USD 739.88 billion
Report ID:
SQMIG10D2053 |
Region:
Global |
Published Date: July, 2025
Pages:
187
|Tables:
67
|Figures:
74
Global Crude Oil Market size was valued at USD 739.88 billion in 2023 and is poised to grow from USD 751.72 billion in 2024 to USD 853.5 billion by 2032, growing at a CAGR of 1.6% during the forecast period (2025-2032).
The global crude oil market remains a crucial supporter of the global energy sector pivoted around development into industrialization, the needs of transportation, and increased energy initiatives in emerging economies. Some recent drivers of demand for crude oil include increased global demand for energy and oil in particular (especially in the Asia-Pacific region); increasing trends toward urbanization; increased demand of petrochemicals. Oil consumption is boosted by rapid economic growth, particularly by/reflected in the new industrial superpowers of India and China, while the global shipping and aviation remain dependent on refined crude supplies. Not to mention, OPEC+ production decisions and geopolitical developments in oil-rich regions continue to converge and drive sentiment on pricing and supply—contributing largely to momentum within the oil market.
In regard to restraints, it must also be noted, that environmental concerns and global framework shifts to clean energy are also creating headwinds. Global regulations limiting carbon emissions, investments in renewable energies, and adherence to international targets (such as the Paris Agreement) are aggressively reducing governmental and corporate reliance on fossil fuels. Technological advancements in electric vehicles (Evs) and the eventual acceptance of systems resulting in energy savings and efficiency reduce the overall demand for oil and products made from oil (explored in detail in the transportation sector). In addition, oil price instability driven by political unrest and instability (particularly due to events that destabilize potential major supply regions including the Middle East and parts of Africa) continues to inject uncertainty in investments and planning horizons into the future.
Owing to all this uncertainty, the market continues to illustrate change via technological improvements in extraction methods such as hydraulic fracturing and enhanced oil recovery (EOR) techniques, to access new reserves and extending the economic life of old oil fields. In addition, national oil companies are concentrating on investing in downstream capacities that both minimize costs and maximize revenue, allowing them to establish diversified revenue streams. Even though, the energy transition - and decarbonization efforts overall - will create headwinds in the long-term, crude oil is going to continue to be one of the key energy sources for the foreseeable future, particularly for hard-to-abate segments such as heavy industry and aviation. The crude oil market will be characterized by determinates like industrial demand being complemented with restraints such as decarbonization trends.
How AI is Transforming Crude Oil Market?
AI is changing the crude oil industry by making everything from exploration to production to trading, smarter, faster, and cheaper. In upstream, machine learning algorithms analyze seismic data to increase accuracy on drilling targets, thus decreasing non-productive time and reducing operational costs. Predictive maintenance systems take sensor data from all equipment and pipelines to alert operators to imminent failures. AI applications, like sentiment analysis and satellite monitoring, provide traders with operational insights based on real-time data about geopolitical events and supply trends throughout the globe to improve risk management.
At the June CERAWeek conference, industry participants uniformly agreed that AI is boosting drilling efficiency, with Devon Energy (up 25% on well productivity) and Chevron (using AI-powered drones for remote monitoring, driving significant downtime reduction) providing specific examples. This shift from hypothesis to realization proves that AI is making tangible improvements in output and cost efficiency throughout the current crude oil environment.
Market snapshot - (2025-2032)
Global Market Size
USD 739.88 billion
Largest Segment
Light Oil
Fastest Growth
Light Oil
Growth Rate
1.6% CAGR
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Global Crude Oil Market is segmented by Type, Composition, Extraction Process, Application, End Use, Distribution Channel and region. Based on Type, the market is segmented into Light Oil, Medium Oil and Heavy Fuel Oil. Based on Composition, the market is segmented into Hydrocarbon Compounds, Non-Hydrocarbon Compounds, Inorganic Salts and Others. Based on Extraction Process, the market is segmented into Conventional and Unconventional. Based on Application, the market is segmented into Transportation, Power Generation, Industrial Use and Others. Based on End Use, the market is segmented into Automotive & Transportation Industry, Energy & Power Industry, Chemical & Petrochemical Industry, Aviation & Shipping Industry and Others. Based on Distribution Channel, the market is segmented into Online and Offline. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
How are changing preferences, environmental regulations, and technological advancements shaping the market dynamics between light and medium crude oil?
