Aircraft Fuel Market Size, Share, Growth, and Industry Analysis by Type (Avgas, and Jet Fuel) By Application (Military, and Civil) Regional Forecast (2022-2028)

Report Overview

• 
• Request a Free sample to learn more about this report

The aircraft fuel market size is expected to be worth USD 6.8 billion in 2022. The global COVID-19 pandemic has been unprecedented and staggering, with the aircraft fuel market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. As per our research, the market is projected to touch USD 8.9 billion by 2028, exhibiting a CAGR of 4.6% during the forecast period. The sudden surge in CAGR is attributable to demand returning to pre-pandemic levels once the pandemic is over.

The fuels used to power aircraft, called aircraft fuel are petroleum-based or petroleum-and-synthetic fuel blends. Compared to ground fuels, these fuels have stricter requirements and contain additives to improve or maintain fuel performance. Approximately two thousand chemicals comprise aircraft fuel, primarily hydrocarbons, additives such as antioxidants, metal deactivators, biocides, static reducers, icing inhibitors, corrosion inhibitors, and impurities. Generally, this fuel is delivered to airports via pipeline systems, such as the CEPS. Afterward, it is pumped over and dispensed from a tanker or bowser.

Commercial and military aircraft around the world are powered by various types of these fuels. The evolution trajectory of the market is impacted by increases in air traffic worldwide, particularly in emerging economies, as well as changes in crude oil prices. The consumption of this fuel has increased in developing regions due to an increase in airline passengers. There are several alternatives to conventional aircraft fuel available in the near term, including aircraft biofuels and synthetic fuels. Sustainable Aviation Fuel (SAF) is a term that refers to these fuels as a whole.  In the transportation industry, the focus on reducing carbon footprints is driving the demand for biofuels. Many aviation industry players, especially in developed countries such as the U.S., are focusing on renewable aircraft fuel.

COVID-19 Impact: Halt on Chemicals and Advanced Materials to Hamper Market

Global economic activity has been devastated by COVID-19, with individuals, organizations, governments, and businesses having to adapt to the challenges. There has been a decline in air travel across various regions, both domestically and internationally, resulting in inactive fleets around the world. COVID-19 pandemic delays in production across various industries also adversely impact the aircraft fuel market, as well as many other sectors. COVID-19 pandemic delays in production activities across various industries have disproportionately affected the market, too. As a result, most airlines will likely delay acquiring new aircraft with technology improvements until demand is stronger, carriers' solvency is assured, and fuel prices urge them to add fuel-saving technologies.

Latest Trends

"Increasing Investment for Air Passenger Traffic to Drive the Market Growth"

As a result of rapid economic growth, increasing air traffic to cater to bulk passengers, and enormous investment in improving the overall infrastructure of the commercial airline industry, the commercial airline sector is expected to be the fastest-growing end-user segment for the fuel over the forecast period. Global air passenger traffic has grown rapidly due to the increasing per capita income of developing countries and the preference for traveling in developed countries. Increasing industrial production of this fuel and better air connectivity is enhancing business opportunities in the global market. As a result, commercial airlines that anticipate growth in the market are dominated by economic progress and an increase in international passenger volume.

Segmentations

• 
• Request a Free sample to learn more about this report

• By Type

The market is classified into avgas, and jet fuel based on type. The avgas segment will lead the aircraft fuel market share throughout the forecast period.

• By Application

The market is classified into military, and civil on the basis of application. The military segment will lead the aircraft fuel market share throughout the forecast period.

Driving Factors

"Increasing Demand for Jet Fuel to Foster Market Growth "

Fuel for jet and turbo-propelled aircraft is known as jet fuel. There are two primary grades of aircraft fuel used by commercial airlines: Jet A1 and Jet A. The fuels are both kerosene-based and produced according to international standards. As a result of massive investment in the airline industry, global air travel connectivity is at its highest point ever. Commercial airbuses have been ordered in record numbers by Boeing, one of the most renowned manufacturers of commercial airplanes. This fuel is consumed by commercial aircraft to a significant extent around the world. Refineries in the United States are among the largest in the world, followed by those in China, Japan, and India. There are a variety of factors influencing the demand for aircraft fuel and aiding the global market, such as growth in air traffic passengers, the global economic scenario, international trade, global industrial production, improvements to aircraft fuel-burning efficiency, and a host of others. In order to mitigate rising pollution levels and ensure sustainable air travel, bio-jet fuel is gaining momentum in the market share for private jets.

"Rise in the Number of Passengers Travelling Via Air in Emerging Countries to Drive the Market "

Because of the increase in airline passenger traffic, demand for this fuel is expected to rise significantly in the coming years. Furthermore, the growing middle class in emerging markets, diverging demographic outlooks, and liberalization of aviation markets are some of the major factors expected to drive the aircraft fuel market growth.

Restraining Factors

"Environmental Issues Related to Jet Fuel to Restrain the Market Growth"

Jet fuel is a hydrocarbon fuel that produces carbon dioxide and water upon combustion. Hydrocarbons and carbon monoxide are produced at low levels in turbine engines due to their highly efficient design. In addition to nitrogen oxides, sulfur oxides are also emitted by turbine engines. Combustion produces oxides of nitrogen from nitrogen and oxygen in the air due to the lack of organic nitrogen in the fuel. In consequence, nitrogen oxide emissions are primarily controlled by engine combustor design. Jet fuel contains low levels of sulfur compounds, which produce sulfur oxides during combustion, so reducing sulfur oxides is mainly a fuel issue, resulting in a number of environmental problems.

Regional Insights

• 
• Request a Free sample to learn more about this report

"North America to Lead the Global Market Owing to the High Tourism "

The U.S. economy is showing signs of moderating from a high pace, which should lead to the fastest growth in aircraft fuel consumption in North America. Economic growth, investments in ICT, and a rise in manufacturing units have contributed to the high demand for the same. Additionally, North America's high tourism numbers influence the commercial airline industry.

As a result of soaring investment, aircraft fuel technology, as well as high potential resulting from the presence of fast-developing nations such as China, India, Japan, etc in the Asia-Pacific global market size has grown. The Asia-Pacific's largest consumer of aircraft fuel is China, followed by Indonesia, Japan, and India.

The demand for this fuel will rise due to good demographic conditions and better market opportunities in Europe.

Key Industry Players

"Leading Players Adopt Acquisition Strategies to Stay Competitive "

Several players in the market are using acquisition strategies to build their business portfolios and strengthen their market position. In addition, partnerships and collaborations are among the common strategies adopted by companies. Key market players are making R&D investments to bring advanced technologies and solutions to the aircraft fuel market.

List of Market Players Profiled

• Exxon Mobil (U.S.)
• Shell (U.K.)
• BP (U.K.)
• Total (Europe)
• Chevron (U.S.)
• PDVSA (U.S.)
• Texaco (U.S.)
• Kuwait Petroleum (Kuwait)
• Tosco (U.S.)

REPORT COVERAGE

In the report, factors affecting the market from both demand and supply are evaluated and market dynamics during the forecast period are also forecasted. Also included in the report is a comprehensive PEST analysis of countries, which assesses the governmental, financial, and shared factors influencing their markets. Apart from all of these, the report also provides drivers, restraints, opportunities, and future trends.