Ground Transportation Fuel Market to Reach Valuation of USD 827 Billion by 2028 - An increase in Vehicle Numbers to drive the Global Ground Transportation Fuel Market Growth

Vantage Market Research

May 21, 2022

From the period of 2022 to 2028, the Global Ground Transportation Fuel Market is expected to reach USD 827 Billion in terms of revenue, growing at a Compound Annual Growth Rate (CAGR) of 2.1%.

The largest fuel market for global transportation fuel use is road transportation. Furthermore, each transportation sector prefers a specific fuel quality that is related to its performance and level of reliance. People have begun to prefer private transportation over public transportation because it provides more benefits in terms of comfort, reduced travel time, and affordability. As governments from various countries have proposed emission norms and restrictions, resulting in the use of fuels other than crude oil, the transportation market has expanded as there are new ways to feed the vehicle, opening new doors for competitors and new markets to emerge. The use of alternative fuels will reduce demand for petroleum in the forecasted year, while the use of alternatives will increase, owing to factors such as future high rises in petroleum prices.

The transportation market has grown even larger as a result of new ways to feed the vehicle and new competitors entering the market. The primary market driver for the global transportation fuel market is an increase in the number of vehicles. The rise in people's disposable income has also contributed to an increase in the number of vehicles, leading to the expansion of the global transportation fuel market. The environmental consequences of transportation fuel combustion are a significant market restraint for the global transportation fuel market. Pollution caused by transportation fuel is a major market restraint in the global transportation fuel market's growth because emission control norms have become more stringent in each country.

Key Highlights from the Report

  • The market is divided into the following segments: diesel, gasoline, biofuel, natural gas, and others. Due to rising diesel demand in developing economies, the diesel segment has a significant share of the growth of the Ground Transportation Fuel Market. Diesel is a flammable liquid that can be used as a substitute fuel in diesel engines. Diesel has more energy than gasoline, putting less strain on the engines of lighter trucks and cars while providing better performance in larger heavy-duty trucks like semi-trailers and other large carriers. During the forecast period, the biofuel segment grew the fastest.

  • The market is divided into two categories based on vehicle type: light vehicle and heavy vehicle. Light vehicles will dominate market growth over the forecast period. The relationship between rising income, automobile ownership, and vehicle distance travelled determines market demand. In the world, one car is owned by every two people. Another trend that has reduced fuel economy is the growing popularity of minivans, sport utility vehicles, and light-duty trucks for personal use.

  • Asia Pacific is the fastest regional segment in terms of growth. In recent years, the Asia Pacific region has seen the fastest growth in transportation fuel demand, and this trend is expected to continue in the forecast period. The increase in the number of vehicles, primarily in China, India, and Indonesia, has aided growth in this region as people's disposable income has increased. The primary market driver for the global transportation fuel market is an increase in the number of vehicles. The rise in people's disposable income has also contributed to an increase in the number of vehicles, leading to the expansion of the global transportation fuel market.

Market Dynamics:

An increase in vehicle numbers to drive the Global Ground Transportation Fuel Market growth

The increase in the number of vehicles is the primary market driver for the global transportation fuel market. The rise in people's disposable income has also been an important factor in the increase in the number of vehicles, leading to the expansion of the global transportation fuel market. People prefer private transportation to public transportation because it is more comfortable, less expensive, and takes less time to travel. This has resulted in an increase in the number of people owning vehicles in the majority of countries. In parallel, the demand for transportation fuel has increased.

The adoption of alternative fuels is expanding the ground transportation business.

As governments around the world have imposed emission standards and limits, resulting in the usage of fuels other than crude oil, the transportation business has grown as new means to power vehicles have emerged, opening new avenues for competitors and new markets. Natural gas, electric hybrids, biodiesel, and hydrogen fuel cells are among the alternative fuels that are expanding the market for ground transportation. The use of alternative fuels will reduce demand for petroleum in the anticipated year, while the usage of alternatives will expand, due to factors such as potential high petroleum prices. Natural gas is a more efficient and environmentally friendly transportation fuel when compressed.

The size of the European Ground Transportation Fuel Market is expected to grow rapidly. This can be attributed to the region's rapid urbanization, automotive technology innovations, and increased trade activity. The growing population of developed countries has increased passenger car sales, boosting the global transportation fuel market. Furthermore, as a result of industrialization and infrastructure development in developing countries, the number of commercial vehicles has increased. This would increase transportation fuel consumption during the forecast period. Improving fuel economy in developed regions is limiting transportation fuel consumption in these areas.