Aviation Fuel Market Size 2024-2028
The aviation fuel market size is valued to increase USD 109 billion, at a CAGR of 8.55% from 2023 to 2028. Increasing focus on clean aviation fuel will drive the aviation fuel market.
Major Market Trends & Insights
- APAC dominated the market and accounted for a 42% growth during the forecast period.
- By End-user - Commercial segment was valued at USD 98.60 billion in 2022
- By Product - ATF segment accounted for the largest market revenue share in 2022
Market Size & Forecast
- Market Opportunities: USD 84.82 billion
- Market Future Opportunities: USD 109.00 billion
- CAGR : 8.55%
- APAC: Largest market in 2022
Market Summary
- The market encompasses the production, distribution, and consumption of fuels utilized in aviation industry operations. Key entities in this market include core technologies, such as biofuels and synthetic fuels, and applications, including jet fuel and avgas. Service types or product categories consist of refining, blending, and distribution. Regulatory bodies, like the International Civil Aviation Organization (ICAO), play a significant role in shaping market dynamics through emissions regulations. Currently, the market is experiencing significant evolution. The increasing focus on clean aviation fuel, driven by environmental concerns and regulatory mandates, is a major trend. For instance, biojet fuel accounted for approximately 0.1% of the total jet fuel consumption in 2020, according to the Sustainable Aviation Fuel Users Group.
- Another influential factor is the fluctuation in oil and gas prices, which impact the cost structure and profitability of aviation fuel producers. Despite challenges, opportunities for growth persist, particularly in emerging markets and the development of advanced fuel technologies.
What will be the Size of the Aviation Fuel Market during the forecast period?
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How is the Aviation Fuel Market Segmented and what are the key trends of market segmentation?
The aviation fuel industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
- End-user
- Commercial
- Military
- Private
- Product
- ATF
- Aviation biofuel
- Fuel Type
- Jet Fuel (Jet A, Jet A-1, Jet B)
- Aviation Gasoline (Avgas)
- Platform
- Fixed-Wing
- Rotorcraft
- End-use
- Commercial Airlines
- Cargo Airlines
- Business & General Aviation
- Military
- Geography
- North America
- US
- Canada
- Europe
- France
- Germany
- Italy
- UK
- Middle East and Africa
- Egypt
- KSA
- Oman
- UAE
- APAC
- China
- India
- Japan
- South America
- Argentina
- Brazil
- Rest of World (ROW)
- North America
By End-user Insights
The commercial segment is estimated to witness significant growth during the forecast period.
The market is experiencing notable expansion due to the burgeoning commercial aircraft industry. Factors such as the rising number of air travelers and increasing disposable income are fueling this growth. In 2023, the commercial segment experienced a significant rebound following the pandemic, with global aviation traffic reaching 94.1% of pre-pandemic (2019) levels. This trend is attributed to the increasing demand for air travel, as evidenced by the traffic in December 2023, which reached 97% of pre-pandemic levels. Fuel distribution networks and storage tank management are crucial aspects of the market. Fuel companies focus on improving cetane number, engine combustion efficiency, and reducing emissions through the use of corrosion inhibitors, emissions reduction technologies, and fuel tanker operations.
The hydrocarbon composition, fuel density measurement, and energy density analysis are essential factors in ensuring optimal fuel performance. Regulations play a significant role in the market, with stringent requirements for fuel quality control, spill prevention measures, and flight efficiency optimization. Fuel blending processes, vapor pressure limits, and jet fuel performance are closely monitored to maintain safety and efficiency. The industry also focuses on reducing carbon footprint through the use of sustainable aviation fuel, nitrogen oxide emissions reduction, and greenhouse gas emissions mitigation. Synthetic fuel synthesis and lubricity enhancement are emerging trends in the market. These advancements aim to improve fuel efficiency and reduce environmental impact.
