Aviation Fuel Market Scenario
Aviation Fuel Market is projected to grow USD 4.30 Billion at a CAGR 6% by 2020-2030
Competitive crude oil prices, rising global trade, and growing per capita disposable incomes have led to an increase in air travel across the world. The rising air passenger traffic across the globe is projected to boost the demand for new aircraft, thus driving the expansion of commercial aircraft fleets. According to the US Federal Aviation Administration (FAA), as of 2018, there were more than 22,000 commercial aircraft across the globe.
The existing commercial aircraft are expected to be replaced by more than 40,000 new aircraft over the next 20 years. The global fleet is likely to reach 45,000 aircraft by 2036. Moreover, the high demand for air travel in developing regions, such as Asia-Pacific, the Middle East, and Latin America, is expected to lead to an increase in the number of aircraft in these regions. The FAA also states that over 15,000 aircraft are projected to be delivered in North America and Europe by 2036. These factors are expected to drive the demand for aviation fuel during the forecast period.
However, stringent regulations to minimize CO2 emissions are expected to restrain market growth. Government authorities in several countries have implemented several stringent regulations to reduce carbon emissions. According to the US Environmental Protection Agency, aircraft account for 12% of transportation greenhouse gas emissions in the US. In March 2017, the International Civil Aviation Organization (ICAO) implemented a new aircraft CO2 emissions standard to reduce the impact of aviation greenhouse gas emissions on the environment. These standards are applicable for new aircraft design from 2020 and by 2028, manufacturers would need to adhere to the design norms.
North America is estimated to be a prominent region for the aviation fuel market due to the presence of major market players such as Chevron Corporation in the region. Over the last few years, the domestic air transport services in the US, passenger traffic, and capacity have been recording the highest growth rates. Such developments are expected to fuel the growth of the market.
The key players in the global aviation fuel market are Air BP Limited (UK), World Energy (US), Chevron Corporation (US), Exxon Mobil Corporation (US), Gazprom Neft PJSC (Russia), Honeywell International Inc. (US), Indian Oil Corporation Ltd. (India), Shell International BV (Netherlands), Total (France), and SkyNRG (Netherlands).
Currently, governments in various countries are focusing on reducing air pollution. The use of fuel for the propulsion of aircraft creates harmful gases that deplete the ozone layer and lead to global warming. Thus, alternative fuels play a vital role in balancing the ecosystem by reducing harmful emissions. Scientists in the field of aviation are engaged in research to develop substitutes for aviation fuel.
In 2018, North America accounted for 47.30% of the global aviation fuel market, followed by Europe with 26.39% of the global market share.
The global aviation fuel market has been segmented based on fuel type, application, and region. Based on fuel type, the market has been segmented into jet fuel, avgas, biofuels, CNG, LNG, and others. Based on application, the market is segmented as commercial, military, and others.
North America led the Market with a Valuation of USD 141.74 Billion in 2018.
The global aviation fuel market has been segmented, by region, into North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America. North America is expected to be the largest market for aviation fuel. The North American market is expected to register a CAGR of 4.63% during the forecast period. The US government has been increasingly investing in the maintenance and modernization of airports. Additionally, the presence of prominent players, such as Exxon Mobil Corporation, World Energy LLC, and Fulcrum BioEnergy Inc. is expected to encourage market growth during the forecast period.
The Jet Fuel Segment is Expected to Dominate the Market.
Jet fuel is a mixture of hydrocarbons and has a higher flashpoint than other aviation fuel types. Jet A, jet A-1, and jet B are the types of jets fuel used by commercial and military aircraft. The FAA provides guidelines for aviation fuel storage, handling, and dispensing at airports, and pricing and taxing of aviation fuel. Jet fuel has a high-octane rating, thereby enabling it to provide the highest power output, which is driving market growth.
Key Questions Addressed by the Report
The revenue of the Global Aviation Fuel Market will be USD 4.30 Billion by 2030
The CAGR of the Global Aviation Fuel Market is over 6%.
World Energy, Gazprom Neft PJSC, Shell International BV, and SkyNRG are the top four key players of the Global Aviation Fuel Market.
North America led the Market with a Valuation of USD 141.74 Billion in 2018