Aviation Fuel Market

Aviation Fuel Market-Size-(2023-2028)

Aviation Fuel Market is predicted to grow from approximately $ 65.9 million in 2022 to $ 15.306.9 million by 2028, with a CAGR of 72.8% over the foreseen period.

The aviation industry is keen to reduce its carbon footprint to achieve a sustainable environment and meet strict regulatory emission standards. Alternative solutions are adopted by various industry players, such as improving the efficiency of aircraft engines through design modifications, hybrid electric and all-electric aircraft, renewable jet fuels, etc. However, among these solutions, the adoption of sustainable aviation fuels such as electronic fuels, synthetic fuels, green reaction fuels, bio-jet fuels, and hydrogen fuels is one of the most feasible alternative solutions in terms of socio-economic advantages over others, which contributes significantly to mitigating current and future environmental impacts of aviation.

Aviation fuel is a proprietary type of fuel that is employed primarily to power an aircraft. The fuel is petroleum-based and is of higher quality than ordinary fuels employed in rail, road, or other transportation. Aviation fuel additives help reduce the risk of explosion or icing due to high temperatures. This type of fuel is employed primarily by most commercial airlines and military aircraft to optimize fuel efficiency. The use of jet fuel also helps improve the overall cost of operations. In recent years, the aviation industry has seen tremendous expansion. Competition in the sector is quite intense, which in turn leads to escalated competition between suppliers of aviation fuel for military and commercial applications.

According to the International Air Transport Association, air passenger traffic has seen a substantial increase in recent years, and this number is predicted to double by the end of 2036. Recent improvements in worldwide economic conditions have led to a sharp increase in the annual number of air passengers in recent years. Lower average airfares are a key driver for air passengers, especially in regions where passengers are cost-sensitive. The escalating calls on cargo handling also bode well for the market.

Aviation Fuel Market Drivers & Restraints in the Aviation Fuel Market 

Escalated calls from the military sector and a surge in air transport are predicted to be the main factors contributing to the global aviation fuel market expansion. New air routes and airports are also escalating calls for fuel, further stimulating the expansion of the aviation fuel market. Meanwhile, biofuels that can significantly reduce carbon emissions and new sustainable aviation fuels (SAF) being researched and developed provide lucrative opportunities for the expansion of the aviation fuel industry. Green alternative sources for jet fuel production will have a major impact on the jet fuel industry in the future.

Biological and non-biological resources such as oilseeds, sugar crops, algae, waste oils, etc. are the raw materials that play a significant role in the complete production chain of aviation fuels. The call for sustainable aviation fuel may stagnate due to an insufficient supply of raw materials necessary for its production. Low fuel availability also becomes an obstacle to fuel blending ability, leading to lower efficiency.

Opportunities in the Aviation Fuel Market 

Aviation fuel, when mixed with petroleum-based fuel, is a fully expendable alternative fuel. These fuels are also known as synthetic fuels, renewable aircraft fuels, electronic fuels, green fuels, conventional biofuel, and alternative jet fuels, depending on the processes, technology pathways, and raw materials employed in production. These fuels are treated no differently than current petroleum-based fuels and can use fuel storage and water intake systems at airports, saving money on infrastructure costs. Ongoing efforts to use existing depreciated equipment and infrastructure or co-processing with other flows can potentially be one approach to reducing capital costs. Alternative fuel is considered equivalent to conventional aviation fuel and can be employed in today's engines and infrastructure without any modification. These requirements are essential for safety, general use, and reducing the carbon footprint in the aviation industry.

Challenges in the Aviation Fuel Market 

Airlines cannot meet their self-imposed greenhouse gas emission reduction targets based solely on engine and flight improvements; They need SAF. The cost of fuel is a significant fraction of operating costs. SAF is more expensive than petro-jet, as new production capacity has to be deployed. SAF will not be widely available as production capacity will be built through contracts, and not as a commodity, at least for the first decade or so. Building new biofuel plants takes time and money, which increases the price of your purchase once they are online and hinders the ability to achieve critical mass for profitability.

AVIATION FUEL MARKET REPORT COVERAGE:

Market Segmentation :

Aviation Fuel Market - By Fuel Type:

• Biofuel

• Hydrogen fuel

• Power to liquid fuel

Generally, biofuels, hydrogen, and energy from liquid fuels are the sustainable types of aviation fuels. Of these, the biofuel sector of the sustainable aviation fuel industry accounts for the highest share throughout the foreseen period. Biofuel production is predicted to increase rapidly over the next decade due to rapidly changing technological pathways to commercialize the use of alternative jet fuel.

Aviation Fuel Market - By Region:

The Aviation Fuel Report includes the segmentation of their respective Countries.

• North America 

• Europe 

• Asia Pacific

• Latin America 

• Middle East & Africa

Regionally, developing regions are predicted to have great expansion potential in the worldwide aviation fuel market. In particular, a positive demographic in Asia-Pacific should present substantial lucrative prospects for market players. Significant investments in the region's transportation infrastructure in recent years have catalyzed the expansion of the aviation fuel market. Countries like China, Indonesia, and India are predicted to experience great prospects in the near future. North America is predicted to see expansion in the highest CAGR during the foreseen period. To meet the need to reduce the carbon footprint due to escalated air traffic and air passengers, countries like the United States and Canada in North America are focusing on various initiatives to use renewable aviation fuel. With policies and support initiatives to decarbonize aviation emissions, the North American market is seen as one of the centers of high call for aviation fuel.

Aviation Fuel Market Recent Developments Analysis:

• European legislation is putting pressure on airlines to use more environmentally friendly fuels, creating a need for transparent pricing in this emerging market. The worldwide energy and commodity price information agency Argus has launched sustainable aviation fuel (SAF) prices in Europe.

• Airbus has initiated three concepts for the world's first zero-emission commercial aircraft that could start service in 2035. Each of these concepts represents a different approach to achieving zero-emission flight, exploring various technological pathways and aerodynamic configurations to support the company's ambition to pave the way for the decarbonization of the entire aviation industry.

Key Players:

1. Hindustan Petroleum
2. Gazprom
3. Exxon Mobil
4. Royal Dutch Shell Plc
5. Qatar Jet Fuel Company
6. Total SA
7. Chevron Corporation.