Aviation Fuel Market Size, Growth - Industry Forecast 2030 (2024)

Aviation Fuel Market size was valued at USD 219.79 billion in 2019 and is poised to grow from USD 249.9 billion in 2023 to USD 793.62 billion by 2031, growing at a CAGR of 13.7% in the forecast period (2024-2031).

Worldwide, a variety of aviation fuels are widely utilized to power aircraft in both commercial and military uses. Rise in air traffic passengers across the globe, particularly in emerging nations; and volatility in crude oil prices are supporting the evolution trajectories of the aviation fuel market. The number of airline passengers has increased, which has increased the need for aviation fuel in developing countries. The market for biofuels is being driven by a growing emphasis on lowering the carbon footprint of the transportation sector as a whole. Players in the aviation business are paying close attention to renewable aviation fuels, particularly in industrialized nations like the U.S.

The International Air Transport Association estimates that passenger air traffic has increased significantly over the past few years and will double by the end of 2036. The annual growth in air passenger numbers has been fueled by recent advances in the world economy. One of the main factors enticing travelers, especially those who are cost conscious, is the decline in average airfares. Increased standards for cargo handling are also positive for the market.

The rapid increase in air travelers in emerging nations like those in the Asia Pacific is predicted to lead to a significant expansion of the worldwide market for aviation fuel. The market is being driven by an increase in revenue passenger kilometers during the past few years. Due to the expansion of passenger airline capacity in various emerging nations, there has been a major growth in the demand for aviation fuel. The market is being driven by a trend toward the use of more affordable aviation fuels and fuels with lower carbon footprints.

US Aviation Fuel Market is poised to grow at a sustainable CAGR for the next forcast year.

Market Snapshot - 2024-2031

Global aviation fuel market is segmented based on the Fuel, End user, and region. Based on the Fuel, the Aviation Fuel Market is segmented as avgas, jet fuel, and synthetic fuel. Based on End User, the Aviation Fuel Market is segmented as private, commercial and military. Based on Region Aviation Fuel Market is categorized into North America, Europe, Asia-Pacific, Latin America, and MEA.

Aviation Fuel Market Analysis by Fuel

Based on Fuel the Aviation Fuel market is segmented into avgas, jet fuel, and synthetic fuel. The jet fuel category held the most market share, and is expected to lead throughout the projection period. Jet fuel is a type of petroleum-based fuel that is used to power jet and turboprop aircraft engines. The two main aviation fuel grades used by the commercial airline industries are Jet A1 and Jet A. Both of them are kerosene-based fuels made in accordance with a set of international standards. Due to significant investment in the airline industry, which has increased revenue on the global market, air travel connectivity is at its highest point. According to reports from Boeing, one of the most well-known producers of commercial aircraft, the rise in passenger air travel has resulted in the highest order for commercial airbuses, cargo. Commercial air fleets use a sizeable portion of the aviation fuel produced worldwide.

Aviation Fuel Market Analysis by End User

Based on the End User, the Aviation Fuel market is bifurcated into private, commercial and military. The market for Aviation Fuel was dominated by the commercial segment over the forecast period. Due to the industry's commercial airlines' massive investments in improving the industry's overall infrastructure, rapid economic development, and increased air traffic to accommodate large numbers of passengers. The preference for travel to developed nations and the rising per capita income of developing nations have influenced demand patterns for aviation and contributed to the explosive increase in global air passenger traffic. The increased demand for logistics across the globe is being fueled by business opportunities created by improved air connectivity and rising industrial production of aviation fuel. Therefore, commercial airlines that are preparing for the expansion of the global aviation fuel market are dominated by economic growth and rising global passenger volume.

Aviation Fuel Market Driver

• Growth and development of the economy depend heavily on air travel. Air travel promotes integration into the global economy and provides essential links on a national, regional, and international level. It supports the expansion of trade, tourism, and employment opportunities. The aviation system is changing and will keep changing. Long term, it will be challenging for the air transportation system to adapt quickly enough to meet changing demands in terms of capacity, environmental impact, consumer happiness, safety, and security, all while preserving the financial viability of service providers.
• Demand for multi-mission combat helicopters continues to be driven by political upheavals and territorial disputes. Many nations are also working to upgrade their equipment by swapping out older models for more modern aircraft that require less maintenance and have lower operating costs. Many nations are making efforts to lessen their reliance on outside suppliers for military hardware and software. Additionally, some developing nations have begun developing military aircraft production programs as a result of the exorbitant costs associated with purchasing foreign aircraft. Companies, on the other hand, are concentrating on localized military aircraft production and increasing their indigenous system technological capabilities through technology transfer agreements.

