Ground Transportation Fuel Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Type (Diesel, Gasoline, Biofuel, Natural Gas, Others), By Vehicle Type (Light Vehicle, Heavy Vehicle), And By Geography - Forecasts From 2022 To 2027

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.

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.

Ground Transportation Fuel Market Scope:

Report Metric	Details
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
Base year	2020
Forecast period	2022–2027
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:

• 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
  • Middle East and Africa
    • Saudi Arabia
    • Israel
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Indonesia
    • Thailand
    • Taiwan
    • Others

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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.

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