Ground Transportation Fuel Market - Forecasts from 2022 to 2027

Road transportation is the largest fuel market, accounting for 90% of global transportation fuel use. (energy.gov) The importance of maritime and aviation fuel markets in supporting global trade should not be underestimated, despite their relatively small size. Furthermore, each transportation sector favours a particular fuel quality, which is linked to its performance and amount of reliance. People have started to opt for private transport over public transport as it includes more advantages in terms of comfort, less time to travel and affordability. Petroleum products will account for almost 90% of total transportation sector energy use in the United States by 2020 (eia.gov). Biofuels like ethanol and biomass-based diesel/distillates made up roughly 5% of the total. Natural gas made up around 3% of the total, with the majority of it going into natural gas pipeline compressors. Electricity accounted for less than 1% of total transportation sector energy use, with mass transit systems accounting for nearly all of it (eia.gov.)



As governments from various countries have put forward emission norms and restrictions, resulting in the use of fuels not derived from crude oil, This has increased the transportation market as there are new ways to feed the vehicle and has opened new doors for competitors and new markets to emerge. With the adoption of alternative fuels, it is increasing the market size for ground transportation with the use of natural gas, electric hybrids, biodiesel, and hydrogen fuel cells. With the use of alternative fuels, demand for petroleum will subside in the forecasted year and the use of alternatives will increase, reasons include the high rise of petroleum prices in the future. The demand for the market depends on the relationship between rising income, automobile ownership, and the distance travelled by vehicles. With one car for every two people, the United States has one of the highest rates of car ownership in the world. Another trend is the growing popularity of minivans, sport utility vehicles, and light-duty trucks for personal use, which has resulted in a decrease in fuel economy.

Key Developments

• The Shale Revolution, fueled by new technologies in the oil and natural gas industries, has resulted in an explosion of production increases in the United States. Producers may now access oil and gas deposits from low-permeability geological formations that were previously too expensive to extract using a combination of hydraulic fracturing and horizontal drilling.
• In July 2021, the Department for Promotion of Industry and Internal Trade (DPIIT) approved an order allowing oil and gas PSUs to receive 100 percent FDIs through the automatic route in India. (IBEF)

By type, the ground transportation fuel market is segmented into diesel, gasoline, biofuel, natural gas, and others.

Natural gas, in its compressed form, is a more efficient and environmentally sustainable transportation fuel. Petroleum-derived fuels are being used mainly for transportation, but as norms are becoming stricter, the increased use of cleaner fuels has taken precedence over petroleum fuels, and with EVs boosting the market demand for cleaner fuels, it will increase in the forecasted period.

By geography, the ground transportation fuel market is segmented into North America, Europe, MEA, Asia Pacific & Latin America.

The increase in disposable income of people in China, India, and Indonesia has led to supporting the growth in this region. Brazil and Mexico are the two largest transportation fuels in Latin America & growth in the MEA region is due to the improving economy of the region.

Covid-19 Insights

During this coronavirus pandemic, the burden on organizations has shifted from moving citizens to maintaining a core transportation infrastructure with a skeleton workforce to ensure freight and vitally essential personnel can continue to move. The sudden change in sources of revenue for transportation companies is a side result of this transformation, with many incurring an unexpected financial shortfall. Gasoline demand declined by 18.2% and diesel by 4.3% in 2020, the lowest in the past 20 years (Bay Area air quality management district). By the end of March 2020, global road transport activity had fallen by over half compared to the previous year's average. Public transportation has been impacted as well. For example, in March 2020, the UK implemented a rigorous lockdown, which resulted in a 95% reduction in subway journeys in London.

Market Segmentation:

By type

• Diesel
• Gasoline
• Biofuel
• Natural Gas
• Others

By Vehicle Type

• Light Vehicle
• Heavy Vehicle

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Italy
• Others
• The Middle East and Africa
• Saudi Arabia
• Israel
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Indonesia
• Thailand
• Taiwan
• Others