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The aviation fuel market size is estimated to grow at a CAGR of 8% between 2022 and 2027. The market size is forecast to increase by USD 93.88 billion. The growth of the market depends on several factors, including an increasing focus on clean aviation fuel, the increase in demand for air travel, and the increasing use of military UAVs.
This aviation fuel market report extensively covers market segmentation by end-user (commercial, military, and private), product (ATF and aviation biofuel), and geography (North America, APAC, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Increasing focus on clean aviation fuel is notably driving the market growth, although factors such as fluctuations in oil and gas prices will hinder the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing focus on clean aviation fuel will drive the growth of the market. Global fuel price uncertainty, energy security needs, and ever-increasing emissions are driving a global interest in alternative fuels in the aviation industry. The depletion of fossil fuel reserves has also increased the demand for aviation biofuels. Through research and development efforts around the world, aviation biofuels are slowly making their way toward large-scale commercialization. In addition, exhaust gas regulations are being strengthened in various countries. Euro VI emission standards are currently being implemented in European countries and are the basis for emission standards in other countries such as India.
Such emission standards are therefore forcing countries around the world to increase the use of renewable fuels such as ethanol and biodiesel in the aviation sector. In addition, the provider is focused on developing clean fuels in the aviation sector. For example, in March 2022 Rolls-Royce signed an agreement with Air bp for sustainable aviation fuel for engine testing. Such developments will propel the growth of the market we are focusing on during the forecast period.
The launch of new aviation fuel technology is the primary trend in the market growth. Vendors operating in key markets have announced new fuel technologies for sustainable aviation fuels. For instance, in March 2023, Honeywell announced the launch of its new UOP eFining technology, a solution for producing low-carbon sustainable aviation fuel (SAF). eFuels, also known as electro fuels, are a class of synthetic fuels that can replace conventionally produced fossil fuels.
Similarly, in October 2022, Honeywell announced the launch of a new, innovative ethanol-to-jet fuel (ETJ) processing technology that drive the conversion of corn-based, cellulosic, or sugar-based ethanol into SAF. The introduction of such new aviation fuel technologies will drive the growth of the focus market during the forecast period.
Fluctuations in oil and gas prices is a major challenge to the growth of the market. The aviation sector is linked to oil prices, and its success depends on oil prices. Crude oil prices have remained low for a long period of time. Prices are steadily falling due to the imbalance between supply and demand. Earnings for upstream oil and gas companies are declining, directly impacting cash flow. Fluctuations in oil prices pose a significant risk to airlines. Rising oil prices will increase downstream input costs, which in turn will increase the cost of jet fuel.
However, in a period of falling oil prices, operating costs for the airline industry may be reduced. Lower jet fuel prices have increased airline profits and lowered airfares. This increased the demand for air travel, forcing airlines to increase capacity. More routes and more fleets by airlines could hurt profitability if oil prices recover. Falling oil prices have dampened the focus on investing in alternative aviation fuels. Airlines must balance low jet fuel costs with increased supply capacity to take advantage of oil price volatility. Such factors may hinder market growth during the forecast period.
The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Aviation Fuel Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
BP Plc: The company offers portable fire extinguishers such as Cosmic extinguishers, Galaxy extinguishers, and Mercury extinguishers.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The commercial segment will be significant during the forecast period. The commercial aircraft industry is rapidly growing due to several factors, such as increasing air passengers and increasing disposable income, which, in turn, are driving the growth of the global aviation fuel market.
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The commercial segment was valued at USD 93.60 Billion in 2017 and continued to grow by 2021. The commercial aircraft segment has been experiencing significant growth since 2021, owing to the post-pandemic recovery of the aviation industry. This is mainly because of the increasing number of air passengers since 2021. Hence, major aircraft OEMs have initiated the revamping of their existing production facilities to ensure scheduled deliveries. Most LCCs are trying to modernize the existing fleet to exploit new market opportunities for the vendors in the market. The increasing number of air passengers has resulted in tremendous pressure on airline and airport authorities to effectively manage the aircraft. This led to an increase in the demand for commercial aircraft and, in turn, aviation fuel which will drive the growth of the market in focus during the forecast period.
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APAC is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The North American aviation market is maturing due to the strong aviation base of the North American countries, especially the United States. The rapidly growing global demand for new aircraft has increased the need to invest in efficient aircraft systems. Therefore, significant investments have been made in manufacturing commercial aircraft systems, which has driven the growth of the North American aviation fuel market.
In 2020, the outbreak of COVID-19 negatively impacted the aviation fuel market in North America. However, lockdown restrictions were lifted in Q4 2020, and vaccination drives were initiated in January 2021 to mitigate the risk of COVID-19. Moreover, vendors in the market in focus in North America resumed their business activities in Q4 2020. Also, the aviation industry has been experiencing several developments and increases in passenger traffic since 2021. For instance, North America was the strongest-performing region for the aviation industry in 2022 and the only region to return to profitability in 2022. In addition, the increasing demand for military and private aircraft will drive the regional market to focus during the forecast period.
The aviation fuel market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global aviation fuel market as a part of the global coal and consumable fuels market within the global coal market. The global coal and consumable fuels market covers companies primarily involved in the production and mining of coal, related products, and other consumable fuels related to the generation of energy.
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Aviation Fuel Market Scope |
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Report Coverage |
Details |
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Page number |
170 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 8% |
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Market growth 2023-2027 |
USD 93.88 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
7.34 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 39% |
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Key countries |
US, Canada, China, India, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
BP Plc, Chevron Corp., Exxon Mobil Corp., Gazprom International Ltd., Gevo Inc., Honeywell International Inc., LanzaTech Global Inc., Marathon Petroleum Corp., MOL Group, Neste Corp., Oil and Natural Gas Corp. Ltd., Petroleo Brasileiro SA, PJSC LUKOIL, Shell plc, SkyNRG BV, Swedish Biofuels AB, Targray Technology International Inc., TotalEnergies SE, Valero Energy Corp., and Vitol Netherlands Cooperatief UA |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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