Light crude oil has always held a sizable market share. It is preferred because it produces more valuable products—like gasoline—with a higher yield. Light crude oil is preferred because it has a lower density and sulphur content. And it might still be in charge if petrol demand is strong. Improvements in technology may affect the way light crude oil is processed. The efficient processing of heavy or extra heavy crude oils may become more feasible as refining technology develops.
With the surge of environmental awareness and stringent regulations, medium crude oil has gained immense popularity. This marked rise of medium grade crude may potentially affect the market for refined products due to the emergence of electric vehicles and changes in transportation preferences. Such shifts could influence the consumption of light crude oil, which is highly favoured for petrol. Moreover, the evolution of medium crude would largely depend on the financing of exploration and production areas. These investment determinations are invariably swayed by geopolitical stability and economic factors.
How are sustainability trends and technological advancements influencing the future of petroleum-based transportation and industrial energy sectors?
For many years the transportation industry has heavily relied on petroleum for producing gas, diesel and aviation fuel. With ongoing worldwide population increases and greater mobility needs, requirements for these fuels stay consistent. Electric automobiles have the opportunity to challenge the primacy of transportation fuels. However, the speed of this shift will affect factors like infrastructure improvements, governmental plans, and user priorities.
Some industries particularly connected to Industrial end-use industries options appear poised to expand rapidly. The emphasis on sustainability and diminished carbon output could motivate capital into sectors like solar and wind energy. Businesses centered around reusing and benefiting from waste, including plastics and other substances from petroleum, may see growth as circular economic models become more widespread and accepted.
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How is North America being Dominating in Crude Oil Industry?
The continent still produces and consumes crude oil at a substantially high rate in the early 2020's era. The IEA reported United States crude oil production to be ~13.2 Mt/d in 2024 which is expected to be ~13.5 Mt/d in 2025; in addition to slowly rising output from both Canada and Brazil as support. Entering 2030, North America also leads in spare production capacity. Demand from OECD Americas is anticipated to grow modestly, with a total of ~0.1 Mb/d in 2025, reflecting stable usage in transportation and petrochemical uses.
U.S. Crude Oil Market
ExxonMobil and Chevron dominate U.S. oil production, thanks to vast upstream assets, shale expertise (e.g. Permian), and integrated refining/trading systems. Recently, the U.S. EIA confirmed record domestic output surpassing 13 mb/d in 2024, reinforcing their leadership in both production and exports.
Canada Crude Oil Market
Enbridge leads midstream with ~ 3 Mb/d of pipeline infrastructure supported by the federal government with support of the Trans Mountain expansion, while CNRL is the largest Canadian heavy-oil producer is potentially sitting on the largest undeveloped reserve of heavy oil in the Western Canadian Sedimentary Basin.
Why Asia Pacific Fastest Growing Crude Oil Market in 2024?
Consumption and demand growth are dominated by Asia-Pacific region. The IEA estimates roughly ~90% of net global demand growth comes from this region. In 2024, Asia's non feedstock demand increased led by India (+3.4%) and Southeast Asia (+2.6%), albeit China's growth slowed. OPEC estimates India will see the highest demand growth at +3.39% in 2025 globally.
China Crude Oil Market
Sinopec, one of state-owned oil companies, drilled the deepest well in Asia (~9,432 m) in Xinjiang and states it plans to have 5,000 EV charging stations deployed by 2025. Moreover, Shandong province's tax rebates for "teapot" refineries, including those from Sinopec, will help promote refiners' resilience during diminished fuel demand and low margins against crude.
India Crude Oil Market
ONGC produces about ~70% of India's domestic crude and conducts exploration in 26 basins. Indian government's new deepwater KG Basin project is moving ahead through the Make in India model; new project will be producing ~45,000 bpd and is projected to decrease import dependence by 7%.
