Ottawa, June 23, 2023 (GLOBE NEWSWIRE) -- The global aviation fuel market size will expand to USD 719.96 billion in 2030. The growing tourism & travel industry, enhancing holiday destinations, high spending capacity, and construction of new airports is majorly driving the aviation fuel market growth.
In the European tourism & travel industry, revenue is predicted to witness a compounded annual growth rate (CAGR) of 1.71% from 2023 to 2027. The European tourism & travel market volume is projected to account for $300.20 billion by 2027. Such high estimates boost the aviation industry’s growth accordingly.
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Due to the limited count of aviation fuel providers, the bargaining power of buyers is relatively less as compared to the bargaining power of suppliers in this market. With the advent of electric aircraft, the threat of substitutes is moderate in the global Aviation Fuel Market as of now.
To support nations in response to the COVID-19 pandemic, United Nations International Children's Emergency Fund (UNICEF) supplied more than 400 million medical masks since January 2020. UNICEF also provided 23.3 million N95 respirators and 385 million surgical masks to 134 countries across the globe. The demand for aviation fuel is going to rise with the growing air transportation of medications and healthcare products.
The global aviation fuel market report includes an analysis of leading continents for a better understanding of the recent scenario. Additionally, our global aviation fuel market research report offers prominent insights about the latest industry developments and suggests future strategies that can be adopted at a global level. Our report highlights some of the crucial influencing factors such as drivers, restraints, opportunities, and challenges. The report also includes ecosystem analysis, value chain analysis, and vendor landscape.
Report Highlights
- By fuel type, the global aviation fuel market is segmented into sustainable fuel and conventional fuel. The sustainable fuel segment is expected to hold a significant market share during the forecast period. The conventional fuel segment held the largest market share in 2022.
- By end user, the global aviation fuel market is divided into commercial aircraft, private aircraft, and military aircraft. The commercial aircraft segment is anticipated to dominate the market during the forecast period. The commercial aircraft segment had the highest revenue share in 2022.
- By Region, the aviation fuel market is segmented into North America, Europe, Asia Pacific (APAC), the Middle East and Africa, and Latin America. North America held the highest maker share of the global aviation fuel market in 2022. Asia Pacific (APAC) region is estimated to grow with the highest compounded annual growth rate (CAGR) during the study period till 2032.
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Scope of this report
| Coverage | Details |
| Market Size in 2030 | USD 719.96 Billion |
| CAGR | 14% from 2023 to 2032 |
| By Fuel Type |
|
| By End User |
|
| By Region |
|
| Key Players | Exxon Mobil, Shell Plc, Indian Oil Corporation Limited, Chevron Corporation, Valero Energy Corporation, Essar Oil (UK) Limited, Bharat Petroleum Corporation Limited, TotalEnergies SE, Viva Energy Group, Abu Dhabi National Oil Company (ADNOC), Neste, and Others |
Regional Snapshots
North America is among the most lucrative markets for aviation fuels. In 2022, airlines in the US carried more than 611.9 million passengers on domestic flights across the country. The domestic air passenger traffic in Mexico accounted for about 44.4 million passengers in 2021. Thus, such a high count of domestic air passengers creates immense scope for sustainable aviation fuel in the North American region.
As per Eurostat, around 373 million passengers traveled by air in the EU in 2021. According to Eurostat, during the 1st half of 2022 only, around 338 million passengers traveled at the EU level in the European region. Thus, the increasing count of passengers in the European Union creates remarkable scope for new commercial aircraft, which will enhance the need for required aviation fuel.
In November 2020, the Indian Union Ministry of Food Processing Industries announced to offer air transportation subsidy of 50% for 41 notified vegetables and fruits from the Himalayan and the Northeastern states to any location across India. In January 2023, Amazon launched its cargo service ‘Amazon Air’ in India with 2 cargo aircraft having a carrying capacity of 20,000 packages. Growing e-commerce shipments are anticipated to create enormous opportunities for the aviation sector in the Asia Pacific region.
The countries in the African continent are in the developing stage and are not as developed as the countries in the West. The development of the aviation sector in the African region is estimated to take place at a comparatively slow pace. The aviation sector is expanding in the Latin American region. The aviation fuel market region is anticipated to grow considerably in Latin America.
