Crude oil is a thick, flammable liquid consisting of a complex mixture of hydrocarbons derived from petroleum which is utilized as a source of energy in various sectors including transportation, chemical, and industrial. It finds applications as a heating oil, jet fuel, gasoline, lubricants, asphalt base, and petrochemical feedstock. The rising energy needs owing to rapid industrialization and urbanization along with growing transportation sector have significantly increased the demand for crude oil across the globe. The global crude transportation market is estimated to be valued at US$ 21.58 Bn in 2023 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The increasing demand for crude oil is one of the key trends that is expected to drive the growth of crude transportation market during the forecast period. Rapid industrialization and economic growth especially in developing regions such as Asia Pacific and Middle East have significantly increased the energy consumption. With depleting fossil fuel reserves, crude oil continues to remain the primary source to meet growing energy demand. This has augmented the need for efficient transportation of crude oil from producing to consuming regions via pipelines, railcars, trucks, and tankers which is propelling the crude transportation market growth. Additionally, recovery in shale oil production supported by advance extraction techniques will further boost the crude transportation volumes across major markets worldwide.
Segment Analysis
The global crude oil transportation market is dominated by tankers. Tankers account for over 60% of the total market share as they are extensively used for shipping crude oil across regions. Tankers provide flexibility in transporting large volumes of crude oil in an efficient and cost effective manner over long distances. Pipelines hold the second largest market share and are mostly used for transportation of crude oil over land from production sites to local refineries or terminals. Rail and trucks account for a lesser share as they are utilized for regional distribution or small volume transfers over shorter distances. The tankers segment is expected to continue dominating the market during the forecast period owing to rising seaborne trade of crude oil and cost competitiveness over alternatives.
Key Takeaways
The global crude transportation market is expected to witness high growth over the forecast period supported by rising oil demand and increasing long-distance seaborne trade of crude.
Regional analysis – North America currently dominates the global market led by the United States owing to large-scale crude oil production from shale reserves and reliance on marine trade routes. The Asia Pacific region is anticipated to showcase highest growth on account of rising energy needs of India and China coupled with expanding import volumes.
Key players – Key players operating in the crude oil transportation market are ExxonMobil Corporation, Royal Dutch Shell, Chevron Corporation, BP plc, TotalEnergies SE, ConocoPhillips, China National Petroleum Corporation, Saudi Aramco, Rosneft Oil Company, Valero Energy Corporation, Phillips 66, Marathon Petroleum Corporation, PetroChina Company Limited, Kinder Morgan Inc., Enbridge Inc. The industry leaders are focusing on capacity additions, infrastructure development and consolidation to capitalize on opportunities arising from increasing global oil trade.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it