Press release
Aviation Fuel Market Growth: Renewable & Alternative Aviation Fuels
Aviation fuel is a type of petroleum-based fuel used to energize an aircraft. It has better quality than other fuels used in any other medium of transport. The additives used in aviation fuel reduce the risk of icing or explosion due to high temperature.
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The global market was dominated by North America while, Asia-Pacific is expected to grow at higher CAGR owing to high demand from emerging economies in the region.
India is projected to grow at the highest CAGR of approximately 4.6%, in terms of revenue, during the forecast period
India and U.S. dominated aviation fuel market share with a revenue of over 4.6% and 4.1% in 2018.
The key players in global aviation fuel industry are Bp p.l.c., Chevron Corporation, Exxon Mobil Corporation, Gazprom, Indian Oil Corporation Limited, Petrobras, Royal Dutch Shell plc, Sinopec Group, Total SA, and Oman Oil Company SAOC.
The demand from military sector for efficient and low cost military grade fuel has increased as all the nations are increasing their military strength. Owing to increased disposable income and boom in tourism industry, rise in air transportation has been experienced through air travel mode, which further drives the market growth.
Introduction of new flight routes and investments from government in the field for construction of new airports also boosts the aviation fuel market growth.
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Demand Drivers
Air Travel Growth: Increasing demand for air travel, particularly in emerging markets, drives fuel consumption.
Cargo Transport: Growth in e-commerce and global trade boosts demand for air cargo services.
Regulatory Pressure: Stricter emissions regulations encourage airlines to invest in cleaner fuels, including SAF.
Fluctuations in crude oil prices and rise in concerns over high level of carbon emissions leading to strict rules and regulations hampers the market growth.
Meanwhile emerging sustainable aviation fuel (SAF) that is produced from typical feedstocks such as cooking oil and other non-palm waste oils from animals or plants, solid waste from homes and businesses, such as packaging, paper, textiles, and food scraps offer lucrative opportunities for the growth of the aviation fuel industry.
Depending on fuel type, it is divided into jet A, jet A1, jet B, JP 5, JP 8, avgas, and biofuels. In 2018, jet A1 dominated the market share and is expected to grow at higher a CAGR during the forecast period.
Depending on aircraft type, the market is classified into fixed wings, rotorcraft, and others. Fixed wings dominated the market share in 2018 and is expected to remain dominant during the forecast period.
By end user, the market is categorized into civil, military, private, and sports & recreational. The civil segment dominated the market share and is expected to grow at higher CAGR compared to other end users.
The civil segment is anticipated to grow with CAGR 3.6%, in terms of revenue, during the forecast period
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Future Trends
Sustainable Aviation Fuel Adoption
Increased investment in SAF production and partnerships between airlines, fuel producers, and governments to scale up production.
Technological Innovations
Advancements in fuel technologies, including the development of more efficient engines and alternative fuel sources.
Carbon Offset Initiatives
Airlines are increasingly participating in carbon offset programs to mitigate emissions and improve sustainability credentials.
Market Consolidation
Mergers and acquisitions among fuel suppliers and refiners may reshape the competitive landscape of the aviation fuel market.
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Region wise, the aviation fuel market analysis is done across North America, Europe, Asia-Pacific, and LAMEA (Latin America, Middle East and Africa).
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