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The road transportation fuel market size is estimated to grow by USD 219.5 billion at a CAGR of 2.12% between 2023 and 2028. The automobile industry has experienced significant growth due to increasing urbanization and industrialization, leading to a surge in the number of vehicles on roads. Simultaneously, the rising demand for fuel supplies to power these automobiles has become a critical concern. To address this challenge, alternative energy solutions such as electric vehicles and renewable fuel sources are gaining popularity. These advancements not only reduce reliance on traditional fuel sources but also contribute to a more sustainable and eco-friendly transportation system. Furthermore, governments and organizations are investing in research and development to improve the efficiency of conventional engines and promote the adoption of cleaner fuel technologies. This holistic approach will ensure the continued growth of the automobile industry while mitigating the environmental impact of increasing vehicle usage.
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The Road Transportation Fuel market is a significant sector in the global energy market, serving as a primary transportation medium for both private and public sectors. The market caters to the demand for fuel in various vehicles, including cars, buses, trucks, and two-wheelers. Comfort, affordability, and time efficiency are crucial factors influencing the choice of fuel in the market. The market comprises various fuel types, such as petrol, diesel, biodiesel, biomass, synthetic fuels, gas, and aeronautics turbine fuel. Crude oil is the primary source of petroleum-based fuels, including regular grade fuels for private vehicles and heavy-duty vehicles. The Aviation industry and Railroad industry are significant consumers of aeronautics turbine fuel and gas, respectively. The market is subject to various emission norms and government regulations aimed at reducing the carbon footprint and promoting sustainable practices. The market's growth is influenced by factors such as increasing vehicle ownership, global mobility, and the need for emission control norms. The demand for sustainable practices and the shift towards renewable fuels, such as biodiesel and synthetic fuels, are also driving the market's growth. In conclusion, the market plays a vital role in powering the global economy, and its growth is influenced by various factors, including fuel types, demand from different sectors, government regulations, and sustainable practices. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Growth in the number of automobiles on roads is notably driving market growth. The global market is driven by the increasing demand for mobility, particularly in the context of private transportation and vehicle ownership. This sector plays a crucial role in enabling the movement of people and goods, contributing significantly to global mobility. The production of automobiles, including cars and buses, is influenced by the demand from end-users. These vehicles provide essential access to education, healthcare, and employment opportunities, among other necessities. According to recent statistics, global passenger car production experienced a substantial growth of over 18.70% between 2010 and 2021. Various types of fuels are used in road transportation, including petroleum-based fuels, regular grade fuels, and biofuel blends derived from Corn, Rapeseed oil, Sugar cane, and Soybeans.
Further, emission control norms and government regulations have led to the adoption of sustainable practices in the transportation sector. This includes the use of Liquefied Natural Gas (LNG) and sustainable aviation fuels derived from renewable sources. Moreover, the demand for premium grade fuels with lower sulfur content is increasing due to stringent environmental regulations. The transportation sector also includes off-road vehicles and specialty vehicles, which require specific fuel types. Aviation fuel and marine transportation fuels are essential for these applications. The availability and utilization of natural gas reserves are also critical factors influencing the fuel market. In conclusion, the road transportation fuel market is a dynamic and evolving sector, shaped by various factors such as industrial activity, emission control norms, and government regulations. Thus, such factors are driving the growth of the market during the forecast period.
Adoption of bio-based and clean fuels is the key trend in the market. Transportation fuels are essential energy sources that power the internal combustion engines of road vehicles, including cars, trucks, and buses. Biofuels, an alternative to fossil fuel-based transportation fuels, are gaining prominence due to their potential to reduce greenhouse gas emissions. Biofuels are derived from various types of biomass, such as Corn, Rapeseed oil, Sugar cane, and Soybeans, using advanced technologies. Ethanol, produced from carbohydrate-rich biomass through fermentation, and biodiesel, derived from vegetable oil, animal fats, or recycled cooking grease, are the most widely used biofuels.
