The ground transportation fuel market is projected to grow at a CAGR of 2.24% during the forecast period to reach US$893.399 billion by 2027, up from US$765.068 billion in 2020. 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.
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.
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 size value in 2020||US$765.068 billion|
|Market size value in 2027||US$893.399 billion|
|Growth Rate||CAGR of 2.24% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Type, Vehicle Type, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Occidental petroleum corporation, Halliburton energy services, Schlumberger Ltd, Shell Plc, Exxon Mobil, British Petroleum Plc, Chevron Corporation, Total Energies, C&J Energy Services, Cudd Energy Services|
|Customization scope||Free report customization with purchase|
Key Market Segments:
Frequently Asked Questions (FAQs)
Q1. What is the size of the global ground transportation fuel market?
A1. Ground Transportation Fuel Market was valued at US$765.068 billion in the year 2020.
Q2. What will be the ground transportation fuel market size by 2027?
A2. The ground transportation fuel market is projected to reach a market size of US$893.399 billion by 2027.
Q3. What are the growth prospects for the ground transportation fuel market?
A3. The global ground transportation fuel market is projected to grow at a CAGR of 2.24% during the forecast period.
Q4. What factors are anticipated to drive the ground transportation fuel market growth?
A4. The adoption of alternative fuels increases the ground transportation fuel market size with the use of natural gas, electric hybrids, biodiesel, and hydrogen fuel cells.
Q5. How is the global ground transportation fuel market segmented?
A5. The ground transportation fuel market has been segmented by type, vehicle type, and geography.
1.1. Market Overview
1.2. COVID-19 Scenario
1.3. Market Definition
1.4. Market Segmentation
2. RESEARCH METHODOLOGY
2.1. Research Design
3. EXECUTIVE SUMMARY
3.1. Research Highlights
4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Powers of Buyers
4.3.3. Threat of Substitutes
4.3.4. The Threat of New Entrants
4.3.5. Competitive Rivalry in Industry
4.4. Industry Value Chain Analysis
5. GROUND TRANSPORTATION FUEL MARKET, BY TYPE
5.5. Natural Gas
6. GROUND TRANSPORTATION FUEL MARKET, BY VEHICLE TYPE
6.2. Light Vehicles
6.3. Heavy Vehicles
7. GROUND TRANSPORTATION FUEL MARKET, BY GEOGRAPHY
7.2. North America
7.2.1. United States
7.3. South America
7.4.1. United Kingdom
7.5. The Middle East and Africa
7.5.1. Saudi Arabia
7.6. Asia Pacific
7.6.4. South Korea
8. COMPETITIVE ENVIRONMENT AND ANALYSIS
8.1. Major Players and Strategy Analysis
8.2. Emerging Players and Market Lucrative
8.3. Mergers, Acquisition, Agreements, and Collaborations
8.4. Vendor Competitiveness Matrix
9. COMPANY PROFILES
9.1. Occidental Petroleum Corporation
9.2. Halliburton Energy Services
9.3. Schlumberger Ltd
9.4. Shell Plc
9.5. Exxon Mobil
9.6. British Petroleum Plc
9.7. Chevron Corporation
9.8. Total Energies
9.9. C&J Energy Services
9.10. Cudd Energy Services
Occidental Petroleum Corporation
Halliburton Energy Services
British Petroleum Plc
C&J Energy Services
Cudd Energy Services
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