Aviation Fuel Market is estimated to grow at a CAGR of 14.72% to reach US$271.015 billion by 2028
The global aviation fuel market is estimated to grow at a CAGR of 14.72% to reach US$271.015 billion by 2028.
Increasing military expenditures in various nations and persistent efforts to minimize environmental impact are key drivers propelling the growth of the aviation fuel market.
As per the report, the aviation fuel market is expected to grow significantly.
Aviation fuel, also known as aviation gasoline or avgas, is a specialized type of fuel designed for use in aircraft engines. It is a crucial component for powering airplanes and helicopters, providing the energy necessary for flight. Aviation fuel undergoes stringent quality control measures to ensure its purity and reliability, as even small variations in fuel quality can have significant safety implications in aviation. Aviation fuel is typically derived from refined petroleum products and comes in different grades to accommodate various types of aircraft engines and performance requirements. Jet fuel, a type of aviation fuel, is commonly used in turbine engines found in commercial airliners, while avgas is used in piston-engine aircraft. The aviation fuel industry plays a vital role in the global economy, supporting commercial air travel, cargo transportation, military operations, and emergency services. However, the industry also faces challenges related to environmental sustainability and carbon emissions. Efforts are ongoing to develop alternative fuels, such as biofuels and sustainable aviation fuels, to reduce the environmental impact of aviation and promote a more sustainable future for air travel. In November 2023, Neste and ENOC Group, a prominent global energy company, announced a partnership to investigate the potential of supplying and buying sustainable aviation fuel (SAF) in Dubai and the broader Middle East North Africa (MENA) region in the future. Both companies are dedicated to aiding the reduction of greenhouse gas emissions from aviation in the area and acknowledge the significant contribution SAF can make towards this goal.
The aviation fuel market can be categorized into two main types: conventional fuel and sustainable fuel. Conventional fuel refers to traditional aviation gasoline derived from refined petroleum products and has been the primary source of energy for aircraft engines for many years. On the other hand, sustainable fuel, also known as biofuel or sustainable aviation fuel (SAF), represents a newer and more environmentally friendly alternative. Sustainable fuel is produced from renewable sources such as plant-based feedstocks, algae, or waste materials, and it offers the potential to significantly reduce carbon emissions compared to conventional fuel. This shift towards sustainable fuel reflects the aviation industry’s increasing focus on environmental sustainability and reducing its carbon footprint. Governments, airlines, and fuel suppliers are investing in research and development to expand the production and adoption of sustainable fuel, aiming to make air travel more eco-friendly and reduce its impact on climate change. As concerns about climate change continue to grow, the demand for sustainable fuel in the aviation sector is expected to rise, driving further innovation and investment in this promising area.
The aviation fuel market can be segmented based on the type of aircraft it serves, namely fixed-wing and rotorcraft. Fixed-wing aircraft encompass a wide range of vehicles, including commercial airliners, cargo planes, private jets, and military aircraft, all of which rely on aviation fuel for propulsion. These aircraft typically have wings that generate lift as they move forward, allowing them to achieve sustained flight. Rotorcraft, on the other hand, include helicopters and other aircraft with rotary wings, which enable vertical take-off and landing capabilities. While fixed-wing aircraft dominate long-distance travel and cargo transport, rotorcraft are often utilized for shorter flights, emergency medical services, search and rescue operations, and military missions. Despite their differences in design and functionality, both fixed-wing and rotorcraft rely on aviation fuel to power their engines, highlighting the essential role of fuel in sustaining air transportation across various sectors. As advancements in aviation technology continue to evolve, the demand for specialized fuels tailored to the specific needs of fixed-wing and rotorcraft aircraft is expected to drive innovation and growth in the aviation fuel market.
The aviation fuel market can be segmented based on its end-users, which primarily consist of military and commercial sectors. The military sector encompasses the fuel needs of armed forces worldwide, including air forces, navies, and other defence agencies, which rely on aviation fuel to power their aircraft for various missions, including combat operations, training exercises, and logistical support. On the other hand, the commercial sector comprises airlines, cargo carriers, charter companies, and other entities involved in providing passenger and freight transportation services. Commercial aviation relies heavily on aviation fuel to operate fleets of aircraft that transport passengers and goods across domestic and international routes. With the global demand for air travel steadily increasing, driven by factors such as population growth, economic development, and globalization, both military and commercial end-users are expected to continue driving demand for aviation fuel. As technological advancements and regulatory pressures push the industry towards greater efficiency and sustainability, end-users are increasingly exploring alternative fuels and adopting measures to reduce emissions and minimize environmental impact. Therefore, the aviation fuel market’s growth trajectory is closely intertwined with the evolving needs and priorities of its military and commercial end-users.
The Asia Pacific (APAC) region is expected to experience significant growth in the aviation fuel market, largely due to the rapid expansion of the travel and tourism industry in APAC countries. Increased investments in tourism by countries like India, China, and Southeast Asian economies have contributed to this growth. Both international and domestic tourism numbers are on the rise in the region, driven by factors such as rising disposable incomes, improved living standards, and a desire for regular vacations amidst busy work schedules. Additionally, globalization has increased business air travel, further boosting passenger numbers across the region and globally. This surge in air travel demand is fueling the growth of the aviation fuel market in the Asia Pacific region. Moreover, supportive government policies aimed at building new airports to accommodate the growing number of tourists are also playing a significant role in driving market growth in this region.
The market for aviation fuel is supported by key players such as Shell Plc, Neste Corporation, Total Energies, BP PLC, Chevron Corporation, Exxon Mobil Corporation, PJSC Gazprom, LUKOIL, Petroleo Brasileiro S.A. (Petrobras), Indian Oil Corporation Ltd. and Global Partners LP.
View a sample of the report or purchase the complete study at https://www.knowledge-sourcing.com/report/global-aviation-fuel-market
This analytics report segments the aviation fuel market on the following basis:
- By Fuel Type
- Conventional Fuel
- Sustainable Fuel
- By Aircraft Type
- Fixed Wing
- Rotorcraft
- Others
- By End-User
- Military
- Commercial
- Private
- By Geography
- North America
- United States
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Others
- Europe
- Germany
- France
- United Kingdom
- Spain
- Others
- Middle East and Africa
- Saudi Arabia
- UAE
- South Africa
- Others
- Asia Pacific
- Japan
- China
- India
- South Korea
- Vietnam
- Australia
- Indonesia
- Others
- North America
- Fuel Cells Market Size
- Hydrogen Fuel Cells Market Size
- Automotive Fuel Cell Market Size
