Aviation Fuel Market Size By Grade (Jet Fuel, Aviation Gasoline, Biokerosene), By End-use Sector (Commercial Aircraft [Narrow Body Aircraft, Widebody Aircraft], Regional Jet, Business Jet, Helicopter, Military), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2019 - 2026

Published Date: Nov 2019  |  Report ID: GMI4455  |  Authors: Kiran Pulidindi, Soumalya Chakraborty

Report Format: PDF   |   Pages: 160   |   Base Year: 2018




Summary Table of Contents Industry Coverage Methodology

Industry Trends

Aviation Fuel Market size valued at over USD 160 billion in 2018 and is estimated to exhibit around 7.5% CAGR from 2019 to 2026.
 

Aviation Fuel Market

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Aviation fuel is a specialized type of petroleum-based fuel, that is used to power an aircraft. The fuel is available in various grades including jet fuel, aviation gasoline, and biokerosene. Specific energy is the most important criteria while selecting an appropriate fuel for powering an aircraft. Most of the aircraft weight is accounted for the fuel storage, thereby an appropriate amount of fuel based on the plane specification and regulatory norms are mandatory for achieving optimum performance and efficiency.
 

The aviation fuel market demand is driven by technological advancements and investments for optimizing the fuel formulation techniques to minimize the impact to the environment. For instance, in 2019, SkyNRG announced its plans for developing advanced jet fuel from thin air, containing carbon dioxide. This technology is aimed at reducing the levels of carbon emissions released from aircrafts and in part use the same to produce the fuel.
 

Aviation fuel industry participants are collaboratively working on various fuel grades and variants for making it suitable to be used with a wide range of aircrafts. Moreover, several companies are also closely working with regulatory bodies to commercialize certain grades of fuel with an aim of improving efficiency and reduce pollution. For instance, Total along with Continental Motors, Rotax, and Lycoming are working with the UK Civil Aviation Authority and the European Aviation Safety Agency for commercializing the AVGAS UL91 grade for multiple aircraft and engine types.
 

Aviation Fuel Market Report Coverage
Report Coverage Details
Base Year: 2018 Market Size in 2018: 160.88 Billion (USD)
Historical Data for: 2016 to 2018 Forecast Period: 2019 to 2026
Forecast Period 2019 to 2026 CAGR: 4.7% 2026 Value Projection: 327.62 Billion (USD)
Pages: 160 Tables, Charts & Figures: 241
Geographies covered (28): U.S., Canada, Germany, France, UK, Italy, Russia, Spain, Netherlands, Switzerland, China, Japan, Australia, Indonesia, India, South Korea, Thailand, Hong Kong, Singapore, Brazil, Mexico, Argentina, Chile, Colombia, Saudi Arabia United Arab Emirates, Turkey, South Africa
Segments covered: Grade, End-user, and Region
Companies covered (15): Total, ExxonMobil, Chevron, British Petroleum (BP), Shell, Gazprom, Vitol, World Fuel Services, Mercury Air Group, China Aviation Oil, Reliance Petroleum, Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited (BPCL), HPCL, Virent, Inc.
Growth Drivers:
  • Proliferating demand for air travel owing to low cost carriers
  • Increasing production and deliveries of aircrafts
  • Construction and expansion of airports
  • Booming trade activities and proliferating e-commerce industry
  • Expanding middle class population and proliferating tourism industry
  • Supporting regulatory norms and rising demand for green and sustainable fuel
Pitfalls & Challenges:
  • Volatile crude oil pricing and geopolitical issues
  • Rising preference for hybrid and electric aircrafts
  • Capacity constraints and congestion related issues

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Volatile crude prices, geopolitical issues, and introduction of green fuel to play pivotal role

Volatility of crude oil prices coupled with the advent of hybrid, electric, and more electric aircrafts may hamper the aviation fuel market growth over the study period. Moreover, complexities associated with the crude oil refining and extraction and geopolitical issues may further contribute towards increasing prices and affecting the market value. However, industry players are continuously investing in green and bio-based fuel solutions, that are expected to normalize the impacts and prove to be a reliable alternative for the traditional fossil-based fuel, thereby augmenting the market share.
 

