Diesel Fuel Market Size, Share and Global Trend By End-Use (Cars, Trucks, Military Vehicles, Heavy Off-Road Vehicles, Ships, Generators, Others) and Regional Forecast, 2024-2032

Fuel is the key source of energy for running different equipment and machinery. The most widely used types of fuels are petrol and diesel. The diesel fuel is generally used to fuel the diesel engines of vehicles and ships. The diesel fuel is usually cheaper as compared to gasoline.

Diesel fuel is obtained as a distillate in the fractional distillation of crude oil in the petroleum refinery. Diesel fuel is the more refined, heavier, oilier and thicker version of gasoline, can be compressed more than gasoline. Diesel fuel containing low sulfur is called ultra-low sulfur diesel fuel which is used to fuel ships.

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By end-use, the diesel fuel market is bifurcated depending on the use of diesel fuel in cars, trucks, heavy off-road vehicles, ships, military vehicles and diesel generators among others. The cars and trucks are expected to dominate the global diesel fuel market by end-use owing to a higher number of car and truck fleet as compared to the other end users.

Diesel fuel is generally used as a fuel for the diesel engines. Various cars, buses, and trucks use diesel fuel. The growth of the on-road fleet of cars, buses, and trucks is likely to boost the sales of diesel fuel in the coming years. Other counterparts of diesel fuel such as petrol also have applications in cars but the price of diesel is more economical as compared to that of gasoline.

Owing to this, the diesel fuel market is forecast to grow steadily in the near future. Growth in the use of electricity and absence of proper power grid structure in different countries such as Brazil, South Africa, and other developing countries is expected to boost the diesel generator sales which in turn is likely to have a positive impact on the growth of diesel fuel market in the near future.

Owing to the carbon emission concerns, governments of different countries are focused on promoting the use of electric vehicles. Owing to this, the sales of electric vehicles are growing at moderate rates. The growth in the sales of the electric vehicles is expected to hamper the market growth of the diesel fuel market over the forecast period.

Key Players Covered

Some of the major companies that are present in the global diesel fuel market are Chevron, BP, Conoco Phillips, Husky Energy, Saudi Aramco, ExxonMobil, Neste, Shell, LUKOIL, Eni, McDermott International Inc., Viru Keemia Grupp AS, JSC Mozyer Oil Refinery, Reliance, Pertamina and Mangalore Refinery and Petrochemicals Limited among others.

SEGMENTATION

Regional Analysis

The global diesel fuel market has been segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The North America region holds a high share in the military expenditures as compared to other regions. The military vehicle count in the region is mainly driven by increasing vehicle capacity of the U.S army. The new sales of other vehicles in the region have also risen steadily in the region. Owing to this, the diesel fuel market is forecast to have robust growth in the North America region. The Europe region has a well-established and growing manufacturing sector driven by chemical, steel and other industries. The growth of the manufacturing industry in the region has led to an increase in the exports owing to which the transport sector is growing at a decent pace. The growth in the transport sector in Europe is anticipated to boost the demand for diesel fuel in the coming years. Latin America region has witnessed moderate growth in the on-road vehicle fleet which is likely to drive the sales of diesel fuel as a fuel for cars and trucks in the region. The Middle East and Africa region are highly dependent on imports of different goods. Water transport is an economical way to import products for the region. An increase in the imports of goods in the region is anticipated to boost the ship fleet which in turn is expected to drive the diesel fuel market. Asia Pacific region is forecast to witness a healthy growth in the diesel fuel market mainly driven by the increasing new sales of vehicles and a growing heavy vehicle fleet in the region. Additionally, China is among the key exporters of various goods and is expected to witness high growth in the exports of goods. Owing to this, diesel fuel sales are expected to remain high in the Asia Pacific region over the forecast period.

Key Industry Developments

• In August 2019, the Indian government has announced its plans to scrap one of its regulation related to license to market jet fuel and diesel to companies that plant to invest or have invested around US$ 282 million in the E&P, pipeline or refining among other activities in India
• In August 2019, Reliance Industries Limited has signed a pact with BP Plc to sell petrol, diesel, and other retail fuels. Reliance Industries Limited is reported to hold a 51% share in the joint venture leaving BP with a 49% share
• In August 2019, National Agency of Petroleum Natural Gas & Biofuels Brazil has announced its approval of B15 blend that is to use minimum 11% of biodiesel required in the diesel fuel form which was 10% earlier