Market Overview:
The Global Aviation Fuel Market size is projected to reach USD 704.33 Billion by 2030, from USD 286.72 Billion in 2023 at a CAGR of 13.7% during the forecast period.
Aviation fuel is a specific kind of fuel intended for use in aircraft engines. It is sometimes referred to as aviation gasoline or jet fuel. It is a petroleum-based product that has been specially developed to satisfy the exacting specifications of aviation. It is lightweight, stable, and highly refined.
Piston-engine aircraft, which are usually smaller general aviation aircraft, are the main users of VGAs. Because it has a higher-octane rating than regular automobile gasoline, aircraft engines can run on it at high temperatures and compression ratios. This higher-octane rating guarantees smooth engine functioning during flight and helps prevent detonation.
On the other hand, turbine-powered aircraft, such as military and commercial jets, require jet fuel. It's a kind of kerosene that's been meticulously refined to fulfil stringent requirements, such as sulfur content, freezing point, and flash point. The high energy density that jet engines need to generate the push needed for flight is provided by jet fuel. To guarantee consistency and safety, both varieties of aviation gasoline are subjected to stringent testing and quality control procedures.
Top Key Players Covered in The Aviation Fuel Market:
- Vitol (Switzerland)
- Exxon Mobil (U.S.)
- Chevron Corporation (U.S.)
- Shell Plc (U.K.)
- Indian Oil Corporation Limited (India)
- Total Energies SE (France)
- BP Plc (U.K.)
- Valero Energy Corporation (U.S.)
- Marathon Petroleum Corporation (U.S.)
- World Fuel Services Corporation (U.S.), and Other Major Players
Market Dynamics and Factors:
Numerous technological, societal, and economic variables are combining to create an increasing demand for air travel. First of all, globalization has created a more interconnected world in which people and companies depend more and more on-air travel to promote trade, tourism, and cross-cultural interchange. As a result, there is a steady demand for air transportation services everywhere in the world. In addition, more people are able to afford air travel because of growing middle classes and rising earnings in emerging economies, which is driving up demand. People's preference for speed and convenience when traveling is growing along with their discretionary wealth, which makes flying a desirable option.
The aviation sector's influence on the environment is growing along with it. Airlines all throughout the world are facing serious challenges due to the increasing demand for alternate aviation fuels. Conventional jet fuels, which are mainly sourced from fossil fuels, have a substantial impact on the emissions of greenhouse gases and other pollutants. This has led to a concentrated search for sustainable substitutes that can lower the carbon footprint of the sector.
The Aviation Fuel Market Report Highlight:
- By Type, over the course of the forecast period, the sustainable fuel-biofuel sector is expected to dominate the market. Biofuels are produced from feedstocks that are renewable, like algae, plant oils, and agricultural leftovers. They can be used in place of or combined with traditional jet fuels. On the other hand, because of its high energy content per unit mass and potential for zero-emission flying, hydrogen is seen as a promising future choice for aviation.
- By Aircraft Type, over the course of the forecast period, the unmanned aerial vehicle segment is expected to dominate the market. The use of UAVs, or drones, in aviation has grown significantly. However, compared to fixed-wing and rotary-wing aircraft, they comprise a comparatively tiny portion of the total fuel usage. Most UAVs are tiny and employed for tasks like photography, small-scale cargo transfer, and surveillance.
- By Region, North America is expected to dominate the market over the forecast period. An increasing proportion of individuals are selecting air travel as their preferred form of transportation, which can be attributed to a burgeoning tourism industry, an expanding population, and increased disposable money. The economies of North America, especially those of the United States and Canada, have been expanding and staying mostly steady.
Key Industry Development:
- In July 2023, Exxon Mobil Corporation announced it has entered into a definitive agreement to acquire Denbury Inc. (NYSE: DEN), an experienced developer of carbon capture, utilization and storage (CCS) solutions and enhanced oil recovery. By Leading CCS network underpins ExxonMobil’s commitment to low carbon value chains including CCS, hydrogen, ammonia, biofuels, and direct air capture.
- In June 2022, Chevron Corporation completed its previously announced acquisition of Renewable Energy Group, Inc. following approval by REG stockholders. Chevron now offers customers an expanded suite of cost-effective, lower carbon solutions that utilize fleets and infrastructure.
The Aviation Fuel Market Segmentation:
By Type
- Conventional Fuel-Air Turbine Fuel
- Avgas
- Sustainable Fuel: Biofuel
- Hydrogen Fuel
- Power-To-Liquid
- Gas-To-Liquid
By Aircraft Type
- Fixed Wing
- Rotary Wing
- Unmanned Aerial Vehicle
By End-user
- Commercial
- Private
- Military
For this report, Introspective Market Research has segmented the Aviation Fuel Market based on region:
Regional Outlook (Revenue in USD Million; Volume in Units, 2023-2030)
North America
- The U.S.
- Canada
- Mexico
Eastern Europe
- Russia
- Bulgaria
- The Czech Republic
- Hungary
- Poland
- Romania
- Rest of Eastern Europe
Western Europe
- Germany
- UK
- France
- Netherlands
- Italy
- Spain
- Rest of Western Europe
Asia Pacific
- China
- India
- Japan
- Singapore
- Australia
- New-Zealand
- Rest of APAC
Middle East & Africa
- Turkey
- Saudi Arabia
- Qatar
- UAE
- Israel
- South Africa
South America
- Brazil
- Argentina
- Rest of SA
