Fuel: Key market research findings
- Development of conventional and alternative fuels in marine industry
- Growing use of high-performance additives in fuels
- Leading players include Chevron Oronite, Shell, TOTAL, and BP
Technavio’s market research analysts predict the global fuels market to grow at a steady CAGR of around 2% between 2016 and 2020. Fuels that are considered as alternatives in the present scenario will gain a conventional status over the next few years in the marine industry. Biofuels especially methanol and biodiesel and LNG are the most possible substitutes for marine fuels. With the stringent regulations imposed by the International Organization for Standardization (ISO), MARPOL, EPA, and other state authorities, the use of blended biofuels has eliminated in marine applications. EMEA will be the largest revenue-contributing region in the market and is anticipated to grow at a CAGR of around 3% by 2020. The growing demand for consumer and freight fuels in the region will significantly contribute to the growth of the overall market in the coming years.
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
“One of the latest trends gaining grounds in the market is the development of high-performance additives. High-performance fuel additives lower the maintenance expenses, choking issues, and offer optimum performance. The use of such fuel additives will prove beneficial in improving the health and safety for maintenance people as these additives reduce the application of incompatible additive solutions in the fuel system. Other advantages of these additives include cost-effectiveness, maintaining efficiency, environmental friendliness, reduced maintenance, improved thermal stability, and improved performance,” says Chandrakumar Badala Jaganathan, Lead Analyst, Chemicals & Materials, Technavio Research
The gasoline segment occupies the largest share in the market and its consumption will continue to increase in the fuel market during the forecast period. Gasoline is the major product refined from crude oil and is anticipated to occupy around 41% of the total market share by 2020. It is mostly used in light sport vehicles, especially sport utility vehicles, cars, and small trucks, boats, small aircraft, farm, construction, and landscaping equipment. With the declining prices of crude oil, the demand for gasoline is expected to grow over the next four years.
At present, the market is dominated by well-established vendors who compete on the basis of technology proprietorship, R&D capabilities, and economies of scale. The market is also witnessing consolidation as the major players are constantly acquiring smaller entities; thus, resulting in intense competition. Also, with the influx of private labels, the level of competition in the market will intensify during the forecast period.
A more detailed analysis is available in the Technavio report, Global Fuels Market 2016-2020
We can customize reports by other regions and specific segments upon request.
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