Diesel Fuel Market Report and Forecast 2025-2034

The global diesel fuel market reached approximately USD 233.06 Billion in 2024. The market is projected to grow at a CAGR of 3.90% between 2025 and 2034, reaching a value of around USD 341.68 Billion by 2034.

Diesel Fuel Market Growth Rate

Diesel fuel refers to a complex mixture produced through the fractional distillation of crude oil. The different characteristics of the fuel include sulphur content and low-temperature operability properties, among others. Diesel fuel releases more energy on combustion as compared to gasoline.

The increased adoption of personal vehicles with diesel engines owing to the relatively inexpensive nature of the fuel as opposed to others is aiding the diesel fuel market expansion. Additionally, diesel produces significantly more torque as compared to petrol, allowing diesel engines to carry heavy loads, bolstering their utilisation for commercial applications. The expansion of the construction and e-commerce sector is providing lucrative growth opportunities to the market. The growing demand for retail, housing, and commercial spaces and the increasing popularity of online shopping owing to the various advantages offered are boosting the requirement for reliable modes of transportation, supporting the growth of the market.

Key Trends and Developments

Investments in infrastructure for the distribution of diesel fuel; diesel hybrid technologies; technological advancements in engine efficiency; and regulatory impacts and emission standards are the major trends impacting the diesel fuel market development

February 27th, 2024

The Ministry of Energy in Saudi Arabia announced the launch of clean diesel and Euro-5 compliant gasoline which signifies a significant step forward in the country's sustainability efforts.

February 8th, 2024

Bharat Petroleum Corporation Limited (BPCL) announced EPA-grade diesel which represents a strategic move to enhance India's energy sector.

October 26th, 2023

Indian Oil Corporation (IOC) announced the launch of India's first diesel and gasoline reference fuel which serves as standard benchmarks for testing and calibrating engines and fuel quality.

May 16th, 2023

Jio-bp announced a new diesel product which is designed to improve fuel efficiency in diesel-powered trucks and can save up to Rs 1.1 lakh per truck annually in India.

Investments in infrastructure for distribution of diesel fuel

Significant capital is invested in refineries that process crude oil into diesel fuel.

Increased focus on diesel hybrid technologies

These hybrids offer the long-range and high-torque advantages of diesel engines while reducing emissions and improving fuel efficiency.

Technological advancements in engine efficiency

Newer diesel engines are being designed to be more fuel-efficient and are capable of meeting stricter emission standards without sacrificing performance.

Regulatory impacts and emission standards

Regulations like the Euro 6 standards in Europe are accelerating the development and adoption of cleaner diesel technologies.

Diesel Fuel Market Trends

The Euro 6 standards, implemented across the European Union, represent stringent regulations aimed at reducing harmful emissions from vehicles, including those powered by diesel engines. Euro 6 standards significantly reduce the allowable limits for exhaust emissions of nitrogen oxides (NOx), particulates, and other pollutants from diesel engines. This has necessitated the development of advanced technologies to meet these stringent criteria without compromising engine performance or fuel efficiency.

Market players in diesel fuel market are setting new benchmarks in the energy sector. Bharat Petroleum Corporation Limited (BPCL) announced a significant advancement in India's energy sector by launching domestically produced EPA-grade diesel in February 2024. This new development is crucial as it marks a shift towards enhancing India's refining capabilities and reducing dependence on expensive imports for high-quality diesel.

Diesel Fuel Industry Segmentation

“The EMR’s report titled Diesel Fuel Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Product

• Petroleum Diesel
• Synthetic Diesel
• Biodiesel
• Diethyl Ether
• Hydrogenated Oils and Fats

Market Breakup by Application

• Passenger Vehicles
• Commercial Vehicles

Market Breakup by End Use

• Marine Industry
• Transportation Industry
• Others

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Diesel Fuel Market Share

Petroleum diesel demand is expected to increase due to its growing usage in commercial and industrial sectors

Petroleum diesel holds the highest share due to its widespread use in various commercial and industrial applications. It's the standard fuel used in large-capacity vehicles and equipment, derived from crude oil through fractional distillation. This type of diesel is preferred for its energy density and efficiency in powering heavy machinery, trucks, and buses.

Biodiesel emerges as the second most significant segment in the market. Biodiesel is made from renewable resources like vegetable oils and animal fats, offering an environmentally friendlier alternative to petroleum diesel. Biodiesel is particularly notable for its lower emissions profile and its role in reducing dependency on fossil fuels.

The transportation sector maintains its dominance in the market due to the increased implementation of diesel in long-haul transportation and heavy-duty applications

The transportation sector is expected to account for a significant diesel fuel market share over the forecast period. This growth can be attributed to the increasing preference for diesel fuel in freight and long-haul transportation owing to its range and energy density. The utilisation of diesel fuel by the transportation sector is also increasing due to the comparatively lower requirements for refuelling. The rise in an on-road fleet of buses, trucks, and cars is further bolstering the requirement for diesel fuel.

The marine sector is expected to grow significantly in the diesel fuel market due to rising usage of diesel in large vessels such as cargo ships, tankers, and large passenger ships. Diesel engines in these applications are valued for their reliability and efficiency over long voyages.

Leading Companies in Diesel Fuel Market

The market players are launching innovative diesel products which align with global standards to gain a competitive edge in the diesel fuel market

Chevron Corporation.

Chevron Corporation, headquartered in California, United States, specialises in motor and jet fuel, liquified natural gas, energy efficiency solutions, diesel fuel, renewable fuels, and additives and petrochemicals, among others.

Reliance Industries Limited.

Reliance Industries Limited, headquartered in Maharashtra, India, specialises in petroleum refining, hydrocarbon production and exploration, and telecommunication. As an organisation, Reliance has adopted the ethos of turning adversity into opportunity.

Marathon Petroleum Corporation.

Marathon Petroleum Corporation, headquartered in Ohio, United States, is one of the leading petroleum transportation, refining, and marketing companies. Marathon is dedicated to providing high-quality products to its customers.

Shell Plc.

Shell Plc, is one of the largest energy companies in the world which operates in all areas of the oil and gas sector including exploration, production, refining, distribution, marketing, and petrochemicals.

Other market key players include Saudi Arabian Oil Co., Petrochina Company Limited, ExxonMobil Corporation, BP Plc, Valero Energy Corp., Neste Oyj, and PJSC Lukoil, among others.

Diesel Fuel Market Analysis by Region

North America leads the market due to rising investment by several government bodies

North America holds a significant share of the market owing to the increasing investments by the regional governments towards strengthening their military. The strong presence of various key market players including Chevron Corporation and Marathon Petroleum Corporation, among others, is further aiding the market growth in the region.

On the other hand, the Asia Pacific is anticipated to witness significant growth in the diesel fuel market over the forecast period owing to the rising requirements from agriculture, construction, mining, and manufacturing sectors in the region. The expansion of the transportation sector due to rapid population growth is also bolstering the diesel fuel market demand. The increased utilisation of diesel fuel can also be attributed to the ability of vehicles operating using diesel to cover long distances without requiring frequent refuelling.