Enjoy complimentary customisation on priority with our Enterprise License!
The Commercial Aircraft Aviation Fuel Market size is estimated to increase by USD 49.5 billion and grow at a CAGR of 7.65% between 2022 and 2027. The growth of the market depends on several factors, such as the increase in demand for air travel, the increasing disposable income of consumers, and the launch of new technology. The market experiences significant growth due to the increasing demand for air travel, despite encountering environmental obstacles such as greenhouse gas emissions and plastic pollution. Collaborations between industry leaders like Airbus and biotech firms such as CemvitaFactory drive innovations in sustainable jet-A fuel, with the goal of mitigating these challenges. The rising preference for air travel, particularly among the middle-class segments in emerging markets, drives both aircraft production and consumption of aviation fuel.
To learn more about this report, Request Free Sample
This report extensively covers market segmentation by application (passenger aircraft and cargo aircraft), type (air turbine fuel (ATF), aviation biofuel, and others), 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.
The passenger aircraft segment will account for a major share of the market's growth during the forecast period. The passenger aircraft segment holds a significant position in the global market. This segment is crucial as it includes large commercial airlines that continuously require fuel for their operations. The aviation industry has witnessed a rise in passenger traffic, leading to an increase in demand for commercial aircraft.
Get a Customised Report as per your requirements for FREE!
The passenger aircraft segment was valued at USD 53.14 billion in 2017 and continued to grow until 2021. The demand in the passenger aircraft segment is influenced by various factors, including the length and frequency of flights, fuel efficiency, and regulatory measures. The fuel consumption of passenger aircraft depends on the distance traveled and the weight of the aircraft. The usage of fuel-efficient engines has resulted in reduced fuel consumption per passenger, thereby positively impacting the market.
The market is categorized into air turbine fuel (ATF), aviation biofuel, and Others. The air turbine fuel (ATF) segment is poised to dominate, being a specialized petroleum-based fuel for gas turbine-powered aircraft. Kerosene, with optimal chemical properties, initially fueled turbine engines. Key properties encompass combustion quality, energy content, lubricity, stability, fluidity, non-corrosivity, volatility, and cleanliness. Two significant ATF grades serve civil and commercial aviation. Given ATF's widespread global use, the expanding airline count will propel the ATF segment's growth in the global market throughout the forecast period.
North America is estimated to contribute 33% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
For more insights on the market share of various regions View PDF Sample now!
Air traffic is increasing in the US, which will also increase the demand, there are certain challenges to the growth of the market in North America. These include the ability of airports in the US to accommodate the increasing number of passengers. Hence, systematic interventions are required to address airport congestion. The costs associated with delays and congestion are approximately USD 6.1 to USD 19 billion for airlines and USD 3.3 to USD 12 billion for passengers each year. This has an indirect effect on fuel delivery. This could negatively affect the growth of the market in North America during the forecast period.
Our analysis of the adoption life cycle of the market indicates its movement between the innovator’s stage and the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Global Market Customer Landscape
The market is witnessing significant evolution driven by environmental concerns and innovative solutions. As the aviation industry faces mounting pressure to address greenhouse gas emissions and plastic pollution, sustainable alternatives like sustainable jet-A fuel are gaining traction. Major players such as Airbus and United Airlines Ventures are investing in sustainable aviation fuel (SAF) initiatives, collaborating with biotech firms like CemvitaFactory and entities like Oxy Low Carbon Ventures. Scientists are exploring alternative fuels like biofuels and LNG to mitigate environmental impact. Amidst rising awareness of global warming, the market is witnessing a shift towards eco-friendly fuel types and advanced handling techniques. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
The market is primarily driven by the surging demand for air travel, despite facing environmental challenges such as greenhouse gas emissions and plastic pollution. Innovations in sustainable jet-A fuel, propelled by collaborations between industry giants like Airbus and biotech firms like CemvitaFactory, aim to address these concerns. Growing demand for air travel, especially in emerging market middle-class segments, fuels aircraft production and aviation fuel consumption. Despite setbacks from the COVID-19 pandemic, the industry has shown resilience, with recovery underway since H2 2021. As global passenger traffic rebounds, the demand is expected to remain robust.
The key trend driving the global market is airlines' focus on enhancing efficiency. Factors like increased aircraft utilization and fleet renewal contribute to improved energy efficiency, as shown by the 2.4% fuel intensity enhancement in new commercial aircraft in 2020. Aligning with global climate goals requires a yearly aviation energy efficiency increase of over 3% by 2040.
