Aviation Fuel Market Size, Share Growth Report 2031

Aviation fuels are any petroleum-derived or petroleum-and-synthetic-fuel blends used to power aircraft. These fuels must adhere to stricter regulations than those used on the ground for heating and driving. Kerosene-based fuels are used in gas turbine aircraft (JP-8 and Jet A-1). Piston-engine planes use leaded gasoline, while diesel planes use jet fuel (kerosene). The United States Air Force was permitted to use a kerosene and synthetic fuel blend of 50 percent and 50 percent, respectively, by 2012. Coal and natural gas are the starting materials for synthetic fuel.

Market Dynamics

Increasing Demand from the Military Drives the Global Market

Regular aviation fuels are not used for military objectives in military aircraft. Therefore, various kerosene-based fuels with varying octane are produced for military applications. JP 8 and JP 5 are the most common fuels used in military applications. These fuels require corrosion inhibitors, which increase lubricity. They are more efficient and have greater ignition temperatures. In addition, numerous nations are strengthening their militaries by acquiring newer and quicker aircraft. They require fuel-efficient aircraft founded on the most recent technological advancements. An increase in the demand for aircraft is the primary driver of demand for military-grade aviation fuel.

Emerging Sustainable Biofuels for Aviation Creates Tremendous Opportunities

Sustainable aviation fuel (SAF) is produced from common feedstocks, such as cooking oil, non-palm waste oils from plants or animals, and domestic and commercial solid waste, such as packaging, paper, textiles, and food scraps, that would otherwise be dumped in landfills or burned. Possible sources include forest waste, scrap wood, energy crops, swiftly growing plants, and algae. This fuel reduces carbon emissions by 80%, which is environmentally beneficial.

SkyNRG, a prominent SAF manufacturer, estimates that the aviation industry is responsible for between 2 and 3 percent of all human-produced carbon emissions. If immediate action is not taken, the aviation sector may consume more than 20% of the global carbon budget by 2050. The aviation sector pledged to achieve carbon-neutral growth by 2020 and a 50% net aviation carbon emission reduction below 2005 levels by 2050 to maintain growth while addressing its environmental impact. Such factors create opportunities for market growth.

Regional Analysis

North America is the most significant global aviation fuel market shareholder and is expected to exhibit a CAGR of 3.5% over the forecast period. Due to large market participants in the United States and Canada, the region retains a sizable aviation fuel market share. According to the Aviation Benefits Beyond Borders report by the Air Transport Action Group (ATAG), the North American aviation industry employed an estimated 2,4 million persons directly in 2016. Similarly, General Aviation Manufacturers Association (GAMA) and International Trade Association (ITA) reported that the United States is home to 211,000 aircraft. Strong market participants in the aviation fuel industry and developed nations contribute significantly to the aviation fuel market's robust growth.

Europe is expected to grow at a CAGR of 2.6% over the forecast period. Germany is one of the most industrialized economies, with a robust aviation industry, aircraft manufacturing, and transport infrastructure network. It also contains aviation fuel manufacturers. In 2017, the country had 929,900 flights, which is anticipated to increase due to new airports and larger fleet sizes. These factors are anticipated to propel the aviation fuel market.

Key Highlights

• The global aviation fuelmarket was valued at USD 205.27 billion in 2022. It is predicted to reach an expected value of USD 275.93 million at a CAGR of 3.3% over the forecast period (2023 – 2031).
  
• Based on fuel type, the global aviation fuel market is divided into jet A, jet A1, jet B, JP 5, JP 8, avgas, and biofuels.
  The jet A1 segment is the highest contributor to the market and is predicted to exhibit a CAGR of 4.02% during the forecast period.
• Based on aircraft type, the global aviation fuel market is classified into fixed wings, rotorcraft, and others fixed wings segment owns the highest market share and is predicted to exhibit a CAGR of 3.92% during the forecast period.
• Based on end-user, the global aviation fuel market is classified into civil, military, private, and sports and recreational civil segment is the highest contributor to the market and is predicted to exhibit a CAGR of 3.2% during the forecast period.
• North America is the most significant global aviation fuel market shareholder and is expected to grow at a CAGR of 3.5% over the forecast period.