Market Dynamics for Aviation Fuel Market:
Market Driver: Increasing Air Traffic in Various Countries
The growth in air traffic is mostly attributable to an increase in domestic air travel in developed as well as developing nations. In 2022, airlines in the United States carried around 688 million passengers on domestic flights across the country. This count was a significant rise from 612 million domestic passengers carried by various US airlines in 2021.
Domestic airlines in India carried around 123.2 million passengers from January 2022 to December 2022. In September 2022, Aircraft manufacturer Boeing reported that India's air traffic is predicted to witness 7% annual growth till 2040.
The air cargo market is growing notably all over the world. According to International Air Transport Association (IATA), overall air cargo volumes grew by 18.7% year-on-year (Y-o-Y) in 2021. International cargo volumes of Middle Eastern carriers rose by around 5.7% in December 2021 as compared to December 2019.
Air freight is playing a noticeable role in transporting temperature-sensitive medications in the finest condition. Considering temperature-sensitive space along with faster delivery speeds of aircraft, various vaccines can be shipped by air. As per World Health Organization (WHO), vaccination programs help in preventing about 3 million child deaths each year.
As per Seabury Group, around 0.5 million tonnes of pharmaceutical products are shipped by air every year. In 2020, Amazon Air shipped 100,000 thermometers, 29 million face masks, and 3 million gloves. All these healthcare products were distributed to employees across Europe amidst the COVID-19 pandemic. Hence, the international transport of medications by air is expected to rise in the near future. Thus, rising air traffic is expected to generate higher demand for aviation fuel across the globe.
Market Restraint: Growing Concern Regarding Emission Across the World
With many aircraft powered with jet gasoline, the aviation industry accounts for around 2.5% of global CO2 emissions. The European Commission has estimated that by 2050, air transport will increase aviation greenhouse gas emissions by about 300% compared to 2005 levels in case no strong strategy is adopted to control GHG emissions.
As of 2019, the top five countries with respect to passenger aviation-related carbon emissions were Japan, China, the United States, the United Kingdom, and Germany. Flights departing from airports in the United States and its territories emitted around 23% of global passenger transport-related CO2 in 2019, 2/3rd of which was from domestic flights. By emitting approximately 19% of the global passenger transport-related CO2 in 2019, the 28 countries of the European Union (EU) collectively stood 2nd behind the US. In 2022, Japan’s CO2 emissions due to international aviation accounted for about 9.89 million tonnes. This count is notably high as compared to 8.85 million tonnes of CO2 emitted in the previous year (2021).
The aviation industry is aiming to achieve net-zero carbon emissions by 2050. Numerous government authorities are working on essential measures to curtail aviation emissions. In October 2022, the United Nations’ International Civil Aviation Organization (ICAO) had negotiations with 184 nations for agreement on CO2 emissions reduction measures. In July 2020, the Environmental Protection Agency proposed greenhouse gas emission standards for newly launched commercial aircraft.
As compared with the levels in 2020, the aviation industry in China has decided to reduce carbon emissions per ton-km by 4.5% by 2025. Qantas Airways Ltd has planned to reduce carbon emissions by 25% by 2030. Thus, rising emission levels in the aviation sector and respective norms to curb them is restraining the global aviation fuel market growth remarkably.
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Key Developments in the Marketplace:
- In December 2022, the ultra-low-cost airline Akasa Air ordered 72 Boeing 737 Max airplanes. The order value for 72 Boeing 737 Max airplanes is said to be worth $9 billion. This is the biggest order received by Boeing from India. This order provides Boeing with the much-needed foothold across the Indian aviation sector. The growing count of airplanes enhances the demand for aviation fuel respectively.
- In 1st quarter (Q1) of 2023, Airbus gained orders for 142 aircraft, including one A319neo, 12 A220-300s, 60 A321neos, 27 A320neos, five A350-900s, four A350Fs, and 33 A350-1000s. The Airbus March report showed that the company got orders for 156 aircraft in the 1st quarter (Q1) of 2023. Also, the company has planned to deliver 720 aircraft in 2023.
Market Segmentation
By Fuel Type
- Conventional Fuel
- Sustainable Fuel
By End User
- Commercial Aircraft
- Private Aircraft
- Military Aircraft
By Geography
- North America
- Europe
- Asia-Pacific
- Latin America
- Middle East and Africa
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