Wednesday, 18 March 2015

Transportation Fuel Market - Global Industry Analysis and Forecast 2014 – 2020

Fuels, either fossil or renewable in nature, that are used to power a mode of transportation are known as transport fuels. Any engine installed in a car, truck or an airplane requires a source of power generation, which can only be done if there is a fuel source to propel the engine. The evolution of transportation fuel can be dated back to the advent of Industrial Revolution, which brought about mechanical innovation. This also influenced the way man and material travelled across distances, and the need for covering long journeys in a short while grew quickly. As railway engines developed during 1763 to 1775, the need for diesel increased with it. Further down the timeline steam engines were later found to propel ships and cars started running on internal combustion engines. Technology progressed and developed air travel by the time the two World Wars were over. By the dawn of the new millennium, further advancement led to running of engines on bio-based fuels and/or renewable energy sources. This decade has already seen a minor part of the transportation sector being propelled by electricity in the form of battery recharging stations.
The basic need for fuel to propel engines and the need for transportation are also the most important drivers of the transportation fuel market. Rise in population, increasing purchase power and rising standard of living are also responsible for the growth of the market. Demand can also be attributed to the growing number of automobiles, railway lines, ships and airplanes that are needed for the transportation of personnel and materials across regions. A major drawback of transportation fuels is their influence on the environment. Since most transportation fuels used till today are fossil fuel-based, they contribute more towards harming the environment. Furthermore, transportation fuels need to be refined from crude oil to generate high quality fuels in order to avoid corrosion of engines. Refining is a major step in making transportation fuels viable for use, which adds to the cost of the fuel and further deteriorates the environment in the form of effluents, both air and water based. Technological development will see a considerable increase in the use of bio-based and/or renewable energy sources to power engines, in the years to come.
Segmentation of the transportation fuel market can be done on the basis of applicable modes of transportation that they used in, such as, road, rail, air and sea. Despite this transportation fuel can be bifurcated based on the actual products, namely, aviation turbine fuel, compressed natural gas (CNG), gasoline, diesel, kerosene and liquid oxygen. Based on the type of engine, the market is fragmented into combustion engines and electrical engines. Combustion engines can be further subdivided into internal combustion, external combustion and air-breathing combustion.
Geographically, transportation fuel is not processed across the globe, but is demanded by and supplied to every country that runs transportation services within it. The regions covered are North America, Europe, Asia Pacific and Rest of the World (RoW).
Some of the key players in the processing of transportation fuel across the globe are: ExxonMobil Corporation, Royal Dutch Shell plc, BP plc, China Petroleum & Chemical Corporation (Sinopec Limited), Saudi Arabian Oil Company, Valero Energy Corporation, Chevron Corporation, Petróleo Brasileiro SA (Petrobras) and Phillips 66.

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