Aviation Fuel Market Size, Share & Trends Estimation Report By Fuel Type ( Jet Fuel (Aviation Turbine Fuel), Aviation Gas, BiJet Fuel),By End user (Commercial, Private, Military), By Region, And Segment Forecasts, 2023 - 2030
The Aviation Fuel Market is expected to grow from USD 351.85 Billion in 2022 to USD 654.79 Billion by 2030, with a CAGR of 9.3% during the forecast period.
Aviation Fuel Market Overview:
Fuel for aviation is used to power planes. Crude oil is used to make all kinds of fuel. Jet fuel's main job is to power an aero plane. The amount of energy in the fuel and how well it burns are two of its most important performance characteristics. Other important properties for performance include lubricity, stability, volatility, resistance to corrosion, and others. Fuel is not only used as a source of energy, but also as a hydraulic fluid in engine control systems and as a coolant for certain parts of the fuel system.
Aviation fuel is a type of fuel made from petroleum or kerosene that is used to run an aero plane. The fuel for aero planes is of higher quality than the fuel for cars or trains. They are made with different mixes of kerosene, gasoline, biofuel, and other things. By adding things like corrosion inhibitors and others to the fuels used in aviation, the risk of icing or explosions caused by high temperatures is reduced. Most military aircraft and commercial airlines use aviation fuel to get the most out of their fuel and lower their operating costs. As the aircraft industry grows, there is more competition in all areas that make aviation fuel for planes.
The growth of the market is likely to be driven by factors like the rise in air travel and the rise in demand from the military sector. New airports and flight routes also increase the demand for fuel, which helps to keep the aviation fuel market growing. But strict rules about the use of different types of fuel and additives because of high carbon emissions and changes in crude oil prices are the main things that slow the growth of the aviation fuel market. At the same time, biofuels that can cut carbon emissions by a large amount and new sustainable aviation fuel (SAF) that is being researched and developed can help the aviation fuel industry grow. Alternative sources that are better for the environment and can be used to make aviation fuel will have a big effect on the aviation fuel industry in the future.
Aviation Fuel Market Dynamics
Key market drivers
Demand for aviation fuel will go up because of more sports tourism and North America's dominance in commercial airlines.
Sports tourism is when people travel to watch or go to sporting events. People watch sporting events. The Olympics and World Championships help the tourism industry grow. Sports tourism is also boosted by the fact that there are more and more cricket matches between two countries. For example, the Indian cricket team is a big reason why people go to India to watch sports. Also, it is one of the teams in world cricket that travels the most for bilateral series. Europe is also an important place for football tourism because most football games are played there. Football fans can be found all over the world, which means more people are travelling both domestically and internationally. International players are also flying more because cricket and football franchise tournaments are becoming more popular. These things make sports tourism and air travel more likely, which keeps the market going.
Eight of the top 10 airports for passenger traffic, according to the Airports Council International (ACI) World, are in the U.S. These airports get a lot of domestic traffic, which is leading the global economic recovery. The biggest jump was at Orlando International Airport in the United States, which went from 27th place in 2020 to seventh place in 2021. Jackson Atlanta International Airport (ATL) has also been one of the most-used airports in the world for a long time. The U.S. Census Bureau says that almost 500,000 people live in Atlanta. Because of this, it is only the 38th largest city in the United States and is much smaller than many other cities around the world. But more than six million people live in the metro area, which is one of the main reasons why the airport works so well. Delta Air Lines' strong presence at the airport is another important reason for Atlanta's success. Atlanta is one of the main hubs for the oldest U.S. airline and founding member of Sky Team
Boosting infrastructure development by bringing more tourists to the Middle East
Countries in the Middle East like the United Arab Emirates and Saudi Arabia focus on tourism by making their cities look nice. The International Trade Administration of the U.S. Department of Commerce says that Saudi Arabia wants to have more than 100 million visitors every year by 2030. To do this, it has done things like set up an e-visa system for tourists from 49 countries, open its UNESCO World Heritage Sites, build resorts on the coast of the Red Sea, and start a cruise line. In 2020, the Ministry of Tourism said it would start a new fund called the Tourism Development Fund to invest up to USD 4 billion in the tourism industry to make it stronger. The ministry also said that it would actively work with private sector investors to take advantage of new growth opportunities in the coming years as tourism starts to recover from COVID-19.
