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Europe Aviation Fuel Market Size (2024 - 2029)

The European aviation fuel market is experiencing growth, driven by factors such as increased air travel due to lower airfare, improved economic conditions, and higher disposable incomes. The market has rebounded to pre-pandemic levels after being adversely affected by COVID-19. Efforts to boost the use of biofuels and the European Commission's initiative to significantly increase Sustainable Aviation Fuel by 2040 are expected to create substantial opportunities. Despite the challenges posed by the high and fluctuating costs of aviation fuel, Spain maintains the largest market size in Europe and is projected to retain its leading position.

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Market Size of Europe Aviation Fuel Industry

Europe Aviation Fuel Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 65.39 Billion
Market Size (2029) USD 91.36 Billion
CAGR (2024 - 2029) 6.92 %
Market Concentration Low

Major Players

Europe Aviation Fuel Market Major Players

*Disclaimer: Major Players sorted in no particular order

Europe Aviation Fuel Market Analysis

The Europe Aviation Fuel Market size is estimated at USD 65.39 billion in 2024, and is expected to reach USD 91.36 billion by 2029, at a CAGR of 6.92% during the forecast period (2024-2029).

  • In the medium term, several factors are driving the demand for jet fuel in Europe. These include a rise in air passengers due to recent reductions in airfare and the expansion of flight routes.
  • However, the growing adoption of electric and hybrid aircraft poses a challenge to this market growth.
  • Despite these challenges, the European Commission is pushing for increased mandates on sustainable aviation fuel (SAF) to curb greenhouse gas emissions. Such initiatives are poised to unlock substantial opportunities in the aviation fuel market.
  • Europe boasts the largest market size for aviation fuel, with the United Kingdom at the forefront. Given its current leadership, the UK is set to maintain its dominance in the coming years.

Europe Aviation Fuel Industry Segmentation

Aviation fuels are petroleum-based fuels or mixtures of petroleum and synthetic fuels that are used to power airplanes. They are subject to stricter regulations than fuels used for stationary purposes, such as heating and driving. They contain additives to improve or preserve characteristics vital to fuel management or performance.

The Europe aviation fuel market is segmented by fuel type, application, and geography. By fuel type, the market is segmented into air turbine fuel, aviation biofuel, and AVGAS. By application, the market is segmented into commercial, defense, and general aviation. The report also covers the market size and forecasts for the Aviation fuels market across major countries in the region. For each segment, the market sizing and forecasts have been done based on revenue (USD billion).

Fuel Type
Air Turbine Fuel (ATF)
Aviation Biofuel
Avgas
Application
Commercial
Defense
General Aviation
Geography
United Kingdom
Germany
Italy
France
Spain
Nordic
Turkey
Russia
Rest of Europe
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Europe Aviation Fuel Market Size Summary

The European aviation fuel market is poised for significant growth, driven by an increase in air travel demand due to affordable airfare, robust economic conditions, and rising disposable incomes. The market has rebounded to pre-pandemic levels after the setbacks caused by COVID-19, which included regional lockdowns and flight restrictions. A key factor propelling the market is the push towards integrating biofuels into the aviation sector, supported by initiatives from the European Commission to enhance the share of Sustainable Aviation Fuel (SAF) by 2040. Despite the promising growth trajectory, the market faces challenges from the high and fluctuating costs of aviation fuel. Spain emerges as a dominant player in the region, benefiting from its large domestic air market and increasing tourism, which bolsters jet fuel demand.

The commercial aviation segment is a major consumer of aviation fuel, accounting for a significant portion of airline operating expenses. The European Union's mandate to increase SAF usage is expected to drive substantial advancements in sustainable aviation biofuels, further influencing market dynamics. Spain's aviation fuel market is anticipated to experience notable growth, fueled by rising air passenger traffic and tourism, particularly from countries like France and the United Kingdom. The market landscape is moderately fragmented, with key players such as PJSC Gazprom, BP PLC, Shell PLC, TotalEnergies SE, and Neste Oyj. Initiatives like Turkey's algae-based jet fuel project and the UK's 'jet zero' strategy underscore the region's commitment to sustainable aviation practices, aligning with broader environmental goals.

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Europe Aviation Fuel Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Market Size and Demand Forecast in USD billion, till 2029

    3. 1.3 Recent Trends and Developments

    4. 1.4 Government Policies and Regulations

    5. 1.5 Market Dynamics

      1. 1.5.1 Drivers

        1. 1.5.1.1 Rising Air Passenger Traffic

        2. 1.5.1.2 Sustainable Aviation Fuel (SAF) Mandates

      2. 1.5.2 Restraints

        1. 1.5.2.1 High Volatile Fuel Costs

    6. 1.6 Supply Chain Analysis

    7. 1.7 Porter's Five Forces Analysis

      1. 1.7.1 Bargaining Power of Suppliers

      2. 1.7.2 Bargaining Power of Consumers

      3. 1.7.3 Threat of New Entrants

      4. 1.7.4 Threat of Substitute Products and Services

      5. 1.7.5 Intensity of Competitive Rivalry

    8. 1.8 Investment Analysis

  2. 2. MARKET SEGMENTATION

    1. 2.1 Fuel Type

      1. 2.1.1 Air Turbine Fuel (ATF)

      2. 2.1.2 Aviation Biofuel

      3. 2.1.3 Avgas

    2. 2.2 Application

      1. 2.2.1 Commercial

      2. 2.2.2 Defense

      3. 2.2.3 General Aviation

    3. 2.3 Geography

      1. 2.3.1 United Kingdom

      2. 2.3.2 Germany

      3. 2.3.3 Italy

      4. 2.3.4 France

      5. 2.3.5 Spain

      6. 2.3.6 Nordic

      7. 2.3.7 Turkey

      8. 2.3.8 Russia

      9. 2.3.9 Rest of Europe

Europe Aviation Fuel Market Size FAQs

The Europe Aviation Fuel Market size is expected to reach USD 65.39 billion in 2024 and grow at a CAGR of 6.92% to reach USD 91.36 billion by 2029.

In 2024, the Europe Aviation Fuel Market size is expected to reach USD 65.39 billion.

Aviation Fuel Market in Europe Report Snapshots

Europe Aviation Fuel Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)