Aviation Fuel Market: Global Industry Analysis (2023-2029)

Aviation Fuel Market size was valued at US$ 105.72 Bn. in 2022 and the total Aviation Fuel revenue is expected to grow by 16.5% from 2023 to 2029, reaching nearly US$ 307.93 Bn.
Global Aviation Fuel Market Overview:
Aviation fuels are petroleum-based or crude oil fuel mixtures that are used to operate airplanes. They have stricter standards than surface fuels, such as burning, and incorporate additives to improve or retain qualities critical to fuel efficiency or management. The report explores the Aviation Fuel market's segments (Fuel Type, End-User, and Region). Data has been provided by market participants, and regions (North America, Asia Pacific, Europe, Middle East & Africa, and South America).

It provides a thorough analysis of the rapid advances that are currently taking place across all industry sectors. Facts and figures, illustrations, and presentations are used to provide key data analysis for the historical period from 2018 to 2022. The report investigates the Aviation Fuel market's drivers, limitations, prospects, and barriers. This MMR report includes investor recommendations based on a thorough examination of the Aviation Fuel market's contemporary competitive scenario.To know about the Research Methodology:- Request Free Sample Report
Aviation Fuel Market Dynamics:
The growth of the military aircraft industry is expected to be a major driver of the market growth.

Political upheavals and territorial claims continue to drive demand for multi-mission combat helicopters. Numerous countries are also striving to upgrade their assets by replacing existing models with latest generation planes that demand little maintenance and have reduced operating expenses. Many countries are working to reduce their dependency on external vendors for military systems and equipment. Additionally, the exorbitant expenses of procuring foreign aircraft are compelling some emerging countries to start military aircraft production programs. On the other hand, companies are focused on localized military aircraft manufacture and increasing their indigenous system technological capabilities through transfer of technology agreements.

Inadequate feedstock and refinery availability to satisfy production targets are expected to be a major restraint in the market growth.

Oil plants, sugar crops, microalgae, waste oil, and other biological and non-biological commodities are raw materials that play an essential part in the whole production process of sustainable aviation fuels e.g. synthetic fuels, e-fuels, and biofuels. The insufficient supply of raw materials necessary for the manufacturing of sustainable aviation fuel may bring the market to a halt. Besides that, the drawbacks of refineries, which play an important role in the appropriate usage of feedstock, add to the overall process of production. The insufficient supply of gasoline also creates a barrier to the fuel's mixing capacity, resulting in poorer efficiency.

A major challenge in the market growth is that the high cost of aviation fuel raises the operational costs of airlines.

Airlines cannot reach their self-imposed objectives for decreasing greenhouse emissions alone through engine and flight upgrades; they require sustainable jet fuel. Fuel prices account for a sizable portion of operational expenses. Sustainable jet fuel, even though it is created from waste and low-cost feedstocks, necessitates extensive and costly technical methods. Because additional manufacturing capacity must be installed, sustainable jet fuel is more costly than normal fuel. This kind of fuel will not be readily available since, for the first decade or so, manufacturing capacity is expected to be produced on a contract basis rather than as a commodity. Building new biodiesel plants takes time and money, raising the price of their products once they are operational and impeding their potential to achieve the critical point of profitability.
Aviation Fuel Market Segment Analysis:
By End-User, the commercial aircraft segment is expected to grow at a CAGR of 8.3% in the forecast period. Commercial aircraft is expected to dominate the aviation fuel industry, generating around USD 145 billion by 2029 as air passenger travel increases internationally. The segment share is being driven by rising living standards and expanded transit routes. Additionally, aircraft manufacturers are concentrating on increasing airplane production to meet increased demand, offering a good picture of aviation fuel market sales.The aerospace sector is seeing an increase in demand for aircraft e.g. the B737 and B787. As disposable income rises, so does the inclination for air travel. Rising air passenger traffic in emerging nations contributes to increased revenue generation. Stakeholders in the industry are concentrating on lowering aircraft weight through creative design and effective engines.

For example, the Association of Asia Pacific Airlines claimed in 2017 that different airlines in the area transport over 20.5 million tons of cargo and around 1,200 million passengers. The expanding population in countries e.g. India and China, along with relatively improved and cost-effective aircraft with cheap air travel rates, has raised the demand for aircraft.
Aviation Fuel Market Regional Insights:
The North American region especially the United States is expected to dominate the Aviation Fuel at the end of the forecast period. For the past two decades, jet fuel has contributed to around 10% of total petroleum refinery output in the United States. Exxon Mobil, Chevron, and BP are among the biggest producers, while Texas and California are among the leading producers. The decisions made by refiners concerning jet fuel production levels include the purchase of machinery and equipment, the selection of crude oil, and the manufacturing of the desired type and amount of goods. This supply chain would need the introduction of large-scale biomass-based aviation fuel generation which is expected to be impacted by the Green New Deal.

Airline companies, general aviation operators, business aviation, and the military are significant aviation fuel customers, with the majority of aviation fuel used throughout the United States for domestic, industrial, and civilian flights transporting people, cargo, or both. Fuel economy in commercial aviation has increased substantially over time, owing mostly to aircraft and engine enhancements, as well as tactical and air traffic control advancements. This has led to a drop in overall jet fuel usage in the United States during the last decade. But this situation is expected to change in the forecast period owing to the introduction of sustainable aviation fuel.

The objective of the report is to present a comprehensive analysis of the Aviation Fuel Market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.

The report also helps in understanding the Aviation Fuel market dynamics, and structure by analyzing the market segments and projecting the Aviation Fuel market size. Clear representation of competitive analysis of key players by product, price, financial position, product portfolio, growth strategies, and regional presence in the Aviation Fuel market make the report investor’s guide.
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Global Aviation Fuel Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2018 to 2022
Market Size in 2022:
US $ 105.72 Bn.


Forecast Period 2023 to 2029 CAGR:
16.5%
Market Size in 2029:
US $ 307.93 Bn.


 Segments Covered:
by Fuel Type
Air Turbine Fuel
Aviation Biofuel
AVGAS


by End-User
Commercial
Defense
General Aviation


by Aircraft Type
Fixed Wings
Rotorcraft
Others



Aviation Fuel Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Aviation Fuel Market Key Players are:
1.Exxon Mobil Corporation
2.Chevron Corporation
3.Shell Plc.
4.TotalEnergies SE
5.BP Plc
6.Gazprom Neft' PAO
7.Neste Oyj
8.Swedish Biofuels AB
9.Red Rock Biofuels LLC
10.Abu Dhabi National Oil Company
11.Bharat Petroleum Corp. Ltd.
12.Indian Oil Corporation Ltd.
13.Emirates National Oil Company
14.Valero Energy Corporation
15.Allied Aviation Services Inc.
FAQs:
1. Which is the potential market for the Aviation Fuel in terms of the region?
Ans. The USA is the potential market for Aviation Fuel in terms of the region.

2. What are the challenges for new market entrants?
Ans. A major challenge in the market growth is that the high cost of aviation fuel raises the operational costs of airlines.

3. What is expected to drive the growth of the Aviation Fuel market in the forecast period?
Ans. The growth of the military aircraft industry is expected to be a major driver of the market growth.

4. What is the projected market size & growth rate of the Aviation Fuel Market?
Ans. The Aviation Fuel Market size was valued at US$ 105.72 Bn. in 2022 and the total Aviation Fuel revenue is expected to grow by 16.5% from 2023 to 2029, reaching nearly US$ 307.93 Bn.

5. What segments are covered in the Aviation Fuel Market report?
Ans. The segments covered are Fuel Type, End-User, and Region.