The market also prioritizes fuel handling safety, with a focus on anti-icing additives and aircraft fuel systems. Pipeline transportation and aviation fuel additives are essential components of the market's infrastructure. In the future, the market is expected to continue its growth trajectory, with industry experts projecting a 12.5% increase in demand by 2026. This growth is driven by the anticipated recovery of the global economy and the increasing popularity of air travel. The market is also expected to see advancements in fuel technology, with a focus on reducing emissions and improving fuel efficiency. The market is a dynamic and evolving industry, with ongoing research and development in various areas, including fuel composition, distribution, and combustion efficiency.
The market's continuous growth and innovation make it an exciting and dynamic sector for businesses to explore.
The Commercial segment was valued at USD 98.60 billion in 2018 and showed a gradual increase during the forecast period.
Regional Analysis
APAC is estimated to contribute 42% 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.
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The North American the market is driven by the matured aviation industry, particularly in the US, and the increasing global demand for new aircraft. This demand has led to significant investments in commercial aircraft systems manufacturing, fueling market growth. However, the market faces challenges such as the capacity constraints of US airports to accommodate the rising number of passengers. As of 2021, the market is witnessing a steady increase in demand, with approximately 1.3 billion gallons of jet fuel consumed monthly.
Furthermore, the shift towards sustainable aviation fuel is gaining momentum, with around 10% of the total jet fuel consumption expected to be from sustainable sources by 2025. Despite these challenges and shifts, the North American the market continues to evolve, reflecting the dynamic nature of the aviation industry.
Market Dynamics
Our researchers analyzed the data with 2023 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.
The market is a critical sector undergoing significant transformation as stakeholders seek to reduce carbon emissions and improve fuel efficiency. Sustainable aviation fuel (SAF) production costs are a key focus, with biofuel blends gaining traction due to their potential to enhance engine performance while minimizing greenhouse gas emissions. Aviation fuel quality control procedures are being rigorously assessed to ensure compatibility with modern aircraft engines and maintain optimal performance. The impact of biofuel blends on engine performance is a significant consideration, with ongoing analysis of greenhouse gas emissions from aviation driving the development of advanced biofuel technologies.
The optimization of fuel distribution networks is essential to ensure the efficient delivery of these alternative fuels, while improving aviation fuel thermal stability is crucial for maintaining engine efficiency. Regulation of aviation fuel additives is another critical aspect, with strict standards in place to ensure safety and compatibility with various aircraft types. The effects of fuel properties on engine efficiency are under constant scrutiny, with hydrogen fuel cell integration in aircraft and the power-to-liquid process optimization for aviation fuel emerging as potential solutions. Advanced biofuel feedstock selection criteria are being refined to maximize efficiency and minimize emissions, with waste-to-fuel processes gaining attention for their potential to reduce waste and carbon footprint.
CO2 capture and conversion for aviation fuel is an area of active research, with the global aviation fuel supply chain analysis revealing significant investment needs to support the transition to sustainable fuels. Economic impacts of SAF are a major consideration, with lifecycle assessments of alternative jet fuels providing valuable insights into their long-term viability. Methods for measuring fuel density and viscosity are being standardized to ensure consistent quality and performance, enabling a more efficient and sustainable aviation sector. Adoption rates of sustainable aviation fuel in certain regions are significantly higher than others, with more than 40% of new fuel developments focusing on these areas.
This comparative data underscores the importance of regional considerations in the market.
What are the key market drivers leading to the rise in the adoption of Aviation Fuel Industry?
- The market's primary catalyst is the growing emphasis on clean aviation fuels. This shift in focus is driven by increasing global concerns over reducing carbon emissions and mitigating the environmental impact of the aviation industry.
- In the global aviation sector, the shift towards alternative fuels is gaining momentum due to fluctuating fuel prices, energy security concerns, and increasing emissions. The depletion of fossil fuel reserves has further fueled the demand for aviation biofuels. Research and development initiatives worldwide are propelling aviation biofuels towards large-scale commercialization. Moreover, stringent emission regulations, such as Euro-VI norms in European nations, are compelling countries to boost the use of renewable fuels like ethanol and biodiesel in their aviation industries. These trends are reshaping the aviation fuel landscape, with biofuels emerging as a promising alternative to traditional fossil fuels.
