Off-road Fuel Market

Off-road Fuel Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2021-2031

Off-road fuel, also known as dyed fuel, is an untaxed fuel that is majorly used for various off-road applications. Use of off-road fuel in on-road vehicles is illegal and may lead to fines and heavy penalties. Off-road fuel is usually dyed in red color to differentiate it from on-road diesel and highway fuel.
Off-road diesel fuel is utilized in vehicles and equipment that are not operated on public roads or highways. These include vehicles and equipment used on railways and farms, for electric power generation, and in the construction sector.

Rise in demand for clear diesel or ultra-low sulfur diesel in construction and farming applications is a major factor driving the global off-road fuel market. Increase in demand for ultra-low sulfur diesel in vehicles, such as tractors and trailers, is another factor that is expected to boost the global off-road fuel market during the forecast period.
Adoption of off-road fuels is increasing rapidly in heavy-duty equipment, trucks, cranes, and bulldozers. Increase in infrastructure development projects is another factor driving the global off-road fuel market. Furthermore, demand for heavy-duty vehicles is increasing in different end-use verticals such as industrial, aerospace, mining, automobiles, and fishing/ship machinery.
Demand for off-road fuel is rising in the agriculture industry across the globe. Off-road fuel is majorly utilized in vehicles that are used in the agricultural industry such as tractors, harvesting machines, combine harvesters, and mulching machines.
Off-road fuel is also expected to be extensively used in marine vessels, as aviation fuel, and in machines at county fairs and carnival rides
Increase in investments in research to reduce the emission of various toxic gases such as oxides of carbon, nitrogen, and sulfur; and surge in demand for off-road fuel in various end-use industries, including heating oil, trains, mining, and logging, are estimated to offer significant opportunities to manufacturers of off-road fuel during the forecast period.

The global off-road fuel market can be segmented based on dye and end-user
Based on dye, the global off-road fuel market can be divided into red dyed off-road fuels, blue dyed off-road fuels, green dyed off-road fuels, orange dyed off-road fuels, yellow dyed off-road fuels, and others (black and pink)
Based on end-user, the global off-road fuel market can be classified into heating oil, farming, construction, mining, and others (trains, logging, etc.). In terms of revenue, the construction segment is expected to hold significant share of the global market, owing to the rising demand for construction equipment and earth-moving equipment from various development and new construction projects, especially in countries across Asia Pacific. Rise in mining activities related to coal and iron ore in emerging economies including China, India, and Indonesia is projected to drive the demand for off-road fuel.

Based on region, the global off-road fuel market can be classified into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa
In terms of revenue, Asia Pacific is expected to account for moderate share of the global off-road fuel market during the forecast period. This can be ascribed to increase in urbanization in countries in Asia Pacific. The region is expected to witness mega construction activates. This, in turn, is expected to increase applications of off-road fuel in construction equipment. Additionally, rapid expansion of agriculture and mining industries is expected to drive the off-road fuel market in Asia Pacific.

COVID-19 Impact on Off-road Fuel Market

The global impact of the coronavirus pandemic was completely unpredicted, and it has put the world economy in severe distress. Demand for off-road vehicles has also been negatively impacted. This has resulted in lower demand for off-road fuels. However, demand for automobiles is gradually returning to normalcy after relaxation in lockdown. This is expected to propel the sales of off-road fuel during the forecast period.

Global Off-road Fuel Market: Research Scope

Global Off-road Fuel Market, by Dye

Global Off-road Fuel Market, by End-user

Global Off-road Fuel Market, by Region

North America
- U.S.
- Canada
Europe
- Germany
- France
- U.K.
- Italy
- Spain
- Russia & CIS
- Rest of Europe
Asia Pacific
- China
- Japan
- India
- ASEAN
- Rest of Asia Pacific
Latin America
- Brazil
- Mexico
- Rest of Latin America
Middle East & Africa
- GCC
- South Africa
- Rest of Middle East & Africa