Market Overview

The Aviation Fuel Market is expected to grow from USD 351.85 Billion in 2022 to USD 692.75 Billion by 2030, with a CAGR of 9.3% during the forecast period. 


Planes are powered by fuel for flight. All kinds of fuels are made from crude oil. The main job of jet fuel is to power an airplane. Two of the most important things about a fuel's efficiency are how much energy it has and how well it burns. Other important qualities for performance are lubricity, stability, volatility, resistance to corrosion, and others. Fuel is not only used as a source of energy, but also as a cooling for some parts of the fuel system and as a hydraulic fluid in engine control systems.

Aviation fuel is a type of fuel made from oil or gas that a plane needs to run. The fuel for airplanes is better than the fuel for cars or trains. Different kinds of oil, gasoline, biofuel, and other things are used to make them. By adding things like corrosion inhibitors and others to the fuels used in flight, the risk of icing or explosions caused by high temperatures is lowered. Most military planes and commercial airlines use aviation fuel to get the most out of their fuel and lower their running costs. As the aviation business grows, there is more competition in all areas that make aviation fuel for planes.

The market is expected to grow because of things like more people taking plane trips and more demand from the military. New airports and flight routes also raise the need for fuel, which keeps the aviation fuel market growing. But high carbon emissions and changes in the price of crude oil are the main things that slow the growth of the airplane fuel market. At the same time, biofuels that can cut carbon emissions by a lot and new sustainable aviation fuel (SAF) that is being researched and made can help the aviation fuel business grow. Alternative sources that are better for the environment and can be used to make aircraft fuel will have a big impact on the aviation fuel industry in the future.

Market Dynamics

Market drivers: Because of more sports tourism and the fact that North America has the most business airlines, there will be more demand for aviation fuel

People travel to watch or go to sports games. This is called "sports tourism." People like to watch sports. The tourist business grows because of the Olympics and World Championships. The fact that there are more and more cricket games between two countries is also good for sports tourism. For example, a lot of people go to India to watch sports because of the Indian cricket team. Also, it is one of the teams that travels the most for bilateral matches around the world. Europe is also a big tourist spot for football fans because that's where most football games are played. There are football fans all over the world, which means that more people are traveling both in their own country and around the world. Because cricket and football franchise tournaments are becoming more famous, international players are also flying more. These things make it more likely for people to go to sports events and fly, which keeps the market going.

Airports Council International (ACI) World says that eight of the ten busiest airports in the world are in the United States. There is a lot of domestic travel at these airports, which is leading the economic recovery around the world. Orlando International Airport in the United States made the biggest jump, going from 27th place in 2020 to seventh place in 2021. Jackson Atlanta International Airport (ATL) has also been one of the busiest airports in the world for a long time. The U.S. Census Bureau says that Atlanta is home to almost 500,000 people. Because of this, it is only the 38th largest city in the United States and much smaller than many other places around the world. But more than six million people live in the metro area. This is one of the main reasons why the airport works so well. A big reason for Atlanta's success is that Delta Air Lines is so big at the airport. Atlanta is a major hub for the oldest airline in the United States and a founding member of Sky Team.

Bringing more people to the Middle East will help improve infrastructure

Middle Eastern countries like the United Arab Emirates and Saudi Arabia make their towns look nice to attract tourists. The U.S. Department of Commerce's International Trade Administration says that Saudi Arabia wants to have more than 100 million tourists each year by 2030. To do this, it has set up an e-visa system for tourists from 49 countries, opened its UNESCO World Heritage Sites, built resorts on the coast of the Red Sea, and started a ship line. The Ministry of Tourism said it would start a new fund called the Tourism Development Fund in 2020 to spend up to USD 4 billion in the tourism industry to make it stronger. The ministry also said that it would actively work with private investors to take advantage of new growth possibilities in the coming years as tourism starts to recover from COVID-19.

Market Restraints: Market growth will slow down because of how much fuel costs

The price of fuel is likely to slow the growth of the aircraft fuel market more than anything else. The market is expected to grow less quickly because of the high price. Brent crude oil, which is used to make jet fuel, has gone up in price, which is why fuel costs more. Brent crude oil is getting more expensive because quantity is less than demand. Prices are going up because not enough Brent crude oil is being made to meet the growing demand.

Saudi Arabia, which was one of the first countries to join OPEC, cut the amount of crude oil it made. They said that the 2% cut in production was because the global economy was getting worse and interest rates were going up in some western countries.