Key Market Restraints
High prices for aviation fuel will slow down market growth.
The price of fuel is expected to be the biggest thing that will slow the growth of the aviation fuel market. The high price is likely to slow the growth of the market. The higher cost of fuel is due to the higher price of Brent crude oil, since jet fuel is made from Brent crude oil. Due to the gap between supply and demand, the price of Brent crude oil is going up. Prices are going up because there isn't enough Brent crude oil being made to meet the growing demand.
Saudi Arabia, one of the founding members of the Organization of the Petroleum Exporting Countries (OPEC), cut the amount of crude oil it made. They said that the production cut (equal to 2% of the global supply) was caused by the weakening global economy and interest rate hikes in some western countries.
Because of these things, airfares are high, which could hurt the market because low-income countries may not be able to pay for them. Asia-Pacific and Africa are among the regions that are sensitive to price changes. In this area, there are developing countries with low per capita incomes that can't afford to pay high prices for tickets.
Aviation Fuel Market Segmentation Analysis
Aviation Fuel Market, By Fuel Type
Based on the type of fuel, the market is divided into jet fuel, aviation gas, and bio jet fuel. In 2021, 97.58% of the market share for aviation fuel came from the jet fuel (aviation turbine fuel) segment. In 2021, more jet fuel (fuel for aircraft turbines) was used, but not as much as before the pandemic. In the coming years, the need for jet fuel could be higher than it was before the pandemic. But the price of jet fuel has gone back to where it was before the pandemic. In the coming years, the market could be hurt by the higher prices of jet fuel.
During the forecast period, the bio jet fuel segment is expected to provide good opportunities because it is reliable, safe, and has low carbon emissions. Also, there have been important changes to bio jet fuel. In October 2022, for example, Honeywell announced a new way to turn ethanol into jet fuel (ETJ). With this technology, companies can turn ethanol made from corn, cellulosic materials, or sugar into renewable jet fuel. The technology uses high-performance catalysts and thermal management features to get the most out of the fuel production process. This makes jet fuel that is cheaper and has less carbon in it.
Twelve, Microsoft Corporation, and Alaska Air Group Inc. signed a Memorandum of Understanding in July 2022. (MOU). The MOU aims to advance the Sustainable Aviation Fuel (SAF) market to include fuels made from reclaimed CO2 and renewable energy. It has also worked toward the first commercial demonstration flight in the U.S., which will be powered by Twelve's e-jet.
Aviation Fuel Market, By End user
The market is divided into commercial, private, and military segments based on the end user. The commercial segment got the biggest share of the market, and it is expected to grow the fastest. During the forecast period, the commercial segment is expected to grow a lot because there are more commercial airlines and more international traffic in developing areas like Asia-Pacific and the Middle East and Africa. The commercial segment might face problems if fuel prices go up.
During the forecast period, the private segment is also expected to be one of the segments with the fastest growth. Also, one of the important segments is the private market. Demand for private aircraft is also fueled by higher living standards and higher incomes.
The Asia-Pacific region is the most important market in the world.
Asia-Pacific is now pretty open to foreign tourists and visitors, which are helping the region's economy, recover. Even though the economy is still uncertain, the demand for travel is growing well. There have been times when travel restrictions in some important Asian destinations have been lifted or loosened. Since airline travel is linked to economic growth, the presence of developing countries in the region is likely to increase airline travel during the forecast period.
Between 2021 and 2029, North America will also have the second-highest growth rate. During the period covered by the forecast, the market in North America is likely to grow at the second-fastest rate. The International Air Transport Association says that North American airlines had 203.4% more passengers in May 2022 than in May 2021. As most restrictions on travel from this area were lifted, tourism and a strong desire to travel kept the global recovery going.