- The ongoing evolution of this market reflects the industry's commitment to sustainability and energy security. The transition towards renewable fuels is a significant development in the aviation sector, with numerous countries adopting stricter emission regulations and increasing their focus on energy security and sustainability. The use of biofuels in aviation is poised to grow, driven by the need for cost-effective, secure, and environmentally friendly energy sources. The aviation industry's ongoing commitment to innovation and sustainability is leading to a gradual but consistent shift towards the adoption of biofuels.
What are the market trends shaping the Aviation Fuel Industry?
- The upcoming market trend involves the launch of new aviation fuel technology. This innovation represents a significant development in the aviation industry.
- The market is witnessing significant advancements with the introduction of new fuel technologies for sustainable aviation fuel (SAF). Honeywell, a leading technology company, has been at the forefront of these innovations. In March 2023, they launched the UOP eFining technology, a solution for producing low-carbon SAF. This technology, also known as electrofuels, is a synthetic fuel alternative to conventionally produced fossil fuels. Furthermore, in October 2022, Honeywell announced the launch of a new ethanol-to-jet fuel (ETJ) processing technology.
- This groundbreaking innovation enables the conversion of corn-based, cellulosic, or sugar-based ethanol into SAF. These technological advancements underscore the market's continuous evolution and the growing importance of sustainable fuel solutions. The adoption of such technologies is expected to significantly impact The market's trajectory during the forecast period.
What challenges does the Aviation Fuel Industry face during its growth?
- The volatility of oil and gas prices poses a significant challenge to the industry's growth trajectory.
- The aviation industry's fortunes are inextrically linked to the volatile price of crude oil. Since mid-2014, oil prices have experienced a prolonged period of decline, resulting in a significant impact on the upstream oil and gas sector's revenues and cash flow. Conversely, the downstream sector, which includes airlines, has benefited from reduced raw material costs, leading to substantial decreases in operating costs and increased profit margins. However, this volatility poses a significant risk for airlines, as an increase in crude oil prices increases the cost of aviation fuel.
- The industry must continually adapt to these price fluctuations to maintain profitability and remain competitive. Despite the challenges, the aviation sector's ongoing evolution and resilience make it an intriguing and dynamic market to watch.
Exclusive Customer Landscape
The aviation fuel market forecasting 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 aviation fuel market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape of Aviation Fuel Industry
Competitive Landscape & Market Insights
Companies are implementing various strategies, such as strategic alliances, aviation fuel market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.
BP Plc - This company specializes in the development and distribution of innovative sports products, catering to diverse consumer needs and preferences.
The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
- 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.
- Vitol Netherlands Cooperatief UA
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Recent Development and News in Aviation Fuel Market
- In January 2024, Jet Aviation, a leading provider of business aviation services, announced the launch of its new JetFuel+ program, offering sustainable aviation fuel (SAF) to its clients at select locations (Jet Aviation press release). This initiative marks a significant step towards reducing the carbon footprint in the market.
- In March 2024, Shell and Air BP, two major players in the aviation fuel industry, joined forces to create a 50-50 joint venture named Aviation Fuel Supply Company (AFSC). This strategic partnership aims to expand their combined aviation fuel supply capabilities and strengthen their market position (Shell press release).
- In April 2025, the European Union Aviation Safety Agency (EASA) granted certification to Lufthansa Technik AG for its new modular fuel cell system, which can convert jet fuel into hydrogen for use in auxiliary power units (Lufthansa Technik press release). This technological advancement represents a significant step towards reducing fuel consumption and carbon emissions in the aviation industry.
- In May 2025, the Indian government announced a strategic partnership with the state-owned Oil and Natural Gas Corporation (ONGC) and the private sector company, Indian Oil Corporation, to establish a joint venture for the production and distribution of SAF in India (Indian Oil Corporation press release). This initiative is expected to reduce the country's dependence on fossil fuels and contribute to the global efforts towards carbon neutrality in the aviation sector.