Because of these things, prices are high, which could hurt the market because low-income countries might not be able to pay for them. Asia-Pacific and Africa are two places where price changes can be felt. There are developing countries in this area with low per capita wages that can't pay high prices for tickets.

Market growth will slow down because of how much fuel costs

The price of fuel is likely to slow the growth of the aircraft fuel market more than anything else. The market is expected to grow less quickly because of the high price. Brent crude oil, which is used to make jet fuel, has gone up in price, which is why fuel costs more. Brent crude oil is getting more expensive because quantity is less than demand. Prices are going up because not enough Brent crude oil is being made to meet the growing demand.

Saudi Arabia, which was one of the first countries to join OPEC, cut the amount of crude oil it made. They said that the 2% cut in production was because the global economy was getting worse and interest rates were going up in some western countries.

Because of these things, prices are high, which could hurt the market because low-income countries might not be able to pay for them. Asia-Pacific and Africa are two places where price changes can be felt. There are developing countries in this area with low per capita wages that can't pay high prices for tickets.

Opportunities: Change to fuel that is good for the environment

A big chunk of greenhouse gas emissions around the world come from the aviation business. Because of this, people are becoming more worried about how air travel affects the environment, and switching to sustainable aviation fuel (SAF) is seen as a key step to lowering carbon emissions from the aviation sector.

SAF is a low-carbon alternative to jet fuel made from fossil fuels. It is made from renewable feedstocks like biomass, municipal waste, and farm residues. Compared to regular jet fuel, SAF can cut carbon pollution by up to 80%. This makes it a very important tool in the fight against climate change.

The move toward SAF is caused by regulatory pressure, public demand for sustainable products, and the desire to cut costs and make the aviation business more stable. For example, the European Union put in place a rule in 2021 that said airplanes had to use at least 2% SAF by 2025 and 5% by 2030. By 2030, the US government also wants to make and use 3 billion gallons of SAF every year.

Getting more people to fly in developing economies

In the past few years, the aviation business has grown a lot, and each year, more and more people travel by plane. This rise has been most noticeable in emerging economies, where more people can fly because their incomes are going up and they have easier access to planes.

Emerging countries have populations that are growing quickly, middle classes that are growing, and a tourism industry that is growing. Because of these things, the aviation industry is doing well, and many countries are spending a lot in new airports, runways, and other aviation infrastructure to keep up with growing demand.

A report from the International Air Transport Association (IATA) says that by 2040, more than 60% of all passenger traffic around the world will come from emerging countries. By 2037, China, India, and Indonesia are expected to have a total of 1.5 billion passengers per year, making them the three biggest markets for air travel.

Major Segments Covered

Aviation Fuel Market, By Fuel Type

Jet fuel, aircraft gas, and bio jet fuel are the different types of fuel on the market. In 2021, jet fuel (also called aviation turbine fuel) made up 97.58% of the market share for aircraft fuel. In 2021, jet fuel (fuel for aircraft engines) was used more than before the pandemic, but not as much as before. In the years to come, there could be more demand for jet fuel than there was before the pandemic. But plane fuel prices are back to what they were before the pandemic. Jet fuel prices could hurt the market in the coming years if they stay high.

During the forecast period, the bio jet fuel segment is likely to offer good opportunities because it is reliable, safe, and has low carbon emissions. Also, green jet fuel has changed in important ways. Honeywell, for example, announced a new way to turn ethanol into jet fuel (ETJ) in October 2022. Companies can use this technology to turn ethanol made from corn, sugar, or biodegradable materials into jet fuel that can be used again and again. To get the most out of the process of making fuel, this technology uses high-performance catalysts and features for managing heat. This makes cheaper jet fuel with less carbon in it.

In July 2022, a Memorandum of Understanding was made by Twelve, Microsoft Corporation, and Alaska Air Group Inc. (MOU). The goal of the MOU is to expand the Sustainable Aviation Fuel (SAF) market to include fuels made from CO2 that has already been used and energy from green sources. It has also worked on the first business demonstration flight in the U.S., which will be powered by Twelve's e-jet.

Aviation Fuel Market, By End user

Based on who will use the product, the market is split into commercial, private, and military groups. The commercial segment has the biggest share of the market, and it is projected to grow the fastest. During the forecast period, the commercial segment is expected to grow a lot because there are more commercial airlines and more foreign traffic in developing areas like Asia-Pacific, the Middle East, and Africa. If fuel costs go up, the business sector might have trouble.

