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, 2024-2032

Aviation Fuel Market size

Aviation Fuel Market was valued at over USD 220.1 billion in 2023 and will register 9.7% CAGR from 2024-2032. The fuel is experiencing increased demand due to joint ventures and large-scale production efforts in the market. As companies enter into strategic alliances that aim to strengthen supply chains and improve operational efficiencies, the market will register remarkable growth.
 

For instance, in June 2024, MAJOR S.p.A. announced that NEXTCEM, through its subsidiary MyRechemical, entered into an agreement with DG Fuels for its NX circular gasification technology. The plant, targeted to start operations in 2028, aims to produce 450 million liters of sustainable aviation fuel (SAF) per year from residual and urban biomass waste.
 

These collaborations are critical to globalization, meeting the growing demand generated by the revival of air travel and freight transportation. Furthermore, production efforts are intensifying, with innovations in renewable technologies and sustainable fuel alternatives playing an important role. Industry push towards cleaner aviation fuels aligns with global climate goals and regulatory framework. This dynamic landscape underscores the shift toward environmental sustainability. It highlights the market’s adaptability as well as resilience in the face of ongoing economic and ecological challenges. Furthermore, investment in sustainable products and practices is poised to shape the market, ensuring it plays a key role in the future of global transport.
 

Despite the growth of the aviation fuel market, there are notable constraints. Regulatory constraints such as stringent emission standards and environmental regulations challenge the acceptance of conventional and alternative fuels. Crude oil price fluctuations also affect market position and costs. Technological barriers to upscaling sustainable aviation fuel (SAF) hinder its widespread use and limit the variety of products offered. Moreover, geopolitical conflicts and economic uncertainties affect global supply chains and investments in the fuel system. These constraints require innovative solutions and a collaborative approach to move towards a more sustainable and flexible market.
 

Aviation Fuel Market Trends

The aviation fuel industry is witnessing a turning point, driven by increased investments and enhanced efforts toward increasing sustainable aviation fuel (SAF) production by stakeholders. Research, development, and manufacture of SAF to reduce carbon footprints and comply with stringent environmental regulations have been made. This transformation has been spurred by increasing awareness and airline commitment toward setting carbonization targets.
 

Technological advances in biofuels, synthetic fuels, and electric propulsion systems are fueling innovation and helping expand sustainable options. Furthermore, government incentives and industry collaboration are accelerating SAF adoption, forcing a greener future promised for air travel. These developments highlight a critical moment in the aviation industry, where sustainable practices are becoming central to business strategies to ensure a more environmentally responsible approach to the markets.
 

Citing an instance, in June 2024, Bharat Petroleum Corp announced that it is all set to set up sustainable aviation fuel (SAF) units at its three refineries. This policy aims to reinforce the government’s commitment to achieving a 1% mix target. The company plans to spend about Rs 1,400 crore to build these units.
 

Aviation Fuel Market Analysis

Based on grade, the industry from the jet fuel segment held the dominant market share and will register 6.6% CAGR through 2024-2032. With global air travel continuing to bolster its growth trajectory, especially in commercial and freight, the need for aviation fuel remains critical. This increase in demand reflects the post-pandemic economic recovery and globalization, strengthening the airline industry worldwide. Additionally, rapid urbanization, growing consumer spending, and increasing numbers of passengers and freight transportation contribute to the growing use of aviation fuel. Despite challenges such as oil price fluctuations and environmental factors, innovations in fuel efficiency and sustainable aviation fuels shape market dynamics to ensure operational efficiencies meet future demands.
 

Based on end-user, the aviation fuel market from the commercial segment held 47.1% share in 2023 and will dominate the market through 2024-2032. As economies grow and global connectivity expands, commercial airlines increase passenger and cargo volumes, requiring greater jet fuel consumption. This demand has driven business travel, tourism, and global business activities, emphasizing the vital role aviation plays in economic transformation and convenient travel. Despite challenges such as mountainous terrain and environmental concerns, improvements in fuel efficiency and emerging sustainable aviation fuels are increasingly crucial to meet the growing demand for commercial aircraft while complying with stringent emission standards.
 

