Argentina Road Transportation And Sustainable Fuel Market Size, Share, Opportunities, And Trends By Fuel Used (Oil Fuel, Biofuel, Natural Gas, E Fuels, Hydrogen Fuel), And By Province - Forecasts From 2024 To 2029

The general public of Argentina uses public transport rather than personal cars to move around in the cities, especially during common business hours, since parking can be both difficult and expensive. In the urban areas of Argentina, the main transportation system is by bus or it is also called colectivo which are the bus lines that transport millions of people every day in and around the larger cities. Moreover, they have a bus rapid transport system known as Metrobus.

Furthermore, travel by flight is also part of transportation in Argentina. However, these vehicles using combustion engine fuels can be costly and harmful to the environment therefore, Argentina is switching to more efficient and eco-friendly fuel options that are sustainable like biofuels, natural gas, and others. For instance, aviation fuels produce a lot of harmful emissions and to resolve this issue sustainable aviation fuels are being developed to reduce those harmful emissions. Therefore, Argentina has a prominent market in transport and sustainable fuels.

INTRODUCTION:

Argentina’s transportation and sustainable fuel market is driven by the rapid growth in the adoption of EVs as a substitute for combustion engine vehicles for passenger, public transport, and commercial use, coupled with rising innovations in the field of sustainable fuel options. Argentina’s transport industry majorly uses public transport for daily travel, especially during business hours but now that more efficient and eco-friendly sustainable fuel options are available more EV buses and cars are being developed and are being used in daily transport.

Hydrogen fuel-based vehicles can reduce harmful emissions in the environment by providing a long-range ride for transportation and natural gas which emits only half the amount of greenhouse gas as coal being used in the transport industry as a sustainable fuel. Also, the development of sustainable aviation fuel to reduce harmful emissions for flight transportation is anticipated to be responsible for propelling the market.

MARKET DRIVERS:

• The rapid rise in innovations for sustainable fuels is predicted to propel the market.

Sustainable fuel is an alternative fuel that reduces emissions from transportation. They can replace or greatly reduce the mining or drilling of fossil fuels from below the earth's surface. For instance, natural gas, which emits only half the amount of greenhouse gas as coal in electricity generation, and replacing coal can achieve a significant amount of emission reductions and can be a more eco-friendly option to use.

Hydrogen can be used as fuel in a variety of fuel cell electric applications to generate power, emitting only water and heat as byproducts. These more cost-efficient and eco-friendly options contribute to Argentina’s transportation like the aviation, commercial vehicle, and public transport vehicle industries to switch to these sustainable fuels. The general public of Argentina majorly travels by public transport like bus and taxi so the government will switch to these more sustainable fuel vehicles for public transport in Argentina which is predicted to propel the market during the forecast period.

• The growing popularity of EVs is anticipated to grow the market.

The reason for the major growth in the sustainable fuel market is because of the rapid rise of the popularity of EVs that use sustainable fuels such as hydrogen fuel which produce less harmful emissions and are more time and cost-efficient. Argentina where most of its people use public transportation needs a more cost-efficient and eco-friendly option for traveling daily as existing combustion fuel engines are harmful to the environment and also combustion fuel prices are rising at rapid growth.

Also, governments are taking significant steps to improve overall infrastructure for sustainable fuel stations to refuel EVs. These factors are anticipated to drive the growth of the market during the forecast period.

MARKET RESTRAINT:

The majority of transportation in Argentina is done using commercial vehicles, public transport, and airplanes and they need to be refuelled during long-distance travel multiple times during the journey. However, there are not sufficient fuel stations for these new sustainable fuels in many underdeveloped regions and low-density populated regions which can be a hindrance during transportation.

Also, switching instantly to the new sustainable fuel vehicles can be challenging for many people who have been driving combustion engine vehicles for most of their lives. Some individuals might doubt if these sustainable fuels are good for vehicles or not due lack of awareness of these newly developed sustainable fuels. Therefore, these factors can affect the market negatively during the forecast period.

PRODUCTS OFFERED BY KEY COMPANIES:

• TotalEnergies: Natural gas is provided by Total Energies which is a key energy source for the energy transition it plays a major role in electricity generation thanks to its flexibility and it can meet rapid growth in demand for the electrification uses of natural gas.
• Shell Brasil: Shell V - Power Ethanol is a biofuel by shell that acts instantly to clean and protect engine components. It helps to remove waste accumulated inside the engine that can compromise its proper functioning.

Key Developments:

• In July 2023, Chevron’s Renewable Energy Group Inc. which is a subsidiary of Chevron Corporation and Bunge together acquired Chacraservicios S.r.l. which is based in Argentina from the Italian-based Adamant Group. This investment added a new oil source in Bunge and Chevron’s global supply chains and helped both companies meet the growing demand for lower carbon renewable feedstocks.

Segmentation:

• By Fuel Used
  • Oil Fuel
  • Biofuel
  • Natural Gas
  • E Fuels
  • Hydrogen Fuel
• By Province
  • Buenos Aires
  • Mendoza
  • Cordoba
  • Santa Fe
  • Others