During the period covered by the forecast, the private segment is also projected to have one of the fastest growth rates. The private market is also an important part of the business. Demand for private planes is also driven by higher salaries and better living conditions.

Regional Insights

The Asia-Pacific region is the most important market in the world. Asia-Pacific is now pretty open to tourists and visitors from other countries, which is helping the area's business get better. Even though the economy is still shaky, the number of people who want to travel is on the rise. There have been times when travel restrictions were lifted or loosened in some important Asian places. Since airline travel is related to economic growth, the presence of developing countries in the area is likely to increase airline travel during the forecast period.

North America will also have the second fastest growth rate from 2021 to 2029. During the time period covered by the forecast, the market in North America is expected to grow at the second-fastest rate. The International Air Transport Association says that there were 203.4% more passengers on North American planes in May 2022 than in May 2021. As most travel limits from this area were lifted, tourism and a strong desire to travel kept the global recovery going.

Also, a big part of the market is going to be in Europe. Eurocontrol, the European Organization for the Safety of Air Navigation, said that the COVID-19 pandemic was still having a big effect on business flights in 2021. In 2021, 373 million people will travel through the EU, which is 34.9% more than in 2020. From the second quarter of 2020 to the second quarter of 2021, a lot more people flew in all EU member states. But there were still 59% less people going than before the 2019 pandemic.

The market might be able to grow in Latin America. The private market is one of the most important in Latin America. As new helicopter models for business aviation and transporting VIPs are made, the number of corporate and private helicopter operators in the area is expected to grow.

The Middle East and Africa are also likely to grow in the coming years. Because tourism is on the rise again, people are likely to use more plane fuel in the coming years. Middle Eastern countries like the UAE and Saudi Arabia also hire people from outside the area. Because of these things, more people fly abroad, which increases the need for jet fuel.

Competitive Analysis

Strategic partnerships to strengthen the competitive landscape

In the Aviation Fuel Market, the competitive landscape shows details about each company that is in the market. Details like a company overview, financials, revenue, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width, and depth, and applications that dominate are all included. The information above is only about what the companies are focused on in the Aviation Fuel Market.

Vitol (Switzerland), Exxon Mobil (U.S.), Chevron Corporation (U.S.), Shell Plc (U.K.), Indian Oil Corporation Limited (India), Total Energies SE (France), BP Plc (U.K.), Valero Energy Corporation (U.S.), Marathon Petroleum Corporation (U.S.), World Fuel Services Corporation (U.S.), Essar Oil (UK) Limited (U.K.), Bharat Petroleum

Scope Of Report

Key Vendors

• Vitol (Switzerland)
• Exxon Mobil (U.S.)
• Chevron Corporation (U.S.)
• Shell Plc (U.K.)
• Indian Oil Corporation Limited (India)
• TotalEnergies SE (France)
• BP Plc (U.K.)
• Valero Energy Corporation (U.S.)
• Marathon Petroleum Corporation (U.S.)
• World Fuel Services Corporation (U.S.)
• Essar Oil (UK) Limited (U.K.)
• Bharat Petroleum Corporation Limited (India)
• Rosneft Deutschland GmbH (Germany)
• LUKOIL (Russia)
• China Aviation Oil (Singapore) Corporation Ltd (Singapore)
• Viva Energy Group (Australia)
• Q8Aviation (U.K.)
• PT Pertamina (Persero) (Indonesia)
• ADNOC (Abu Dhabi National Oil Company) Distribution (United Arab Emirates)
• Neste (Finland)

1. Vitol (Switzerland)

They are a leader in the energy industry and have a hand in everything from oil to electricity, green energy, and carbon credits. Every day, they use our skills to get energy to people all over the world. They get their supplies from producers, refiners, and middlemen, and they send their goods to refineries, utilities, airlines, retail delivery networks, wholesalers, and other traders. The business takes care of the physical risks that come with moving energy.

Their work is done all over the world. They trade more than 7 million barrels of crude oil and other goods every day, and they charter about 6,200 ship trips a year. They also use their technical knowledge to handle a global network of energy infrastructure that they use to help meet supply and demand flows around the world. Their trading and logistics skills are backed up by a set of proprietary software apps that we build and keep up to date ourselves.

2. Exxon Mobil (U.S.)

 Energy is something everyone needs. So, ExxonMobil's scientists and engineers are leading the way in the new study and looking for new ways to make fuels with less pollution and better efficiency.

They want to meet the world's energy needs in a responsible way.