Also, Europe is likely to have a large portion of the market. The COVID-19 pandemic was still having a big effect on commercial flights in 2021, according to the European Organization for the Safety of Air Navigation (Eurocontrol). In 2021, the EU will carry 373 million people, which is 34.9% more than in 2020. In the second quarter of 2021, compared to the same time in 2020, air passenger traffic went up a lot in all EU member states. But the number of people flying was still 59% below what it was before the 2019 pandemic.
Latin America could be a place for the market to grow. One of the most important segments in Latin America is the private segment. The demand from corporate and private helicopter operators in the region is likely to grow as new helicopter models designed for business aviation and VIP transport are made.
In the coming years, the Middle East and Africa are also expected to grow. Because tourism is coming back, demand for jet fuel is expected to grow in the coming years. Also, countries in the Middle East like the UAE and Saudi Arabia hire people from outside the region. These things make more people travel internationally and increase the demand for jet fuel.
|Units||Value (USD Billion)
|Growth Rate||CAGR of 9.3% from 2023 to 2030|
|By Fuel Type||
|By End user||
|Reasons to Purchase this Report||
Strategic partnerships to strengthen the competitive landscape
The competitive landscape of the Aviation Fuel Market shows information about each competitor. Details like company overview, financials, revenue, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and depth, and application dominance are all included. The information above is only about what the companies are focusing on in terms of the Aviation Fuel Market.
Vitol (Switzerland), Exxon Mobil (U.S.), Chevron Corporation (U.S.), Shell Plc (U.K.), Indian Oil Corporation Limited (India), TotalEnergies SE (France), BP Plc (U.K.), Valero Energy Corporation (U.S.), Marathon Petroleum Corporation (U.S.), World Fuel Services Corporation (U.S.), Essar Oil (UK) Limited (U.K.), Bharat Petroleum Corporation Limited (India), Rosneft Deutschland GmbH (Germany), LUKOIL (Russia), China Aviation Oil (Singapore) Corporation Ltd (Singapore), Viva Energy Group (Australia), Q8Aviation (U.K.), PT Pertamina (Persero) (Indonesia), ADNOC (Abu Dhabi National Oil Company) Distribution (United Arab Emirates), Neste (Finland)are some of the largest companies in the Aviation Fuel market.
- In June 2022, American Express Global Business Travel (Amex GBT), Shell, and Accenture worked together to launch one of the world's first digital SAF solutions for business travel that was based on blockchain. They have shown off Avelia, which is a carbon accounting system. Industry groups say it's a good way to cut emissions. Avelia could let airlines and companies that use sustainable fuel record the benefits of reducing emissions through SAF against their voluntary ESG and report on it, no matter where in the world it is used in a flight.
- In September 2021, Royal Dutch Shell plc (Shell) made a final investment decision to build an 820,000-ton-per-year (TPA) biofuels facility at Shell Energy and Chemicals Park Rotterdam, Netherlands, which used to be called the Pernis Refinery. Once it's built, the plant will be one of the biggest in Europe. It will make renewable fuel and renewable diesel from trash.
The Global Aviation Fuel Market has been segmented into:
By Fuel Type
- Jet Fuel (Aviation Turbine Fuel)
- Aviation Gas
- Bio Jet Fuel
By End user
- Vitol (Switzerland)
- Exxon Mobil (U.S.)
- Chevron Corporation (U.S.)
- Shell Plc (U.K.)
- Indian Oil Corporation Limited (India)
- TotalEnergies SE (France)
- BP Plc (U.K.)
- Valero Energy Corporation (U.S.)
- Marathon Petroleum Corporation (U.S.)
- World Fuel Services Corporation (U.S.)
- Essar Oil (UK) Limited (U.K.)
- Bharat Petroleum Corporation Limited (India)
- Rosneft Deutschland GmbH (Germany)
- LUKOIL (Russia)
- China Aviation Oil (Singapore) Corporation Ltd (Singapore)
- Viva Energy Group (Australia)
- Q8Aviation (U.K.)
- PT Pertamina (Persero) (Indonesia)
- ADNOC (Abu Dhabi National Oil Company) Distribution (United Arab Emirates)
- Neste (Finland)