South America Aviation Fuel Market Size
| Study Period | 2020-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 11.28 Billion |
| Market Size (2029) | USD 17.03 Billion |
| CAGR (2024 - 2029) | 8.60 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South America Aviation Fuel Market Analysis
The South America Aviation Fuel Market size is estimated at USD 11.28 billion in 2024, and is expected to reach USD 17.03 billion by 2029, growing at a CAGR of 8.60% during the forecast period (2024-2029).
- Over the medium term, factors such as the recovering number of air passengers, on account of cheaper airfare in recent times, more robust economic conditions, and increasing disposable income are among the major driving factors for the market.
- On the other hand, the market can face hurdles in the coming years due to the high share of fossil-fuel-based aviation fuels in South American countries, which are responsible for the degradation of the environment.
- Nevertheless, South America is one of the leading regions in biofuels. With an increasing shift towards aviation biofuels, significant opportunities are likely to be created in the near future.
- Brazil is the largest consumer of aviation fuels in South America, resulting in its dominance in the region. With the growing market, the nation is expected to continue its dominance during the forecast period.
South America Aviation Fuel Market Trends
The Commercial Sector to Witness a Significant Growth
- Commercial aviation involves the operation of both scheduled and non-scheduled aircraft, facilitating the commercial air transportation of passengers or cargo. Within this sector, the commercial segment stands out as one of the leading consumers of aviation fuel, constituting approximately a quarter of the total operating expenditure for airline operators.
- The total number of passengers transported in Latin America and the Caribbean (LAC) was 32.3 million in December 2022, which is the highest number of passengers. Meanwhile, the LATAM region had a total number of 53,861 passengers boarded by the airline group.
- The ongoing privatization of airports in countries like Brazil, Paraguay, and Peru is anticipated to contribute to the development of airport infrastructure and an increase in capacity, thereby providing support to the studied market in the region.
- Conversely, there has been a notable rise in the share of short-haul flights within the region, leading to an increased proportion of air traffic. In Latin America, the low-cost (LCC) and ultra-low-cost (ULCC) movements are experiencing significant momentum. Currently, more than ever, low-cost carriers in the region are witnessing accelerated growth, outpacing legacy airlines in their ascent.
- Moreover, in August 2023, Air bp has revealed plans to establish an aircraft fuel supply hub in Paulínia, located in Brazil's São Paulo state, as announced during LABACE 2023. The facility, anticipated to commence operations in 2023, is part of the company's strategic investment exceeding USD 10 million. This initiative aims to enhance logistical flexibility and provide improved fuel supply options for aircraft operators.
- Additionally, Air bp is in the process of developing a new fuel tank farm at São Paulo Congonhas Airport, set to become operational in 2024. These two upcoming facilities signify a significant investment, demonstrating Air bp's commitment to bolstering infrastructure and services in the aviation sector.
- Thus, the factors mentioned above are expected to drive growth in the commercial segment during the forecast period.
Brazil to Dominate the Market
- In South America, Brazil holds the distinction of being the largest consumer of aviation fuels. The designated products for aircraft use in the country encompass aviation kerosene (QAV), aviation gasoline, and alternative aviation kerosene (alternative QAV).
- The commercial aviation market in Brazil is substantial, with 831,000 flights recorded in 2022, marking a notable 39% increase compared to the previous year, as reported by ANAC. Within this total, 731,000 flights were domestic, reflecting a significant uptick of 33.7%, while international flights accounted for 100,000, showcasing a remarkable 89% increase, according to the Anuário do Transporte Aéreo 2022.
- The sales of aviation fuel in Brazil faced an impact from Petrobras' suspension of the supply of imported aviation fuel due to chemical test results from a specific batch, which raised potential concerns. This development also prompted major fuel distributors, including BR Distribuidora and Raizen, to temporarily halt the sale of the product. However, the situation has improved and sales of aviation fuel has recovered from that impact.
- Moreover, In October 2023, Boeing officially inaugurated its Engineering and Technology Center in Brazil, joining the roster of 15 Boeing engineering sites worldwide dedicated to advancing aerospace innovation through cutting-edge technology development. In collaboration with the State University of Campinas (Unicamp), Boeing has also disclosed financial support to expand their sustainability collaboration. This extension involves the development of the third phase of the SAFMaps database, aimed at comprehending the viability of the most promising inputs for Sustainable Aviation Fuel (SAF) production in specific regions of Brazil.
