Diesel Fuel Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented by End User (Transportation, Industrial, and Others), By Region, Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 252.97 Billion
CAGR (2026-2031)	4.25%
Fastest Growing Segment	Industrial
Largest Market	Asia Pacific
Market Size (2031)	USD 324.73 Billion

Market Overview

The Global Diesel Fuel Market will grow from USD 252.97 Billion in 2025 to USD 324.73 Billion by 2031 at a 4.25% CAGR. Diesel fuel is a liquid petroleum product produced through the fractional distillation of crude oil and is specifically formulated for use in compression-ignition engines due to its high energy density. The primary drivers supporting market growth include the expanding logistics and heavy-duty transportation sectors which rely heavily on diesel for long-haul freight and shipping operations. Furthermore, the continuous development of industrial infrastructure and construction activities globally creates a sustained demand for this fuel to power heavy machinery and backup generators.

One significant challenge impeding market expansion is the enforcement of stringent environmental regulations aimed at curbing nitrogen oxide and particulate emissions. These regulatory measures are accelerating the adoption of alternative energy sources and electrification within the automotive industry. However, demand remains robust in key sectors. According to the International Energy Agency, in 2025, gasoil and jet fuel are projected to account for half of the anticipated 830,000 barrels per day increase in global oil demand. This underscores the continued reliance on diesel for essential economic functions despite the transition toward cleaner energy solutions.

Key Market Drivers

The expansion of global freight and logistics networks stands as a primary catalyst for the diesel fuel market, driven by the indispensable role of heavy-duty trucking in the supply chain. As e-commerce platforms proliferate and consumer expectations for rapid delivery intensify, the volume of goods transported via road networks has surged, cementing diesel as the dominant energy source for long-haul fleets due to its superior torque and thermal efficiency. This reliance is particularly evident in major economies where trucking remains the backbone of freight movement. According to the American Trucking Associations, August 2025, in the 'American Trucking Trends 2025' report, trucks moved 11.27 billion tons of freight in 2024, underscoring the massive scale of logistical operations dependent on this fuel. The intricate connection between last-mile delivery services and intermodal freight transport ensures that diesel consumption remains high even as fleets explore transitional technologies.

Accelerated infrastructure development and urbanization projects further bolster market demand, particularly in emerging economies investing heavily in modernization. The construction sector relies extensively on diesel-powered heavy machinery, such as excavators, bulldozers, and cranes, which require the high power output that alternative fuels currently struggle to provide. This trend is amplified by government-led initiatives to expand road networks, bridges, and public utilities, which directly correlate with increased fuel uptake. For instance, according to the Economic Times, January 2025, India's diesel demand grew by 5.85% year-on-year in December 2024, reaching 8,048 thousand metric tonnes, driven largely by industrial activity and infrastructure needs. While regulatory pressures persist, the overall trajectory of energy consumption remains upward. According to the International Energy Agency, in December 2024, global oil demand growth was projected to accelerate to 1.1 million barrels per day in 2025, highlighting the continued expansion of energy needs that support these industrial drivers.

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Key Market Challenges

The enforcement of stringent environmental regulations directed at curbing nitrogen oxide and particulate emissions stands as a formidable challenge impeding the expansion of the global diesel fuel market. These regulatory frameworks are actively reshaping the automotive and transport industries by mandating lower emission limits and incentivizing the adoption of cleaner energy alternatives. As a result, there is a structural decline in demand within the passenger vehicle segment, a sector that historically provided significant sales volume for diesel distributors. Manufacturers are responding to these pressures by reducing the production of diesel engines in favor of electric and hybrid powertrains, thereby narrowing the accessible customer base for this fuel.

This trend of diminishing market penetration is clearly reflected in recent industrial data. According to the 'European Automobile Manufacturers’ Association', in '2024', the market share of new diesel passenger car registrations in the European Union fell to approximately 11.9%, dropping behind battery-electric vehicles. This substantial contraction illustrates how regulatory headwinds are directly eroding consumption in key regional markets. Consequently, the diesel sector is increasingly forced to rely on heavy industrial and long-haul logistics for revenue, restricting its broader growth potential as the light-duty vehicle segment transitions away from fossil fuels.

Key Market Trends

The rapid expansion of Renewable Diesel (HVO) production is reshaping the global market as a critical strategy for decarbonization within the heavy-duty transport sector. Unlike traditional biodiesel, HVO serves as a drop-in replacement that requires no engine modifications, allowing logistics companies to immediately reduce carbon footprints while utilizing existing fleet infrastructure. This shift is driving major producers to scale capacity aggressively to meet the rising demand from industries mandated to lower emissions without transitioning to electric powertrains. For instance, according to Neste, February 2025, in the 'Financial Statements Release 2024', the company's renewable products sales volume reached 3.73 million tons in 2024, reflecting the surging industrial uptake of these bio-based fuel alternatives to maintain environmental compliance.

