H1 2023: The diesel price trajectory in the Asian region exhibited varied dynamics throughout first half of 2023. In January, a surge ensued, attributed to elevated Crude Oil prices and diminished diesel fuel exports from the US. However, next month, prices experienced a downturn due to heightened oil imports coinciding with an enhancement in supply chain operations. The augmentation in imports, coupled with a reduction in freight charges, sustained robust inventory levels, ultimately driving prices downwards by the close of March 2023 amid the backdrop of fluctuating upstream expenses. Notably, in India, diesel prices remained stagnant from the February to March 2023, amidst escalated Russian Crude oil imports and heightened production rates. However, April onwards, Diesel prices in the Chinese market consistently decreased, attributed to reduced demand from downstream sectors such as fuel and transportation. The overall market sentiment for Diesel was adversely affected by declining exports and deflationary challenges in China. The influx of Russian crude oil into the market further contributed to a decline in upstream crude oil prices. Additionally, the Chinese market witnessed a decrement in coal prices, driven by the unrestricted inflow of inexpensive imports, resulting in reduced input production costs. Plants also operated at lower capacities due to weakened downstream demand for diesel.
The global Diesel market stood around 1.35 billion tonnes in 2022 and is expected to grow at a steady CAGR of 2.7% during the forecast period until 2032.
Diesel serves as a vital fuel specifically formulated for Diesel-based internal combustion engines (ICE). The predominant variant of Diesel is a fractional distillation product derived from petroleum fuel oil. Diesel fuel can be obtained from diverse sources, including petroleum, biomass, animal fat, biogas, and coal liquefaction. The fractional distillation of crude oil at temperatures ranging from 200 to 350 degrees Celsius under atmospheric pressure yields petroleum-based diesel or petrodiesel. Conversely, the acquisition of diesel through biomass, animal fat, biogas, and coal liquefaction is referred to as synthetic diesel.
Diesel, a multifaceted resource, plays a pivotal role across diverse industries. Primarily recognized as a stalwart in electricity generation, Diesel fuels power plants worldwide, providing a significant share of the global energy mix. Its combustion produces steam, driving turbines to generate electricity. Beyond power generation, Diesel is indispensable in steel production, where it undergoes transformation into coke for the reduction of iron ore in blast furnaces. The industrial landscape benefits from Diesel's versatility as a feedstock, contributing to processes such as cement manufacturing and various chemical productions. In traditional household contexts, Diesel historically served for heating and cooking. Diesel's impact extends into chemical manufacturing, providing the raw material for a range of products, including synthetic fuels, ammonia, and plastics.
The diesel market is intricately tied to various sectors, each playing a vital role in shaping demand patterns. In the transportation sector, diesel stands as a cornerstone fuel, powering heavy-duty trucks, buses, and select vehicle types. Demand dynamics here pivot on economic activities, trade fluctuations, and evolving transportation needs. Industrial and construction activities exert a significant pull on diesel demand. From generators to excavators, diesel finds ubiquitous use in construction and industrial machinery. The ebb and flow of diesel demand in this sphere mirror economic growth trajectories and infrastructure development initiatives. The agricultural sector, driven by seasonal factors, crop cycles, and evolving practices, constitutes another crucial dimension of diesel consumption. Its indispensability in applications such as tractors and irrigation pumps underscores diesel's role in sustaining agricultural operations. On the global stage, the shipping industry relies substantially on diesel, powering maritime transport across trade routes. The interplay of trade volumes, shipping dynamics, and shifts in international commerce trends intricately shapes diesel demand in this vital sector. Furthermore, diesel generators emerge as linchpins in energy production, particularly in regions grappling with intermittent power supply. The demand for diesel in the energy sector becomes a nuanced interplay of power generation requirements and the stability of electricity grids. Throughout the projection period, the petrochemical industry is anticipated to exhibit significant increase in the demand of Diesel and reach nearly 1.7 billion tonnes in the forecast period of 2032.
Based on region, North America is the leading consumer of Diesel all across the globe. North America is poised to assert its leadership in diesel consumption, driven by a convergence of pivotal factors. The region's expansive transportation sector, heavily reliant on diesel for commercial vehicles, underscores its dominance in fuel demand. Industrial activities, including manufacturing, construction, and infrastructure projects, further contribute to sustained diesel consumption. With a substantial agricultural sector relying on diesel-powered equipment, and maritime transport playing a vital role in trade, North America exhibits a multifaceted reliance on diesel. The use of diesel generators for energy production, coupled with ongoing construction initiatives and a culture of road travel, solidifies North America's standing as a major consumer. Additionally, the region's consumer market dynamics and a regulatory environment historically supportive of diesel engines collectively position North America at the forefront of diesel consumption.