Also, as global mobility continues to increase, particularly in the realm of private transportation, the demand for sustainable practices in the transportation sector is escalating. Emission control norms and government regulations are driving the adoption of biofuels in road transportation. Petroleum-based fuels, with their high sulfur content and significant contribution to CO2 emissions, are under increasing scrutiny. Biofuel blends, such as E10 and B20, are becoming increasingly common in the market. Sustainable aviation fuels, liquefied natural gas, and specialty fuels for off-road vehicles and premium grade fuels are other emerging trends in the biofuels market. Industrial activity and environmental regulations are also influencing the growth of the biofuels market. In summary, the transportation fuels market is undergoing a significant transformation, with biofuels emerging as a viable alternative to petroleum-based fuels. Biofuels offer numerous benefits, including reduced greenhouse gas emissions, improved combustion efficiency, and reduced dependence on non-renewable resources. The global biofuels market is expected to grow significantly in the coming years, driven by increasing vehicle ownership, stringent emission control norms, and government regulations. Thus, such trends will shape the growth of the market during the forecast period.
Fluctuations in global oil and gas prices is the major challenge that affects the growth of the market. The global market encompasses various types of fuels, including petroleum-based fuels and biofuels derived from Corn, Rapeseed oil, Sugar cane, and Soybeans. In the context of global mobility, road transportation plays a significant role, particularly in private transportation and vehicle ownership. However, the use of these fuels is subject to emission control norms and government regulations, which promote sustainable practices and the reduction of combustion emissions. Petroleum-based fuels, such as regular grade fuels, continue to dominate the market due to their widespread availability and affordability. However, the increasing focus on reducing carbon emissions and the depletion of natural gas reserves have led to the exploration of alternative fuels, such as Liquefied Natural Gas (LNG), Sustainable Aviation Fuels (SAF), and Biofuel Blends.
Additionally, aviation fuel and marine transportation also utilize petroleum-based fuels, but the demand for sustainable alternatives is growing. Industrial activity and environmental regulations are driving the adoption of natural gas reserves as a viable alternative to traditional fuels. Specialty vehicles and off-road vehicles also utilize premium grade fuels with lower sulfur content to meet emission control norms. The price volatility of petroleum-based fuels, driven by supply and demand dynamics and organizational influences, impacts the investment cycle in the fuel industry. The availability and affordability of alternative fuels, such as biofuels and natural gas, are critical factors in mitigating the impact of oil price fluctuations on the road transportation fuel market. Hence, the above factors will impede the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Acciona SA - The company offers road transportation fuel such as hydrogen fuels.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The gasoline segment is estimated to witness significant growth during the forecast period. Road transportation relies heavily on various energy sources to power different modes of transport, including private and public sectors. Gasoline, derived from crude oil, is a primary fuel for internal combustion engines in private vehicles such as passenger cars, two-wheelers, and light trucks.
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The gasoline segment accounted for USD 943.3 billion in 2018. Its smooth combustion is crucial to ensure engine efficiency and prevent damage. Stringent emission norms mandate that gasoline must meet specific requirements to minimize pollution. Besides gasoline, diesel is another widely used fuel in heavy-duty vehicles, while biofuels like biodiesel and bioethanol are gaining popularity due to their renewable and eco-friendly nature.
Also, aviation turbine fuel powers air travel, while Compressed Natural Gas (CNG) is an alternative fuel for buses and trucks. The adoption of these fuels is influenced by factors such as comfort, affordability, and time efficiency. Urbanization and rising disposable income have led to an increase in the number of private vehicles, driving up the demand for gasoline. The railways, airways, and waterways also contribute significantly to transportation but use different energy sources like raw petroleum, electricity, and hydrogen, respectively. The transportation sector's reliance on fossil fuels has raised concerns about emissions and their impact on the environment. The shift towards biofuels, synthetic fuels, and alternative energy sources is a response to these concerns. The oil value shock and emission standards have further fueled the demand for cleaner and more efficient fuels. In summary, the road transportation fuel market is a dynamic and evolving landscape, with various energy sources catering to different modes and sectors. The choice of fuel depends on factors such as performance, cost, and environmental impact. The future of the transportation fuel market lies in the adoption of cleaner and more sustainable energy sources.
