain |
11.Asia Pacific (APAC) Combination Vacuum Gas Oil Market ,2020 - 2024 and Forecast 2025 - 2031 (Sales Value USD Million) |
11.1. Type Analysis and Forecast by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
11.1.1.Light Vacuum Gas Oil (LVGO) |
11.1.2.Heavy Vacuum Gas Oil (HVGO) |
11.2. Application Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
11.2.1.Fluid Catalytic Cracking (FCC) |
11.2.2.Hydrocracking |
11.2.3.Others |
11.3. End User Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
11.3.1.Refineries |
11.3.2.Petrochemical Industry |
11.3.3.Others |
11.4. Country Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
11.4.1.China |
11.4.2.India |
11.4.3.Australia and New Zealand (ANZ) |
11.4.4.Japan |
11.4.5.Rest of APAC |
12.Middle East and Africa (MEA) Combination Vacuum Gas Oil Market ,2020 - 2024 and Forecast 2025 - 2031 (Sales Value USD Million) |
12.1. Type Analysis and Forecast by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
12.1.1.Light Vacuum Gas Oil (LVGO) |
12.1.2.Heavy Vacuum Gas Oil (HVGO) |
12.2. Application Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
12.2.1.Fluid Catalytic Cracking (FCC) |
12.2.2.Hydrocracking |
12.2.3.Others |
12.3. End User Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
12.3.1.Refineries |
12.3.2.Petrochemical Industry |
12.3.3.Others |
12.4. Country Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
12.4.1.GCC Countries |
12.4.2.South Africa |
12.4.3.Rest of MEA |
13.Latin America Combination Vacuum Gas Oil Market ,2020 - 2024 and Forecast 2025 - 2031 (Sales Value USD Million) |
13.1. Type Analysis and Forecast by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
13.1.1.Light Vacuum Gas Oil (LVGO) |
13.1.2.Heavy Vacuum Gas Oil (HVGO) |
13.2. Application Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
13.2.1.Fluid Catalytic Cracking (FCC) |
13.2.2.Hydrocracking |
13.2.3.Others |
13.3. End User Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
13.3.1.Refineries |
13.3.2.Petrochemical Industry |
13.3.3.Others |
13.4. Country Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
13.4.1.Brazil |
13.4.2.Mexico |
13.4.3.Rest of LA |
14. Competition Landscape |
14.1. Market Player Profiles (Introduction, Brand/Product Sales, Financial Analysis, Product Offerings, Key Developments, Collaborations, M & A, Strategies, and SWOT Analysis) |
14.2.1.LUKOIL |
14.2.2.TAIF-NK |
14.2.3.KazMunayGas |
14.2.4.Axeon Specialty Products |
14.2.5.Neste |
14.2.6.Vertex Refining |
14.2.7.Honeywell UOP |
14.2.8.Gazprom Neft |
14.2.9.Kuwait Petroleum Corporation |
15. Research Methodology |
16. Appendix and Abbreviations |
Key Market Players