North America dominated the aviation fuel market in 2023 and will register 6.1% CAGR from 2024 to 2032, driven by strong domestic markets, including passenger and freight airlines and international routes connecting large areas worldwide. Economic development, business travel, tourism, and e-commerce contribute to stable airline fuel consumption in North America. Furthermore, aviation technological advances and productivity improvements play a critical role in the growing demand for aviation fuel while addressing environmental concerns. As the region recovers from the effects of the pandemic, the market in North America is essential to adapt to the ongoing industry trends and is affected by regulatory requirements.
 

Aviation Fuel Market Share

In the aviation fuel industry, several key players play crucial roles in supplying jet fuel to airlines worldwide. Companies like ExxonMobil, Shell, Chevron, and Total are among the major global suppliers, leveraging extensive refining capabilities and distribution networks to ensure consistent supply and quality. These giants often operate across multiple regions, providing reliable jet fuel solutions that meet stringent industry standards for safety and performance. They invest heavily in research and development to innovate in fuel efficiency and environmental sustainability, aiming to reduce carbon emissions and enhance operational efficiency for their aviation clients.
 

Regionally, companies like Indian Oil Corporation Limited and Bharat Petroleum Corporation Limited (BPCL) are significant players in Asia, catering to the growing demand from airlines in the region. Their strategic locations and strong partnerships with airlines and airports enable them to maintain a competitive edge. Meanwhile, companies such as China Aviation Oil play pivotal roles in the Asian market, focusing on efficient distribution and storage solutions to support the rapid expansion of aviation infrastructure across the region. Together, these players ensure a robust supply chain that supports the global aviation industry's dynamic needs while adhering to stringent regulatory requirements and sustainability goals.
 

Aviation Fuel Market Companies

Top companies operating in the industry include:

• Bharat Petroleum Corporation Limited (BPCL)
• BP p.l.c.
• Chevron
• China Aviation Oil
• ExxonMobil
• Gazprom
• HPCL
• Indian Oil Corporation Limited
• Mercury Air Group
• Reliance Petroleum
• Shell
• Total
• Virent, Inc.
• Vitol
• World Fuel Services
   

Aviation Fuel Industry News

In June 2024, KazmunaiGas (KMG) announced that it is developing a plan to start production of sustainable aviation fuel (SAF) in Kazakhstan. Askhat Khasenov, chairman of the Kazmunaygas board, explored the possibility of SAF in Kazakhstan in talks with executives of American technology company Lanzajet and Japanese financial company Mitsui.
 

In May 2024, Neste and Singapore Airlines (SIA) Group finalized an agreement to acquire 1,000 tonnes of clean Neste MY Sustainable Aviation Fuel™. This was a significant milestone as the two airlines under the group, SIA and Scoot, became the first recipients of Sustainable Aviation Fuel (SAF) sourced from the Neste refinery at Changi Airport in Singapore.
 

In June 2024, BP plc (BP.L) announced that it is set to look at expanding and diversifying its biofuel business in Brazil. This includes exploring new products, such as second-generation ethanol and sustainable aviation fuels, following the acquisition of Bunge (BG.N) from their joint venture, BP Bunge Bioenergy.
 

In June 2024, Marubeni started offering sustainable aviation fuel (SAF) in Japan, using a joint venture with Korean fuel manufacturer HD Hyundai Oilbank, which buys SAF derived from vegetable oils (mainly cooking oil).
 

The aviation fuel market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue and volume (USD Million) (Million Barrels Per Year) from 2021 to 2032, for the following segments:

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Market, By Grade

• Jet fuel
• Aviation gasoline
• Biokerosene

Market, By End-user

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

The above information is provided for the following regions and countries:

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