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APAC is estimated to contribute 60% to the growth of the global market during the market forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market encompasses various types of fuels used for powering vehicles in both private and public transport sectors. These fuels include crude oil derivatives such as gasoline and diesel, as well as alternative fuels like biofuels, compressed natural gas (CNG), aviation turbine fuel (ATF), and synthetic fuels. Energy derived from biomass, hydrogen, and natural gas are also gaining popularity due to their eco-friendly nature.
Additionally, private transport, driven by comfort and affordability, dominates the market, while public transport, subject to emission norms, is transitioning towards cleaner fuels. The aviation and railroad industries rely heavily on ATF and raw petroleum, respectively. The burning of these fuels, however, contributes significantly to pollution. Emission norms, oil value shocks, and the quest for sustainability are driving the shift towards biofuels such as biodiesel and bioethanol derived from palm oil, sugarcane, and corn. The aviation industry is exploring alternative fuels like synthetic fuels and electricity for planes, while the maritime sector is considering hydrogen as a potential fuel. In summary, the Road Transportation Fuel market is a dynamic landscape influenced by factors like comfort, affordability, time efficiency, emission norms, and sustainability. The use of various fuels, from crude oil derivatives to alternative fuels, is shaping the future of transportation across roadways, airways, and railways.
The market report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
Oil and Gas Transportation Market - Oil and Gas Transportation Market Analysis APAC, North America, Middle East and Africa, Europe, South America - US, Saudi Arabia, China, India, Russia - Size and Forecast
Refrigerated Road Transportation Market - Refrigerated Road Transportation Market Analysis APAC, North America, Europe, South America, Middle East and Africa - China, US, Japan, Canada, UK - Size and Forecast
Road Haulage Market - Road Haulage Market Analysis APAC, North America, Europe, South America, Middle East and Africa - China, US, UK, India, Canada - Size and Forecast
The market encompasses various energy sources used to power vehicles, including crude oil derivatives like gasoline and diesel, biofuels such as biodiesel and bioethanol, natural gas, and alternative fuels like hydrogen and electricity. As a primary transportation medium, roadways account for a significant portion of global energy consumption. The demand for fuel in private and public transport sectors is driven by factors like comfort, affordability, and time efficiency. However, the environmental impact of burning fossil fuels for transportation is a growing concern. Emission norms have become increasingly stringent to mitigate pollution from vehicles. This has led to the adoption of cleaner fuels like biofuels, CNG, and electric vehicles. The aviation industry and railroad industry also rely on fuels like aviation turbine fuel and raw petroleum, respectively. The oil value shock and the need for sustainable alternatives have accelerated the research and development of synthetic fuels, biomass, and hydrogen. The transition to these fuels will depend on their affordability and availability, as well as the infrastructure required for their distribution and usage. In conclusion, the road transportation fuel market is evolving to accommodate a diverse range of energy sources, with a focus on sustainability, affordability, and reducing emissions. The future of transportation fuels lies in a mix of traditional and alternative energy sources, each with its unique advantages and challenges.
Market Scope |
|
Report Coverage |
Details |
Page number |
156 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 2.12% |
Market growth 2024-2028 |
USD 219.5 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
2.06 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 60% |
Key countries |
US, China, Japan, Canada, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Acciona SA, Avril SCA, Bharat Petroleum Corp. Ltd., BP Plc, Chevron Corp., China Petrochemical Corp., Chubb Ltd., CNG Fuels Ltd., Dangote Industries Ltd., Eni SpA, Equinor ASA, Exxon Mobil Corp., Green Plains Inc., Hindustan Petroleum Corp. Ltd., Indian Oil Corp. Ltd., Kuwait National Petroleum Co., PJSC LUKOIL, Reliance Industries Ltd., Shell plc, and TotalEnergies SE |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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