The Global Aviation Fuel Market size was USD 178.65 billion in 2021 and it is expected to grow to USD 583.7 billion in 2030 with a CAGR of 13.60% in the 2022-2030 period.
Global Aviation Fuel Market: Overview
Aviation fuel is primarily used in various types of aircraft as an energy source. Any type of fuel is derived from crude oil. The Global Aviation Fuel Market is expected to witness a significant growth due to the increasing demand for air travel and the need for efficient fuel for aircrafts. The most common type of fuel used for aviation is Jet A-1, although Jet B is also used in some cases. Aviation fuel is highly flammable and must meet strict safety standards, as well as environmental regulations. It is also used in a variety of other applications, including military aircraft and other specialized applications.
Key Insights
- As per the analysis done by our research analyst, the Aviation Fuel Market is estimated to grow with a CAGR of 13.60% over the forecast period (2022-2030).
- In terms of revenue, the Global Aviation Fuel Market size was valued at USD 178.65 billion in 2021 and is estimated to grow to around USD 583.7 billion in 2030.
- Due to various driving factors, the Global Aviation Fuel Market is predicted to grow at a significant rate. Increasing tourism is a key driving factor behind the growth of Global Aviation Market.
- Based on the Fuel Type Segmentation, Jet fuel dominated the major share in the market.
- Based on the Aircraft Type, Fixed-wing aircraft generated the highest revenue.
- Based on the End User Analysis, The Commercial Segment has dominated the market in 2021, and is likely to continue the same in the forecast period. This is because of the existence of a large number of commercial airlines that offer passenger and freight transit.
- By Regional Analysis, North America contributes major share in the market.
COVID-19 Impact:
COVID-19 has made a negative impact on the aviation fuel market. As the aviation fuel industry relies majorly on commercial passengers. Stoppage of air travel during the pandemic due to the sealing of boundaries by various nations, several sectors of the aviation industry got affected including passenger airlines, airports, aerospace manufacturers, and repair station owners. Tourism is a key player in the aviation industry as a whole. During this phase, tourism got severely affected. Constantly changing regulations and guidelines regarding travel puzzled the airline companies in navigation.
Aviation Fuel Market: Key Drivers & Restraints:
Driving factors:
- Increased Sports Tourism: Sports tourism refers to traveling to another country in order to attend or follow specific sport activity. FIFA and Other Football leagues, Indian Premier League, and Grand slams are the key sporting events that follow a huge pool of spectators. This boosts the overall tourism mechanism thus influencing the growth of the aviation industry. Thus, increasing the demand for aviation fuel.
- Increasing Tourism in Middle East Countries: Middle East Countries such as U.A.E. and Saudi Arabia constantly focus on developing infrastructure in order to attract tourists from the world. This is a key driver for the aviation fuel industry.
Restraints:
- High Aviation Fuel Costs: Rising prices of aviation fuels is a cause of concern for the aviation industry. This majorly hampers the growth of the aviation fuel market globally. Aviation fuels are the derivatives of Brent Crude Oil. The Prices of Brent Crude Oil are rising day by day. This is due to the supply and demand gap. There is tremendous demand for jet fuel or aviation fuel, but its supply is limited due to lesser production.
Global Aviation Market: Opportunities
The development of bio jet fuels from waste items may create an economic prospect, for farmers and will prove beneficial to the environment. As conventional jet fuels are responsible for carbon emissions which damage the environment. Bio Jet Fuels are nothing but a replacement for traditional jet fuels. These are usually obtained through non-conventional or typically organic sources. These have lower carbon emissions. Thus, there is an opportunity for the development of bio fuels in the forecast period.