- Overall, the aviation fuel market for Brazil is expected to register decent growth during the forecast period, owing to the supporting government initiatives, which are likely to aid the market's growth further.
South America Aviation Fuel Industry Overview
The South American aviation fuel market is semi-fragmented. Some of the major companies (in no particular order) are Petroleo Brasileiro SA, BP PLC, Shell PLC, TotalEnergies SE, and Repsol SA.
South America Aviation Fuel Market Leaders
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Petroleo Brasileiro S.A.
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Repsol SA
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BP PLC
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TotalEnergies SE
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Shell PLC
*Disclaimer: Major Players sorted in no particular order
South America Aviation Fuel Market News
- January 2024: Emirates has announced the addition of a fifth weekly flight to its Dubai to Rio de Janeiro route, set to commence on December 7, 2024. This supplementary Saturday flight is introduced to bolster the airline's overall capacity to service Rio de Janeiro, catering to the increasing travel demand along this route. Moreover, the integrated service provides passengers the convenience to seamlessly extend their journey to Buenos Aires, the capital of Argentina. This expansion is expected to contribute to the heightened demand for aviation fuels.
- July 2023: In Argentina, Bunge and Chevron's Renewable Energy Group have jointly acquired Chacraservicios. This recent investment in innovative seeds introduces a new oil source into Bunge and Chevron's global supply chains. It is poised to assist both companies in meeting the escalating demand forlower-carbonn renewable feedstocks, particularly for their sustainable aviation fuels.
South America 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 2029
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.1.1 Recovering Number of Air Passengers, on Account of the Cheaper Airfare in Recent Times
4.5.1.2 Increasing Disposable Income of Population
4.5.2 Restraints
4.5.2.1 High Share of Fossil-Fuel-Based Aviation Fuels in South American Countries
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 Substitute Products and Services
4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Fuel Type
5.1.1 Air Turbine Fuel (ATF)
5.1.2 Aviation Biofuel
5.1.3 AVGAS
5.2 Application
5.2.1 Commercial
5.2.2 Defense
5.2.3 General Aviation
5.3 Geography
5.3.1 Brazil
5.3.2 Argentina
5.3.3 Colombia
5.3.4 Rest of South America
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 Petroleo Brasileiro SA
6.3.2 Repsol SA
6.3.3 BP PLC
6.3.4 Shell PLC
6.3.5 TotalEnergies SE
6.3.6 Pan American Energy SL
6.3.7 Exxon Mobil Corporation
6.3.8 Allied Aviation Services Inc.
- *List Not Exhaustive
6.4 Market Ranking/Share (%) Analysis
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Increasing Shift Towards Aviation Biofuels
South America Aviation Fuel Industry Segmentation
Aviation fuels are specialized liquid substances specifically designed for use in aircraft propulsion systems. These fuels are crucial for powering various types of aircraft, from commercial airliners to military jets. The primary function of aviation fuels is to provide the necessary energy to support combustion within aircraft engines, generating thrust for propulsion.
The South America 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).
| Fuel Type | |
| Air Turbine Fuel (ATF) | |
| Aviation Biofuel | |
| AVGAS |
| Application | |
| Commercial | |
| Defense | |
| General Aviation |
| Geography | |
| Brazil | |
| Argentina | |
| Colombia | |
| Rest of South America |
South America Aviation Fuel Market Research FAQs
How big is the South America Aviation Fuel Market?
The South America Aviation Fuel Market size is expected to reach USD 11.28 billion in 2024 and grow at a CAGR of 8.60% to reach USD 17.03 billion by 2029.
What is the current South America Aviation Fuel Market size?
In 2024, the South America Aviation Fuel Market size is expected to reach USD 11.28 billion.
Who are the key players in South America Aviation Fuel Market?
Petroleo Brasileiro S.A., Repsol SA, BP PLC, TotalEnergies SE and Shell PLC are the major companies operating in the South America Aviation Fuel Market.
What years does this South America Aviation Fuel Market cover, and what was the market size in 2023?
In 2023, the South America Aviation Fuel Market size was estimated at USD 10.31 billion. The report covers the South America Aviation Fuel Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the South America Aviation Fuel Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
South America Aviation Fuel Industry Report
Statistics for the 2024 South America Aviation Fuel market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South America Aviation Fuel analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
South America Aviation Fuel Market Report Snapshots