Based on the end-user industry, the global Diesel market is segmented into Transportation, Agriculture, Industrial, and Others. Among these, Transportation is dominating as a consumer, with a market share of more than 52% of the total demand in 2022. Diesel generators serve as backup power sources for commercial vehicles, including delivery trucks and utility vehicles, during emergencies and power outages. The intricacies of the commercial trucking industry, encompassing aspects like freight demand, shipping volumes, and compliance with regulatory standards, significantly shape the utilization of diesel fuel. The interplay of economic factors, such as GDP growth, trends in e-commerce, and fluctuations in industrial production, holds sway over the demand for trucking services. Consequently, there is a corresponding increase in the demand for diesel fuels as they remain integral to the operational dynamics of the commercial trucking sector.
Significant players in the Global Diesel market are Exxon Mobil Corporation, PetroChina Company Limited, Qatar Petroleum, Shell Plc, Reliance Industries Ltd, Saudi Arabian Oil Co, SK energy Co., Ltd., NK Rosneft' PAO, BP plc, and Others.
Years considered for this report:
Historical Period: 2015- 2022
Base Year: 2022
Estimated Year: 2023
Forecast Period: 2024-2032
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Objective of the Study:
• To assess the demand-supply scenario of Diesel which covers production, demand and supply of Diesel market in the globe.
• To analyse and forecast the market size of Diesel
• To classify and forecast Global Diesel market based on end-use and regional distribution.
• To examine competitive developments such as expansions, mergers & acquisitions, etc., of Diesel market in the globe.
To extract data for Global Diesel market, primary research surveys were conducted with Diesel manufacturers, suppliers, distributors, wholesalers and Traders. While interviewing, the respondents were also inquired about their competitors. Through this technique, ChemAnalyst was able to include manufacturers that could not be identified due to the limitations of secondary research. Moreover, ChemAnalyst analyzed various segments and projected a positive outlook for Global Diesel market over the coming years.
ChemAnalyst calculated Diesel demand in the globe by analyzing the historical data and demand forecast which was carried out considering the historical extraction and supply and demand of Diesel across the globe. ChemAnalyst sourced these values from industry experts, and company representatives and externally validated through analyzing historical sales data of respective manufacturers to arrive at the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst.
Key Target Audience:
• Diesel manufacturers and other stakeholders
• Organizations, forums and alliances related to Diesel distribution
• Government bodies such as regulating authorities and policy makers
• Market research organizations and consulting companies
The study is useful in providing answers to several critical questions that are important for industry stakeholders such as Diesel manufacturers, customers and policy makers. The study would also help them to target the growing segments over the coming years (next two to five years), thereby aiding the stakeholders in taking investment decisions and facilitating their expansion.
Report Scope:
In this report, Global Diesel s market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
Attribute
Details
Market size Volume in 2022
1.35 billion tonnes
Market size Volume by 2032
1.75 billion tonnes
Growth Rate
CAGR of 2.70% from 2023 to 2032
Base year for estimation
2023
Historic Data
2015 – 2022
Forecast period
2024 – 2032
Quantitative units
Demand in billion tonnes and CAGR from 2023 to 2032
Report coverage
Industry Market Size, Capacity By Company, Capacity by Location, Operating Efficiency, Production by Company, Demand by End- Use, Demand by Region, Demand by Sales Channel, Demand-Supply Gap, Company Share, Manufacturing Process.
Segments covered
By End-Use: (Transportation, Agriculture, Industrial, and Others)
By Sales Channel: (Direct Sale and Indirect Sale)
Regional scope
North America, Europe, Asia Pacific, Middle East and Africa, and South America.
I am satisfied with overall performance of ChemAnalyst. Weekly updates before the final report were especially helpful and reassuring. Additional requests on the interim and/or final reports were handled in a swift and professional manner
Mr.Shin Dosho
Member - Board of Directors
Osaka Gas Co. Ltd
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What is the expected global market size of Diesel in terms of volume for 2032?
Ans:
The global market size of Diesel is expected to reach approximately 45 billion tonnes by 2032, and it is expected to further expand with a CAGR of 4.02%.
Q2.
What are the major end-use industries of Diesel?
Ans:
Diesel is used in a wide range of end use industries including Transportation, Agriculture, Industrial, and Others.
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