The global transportation fuel market comprises large oil and gas companies; the top companies in the market are Chevron Corporation, Royal Dutch Shell plc, Total S.A, and Saudi Aramco. The production of transportation fuel has come up as a capital-intensive business. Hence, it is vital to have a robust distribution network in order for a new player to penetrate in this market. Companies in the market are involved in the production and exploration of natural gas and crude oil. The overall threat from new entrants is poised to remain low in the market all through the forecast period, as per Transparency Market Research (TMR). Internal substitutes such as bio-diesel and natural gas have acquired the share of diesel and gasoline. Therefore there is a low threat from external substitutes.
The global transportation fuel market was valued at 2,412.88 MTOE in 2015 and is predicted to touch 2,698.36 MTOE by 2022. On the basis of type, the segment of diesel is predicted to lead the market with a share of 40.13% by 2022. This is owing a number of advantages related with the utilization of diesel such as its low cost and more energy content as compared to gasoline.
Asia Pacific Transportation Fuel Market to Emerge as a Lucrative Market
North America led the market for transportation fuel in the past and constituted a share of 766.74 MTOE in 2015. However, this region is predicted to lose some of its share and is expected to grow at a sluggish rate. On the other hand, the Asia Pacific transportation fuel market will be the most lucrative market in the forecast period and is predicted to touch 905.57 MTOE by 2022. The reasons for the superiority of this region include the increasing population base and the rising industrialization in this region.
Rising Sales of Passenger Vehicles to Bolster Transportation Fuel Market
The global transportation fuel market is fuelled by the rising sales of passenger vehicles globally. This increasing sale of passenger vehicles is owing to the rising disposable incomes of individuals globally. In addition, the improvement in the living standards of individuals and the increasing proliferation of personal vehicles have also positively impacted the development of the market. “The growing activities of trade and the rising passenger movement have also emerged a top factors stimulating the development of the global transportation fuel market,” says a TMR analyst
Enhancement in Fuel Economy may Hamper Market Development
On the other hand, a number of efforts taken by regulatory bodies and OEMs in enhancing the fuel economy of vehicles may pose a threat to the development of the global transportation fuel market. OEMs globally are making investments in a number of research and development activities in order to enhance vehicles’ fuel economy. In addition, efforts taken by regulatory bodies for increasing fuel economy will also reduce the overall consumption of crude-based fuels and will thus lower carbon emissions, states a TMR analyst.
Nevertheless, the increasing demand for alternative fuels including compressed natural gas, ethanol, and biodiesel from the sector of transportation is predicted to rise in forthcoming years. This is owing to the fact that biofuels are eco-friendly in nature and lower the overall greenhouse gas emissions. This is a key opportunity in the global transportation fuel market.
This information is based on the findings of a report published by Transparency Market Research titled, “Transportation Fuel Market- Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2014 - 2022.”
The transportation fuel market has been segmented as follows:
- Aviation Turbine Fuel (ATF)
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Rest of the World (RoW)
- South Africa
- Rest of Latin America
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