Aviation Fuel Market Size

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.

To get key market trends

  Download Free Sample

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.