Certain countries like India and China have efficiency targets for domestic aviation, while the ICAO enforces policies to enhance aircraft efficiency and reduce CO2 emissions from international flights. Additional measures like carbon pricing and stricter efficiency standards will boost demand during the forecast period.
Fluctuating oil and gas prices pose a significant challenge to the global market's growth. The aviation sector's fate is closely tied to crude oil prices, which have been on a decline due to supply-demand imbalances. Reduced upstream oil and gas company revenues have impacted cash flows.
In 2022, crude oil prices increased to USD 115.34 from USD 71. This volatility affects airlines too, as high crude oil prices amplify downstream sector input costs, subsequently raising expenses. Conversely, low crude oil prices reduce aviation industry operating costs, boosting airline profits and air travel demand. However, this can lead to overcapacity risks when oil prices rebound, potentially hindering market growth during the forecast period.
Companies 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.
Abu Dhabi National Oil Co.: The company offers commercial aircraft aviation fuel through its subsidiary Shanghai Pudong International Airport Aviation Fuel Supply Company Ltd.
Bharat Petroleum Corp. Ltd.: The company offers commercial aircraft aviation fuel through Bharat Petroleum Aviation Service.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
Aviation Fuel Market- The 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 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.
The market is experiencing significant developments driven by various factors. With the aviation industry increasingly focusing on sustainability, the utilization of sustainable jet-A fuel is gaining traction to mitigate environmental problems like greenhouse gas emissions and plastic pollution. Major players like Airbus and Pratt & Whitney are investing in sustainable aviation fuel initiatives, collaborating with biotech firms like CemvitaFactory to develop synthetic microbes for fuel production. Regulatory bodies like the FAA are also pushing for alternative fuels to combat global warming. As air passenger traffic rises, the demand for environmentally friendly aviation fuels continues to grow, shaping the future of the industry.
The market is experiencing robust growth, driven by several key factors. One significant driver is the increasing demand for sustainable aviation fuel (SAF) amidst rising concerns over carbon dioxide emissions and environmental sustainability. Aviation megacities (AMCs) are emerging as major hubs, boosting demand for aviation fuel. United Airlines Ventures (UAV) and Oxy Low Carbon Ventures are investing in innovative solutions to promote sustainability. Biofuels, LNG, and CNG are gaining traction as alternatives to traditional jet fuel, supported by initiatives from organizations like the International Air Transport Association (IATA) and regulatory bodies such as the US Federal Aviation Administration (FAA). With stringent regulations and the growing focus on renewable fuels, the market is witnessing significant advancements in aviation fuel technology and infrastructure, including fuel storage, handling, and dispensing systems. As the aviation industry continues to evolve, sustainable and efficient fuel solutions will play a crucial role in shaping the future of commercial aircraft operations and ensuring compliance with environmental standards.
Furthermore, the market is propelled by various factors, including the reliance on turbine-engine aircraft within the airline industry and the imperative to address environmental concerns such as waste plastics and carbon dioxide emissions (CO2). Occidental and scientists alike are exploring innovative solutions to mitigate these challenges while maintaining the efficiency and safety of commercial aircraft fleets globally. Aviation fuel storage, handling, and dispensing processes are crucial for ensuring the non-corrosiveness of fuel types like Avgas and bio jet fuel. As the aviation industry navigates testing, vaccination requirements, and travel guidelines, sustainable alternatives such as organic waste-derived biofuels are gaining traction, signaling a dynamic shift towards eco-friendly practices in the aviation sector.
Commercial Aircraft Aviation Fuel Market Scope |
|
Report Coverage |
Details |
Page number |
157 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.65% |
Market growth 2023-2027 |
USD 49.5 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.99 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 33% |
Key countries |
US, Canada, China, India, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Abu Dhabi National Oil Co., Bharat Petroleum Corp. Ltd., BP Plc, Chevron Corp., Essar Global Fund Ltd., Exxon Mobil Corp., Indian Oil Corp. Ltd., Kuwait Petroleum International Ltd., Marathon Petroleum Corp., Neste Corp., PJSC LUKOIL, PT Pertamina Persero, Reliance Industries Ltd., Rosneft Deutschland GmbH, Shell plc, TotalEnergies SE, Valero Energy Corp., Vitol Netherlands Cooperatief UA, Viva Energy Group Ltd., and World Fuel Services Corp. |
Market dynamics |
Parent market analysis, Market forecasting, 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. |
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. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.