Aviation Fuel Market Restraint

• Enterprises and supply chains are under pressure to find hidden cost-saving opportunities due to rising global competition and cost pressure. Interfaces to the crude oil market in particular are a promising area for development. Every organization in the current business climate is somewhat vulnerable to changes in the price of raw materials for lubricants and crude oil. Manufacturers may rely heavily on oil commodities in their manufacturing processes, and as a result, they may be particularly vulnerable to price fluctuations in the oil products they buy both directly and indirectly through components and subassemblies. Global markets that are volatile and unstable have wide-ranging effects on manufacturing companies. Unexpected challenges are disrupting supply chains and making it difficult for manufacturers to stay profitable, from rising energy costs to unexpected fluctuations in the cost of manufacturing crude oil.
• Airlines need sustainable jet fuel to achieve their self-imposed greenhouse gas emission reduction goals because engine and flight improvements are insufficient. The cost of fuel makes up a sizable portion of operating expenses. Even though it is made from waste and inexpensive feed stocks, sustainable jet fuel requires elaborate and expensive technical processes. Sustainable jet fuel is more expensive than regular fuel due to the installation of additional manufacturing capacity. Since manufacturing capacity is anticipated to be produced on a contract basis rather than as a commodity during the first decade or so, this type of fuel won't be easily accessible. Building new biodiesel facilities requires time and money, which drives up the cost of their goods once they are in operation and limits their ability to reach the crucial point of profitability.

Global aviation fuel market is somewhat fragmented. To maintain a competitive edge, the major industry participants are continually implementing various growth strategies. Mergers, and acquisitions, collaborations and partnerships are adopted by these players to thrive in the competitive market. In order to provide industries with the most effective and economical solutions, the major market players are also continually concentrating on R&D.

Aviation Fuel Market Top Player's Company Profiles

• TotalEnergies
• ExxonMobil
• British Petroleum Fuel
• Royal Dutch Shell plc
• Chevron Corporation
• Gazprom Neft PJSC
• China National Petroleum Corporation (CNPC)
• Lukoil
• Indian Oil Corporation Limited
• Air BP Ltd.
• Essar Oil Limited
• Marathon Petroleum Corporation
• Valero Energy Corporation
• Hindustan Petroleum Corporation Limited
• Sinopec Group
• Puma Energy Holdings Pte. Ltd.
• SK Energy Co., Ltd.
• Phillips 66
• Bharat Petroleum Corporation Limited
• Reliance Industries Limited

Aviation Fuel Market Recent Developments

• In June 2022, Cash-strapped Indian carriers have been spared the additional excise burden imposed recently imposed on aviation turbine fuel (ATF) being tanked up for international flights. The Union finance ministry had issued a notification that, among other things, levied an additional excise of Rs 6 per litre on ATF exports (refuelling for international flights) and upended the exemption from 11% basic excise duty (BED). These two additional burdens have now been withdrawn for airlines
• In June 2022, Florida-based AEG Fuels launched a sustainable aviation fuel (SAF) platform that it says will provide commercial and private aircraft operators with a single-source solution to access SAF at more than 20 locations worldwide. It can be accessed through AEG’s mobile and web applications through a button click or via direct request from the company’s 24/7 fuel dispatch and international trip planning teams

• The aviation industry is expanding, which has increased competition among all types of producers of aircraft aviation fuel. Future developments in the production of aviation fuel from sustainable sources are anticipated to have an impact on the industry. Due to the global trend of using advanced fuels in airplanes, the market for sustainable aviation fuel has expanded significantly over the years. Farmers can increase their income during the off-season by providing feedstock to this new industry by growing biomass crops for the production of sustainable aviation fuel, while also securing agricultural benefits like nutrient loss reduction and improved soil quality.

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected utilizing Primary Exploratory Research backed by the robust Secondary Desk research.

According to our Global Aviation Fuel Market Analysis, in terms of fuel, the polyester segment held the largest share and is estimated to maintain a similar trend over the forecast period as it is smooth, strong, and flexible in nature. In terms of end user, commercial segment accounted for a maximum market share followed by military because of large government funding.