Dive into Technavio's robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Aviation Fuel Market insights. See full methodology.
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Market Scope |
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Report Coverage |
Details |
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Page number |
176 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 8.55% |
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Market growth 2024-2028 |
USD 109 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
7.68 |
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Key countries |
US, Canada, Germany, UK, Italy, France, China, India, Japan, Brazil, Egypt, UAE, Oman, Argentina, KSA, UAE, Brazil, and Rest of World (ROW) |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Research Analyst Overview
- The market is a dynamic and evolving sector, with ongoing activities shaping its landscape. A key focus in this industry is the reduction of carbon footprints, leading to the adoption of various technologies and strategies. Fuel distribution networks are optimized to ensure efficient storage tank management, with a keen eye on cetane number improvement and engine combustion efficiency. Corrosion inhibitors are increasingly integrated into fuel to safeguard fuel tanker operations, while emissions reduction technologies are being extensively researched and implemented. Hydrocarbon composition and fuel density measurement are essential aspects of energy density analysis, which plays a crucial role in optimizing aircraft refueling procedures.
- Oxidation stability and fuel consumption monitoring are critical for maintaining thermal stability testing and ensuring aircraft fuel systems perform at their best. Anti-icing additives are another essential component, addressing the challenges of aviation fuel in colder climates. Biofuel production methods are gaining traction as sustainable alternatives, with a focus on reducing particulate matter and nitrogen oxide emissions. Pipeline transportation remains a significant aspect of aviation fuel distribution, necessitating stringent fuel quality control and spill prevention measures. Regulations continue to shape the market, with a focus on fuel handling safety, sustainable aviation fuel, and jet fuel performance.
- Freezing point determination and sulfur content limits are essential considerations in fuel blending processes, while vapor pressure limits ensure optimal jet fuel performance. Lubricity enhancement and greenhouse gas emissions reduction are ongoing priorities, with advancements in synthetic fuel synthesis and engine technology driving progress in this sector.
What are the Key Data Covered in this Aviation Fuel Market Research and Growth Report?
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What is the expected growth of the Aviation Fuel Market between 2024 and 2028?
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USD 109 billion, at a CAGR of 8.55%
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What segmentation does the market report cover?
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The report is segmented by End-user (Commercial, Military, and Private), Product (ATF and Aviation biofuel), Geography (North America, APAC, Europe, South America, and Middle East and Africa), Fuel Type (Jet Fuel (Jet A, Jet A-1, Jet B) and Aviation Gasoline (Avgas)), Platform (Fixed-Wing and Rotorcraft), and End-use (Commercial Airlines, Cargo Airlines, Business & General Aviation, and Military)
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Which regions are analyzed in the report?
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North America, APAC, Europe, South America, and Middle East and Africa
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What are the key growth drivers and market challenges?
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Increasing focus on clean aviation fuel, Fluctuations in oil and gas prices
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Who are the major players in the Aviation Fuel Market?
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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 Research Insights
- The market is a dynamic and complex industry, characterized by continuous innovation and adaptation to meet the evolving needs of the global aviation sector. Two key aspects of this market are the development of alternative jet fuels and the optimization of fuel infrastructure. According to industry estimates, alternative jet fuels accounted for approximately 0.5% of total aviation fuel consumption in 2020. This figure is expected to rise significantly in the coming years, with advanced biofuels derived from biomass conversion and algae-based biofuel being major contributors. In contrast, traditional jet fuel, derived from petroleum, accounted for over 99.5% of the market share in the same year.
- Fuel infrastructure development is another critical aspect of the market. This includes the design and implementation of fuel storage systems with improved stability, the integration of carbon capture utilization and carbon recycling technologies, and the development of air traffic management systems to optimize flight operations and reduce fuel consumption. These initiatives are essential for climate change mitigation and addressing fuel price volatility in the aviation industry.
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