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During the early stages of petroleum industries, kerosene was the only refined product people used. It was Rudolf diesel, who realized the value of by-products produced during distillation and his interest finally led to the development of Diesel Engines, and the fuel was eventually named after him.
The application of diesel is of immense use for Automobile industries as it is the lifeline that keeps the vehicle running. Because of the versatility of this product, it has made its prominence as it is used in vehicles, heavy pieces of machinery, Power generation, and one of the most profitable and important industries – Military Operations.
The trends of the market show that rapid awareness globally about the use of safer and cleaner fuels might hit the market. Also, Coivd-19 has created additional problems by strict lockdowns which have put a halt to Diesel engine manufacturing, also a concerning factor to consider while forecasting the market.
Demand for diesel is large and the market is primarily divided for the usage of Cars, Trucks, Ships, Military Vehicles, Ships, Generators, Trains, and other heavy types of machinery, farm and construction equipment (specific to the US), and many others.
Geographically, the market is divided into regions which are North America, Europe, Asia Pacific, South America, and the Middle East. Since Diesel is of immense use for Military purposes and the US is known to have huge spending on Military, thus, North American region holds a huge share of this market.
Also, the Diesel market has an encouraging growth for the Asia Pacific region with an increase in mobility facilities over time. Industrial growth in Europe is an important contributing factor for opportunities in this market.
With a moderate increase expected in the North American and European market for same, in the developing economies like India and China, the demand for medium and light-weight vehicles is expected to increase by a huge amount.
The major countries producing Diesel are: The United States, China, Saudi Arabia, Iran, Russia, Canada, Kuwait and the major countries in the consumer line are: US, Germany, Canda, Russia, South Korea, Brazil, India, and many more.
Using the fuel requires refinery processing, marketing, distribution, and oil retail stations, where the retail prices reflect the profits and losses as well of all the middlemen included. The fuel prices are subjected to be affected because of local market conditions and other factors.
The impact of Covid-19 has produced wobbling results for the Diesel market. Demand for transportation has plunged over time because of the pandemic. Since mobility has ceased in the previous months, the market has taken a huge hit.
In the forecasting period, however, promising results are expected as planes and vehicles are on the road again with industries back on using diesel for their operations.
However, the need for cleaner fuel is a huge hurdle factor for Diesel in the upcoming times and the market, although being opportunistic is sought to see uncertain challenges which are likely to create fear of opportunities and prices in the forecasting period as well.
Car manufacturers seem to be shifting from making diesel engines. The additives now injected in the Diesel fuel enhance its potential making it as a cleaner and efficient as possible. The additives primarily can be used to Low operative additives, fuel stability, engine protection, and combustion additives. These additives enhance the performance of Diesel, making it to be an optimal choice as a fuel.
Diesel is more efficient and uses less than 30% fuel in diesel engines. Diesel cars have a large life span as they depreciate slowly in comparison to gasoline-driven cars, the reason being, it’s a heavier and thicker fuel.
Also, the Carbon Dioxide emission of Diesel is less in comparison to its counterpart. The transition to low Sulfur diesel, in the United States, has severely affected Diesel fuel in terms of production and distribution.
With modern times approaching, the popularity of Green fuel is on the rise and this popularity is surely going to hit the Diesel Market. Since Diesel is readily available and we have the means to extract and exploit it well, new inventions or advancements in Diesel such as Bio-Diesel are going to attract a lot more market interest on their side.
Such futuristic designs won’t let the charm of the oil market diminish so easily.
With the pressure of shifting to greener fuels, Diesel faces competition from the alternatives that have been invented or discovered in the meantime namely:
LPG, Hydrogen Fuel, Natural gas, Ethanol, Electricity, and Biodiesel.
Some advanced alternatives which seem to be futuristic like solar-powered vehicles are an absolute threat to this market. Also, governments are propagating these new alternatives and the boost received by them in recent times is enormous which indicates that the gasoline market will be hit more in the upcoming times.
Major companies in the Diesel Fuel market are listed below:
And the list continues.
The taxation policies of various countries favor Diesel over Gasoline, thus making it enjoy significant market share. Diesel has a high energy density per unit volume which makes it a perfect choice for thermal efficient usage.
Both Diesel, as well as Gasoline market, are subjected to turbulences and frequent ups and downs in the forecasting period which is full of uncertainties about fuel and motors which have been reliant on fuel for a long.
Even after a lot of hurdles, a positive and opportunistic market is expected in the long run, since science won’t end its pursuit of advancements in Diesel technology in the upcoming future.
