Chicago, June 14, 2024 (GLOBE NEWSWIRE) -- The global aviation fuel market size is projected to reach USD 696.2 Billion by 2030, from USD 249.9 Billion in 2022 at a CAGR of 13.7% during the forecast period.
The aviation fuel market is driven by the increasing demand for air travel, along with the growing aviation industry in developing countries. The rising demand for low-cost carriers and the development of advanced aviation biofuels are also expected to create significant opportunities for market players during the forecast period. Factors such as volatile crude oil prices and stringent environmental regulations may hinder the growth of the market to some extent.
To know about the assumptions considered for the study
Aviation Fuel Market Dynamics:
Driver: Demand to Reduce Emissions
Sustainable aviation fuel (SAF) is a key component in meeting the aviation industry’s commitments to decouple increases in carbon emissions from traffic growth. SAF gives an impressive reduction of up to 80% in CO2 emissions over the lifecycle of the fuel compared to fossil jet fuel, depending on the sustainable feedstock used, production method, and the supply chain to the airport. According to the IATA fact sheet, SAF will be an eligible option for aircraft operators to meet their obligations under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). Production of SAF using biomass, biological, and non-biological resources allow it to be approximately carbon-neutral over its lifecycle.
Opportunity: Growing Need for Alternative Aviation Fuel by Airlines
The global demand and substantial challenges to reduce emissions of greenhouse gases and improve environmental sustainability in the face of rapid growth have led to the emergence of the SAF market significantly. Several agreements, contracts, partnerships, etc., have been made for a certain period by various stakeholders of the entire demand and supply chain of the SAF market. Several airlines have concluded long-term offtake agreements with biofuel suppliers, many of which are reported as commercially competitive. Several airports have agreed to supply SAF through their hydrant systems. This opportunity of offtake agreements between researchers, airlines, airports, fixed base operators, fuel producers, fuel suppliers & distributors, feedstock providers, technology providers, etc., will give immense growth prospects to widen the usability of SAF and provide new visibility to the connected markets as well.
Challenge: High Investments for Approval and Certification of SAF
SAF requires strict technical certifications to be fully approved for utilization in aircraft engines. The entire value chain of the SAF market faces stringent approval procedures for the phases of SAF, for application purposes. However, the involvement of various stakeholders and the quantity of fuel required for the testing parameters add to the cost of the approval of SAF. For instance, the OEM-led ASTM D4054 approval and evaluation process is expensive and time-consuming, which is one of the major hurdles in the growth of the sustainable aviation fuel market.
Top Aviation Fuel Companies Include:
- Exxon Mobil Corporation (US)
- Chevron Corporation (US)
- British Petroleum (UK)
- Shell (UK)
- TotalEnergies (France)
Exxon Mobil Corporation engages in the exploration, development, and distribution of oil, gas, and petroleum products. It operates through the following segments: Upstream, Downstream, and Chemical. The Upstream segment produces crude oil and natural gas. The Downstream segment manufactures and trades petroleum products. The Chemical segment offers petrochemicals. The company was founded by John D. Rockefeller in 1882 and is headquartered in Irving, Texas, US.
Chevron Corporation is an integrated oil and gas company. It operates in the oil and gas value chain, from the exploration and production and storage and pipeline transportation to the refining, marketing, and distribution of oil and gas products. The company explores, produces, and transports crude oil and natural gas; refines, markets, and distributes transportation fuel and lubricants; and sells petrochemicals and additives. Chevron has interests in gas to liquid facilities in its operating regions. The company has an operational presence in North America, South America, Europe, Asia, the Middle East, and Africa.
British Petroleum (BP) operates as an integrated oil and gas company. It operates through the following segments: Gas & Low Carbon Energy, Customers & Products, and Oil Production & Operations. The Oil Production & Operations segment engages in oil and natural gas exploration, field development and production, midstream transportation, storage and processing, and marketing and trade of natural gas, including liquefied natural gas and power and natural gas liquids. The Gas & Low Carbon Energy segment refines, manufactures, markets, transports, supplies, and trades crude oil, petroleum, petrochemicals products, and related services to wholesale and retail customers.
Shell plc engages in the production of oil and natural gas. It operates through the following segments: Integrated Gas, Upstream, Oil Products, and Chemicals. The Integrated Gas segment includes liquefied natural gas, conversion of natural gas into gas to liquid fuel and other products, and a new energies portfolio. The Upstream segment explores and extracts natural gas and natural gas liquids. The Oil Products segment is involved in refining, trading, and marketing crude oil. The Chemicals segment manages manufacturing plants and its own marketing network.
TotalEnergies engages in the exploration and production of fuel, natural gas, and low-carbon electricity. It operates through the following business segments: Exploration & Production; Integrated Gas, Renewables & Power; Refining & Chemicals; and Marketing & Services. The Exploration & Production segment encompasses oil and natural gas exploration and production activities. The Integrated Gas, Renewables & Power segment comprises integrated gas and low-carbon electricity businesses. It also includes upstream and midstream LNG activities. The Refining & Chemicals segment engages in activities related to refining oil, petrochemicals, and specialty chemicals. This segment also includes the activities of oil supply, trading, and marine shipping. The Marketing & Services segment includes the global activities of supply and marketing in the field of petroleum products.
