Aviation Fuel Market size is set to exceed USD 325 billion by 2026, according to a new research report by Global Market Insights Inc.
Proliferating air passenger traffic and growing tourism industry are playing a major role in expanding the airline travel routes, thereby driving the market demand. Improving middle class living standards coupled with increasing preference for air travel over longer routes on account of safe and efficient transportation are further augmenting the aviation fuel industry share. Moreover, rising development and experiment in green fuel including biokerosene technologies will offer significant growth opportunities for the market.
Aviation gasoline segment in the market is expected to showcase a healthy growth of around 4% till 2026 due to increasing usage of these fuel for powering light weight and compact aircrafts. Additionally, these fuels have superior compression ratio, which contributes significantly towards improving the engine efficiency, thereby providing a positive outlook for the market share expansion.
Browse key industry insights spread across 160 pages with 217 market data tables & 24 figures & charts from the report, “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” in detail along with the table of contents:
Jet fuel is still the most preferred choice among all airlines
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The jet fuel segment in the market holds highest revenue share owing to lower fuel cost compared to its counterparts. Additionally, the fuel also has significantly higher energy content per unit volume, thereby improving the aircraft performance significantly. The reduced volatility of the fuel makes it safer and lowers the fuel handling danger, boosting the market demand.
Military sector will showcase over 4.5% gains from 2019 to 2026 led by rising focus of governments globally to improve their defense and military forces. Moreover, increasing investments and advancing modernizing programs are expected to provide future growth opportunities.
Helicopter end-use segment will account for more than 16% market share during the forecast period. This can be credited to rising demand for helicopters for tourism and emergency rescue services. The benefits offered by these crafts, including vertical take-off and landing operations coupled with ability to hover over limited air space are further supporting the market growth.
Low cost carriers driving the European market for aviation fuel
The Europe market accounted for over USD 34 billion revenue in 2018 and is estimated to register exponential CAGR through 2026 driven by rising air travel across the region. Further, the proliferating low cost carriers and improving tourism sector are expected to offer significant growth opportunities for the regional market expansion.
Industry players are investing in sustainable fuel solutions
Industry players are continuously engaged in advancing technologies and processes associated with the production of green fuels. For instance, in November 2019, Shell announced the provision for technical support and commercial expertise for the Europe’s first sustainable aviation fuel plant. Few of the major players operating in the market include Reliance Petroleum, HPCL, Shell, ExxonMobil, Gazprom, and Chevron among others.
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