They want to reach #netzero emissions from their operated assets by 2050 (for Scope 1 and 2 greenhouse gas emissions) and are taking a comprehensive approach to making emission-reduction roadmaps for their big operated assets.

3. Chevron Corporation (U.S.)

Chevron people are their best asset. Chevron cleverness, innovation, and ability to work together have helped them solve the difficult problems of the past. We'll face the future together. They agree with the LinkedIn Terms of Use (User Agreement), and they expect viewers to their page to do the same.

4. Bharat Petroleum Corporation Limited (India)

Fortune Global 500 company Bharat Petroleum is the second largest Indian Oil Marketing Company and one of the best-integrated energy companies in India. It refines crude oil and sells petroleum products and has a large presence in both the upstream and downstream sectors of the oil and gas industry. The company got the coveted Maharatna title, which means it is now part of an exclusive group of companies with more operational and financial freedom.

Together, Bharat Petroleum's refineries in Mumbai, Kochi, and Bina, in the state of Madhya Pradesh, can process about 35.3 MMTPA of crude oil. It has a network of installations, depots, energy stations, aircraft service stations, and LPG distributors that make up its marketing infrastructure. Its delivery network includes more than 20,000 Energy Stations, more than 6,200 LPG distributorships, 733 Lubes distributorships, 123 POL storage locations, 54 LPG bottling plants, 60 aviation service stations, 4 Lube blending plants, and 4 cross-country pipelines.

5. Valero Energy Corporation (U.S.) 

Valero makes and sells transportation fuels and petrochemical goods all over the world. They are a Fortune 50 company with headquarters in San Antonio, Texas. They have almost 10,000 workers and 15 oil refineries that can process about 3.2 million barrels of oil per day.

The Company is also happy to run 12 ethanol plants in the Mid-Continent of the United States, which can make a total of 1.6 billion gallons of ethanol per year. The United States, Canada, and the United Kingdom are all home to their oil plants. Valero is also a partner in Diamond Green Diesel, which runs a plant that makes diesel from green sources in Norco, Louisiana.

Recent Development

• American Express Global Business Travel (Amex GBT), Shell, and Accenture worked together in June 2022 to launch one of the first blockchain-based digital SAF systems for business travel. They've shown off Avelia, which is a method for keeping track of carbon. Industry groups think it's a good way to cut down on pollution. Avelia could let airlines and businesses that use sustainable fuel record the benefits of lowering emissions through SAF against their voluntary ESG and report on it, no matter where in the world it is used.

• Royal Dutch Shell plc (Shell) made a final investment choice in September 2021 to build an 820,000-ton-per-year (TPA) biofuels facility at what used to be called the Pernis Refinery at Shell Energy and Chemicals Park Rotterdam in the Netherlands. The plant will be one of the biggest in Europe once it is built. It will turn trash into fuel and oil that can be used again.

The Global Aviation Fuel Market has been segmented into:

By Fuel Type

• Jet Fuel (Aviation Turbine Fuel)
• Aviation Gas
• Bio Jet Fuel

By End user

• Commercial
• Private
• Military

Global Aviation Fuel Market Regional Insights

• North America
  • US
  • Canada
  • Mexico
  • Rest of North America
• Europe
  • Germany
  • France
  • Italy
  • Spain
  • UK
  • Nordic Countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Union
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia-Pacific
  • Japan
  • China
  • India
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia-Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America

Conclusion:

The aviation fuel market is an important part of the aviation business because it provides the fuel that millions of flights need every year. There are both opportunities and problems in the market, such as the move toward sustainable aviation fuel (SAF) and the rise of air travel in emerging countries.

The change toward SAF is a major trend in the aviation fuel market. This is because people are becoming more aware of how air travel affects the environment and want to cut carbon emissions. Even though SAF is still more expensive than traditional jet fuel made from fossil fuels, a lot of money is being spent and study is being done to bring down costs and improve production methods.

 The growth of air travel in emerging economies gives the aviation fuel business both opportunities and challenges. Even though more people will be flying, the supply and cost of fuel can be a problem in these areas. To deal with this problem, governments and business leaders are looking into ways to make more fuel in the United States and rely less on fuel from other countries.

Overall, the market for airplane fuel is set to grow and change in the years to come. More and more pressure is being put on the industry to make it less harmful to the environment and use less energy, which will lead to the creation of new technologies and fuels. Companies that can take advantage of these trends and adapt to the changing needs of the aviation industry will be in a good situation for future success.