Aviation Fuel Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 197.42 Billion |
| Market Size (2029) | USD 281.96 Billion |
| CAGR (2024 - 2029) | 7.39 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia-Pacific |
Major Players.webp)
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Aviation Fuel Market Analysis
The Aviation Fuel Market size is estimated at USD 197.42 billion in 2024, and is expected to reach USD 281.96 billion by 2029, growing at a CAGR of 7.39% during the forecast period (2024-2029).
- Over the medium term, the increasing demand for air travel and an increasing fleet of aircraft is expected to drive the market during the forecasted period.
- On the other hand, the increasing environmental concerns for air pollution are expected to hinder the growth of the market during the forecasted period.
- Nevertheless, the increasing advancements in sustainable aviation fuel technology are expected to create huge opportunities for the aviation fuel market.
- Asia-Pacific is expected to be a dominant aviation fuel market region due to the increasing air travel and aircraft fleets in the region.
Aviation Fuel Market Trends
Aviation Turbine Fuels Expected to Dominate the Market
- Aviation Turbine Fuel (ATF), commonly known as jet fuel, is a petroleum-derived fuel with a composition resembling kerosene. It is available in different grades globally, including Jet A, Jet A-1, and Jet B, with Jet A-1 being the most commonly utilized. Jet A-1 is compatible with a wide range of aircraft turbine engines. It exhibits a minimum flash point of 38 degrees Celsius (100°F) and a maximum freeze point of -47 degrees Celsius.
- Aviation turbine fuels are used in various aircraft, including commercial airliners, military, and business jets. Most aircraft in service today, especially larger commercial aircraft, rely on jet fuel as their primary energy source. The widespread usage of jet fuel in various aircraft types contributes to its dominance in the market.
- Moreover, jet engines, prevalent in commercial and military aviation, require aviation turbine fuels to operate efficiently. These engines are designed to utilize jet fuel's energy content and combustion properties. As long as jet engines remain the dominant propulsion technology in the aviation industry, the demand for aviation turbine fuels will continue to be significant.
- For instance, according to the United States Energy Information Administration, the consumption of jet fuel in the United States increased by almost 14% between 2022 and 2021, signifying the increasing air ravels and fuel consumption.
- Aviation turbine fuels have a higher energy density than other fuels, such as avgas used in piston-engine aircraft. This means that jet fuel can provide more energy per unit of volume, which is crucial for long-haul flights and larger aircraft. The high energy density of aviation turbine fuels makes them ideal for powering jet engines and allows for efficient and extended flight operations.
- In January 2023, The Indian Oil Corporation (IOC) initiated the export of aviation fuel, catering to the requirements of small aircraft and unmanned aerial vehicles (UAVs). This move allows India to enter the global market, valued at approximately USD 2.7 billion, by venturing into petroleum exports. The Jawaharlal Nehru Port Trust (JNPT) facilitated the shipment of the first consignment comprising 80 barrels of aviation fuel to Papua New Guinea. Each barrel has a capacity of 16 kiloliters, enabling the transport of a significant quantity of aviation gas.
- Therefore as per the points discussed, aviation turbine fuel is expected to diminish the market during the forecasted period.
Asia-Pacific Expected to Dominate the Market
- The Asia-Pacific region is experiencing significant economic growth, with countries like China, India, and Southeast Asian nations driving this expansion. As economies grow, there is a corresponding increase in air travel demand, directly translating to higher aviation fuel consumption. The region's robust economic growth fuels the dominance of the aviation fuel market.
- The Asia-Pacific region has a flourishing airline industry with numerous carriers and a growing fleet of aircraft. Airlines in the region continuously expand their operations, adding new routes and increasing flight frequencies. This expansion necessitates a higher demand for aviation fuel, contributing to the dominance of the market in the region.
- Moreover, rapid urbanization in the Asia-Pacific region and the rise of the middle-class population has led to a surge in air travel. As more people in the region access air transportation, the demand for aviation fuel grows. The increasing urbanization and a burgeoning middle-class population are key factors driving the dominance of the market in the Asia-Pacific region.
- Furthermore, Asia-Pacific region has witnessed the emergence and growth of low-cost carriers (LCCs). These airlines offer affordable airfares, attracting a larger segment of the population and stimulating air travel demand. LCCs typically operate with higher load factors, leading to increased fuel consumption and subsequently driving the aviation fuel market's dominance in the region.
- Additionally, many countries in the Asia-Pacific region are investing heavily in airport infrastructure development. New airports are being built, and existing ones are undergoing expansion and modernization. These infrastructure investments create favorable conditions for increased air traffic and fuel consumption, further contributing to the region's dominance in the aviation fuel market.
- For instance, in May 2023, Indian Oil Corp. intends to construct a sustainable aviation fuel (SAF) plant worth USD 122 million due to the substantial shortfall in global supplies required by airlines to achieve decarbonization targets. The planned facility will have the capability to manufacture 88,000 tons of SAF annually.
- Therefore as per the above-mentioned points the Asia-Pacific region is expected to dominate the market during the forecasted period.
Aviation Fuel Industry Overview
The Aviation fuel market is fragmented. Some of the major players in the market (in no particular order) include ExxonMobil Corporation, Chevron Corporation, Shell Plc., TotalEnergies SE, and BP Plc. among others.
