Canada Road Transportation And Sustainable Fuel Market Size, Share, Opportunities, And Trends By Fuel Used (Oil Fuel, Biofuel, Natural Gas, E Fuels, Hydrogen Fuel), And By Province - Forecasts From 2024 To 2029

The Canadian transport industry is responsible for commercial vehicles for trade coupled with passenger and public transport vehicles like buses. Transportation is the most important mode of passenger travel and goods trade, which can be intercity and local transportation, intra-provincial transportation activities, and trade between the USA and Canada. Public transport is also a major part of road transport in Canada like buses, and cabs which are used by the general public to travel every day. Also, travel by flight is part of transportation in Canada.

However, these transportation mediums use combustion engine fuels which can be costly and harmful to the environment. Therefore, Canada is switching to more efficient and eco-friendly fuel options that are sustainable, like biofuels, natural gas, and others, and promoting the use of them instead of combustion engine fuels, fueling the market growth.

INTRODUCTION:

The transportation and sustainable fuel market in Canada is driven by the rapid growth in the adoption of EVs as a substitute for combustion engine vehicles for passenger, public transport, and commercial use, coupled with rising innovations in the field of sustainable fuel options. Canada does trade using commercial vehicles but now that more efficient and eco-friendly sustainable fuel options are available more EV vans and trucks for goods transportation are being developed and are being used in daily transport. Also, the development of sustainable aviation fuel and hydrogen fuel-based vehicles to reduce harmful emissions for transportation is responsible for propelling the market.

MARKET DRIVERS:

• The rapid rise in innovations for sustainable fuels is predicted to propel the market:

Sustainable fuel is an alternative fuel that reduces emissions from transportation. For instance, natural gas, which emits only half the amount of greenhouse gas as coal in electricity generation, and replacing coal can achieve a significant amount of emission reductions and can be an eco-friendly option to use.

Biofuels, natural gas, and hydrogen fuel are more of these sustainable fuels that have been developed over the years and are helping to reduce harmful emissions in the environment. These more cost-efficient and eco-friendly options contribute to Canada’s transportation like air travel, commercial vehicles for trade, and public transport vehicle industries to switch to these sustainable fuels. The use of sustainable fuels is further anticipated to rise with the rise of commercial vehicles for trade.

• The growing popularity of EVs is anticipated to grow the market.

The reason for the major growth in the sustainable fuel market is because of the rapid increase of the popularity of EVs that use sustainable fuels such as hydrogen fuel which produce less harmful emissions and are more time and cost-efficient. Canada where most of its trade is by road and the majority of trade is with the USA as they share a border so they need a more cost-efficient and eco-friendly option for commercial vehicles.

The existing combustion fuel engines are harmful to the environment, and their fuel prices are rising at rapid growth. Governments are taking significant steps to improve overall infrastructure for sustainable fuel stations to refuel EVs. 

MARKET RESTRAINT:

The majority of transportation in Canada is done using commercial vehicles for trade, and public transport like buses, and airplanes for intercity or international travel and they need to be refuelled during long-distance travel multiple times during the journey. However, there is not sufficient infrastructure for these new sustainable fuels to refuel vehicles in many underdeveloped regions and low-density populated regions which can be a hindrance during transportation. 

Additionally, people can doubt if these sustainable fuels are good for vehicles or not due lack of awareness of these newly developed sustainable fuels. Therefore, these factors can affect the market negatively in the forecast period.

PRODUCTS OFFERED BY KEY COMPANIES:

• TotalEnergies: Natural gas is provided by Total Energies which is a key energy source for the energy transition it plays a major role in electricity generation thanks to its flexibility and it can meet rapid growth in demand for the electrification uses of natural gas. 
• Shell Brasil: Shell V - Power Ethanol is a biofuel by shell that acts instantly to clean and protect engine components. It helps to remove waste accumulated inside the engine that can compromise its proper functioning.

Key Developments:

• In December 2022, Shell Canada Limited and its fully owned subsidiary Canadian Mobility Services Limited signed an agreement with Empire Company Limited through its subsidiary Sobeys Capital Incorporated to buy 56 fuel and retail sites that are nearby grocery stores of Sobeys and its affiliates in western Ontario and Canada so that more Canadians can enjoy the premium products and high-quality offers.

Segmentation:

• By Fuel Used
  • Oil Fuel 
  • Biofuel 
  • Natural Gas 
  • E Fuels 
  • Hydrogen Fuel
• By Province
  • Ontario
  • Quebec
  • British Columbia
  • Alberta
  • Others