Diesel Industry Report by Regional Category Spend, Price Analysis, Key Demand and Price Indicators, and Best Buying Practices

The global Diesel market reached a volume of about 26.83 million barrels per day in 2021. The industry is projected to grow at a CAGR of around 1.5% in the forecast period of 2022-2027 to reach a volume of about 29.27 million barrels per day by 2027.

The global Diesel industry report gives a comprehensive analysis of the industry, including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. The rising number of automobiles is primarily driving the market growth. The Asia Pacific is the highest category spender by region that is driving the demand for the Diesel industry.

Industry Definition and Segmentation

Diesel fuel or diesel oil is a flammable liquid fuel mainly intended to power diesel engines. It is often made from crude oil fractions that are less volatile than gasoline. The fuel in diesel engines is ignited by the heat of compressed air in the cylinder, rather than by a spark as in gasoline engines, with the fuel sprayed into the hot compressed air. As a result, strong compression ignition properties are required for diesel fuel. The Diesel industry report comprises segments by end-user (transportation and industrial) and region (North America, Europe, Asia Pacific, the Middle East, and Africa, and South America).

The Asia Pacific Region is Driving the Growth of the Industry

The Asia Pacific holds the largest share in the industry due to the expanding number of vehicles in the region. Furthermore, the oil demand is rapidly rising in China and India. Average consumer spending has increased significantly because of the region's consistent economic development. As a result, businesses such as automobiles will rise, resulting in increased diesel fuel use.

The market is being driven by better economic growth and trade in emerging and developing countries, which is propelling the expansion of the commercial transportation sector. The various advantages of the fuel, including cheaper maintenance, more torque, fewer taxes, and improved fuel efficiency, are furthering the industry's development. Moreover, Diesel-powered vehicles degrade at a slower pace and do not need the use of coal, which saves money augmenting the market. Owing to the high energy density per unit volume, diesel is chosen in industries including heavy-duty commercial vehicles, power generation, and a variety of other industrial uses. Because of this, the industry is observing expansion. Diesel is predominantly employed in metropolitan areas, public transportation, private transportation, and freight transportation. With the expanding urban population, the number of automobiles is also rising, thus resulting in market development.

However, the adverse effects of the fuel on the environment are likely to hamper the industry's expansion.

Best Procurement Practices

The global Diesel industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by major global Diesel regions, such as engagement models, contract terms, and buyer and supplier negotiation levers. 

Category Management Studies

The thick liquid is heated before being refined; this procedure converts the liquid to vapour. After that, the vapour passes via a fractional distillation tower. The vapour begins to cool as it rises. When the steam reaches a specific temperature, the hydrocarbon chains transform back into liquid. Distillation plates at various heights of the tower collect the fluids as they emerge. The boiling point of the most extended hydrocarbon chains is around 400 degrees Celsius. The chains begin to convert back into a liquid as soon as they enter the distillation tower. This appears as asphalt or bitumen at the bottom and departs. Shorter hydrocarbon chains begin to liquefy as the vapour rises. When the vapour cools below 370 degrees Celsius, fuel oil emerges. As the steam cools more, the process continues up the tower, with various distillates emerging. Diesel fuel appears when the vapour temperature hits between 200 and 350 degrees Celsius. The vapour condenses on the distillation plates before being sucked into a diesel storage tank.

Initiatives by Market Players, Further Boosting the Diesel Market

The industry is being propelled by the rising oil and gas E&P investments, which are likely to provide the industry with a significant thrust. In addition, the market is seeing an increase in the deployment of hybrid power systems. Companies are embracing solar-diesel hybrid power systems as the cost of solar PV systems decreases, which will likely provide a market opportunity.

The regional markets for the industry can be divided into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.

Key Industry Players Mentioned in the Diesel Industry Report

• Shell plc
• Exxon Mobil Corporation
• BP plc
• TotalEnergies SE
• Chevron Corp.

Market Landscape

The diesel market is fragmented. The tactics used by these companies to grow their business into new areas are Expansions, acquisitions, partnerships, and new product development. Furthermore, they have been concentrating on organic and inorganic growth plans and contracts and investments.

Key Initiatives by Companies

• IRVING, Texas (CBSDFW.COM) - ExxonMobil and Romgaz have agreed to sell its Romanian upstream affiliate, ExxonMobil Exploration and Production Romania, for more than $1 billion, pending Romanian government permission.
• AMES, Iowa, and SAN RAMON, Calif., Feb. 28, 2022 — there was an announcement by Chevron Corporation (NYSE: CVX) and Renewable Energy Group, Inc. (NASDAQ: REGI) ("REG") that they had reached an agreement under which Chevron would buy all of REG's outstanding shares for USD 3.15 billion in cash, or USD 61.50 per share.