Aviation Fuel Market Analysis

Aviation Fuel Market Analysis

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.
 

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.
 

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.