Aviation Fuel Market Leaders
-
BP PLC
-
Exxon Mobil Corporation
-
TotalEnergies SE
-
Chevron Corporation
-
Shell Plc
*Disclaimer: Major Players sorted in no particular order
Aviation Fuel Market News
- April 2023: Using domestically developed technology that utilizes cooking oil and oil-bearing plant seeds, a bio-jet fuel, commonly referred to as sustainable aviation fuel (SAF), is anticipated to obtain international certification this year. This certification would enable the SAF to be utilized in commercial flights within India. To facilitate the production of SAF, the Indian Institute of Petroleum (IIP), a laboratory under the Council of Scientific and Industrial Research (CSIR), has collaborated with prominent entities such as Boeing, Indigo, Spicejet, Air India, Vistara, Air Asia India.
- February 2023: Boeing has secured agreements to procure 5.6 million gallons (21.2 million liters) of blended sustainable aviation fuel (SAF) from Neste, the foremost producer of SAF globally. This procurement is aimed at supporting Boeing's U.S. commercial operations until 2023. These agreements mark a significant increase, doubling the company's SAF procurement compared to the previous year.
Aviation Fuel Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD, till 2028
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.1.1 Increasing Air Travel Demand
4.5.1.2 Expanding Airline Fleet
4.5.2 Restraints
4.5.2.1 Volatile Crude Oil Prices
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Fuel Type
5.1.1 Air Turbine Fuel
5.1.1.1 Jet A-1
5.1.1.2 Jet A
5.1.1.3 Jet B
5.1.2 Aviation Biofuel
5.1.3 AVGAS
5.2 End-User
5.2.1 Commercial
5.2.2 Defence
5.2.3 General Aviation
5.3 Geography (Regional Market Analysis {Market Size and Demand Forecast till 2028 (for regions only)})
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Rest of North America
5.3.2 Europe
5.3.2.1 Germany
5.3.2.2 United Kingdom
5.3.2.3 France
5.3.2.4 Russia
5.3.2.5 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 India
5.3.3.3 Japan
5.3.3.4 South Korea
5.3.3.5 Rest of Asia-Pacific
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Chile
5.3.4.4 Rest of South America
5.3.5 Middle-East and Africa
5.3.5.1 Saudi Arabia
5.3.5.2 United Arab Emirates
5.3.5.3 Egypt
5.3.5.4 South Africa
5.3.5.5 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Exxon Mobil Corporation
6.3.2 Chevron Corporation
6.3.3 Shell Plc.
6.3.4 TotalEnergies SE
6.3.5 BP Plc
6.3.6 Gazprom Neft' PAO
6.3.7 Neste Oyj
6.3.8 Swedish Biofuels AB
6.3.9 Red Rock Biofuels LLC
6.3.10 Abu Dhabi National Oil Company
6.3.11 Bharat Petroleum Corp. Ltd.
6.3.12 Indian Oil Corporation Ltd.
6.3.13 Emirates National Oil Company
6.3.14 Valero Energy Corporation
6.3.15 Allied Aviation Services Inc.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Biofuels and Sustainable Alternatives
Aviation Fuel Industry Segmentation
Aviation fuel, also known as aviation gasoline (avgas) or jet fuel, is a specialized type of fuel specifically formulated for use in aircraft. It is a highly refined petroleum product designed to meet aircraft engines' specific requirements and performance characteristics.
The aviation fuel market is segmented based on fuel type, end-user, and geography. By fuel type, the market is segmented into aviation turbine fuel (jetA, jetA-1, and jetB), aviation biofuel, and AVGAS. By end-user, the market is segmented into commercial, defense, and general aviation. The report also covers the market size and forecasts for the aviation fuel market across major regions. The report offers the market size in value terms in USD for all the abovementioned segments.
| Fuel Type | |||||
| |||||
| Aviation Biofuel | |||||
| AVGAS |
| End-User | |
| Commercial | |
| Defence | |
| General Aviation |
| Geography (Regional Market Analysis {Market Size and Demand Forecast till 2028 (for regions only)}) | |||||||
| |||||||
| |||||||
| |||||||
| |||||||
|
Aviation Fuel Market Research FAQs
How big is the Aviation Fuel Market?
The Aviation Fuel Market size is expected to reach USD 197.42 billion in 2024 and grow at a CAGR of 7.39% to reach USD 281.96 billion by 2029.
What is the current Aviation Fuel Market size?
In 2024, the Aviation Fuel Market size is expected to reach USD 197.42 billion.
Who are the key players in Aviation Fuel Market?
BP PLC, Exxon Mobil Corporation, TotalEnergies SE, Chevron Corporation and Shell Plc are the major companies operating in the Aviation Fuel Market.
Which is the fastest growing region in Aviation Fuel Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Aviation Fuel Market?
In 2024, the Asia-Pacific accounts for the largest market share in Aviation Fuel Market.
Which segment holds the largest market share in the Aviation Fuel Market by fuel type?
Based on fuel type jet fuel segment holds the largest market share in the Aviation Fuel Market.
Aviation Fuel Industry Report
The global aviation fuel market is experiencing significant growth, driven by the increasing demand for air travel, especially in developing countries, and the expansion of the aviation industry. The market is segmented by fuel type, with conventional fuels like jet fuel dominating due to their widespread use in commercial aviation. However, there is a growing emphasis on sustainable aviation fuels (SAF) due to their potential to significantly reduce greenhouse gas emissions. SAF is seen as a crucial element in the aviation industry's efforts to decouple carbon emissions from traffic growth, reducing CO2 emissions compared to conventional jet fuel. Despite challenges such as the high cost of SAF compared to conventional fuels and the need for significant investments in technology and infrastructure, opportunities abound in the development of alternative fuels. The increasing number of partnerships and agreements aimed at boosting the supply and use of SAF indicates a promising shift towards more sustainable aviation practices. For detailed statistics, market share, size, revenue growth rate, and a forecast outlook, access a sample of this industry analysis as a free report PDF download from Mordor Intelligence™ Industry Reports.
