Gasoline in the US: Key market research findings
- Government regulations drive market growth
- Mid-west region accounts for a majority of the market’s revenue
- Key vendors – BP, Chevron, ConocoPhilips, Exxon Mobil, and Shell
Technavio’s market research analysts predict the gasoline market in the US to surpass 18,732 gpd by the end of 2020. The growth of the market is augmented primarily by government regulations pertaining to standards for safe use of gasoline. As per the requirement of the federal Renewable Fuel Standard (RFS), the blenders and refiners blend the renewable biofuels mostly ethanol, with the gasoline to meet the consistently growing annual target of the total gallons blended. With various constituents and additives, gasoline fuel becomes volatile than other fuels such as kerosene, jet fuel, diesel or heating oil.
The new market research report from Technavio presents a breakdown and analysis of the gasoline segments based on the geography.
“Much of the market’s growth can be accredited to the rise in number of LDVs. More than 90% of the motor gasoline produced in the US is used in the light-duty vehicles (LDVs). The sales trends in the automotive market indicate that the US consumers are purchasing more vehicles that have lower fuel economy ratings. This trend is likely to contribute to the growth of the gasoline market in the US by the end of the forecast period,” says Vishu Rai, Lead Analyst, Energy, Technavio Research.
During 2015, the mid-west accounted for around 37% of the overall market revenue to become the key revenue generating region of the country. Changes in regional supply-demand balances in Midwest have contributed to changes in gasoline prices and supply flows. In 2015, the gasoline sales in Midwest region stood at around 9,401 thousand gpd. By 2020, the consumption in the mid-west region is expected to reach almost 8,563 gpd by 2020.
The key vendors in the gasoline market in the US include BP, Chevron, ConocoPhilips, Exxon Mobil, and Shell. The gasoline market in the US comprises refining companies as well as retail chains / third party resellers. The resellers segment is highly fragmented and consists of large retail chains as well as standalone shops. The gasoline market on the supply side is dominated by big oil and gas companies. The market is highly competitive with the players competing to gain more market share. Intense competition and the rapidly changing market dynamics are the key factors for the competition among vendors. International players are expected to grow inorganically during the forecast period by acquiring regional or local players.
A more detailed analysis is available in the Technavio report, Gasoline Market in the US 2016-2020.