Concurrently, the adoption of smart fuel monitoring and telematics systems has become a vital trend for optimizing operational efficiency and security. Fleet operators are increasingly integrating AI-driven monitoring solutions to combat fuel theft and unauthorized usage, which remain significant cost burdens in the diesel supply chain. These technologies provide real-time visibility into tank levels and consumption patterns, enabling proactive management of assets and mitigating financial losses from pilferage. The urgency of this trend is highlighted by operational risks; according to Frotcom, May 2025, in the article 'How Telematics Can Help Prevent Fuel Theft', industry analysis reveals that fuel theft accounts for 5% to 6% of total fuel consumption in some fleets, necessitating the deployment of real-time tracking technologies to safeguard profit margins.

Segmental Insights

The Industrial segment is currently the fastest-growing category within the global diesel fuel market, primarily due to the expanding requirements of the construction and mining sectors. Rapid urbanization and infrastructure development in emerging economies have significantly increased the dependency on heavy machinery that utilizes diesel for its high efficiency. Furthermore, the critical need for reliable backup power generation to ensure continuous manufacturing operations supports this upward trend. This sustained demand highlights the essential role of diesel in powering heavy-duty industrial applications where consistent energy availability is paramount.

Regional Insights

Asia Pacific holds a dominant position in the Global Diesel Fuel Market, driven primarily by rapid industrialization and extensive infrastructure development in key economies such as China and India. According to insights from the International Energy Agency, the region’s high consumption is propelled by an expanding commercial transportation sector and the intensive use of heavy machinery in construction and mining operations. Additionally, the continued reliance on diesel for backup power generation in developing areas further fortifies demand. These fundamental economic drivers ensure the region remains the primary contributor to global market volume.

Recent Developments

• In July 2024, Eni, through its subsidiary Enilive, solidified a collaboration with the long-distance road transport operator Itabus to supply HVOlution, a diesel biofuel made from 100% renewable raw materials. Under this agreement, the transport company committed to powering its fleet of buses in Italy exclusively with this renewable diesel, which is produced from waste feedstocks like used cooking oils and animal fats. This partnership aims to reduce greenhouse gas emissions in the passenger transport sector and demonstrates the practical viability of hydrogenated vegetable oil as a drop-in solution for heavy-duty engines within the global diesel fuel market.
• In June 2024, Phillips 66 announced the full commercial conversion of its San Francisco refinery into the Rodeo Renewable Energy Complex, marking a significant milestone in the renewable diesel market. The facility increased its production rates to approximately 50,000 barrels per day, positioning the company as a leading producer of renewable fuels. This project, known as Rodeo Renewed, allows for the processing of lower carbon intensity feedstocks such as used cooking oil, fats, and vegetable oils. The site is designed to produce renewable diesel and sustainable aviation fuel, supporting the growing demand for lower-carbon energy solutions on the West Coast.
• In April 2024, Repsol commenced large-scale production of renewable fuels at its industrial complex in Cartagena, Spain, becoming the first facility on the Iberian Peninsula dedicated exclusively to 100% renewable fuels. The company invested €250 million in the construction of this unit, which boasts a production capacity of 250,000 tons per year. The plant manufactures renewable diesel and sustainable aviation fuel from organic waste, such as used cooking oil and agri-food residues. This launch represents a strategic step towards decarbonizing the transport sector, as these fuels can be utilized in existing vehicles and infrastructure without modification.
• In February 2024, Neste entered into a strategic collaboration with two fuel distributors, Altens and Bolloré Energy, to introduce its renewable diesel to the French market. This partnership enabled the sale and distribution of Neste MY Renewable Diesel to transport companies, public fleets, and construction sectors across France for the first time. The initiative addresses the significant greenhouse gas emissions from the country's transportation sector by offering a fuel that can reduce emissions by up to 95% over its life cycle compared to fossil diesel. This expansion underscores the growing European demand for sustainable fuel alternatives that require no engine modifications.

Key Market Players

• Chevron Corporation
• Exxon Mobil Corporation
• PetroChina Company Limited
• Qatar Petroleum
• Shell Plc
• Reliance Industries Ltd
• Saudi Arabian Oil Co
• SK Energy Co., Ltd.
• NK Rosneft' PAO
• BP plc

By Region

North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Diesel Fuel Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Diesel Fuel Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE