Diesel Market by Application (Marine, Railway, Automotive, and others), by Type (1 Diesel Fuel, 2 Diesel Fuel, and others) and by Region - Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2023-2030

Industry Perspective

The global Diesel Market size was worth around 178.01 billion in 2022 and is predicted to grow around USD 243.99 billion by 2030 with a compound annual growth rate of 4.02% roughly between 2023 and 2030. The diesel engine is more effective and emits fewer greenhouse gases because it is a more efficient fuel than gasoline. Given its recent price stability, diesel is a desirable fuel choice for motorists looking to reduce their fuel expenses.

Diesel engines can be used for heavy-duty applications like construction equipment and trucks that need a lot of power to operate because they are typically more powerful than gasoline engines. As it is not subject to federal excise taxes like gasoline is in the US, diesel is more affordable in many non-American countries, making it a desirable alternative for motorists looking for fuel expense reduction.

Market Overview

Fuel is the primary energy source used to power various machinery and equipment components. The different kinds of fuel that are used most frequently are diesel and gasoline. Diesel fuel is typically used to power diesel engines in cars and ships. It typically costs less than regular gasoline. Diesel fuel is created as a distillate when crude oil is fractionally distilled in a petroleum refinery. Due to its refinement, weight, oil content, and thickness, diesel fuel can be compacted more than gasoline. Diesel fuel with a low Sulphur level is known as ultra-low Sulphur diesel fuel, and it is used to power ships.

Animal fat, natural gas, and coal liquefaction processes make diesel fuel. Also, unburnt carbon monoxide and carbon dioxide are reduced through the use of biodiesel fuels made from vegetable oils. Vehicles used for passenger and commercial purposes frequently burn diesel fuel.

Key Insights

• As per the analysis, the global diesel market share is estimated to grow annually at a CAGR of around 3.45% over the forecast period (2022-2030) and is projected to reach USD 1336.87 billion, by 2030. Due to a variety of driving factors, the market is predicted to rise at a significant rate
• Based on application segmentation, the marine was predicted to show maximum market share in the year 2021
• Based on type segmentation, the 2 diesel fuel segment was the leading revenue-generating Service in 2021
• On the basis of region, North America was the leading revenue generator in 2021

Rising Fuel Efficiency In Different Industries Augmenting Market Growth

Due to their enhanced operational performance, diesel engines are widely used in the global maritime, construction, healthcare, mining, telecommunications, forestry, and agricultural sectors. They are increasingly used in commercial and heavy-duty vehicles and offer superior fuel efficiency than gasoline engines. This is one of the main drivers of the market's expansion and the thriving automotive industry. Modern diesel engines also offer lower maintenance costs and reduced noise, which were drawbacks of earlier generations.

Increasing Energy Consumption Due to an Increase in the Number of Industries 

Due to a number of recent developments including rising energy consumption, growing adoption of eco-friendly fuels, a more economic outlook, a structural shift to renewable diesel, etc., the market is anticipated to expand quickly throughout the forecast period. As legislation and increased awareness of climate change bring forth new growth opportunities to the transportation and biofuel businesses, biodiesel and renewable diesel are expected to play a more prominent role in decarbonizing the diesel transportation industry.

Increase in Carbon Emission and Noisy Fuel Engine Hampering Market Growth

A growth in noise pollution characteristics hinders the growth of fuel, globally. A diesel fuel engine is heavier than a petrol engine and has a complex viscosity, which makes diesel fuel cruder and more chaotic. Thus, these factors obstruct the growth of the diesel fuel market.

Also, consumer preference for renewable energy sources and electric vehicles is being driven by growing environmental concerns such as carbon monoxide emissions. Consequently, it is anticipated that increasing demand for alternate fuel sources will stifle the diesel market growth.

Segmentation Analysis

Based on application, the marine sector holds a relatively large percentage of the market because of the expansion of international trade between various developing nations. The rising demand for more economically viable products with higher reliability, fuel efficiency, and superior durability has driven market growth. Additionally, the growing emphasis on system development in the shipping industry and the significant shift toward diesel engines are projected to support the diesel market share during the forecast period.

Based on type, the 2 diesel fuel segment dominates the market share by 2030. The use of low Sulphur diesel fuels is growing as a result of rising environmental pollution around the world. It is anticipated that this will aid in the market's expansion. The demand for 2 diesel in the Asia Pacific will also be boosted by rising automotive sector sales as well as rising crude oil and refined product applications in developing nations like China and India.

Recent Development

August 2019- The Indian government has declared its intention to eliminate a regulation pertaining to the license to sell diesel and jet fuel to businesses that intend to invest or have already invested about USD 282 million in the pipeline, E&P, and refining, among other things, in India.

North America is Dominating Market Share Due to the Number of Rising vehicles

The majority of the market for diesel is in North America. Comparatively speaking, the North American region spends a lot on the military. The U.S. army's expanding vehicle capability is the key factor driving the number of military vehicles in the region. Therefore, the market for diesel fuel is anticipated to grow strongly in the North American region as a result of the news that sales of other cars in the region have also increased consistently.

• For example, the demand for diesel is higher in the Northeast part of North America as diesel prices have hiked 33% for November deliveries. Therefore, there have been requests for the federal government to increase supply.

Competitive Landscape

Key players in the diesel industry are Chevron Corporation, BP plc., ConocoPhillips Company, Cenovus Energy Inc., Saudi Arabian Oil Co., Exxon Mobil Corporation, Neste, Shell plc, LUKOIL, Eni S.p.A., McDermott., PT Pertamina(Persero), Mangalore Refinery & Petrochemicals Ltd amongst others.

The global diesel market is segmented as follows:

By Application

• Marine
• Railway
• Automotive
• Others

By Type

• 1 Diesel Fuel
• 2 Diesel Fuel

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America