South Korea Crude Oil Market
KNOC, state-owned oil and gas explorer in South Korea, is estimated to have ~600 MMbbl oil reserves. It leads the government, new East Sea drilling project, approved by President Yoon in June 2024, to determine if, and how much, offshore deposits offshore (~3.5–14 billion bbl) claims, bolstering national energy security and reducing reliance on import.
Why Europe is declining crude demand?
Europe is flat to slightly declining in crude demand. OECD Europe demand is expected to reduce because of efficiency advances, EV adoption, and industrial cooling. The imports from non-Middle East sources show changing trade flows. Middle Eastern crude is being replaced by U.S. and South American oils.
Germany Crude Oil Market
Germany's largest upstream producer, Wintershall Dea - now part of Harbour Energy - produces crude from the Mittelplate oil field (the largest domestic oil situated oil field in Germany (~54% of production), has approval to expand. It has been approved to develop extra southern section to increase production possibly by 2025.
France Crude Oil Market
TotalEnergies, the largest oil & gas firm in France (partially government backed), is increasingly going into renewables. In January of 2025, TotalEnergies signed France's first 15-year PPA - to supply STMicroelectronics with 1.5 TWh of clean firm power supply using wind and solar parks (75 MW) capacity (75.0MW).
UK Crude Oil Market
Shell's joint venture with Equinor is consolidating assets in the UK North Sea into a single company with the aim of making cash flow among declining resources, under strict fiscal policies. UK regulators approved Shell’s Penguins and BP’s Murlach fields, that are expected to start coming on line in 2025, while sustaining domestic output close to 660,000 bpd.
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Crude Oil Market Drivers
Rising Global Energy Demand:
Technological Advancements in Extraction:
Crude Oil Market Restraints
Shift Toward Renewable Energy:
Oil Price Volatility and Geopolitical Risks:
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The competitive environment of the crude oil market is ever changing with a range of important players, national and international, exploring, producing, refining and distributing crude oil. This includes National Oil Companies (NOCs) from the world’s oil producing countries such as Saudi Aramco that can control large reserves and production levels; International Oil Companies (IOCs), such as ExxonMobil and Shell, which provide competition through their global operations and diversity of portfolio; and Independent Exploration and Production (E&P) companies specializing in either specific regions of the world or offering an unconventional resource that adds dynamism into the competitive environment.
Top Player’s Company Profiles
Recent Developments in Crude Oil Market
Is global oil supply exceeding demand?
According to the International Energy Agency (IEA), global oil production capacity is set to reach ~114.7 Mbpd by 2030, outpacing projected demand (~105.5 Mbpd)—creating a potential surplus of nearly 9 Mbpd. This signals ongoing oversupply risk and downward pressure on prices.
Are electric vehicles slowing oil demand?
EV sales jumped to 17 million in 2024 and are projected above 20 million in 2025, expected to displace ~5.4 Mbpd of oil by 2030. This structural shift is narrowing transport-sector fuel growth especially in advanced economies.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.
SkyQuest's report states that the crude oil market growth is driven by increasing global energy demand, technological advancements in extraction methods, and an increase in upstream spending in emerging economies that will occur during the assessment period of 2023 - 2032. The market is inhibited by the global transition to renewable energy as well as fluctuating oil prices; both factors will deter long-term investment in the industry. North America remains a leader in the crude oil market due to massive shale reserves, energy infrastructure, and record levels of production. The Asia Pacific region is growing quickly, as governments' fostering of exploration projects, increased energy demands, and green energy requirements. Increasing trends that will contribute to potential future opportunities for market players include electric vehicles, the integration of AI into oilfield operations, and building petroleum strategic reserves.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 739.88 billion |
Market size value in 2032 | USD 853.5 billion |
Growth Rate | 1.6% |
Base year | 2024 |
Forecast period | (2025-2032) |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Crude Oil Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Crude Oil Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Crude Oil Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
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