Aviation Fuel Market - By Grade (Jet Fuel, Aviation Gasoline, Biokerosene) and End-use Sector (Commercial Aircraft [Narrow-body Aircraft, Wide-body Aircraft], Regional Jet, Business Jet, Helicopter, Military) & Forecast, 2022-2028

Aviation Fuel Market Size

Aviation Fuel Market size was valued at around USD 189 billion in 2021 and will exhibit a growth rate of over 8% CAGR from 2022 to 2028 driven by the rising technological advancements and investments for optimizing fuel formulation techniques and minimizing the environmental impact. The industry size is expected to hit 3,170.3 million Barrels in terms of volume with an anticipated CAGR of 4.6% through the forecast period.
 

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Aviation fuel is a specialized type of petrol-based fuel that is used to power airplanes and various aircraft. These are refined and processed to advanced specification under superior quality and often comprise additives to minimize the risks of icing at minimum temperatures.
 

Rising air passenger travel along with proliferating businesses and short-distance travel will lead to the industry growth owing to the proliferating tourism industry coupled with the rising popularity of low-cost carriers. Moreover, improving flying routes and rising disposal incomes are some of the major factors driving the business growth. The industry is affected by government policies, environmental regulations, and political issues, among others.
 

Aircraft manufacturers are also focussing on producing efficient and highly aerodynamic aircraft that are expected to cut fuel consumption considerably. Furthermore, the emergence of hybrid technologies, electric aircraft, and continuous development of fully electric aircraft may impact the aviation fuel market over the study period.
 

The affordable airlines are also witnessing multiple strategic mergers and acquisition agreements among players for expanding their business shares and to cater to a wide customer base. For instance, in December 2019, Jeju Air announced a deal worth around USD 60 million. This strategy will enable both the companies to improve their profitability by reducing operating expenses and catering to a wide customer base. Company expansion projects such as these will directly & positively aid the aviation fuel industry by 2028.
 

Additionally, stringent government regulations and policies pertaining to reducing pollution levels from traditional fuel are encouraging industry players to invest in green & sustainable fuel solutions. These fuels are expected to significantly reduce pollution levels and offer significant advantages over conventional fuelled aircraft. However, the high fuel prices are playing a detrimental factor in the increasing adoption of such fuels over the coming years.
 

Aviation Fuel Market Analysis

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Jet fuel will dominate and account for over 90% in aviation fuel market share by 2028 due to the increasing usage of this fuel for a wide range of aircraft. Moreover, the reduced fuel cost compared to its counterparts coupled with higher energy content is expected to further boost the segment size. The fuel is generally easier to handle and is less volatile compared to gasoline, thereby increasing its adoption significantly. Additionally, the fuel is also available in multiple configurations & types and is ideal for various applications.
 

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Commercial aircraft will dictate the aviation fuel market and will generate around USD 150 billion by 2028 owing to the increasing air passenger travel globally. Improving living standards coupled with expanding travel routes are driving the segment share. Moreover, aircraft manufacturers are focusing on expanding their aircraft production to meet the rising demand, thereby providing a positive outlook for the aviation fuel market sales.
 

The aerospace industry is observing an increasing consumption of aircraft including A350XWB, B737, A320, and B787. The growing disposable income is ensuing a shift in preference toward air travel. The increasing air passenger traffic in developing countries is further contributing to revenue generation. Industry participants are focusing on reducing aircraft weight by developing innovative designs and efficient engines.
 

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Asia Pacific aviation fuel market will generate a demand of over 1 billion barrels per year by 2028. The region witnesses increasing air passenger traffic owing to the proliferating low-cost airlines. The strong aviation industry in Asia Pacific can be attributed to the developing economies and increasing disposable incomes, leading to rising air passenger traffic.
 

For instance, in 2017, the Association of Asia Pacific Airlines (AAPA) reported that multiple airlines in the region carry over 20 million tons of cargo and around 1,214 million passengers. The growing population in countries such as India and China coupled with technologically advanced & efficient aircraft with low air travel fares has increased the aircraft demand.
 

Aviation fuel industry players are engaged in strategic collaborations and partnerships with airline operators to innovate technologies associated with aviation fuel and expand their business shares. For instance, in November 2019, Etihad Airways entered into a collaborative agreement with Boeing with investments amounting to around USD 200 million for developing sustainable aviation fuel solutions. Few of the major operators in the market include BP, Shell, Chevron, ExxonMobil, and Gazprom.
 

The aviation fuel market report includes in-depth coverage of the industry with estimates & forecast in terms of volume in Million Barrels and revenue in USD Million from 2022 to 2028 for the following segments

By Grade

• Jet fuel
• Aviation gasoline
• Biokerosene

By End-use Sector

• Commercial
  • Narrow-body
  • Wide-body
• Regional
• Business
• Helicopter
• Military

The above information is provided on a regional and country basis for the following:

By Region

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • UK
  • Italy
  • Russia
  • Spain
  • Netherlands
  • Switzerland
• Asia Pacific
  • China
  • Japan
  • Australia
  • Indonesia
  • India
  • South Korea
  • Thailand
  • Hong Kong
  • Singapore
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Chile
  • Colombia
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Turkey
  • South Africa