The global aviation fuel market was US$ 78.1 billion in 2021. The global aviation fuel market is forecast to grow to US$ 321.6 billion by 2030 by registering a compound annual growth rate (CAGR) of 16.3% during the forecast period from 2022 to 2030.
Aviation fuel is a petroleum or kerosene-based fuel widely used to power planes. The quality of aviation gasoline is superior to that of other types of transportation. They come in a variety of kerosene blends, including kerosene-gasoline, kerosene-biofuel, and others. The fuels used in aviation reduce the risk of icing or explosion owing to high temperatures by using additives such as corrosion inhibitors and other anti-icing agents. A wide range of aircraft and commercial airlines utilize aviation gasoline to improve fuel efficiency and minimize operating costs.
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Regional Analysis
Numerous Asian countries are investing highly in the aviation sector. Further, rising economic activity in developing nations will benefit the Asia-Pacific aviation fuel market.
The demand for Sustainable Aviation Fuel (SAF) is rising steeply in Asia-Pacific. It is majorly due to the contribution of economies and companies in aviation industry. For instance, Singapore recently became a member country of the World Economic Forum Clean Skies for Tomorrow Sustainable Aviation Fuel (SAF) Ambassador group, which focuses on decarbonizing the aviation industry. Such aims are expected to bring several growth opportunities for the aviation fuel market. In addition to that, Indigo Airlines, India also inked a partnership deal with the Dehradun-based Council of Scientific and Industrial Research-Indian Institute of Petroleum (CSIRIIP) in 2021. The partnership is aimed at manufacturing and supplying SAF at the global level.
The growing contribution of industry players in the form of R&D and new launches will benefit the aviation fuel market during the study period. For instance, Japan Airlines (JAL) announced in June 2021 that the company has completed the pilot test of a mixture of two different types of SAF (Sustainable Aviation Fuel). These fuels are produced domestically in Japan and have qualified for the quality inspection test. Thus, the contribution of industry players will escalate the growth of the aviation fuel market.
COVID-19 Impact Analysis
Due to restrictions on international flights and minimal domestic air travel by people of practically all nations, the COVID-19 epidemic sharply declined the revenue generation of the aviation fuel industry. In the United States, domestic air travel was down 71 percent, and foreign travel was down 93 percent in the first week of July 2020. The number of flights planned to depart also reduced from 877,029 in January 2020 to 69,245 in June 2020. Thus, it depicts that the aviation industry experienced a sharp fall due to the pandemic period.
Factors Influencing the Market
The growing aviation industry all across the globe is primarily driving the growth of the aviation fuel market. Further, the rising global population will also contribute to the growth of the aviation fuel market.
Demand for aviation fuel is expected to rise due to growing airline passenger traffic. In addition, other factors like increasing middle-class income in emerging countries will propel the aviation fuel market forward.
Growing partnerships and innovative strategies by industry players will contribute to the growth of the aviation fuel market. For instance, British Airways inked an agreement with Philips 66 Humber Refinery to receive SAFs. The SAFs would be used to power a number of flights in 2022. Apart from that, Neste and Shell Aviation also joined hands in 2020 to offer SAF in the British aviation industry. In this partnership, Neste’s production expertise with Shell Aviation’s robust fuel supply management will help develop better results.
Competitors in the Market
• Chevron Corporation
• BP p.l.c
• Total SA
• Oman Oil Company SAOC
• Gazprom
• Exon Mobil Corporation
• Royal Dutch Shell plc
• Sinopec Group
• Petrobras
• Indian Oil Corporation Ltd.
• Other Prominent Players
The report furnishes an intricate comprehension of each segment, delivering potential estimations for principal applications and insights into emerging prospects. Every regional market is meticulously scrutinized to ascertain its potential for growth, development, and demand in the forthcoming years.
As of the end of 2022, the Aviation Fuel industry experienced notable growth in its workforce. Starting in January, employment within the Aviation Fuel sector exceeded its pre-COVID levels, resulting in an expansion of payrolls by over 15,000 employees throughout the course of the year. The global Aviation Fuel output demonstrated a remarkable increase of 5.2% during 2021, primarily attributed to a widespread economic upswing and a surge in demand for commodities. However, the momentum shifted in 2022, with the global industrial sector’s production contracting. This reversal followed a robust expansion in 2021, fueled by altered consumer spending patterns and substantial fiscal support.
Forecasts indicate that the global Aviation Fuel output is set to rise by approximately 2.9% in 2023. This projection is underpinned by the gradual recovery of production in Western Europe from its previous troughs, as well as a rebound in output across the Asia/Pacific region. Maintaining its dominant position, China, accounting for nearly 45% of the global Aviation Fuel market, remains both its largest producer and consumer. Remarkably, China’s market share has surged since 2010, when it stood at around 26%. This ascent has led to a substantial contribution to the nation’s GDP. Notably excelling as a top exporter, China leads in various sectors, including silicon, PVC, and several specific segments of the Aviation Fuel market.
Market Segmentation
The global aviation fuel market segmentation focuses on Fuel, Aircraft, End-Users, and Region.
By Fuel Type
• Jet A
• Jet A1
• Jet B
• JP 5
• JP 8
• Avgas
• Biofuels
By Aircraft Type
• Fixed Wings
• Rotorcraft
• Others
By End-users
• Civil
• Military
• Private
• Sports & Recreational
By Region
● North America
o The U.S.
o Canada
o Mexico
● Europe
Western Europe
o The UK
o Germany
o France
o Italy
o Spain
o Rest of Western Europe
Eastern Europe
o Poland
o Russia
o Rest of Eastern Europe
● Asia Pacific
o China
o India
o Japan
o Australia & New Zealand
o ASEAN
o Rest of Asia Pacific
● Middle East & Africa (MEA)
o UAE
o Saudi Arabia
o South Africa
o Rest of MEA
● South America
o Brazil
o Argentina
o Rest of South America
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