Commercial aircrafts are leading the way

Commercial aircrafts dominate over its counterparts, however regional aircrafts showcase promising growth
Commercial aircrafts dominate over its counterparts, however regional aircrafts showcase promising growth

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Commercial aircrafts will dominate the global aviation fuel market over the study period. This can be attributed to the rising air passenger travel globally. Moreover, the proliferation of low-cost carriers coupled with improving living standards and growing tourism industry are providing a positive outlook for the industry expansion. Airliners are focussing on expanding their network of routes for catering to a wide geographical area and attract passengers. For instance, in November 2019, American Airlines announced its plans for adding extra travel routes by summer 2020.
 

Regional jets will grow significantly over the projected timeframe. This can be credited to the proliferating demand for short distance travels globally. Moreover, these jets are ideal for providing travel services for limited set of passengers efficiently. Additionally, few airlines across the globe are focussing on improving the flying experience through these jets by offering personalized services, thereby enhancing the overall passenger comfort and appeal. For instance, in November 2019, United Airlines showcased its reconfigured Bombardier CRJ-550 aircraft with premium and first-class services to its regional jet.
 

Focus towards reducing greenhouse gas emissions driving the biokerosene popularity

Biokerosene is set to exhibit the highest growth in the aviation fuel market over the study period. This can be attributed to the rising preference of governments globally to reduce their reliance on conventional petroleum-based fuels. Moreover, these fuels contribute significantly towards reducing environmental pollution along with improving efficiency. Industry players from across the globe are continuously investing for commercializing the fuel. For instance, in May 2019, KLM announced a strategic investment for its European plant to develop Biokerosene.
 

Jet fuel accounted for the highest market revenue share over the study period. This can be attributed to the increasing prevalence and usage of this fuel for a wide range of aircrafts. Moreover, the fuel is also available in various grades and forms which are ideal for civil and military aircrafts including Jet A, Jet B, and Jet A-1 among others. Increasing aircraft production and deliveries owing to improving air passenger travel are expected to provide significant growth opportunities for the business expansion. For instance, Boeing announced the delivery of 806 commercial jets in 2018.
 

North American companies to witness significant aircraft production and deliveries backlog

Proliferating tourism and improving air passenger travel in Asia Pacific to drive regional demand (USD Million)

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Asia Pacific will showcase significant growth in the aviation fuel market over the study period. This can be attributed to the proliferating tourism industry across the region. Moreover, improving living standards coupled with rising disposable income are further expanding the regional growth. Airliners across the region are entering into strategic and long-term agreements with aviation fuel companies for ensuring a continuous supply of fuel for their aircrafts. For instance, in November 2019, GoAir signed a pact with Dubai based Emirates National Oil Company (ENOC) for ensuring a continuous supply of fuel for its aircrafts.
 

North America accounted for a significant aviation fuel industry revenue share over the study period. This can be credited to the rising aviation production and deliveries across the region. Moreover, aircraft manufacturers are experiencing significant delivery backlogs which are expected to showcase growth opportunities over the study period. For instance, as of October 2019, the total order backlog for Airbus aircrafts stood at 7,471 units.
 

Strategic collaborations form the major basis for business expansion

Industry players are engaged in strategic collaborations and partnerships with airline operators for innovating the technologies associated with the aviation fuel and expand their business share. 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 Shell, BP, ExxonMobil, Chevron, and Gazprom.
 

The aviation fuel market research report includes in-depth coverage of the industry with estimates & forecast in terms of volume in million barrels per year and revenue in USD million from 2016 to 2026, 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:

  • 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
       

Frequently Asked Questions (FAQ) :

The industry growth is driven by technological advancements and investments for optimizing the fuel formulation techniques to minimize the impact on environment.
Commercial aircrafts will account for majority of the market size from 2019 to 2026 due to rising air passenger travel globally. Moreover, the proliferation of low-cost carriers coupled with improving living standards and growing tourism industry are providing a positive outlook for the industry expansion.
The Asia Pacific region dominates the industry revenue share and will showcase significant growth over the study period. This can be attributed to the proliferating tourism industry across the region.

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