Global Aviation Fuel Market Scope:
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Attribute
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Details
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Market Size in 2020
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USD 178.65 billion
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Estimated Market Size in 2028
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USD 583.7 billion
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CAGR Growth Rate
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13.60%
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Base Year
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2021
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Forecast Years
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2022-2030
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Major Regions Covered
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- North America
- Europe
- Asia Pacific
- Latin America
- The Middle East & Africa
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Companies Covered
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- Neste
- Fulcrum BioEnergy
- LanzaTech
- World Energy
- TotalEnergies
- ExxonMobil
- British Petroleum Fuel
- Chevron
- Mercury Air Group
- Gazprom
- Shell
- Vitol
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Report Coverage
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Revenue Forecast, Company Share, Competitive Landscape, Growth Factors, Restraints, Opportunities, Value Chain Analysis, Porter’s Five Forces Analysis, Patent Analysis, Market Attractiveness Analysis by Segments
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Aviation Fuel Market: Segmentation
- Based on Fuel Types: Based on Fuel Types, the market is divided into jet fuel (aviation turbine fuel), Aviation Gas, and Bio Jet Fuels. Jet fuel has accounted for more than 97% share of the aviation fuel market. Bio Jet Fuel is expected to experience significant growth in the forecast period because of the rising cost of jet fuels and specific characteristics of bio-jet fuels such as safety, reliability, and lower carbon emission.
- Based on Aircraft Type: The market is further bifurcated into three categories depending upon the aircraft types – Fixed wing, Rotary wing, and Other. Out of these, the Fixed-wing aircraft segment dominated the market growth.
- By End User Analysis: The market is segmented into Commercial, Private and Military segments. The Commercial segment is the leading segment in the Global Aviation Fuel Market. This is primarily due to the increasing demand for aircrafts for commercial purposes. Airlines are increasing their fleet size and introducing new aircrafts in order to meet the rising demand for air travel. This has increased the demand for aviation fuel, thereby driving the market for the Commercial segment. Furthermore, the number of international flights is increasing due to the growth of tourism and the rising demand for business travel. This, in turn, is driving the demand for commercial aviation fuel, which is used by most airlines. Additionally, the military segment is also growing due to the increasing demand for air defense and military operations.
Regional Insights:
The Aviation fuel market is differentiated into five regions namely – North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North American region has accounted for a major share of the market. This is because of the existence of a number of commercial airlines and manufacturers. In the North American region, the United States remains the largest aviation fuel market. The growth of the aviation industry in the region can be attributed to the availability of advanced technology, a large number of airports, and the presence of a large number of aircraft manufacturers. The increasing number of domestic and international airlines in the region are also expected to drive the demand for aviation fuel.
Europe will also experience significant growth during the forecast period. Latin America will also register growth due to the design of new helicopters for VIPs.
The Asia-Pacific region is expected to be the fastest-growing market for aviation fuel, due to the increasing demand for air travel in the region. The increasing number of international airports and the presence of leading airlines in the region are also expected to drive the growth of the aviation fuel market.
Competitive Analysis:
Global Aviation Fuel Market key players are - Neste, Fulcrum BioEnergy, LanzaTech, World Energy, TotalEnergies, ExxonMobil, British Petroleum Fuel, Chevron, Mercury Air Group, Gazprom, Shell, Vitol
Recent Developments:
- August 2020: In August 2020, Gevo. Inc. entered into binding renewable hydrocarbons sell and purchase agreement with Trafigura Trading LLC. The agreement will enable Trafigura to supply SAF to both the US and International Customers whose interest is growing in low-carbon jet fuels.
- June 2020: In June 2020, Amazon Air secured up to 6 million gallons of sustainable aviation fuel supplied by Shell Aviation and produced by World Energy.
Key Segments
By Fuel Types
- Jet Fuel (Aviation Turbine Fuel)
- Aviation Gas
- Bio Jet Fuel
By Aircraft Types
- Fixed Wing
- Rotary Wing
- Other
By End User
- Commercial
- Private
- Military
Frequently Asked Questions (FAQs):
Which is the leading segment in the market?
Among the End user segment, the Commercial sector was the leading segment in the market.
What are the key factors driving the market?
Increased tourism activities around the globe is the key driver of the market.
Which region will contribute notably towards the Global Aviation Fuel Market growth?
Asia Pacific will contribute notably towards the Aviation Fuel Market.
What are the key players in Aviation Fuel Market?
Neste, Fulcrum BioEnergy, LanzaTech, World Energy, TotalEnergies, ExxonMobil, British Petroleum Fuel, Chevron, Mercury Air Group, Gazprom, Shell, Vitol