Commercial aviation includes operating scheduled and non-scheduled aircraft, which involves commercial air transportation of passengers or cargo. The North America commercial aircraft aviation fuel market is expected to grow at a CAGR of more than 15% over the forecast period. Factors, such as increasing air passenger traffic, increasing the number of low-cost carriers (LCC) across the region, and increasing demand for air cargo transportation, are expected to drive the market over the forecast period. However, strict air travel restrictions due to COVID-19 and volatile oil prices are expected to restrain the target market.
- Air Turbine Fuel (ATF) segment is expected to dominate in the North America commercial aircraft aviation fuel market during the forecast period.
- The commercial aviation industry has goals to increase domestic renewable jet fuel supply to reduce carbon emissions. Thus, there is an increasing demand for alternatives, such as renewable aviation fuel, which, in turn, likely to provide an opportunity in the near future.
- The United States is expected to dominate in the North America commercial aircraft aviation fuel market over the forecast period.
Key Market Trends
Air Turbine Fuel (ATF) Segment is Expected to Dominate the Market
- Aviation turbine fuel (ATF) or jet fuel is a type of aviation fuel designed for use in aircraft powered by gas-turbine engines. Jet A1 and Jet A are two primary grades of aviation fuel used in commercial aircraft.
- Factors such as growth in air traffic passenger, global economic scenario, improvement in aircraft fuel-burning efficiency are influencing demand for jet fuel in the commercial aircraft aviation fuel market.
- Jet A1 is likely to remain a dominant aviation fuel in terms of consumption, followed by the Jet A type, for locations outside the United States. Jet A-1 must have a freeze point of minus 47°C or below, this fuel normally contains static dissipator additive.
- Jet A specification fuel is mainly used in the United States, and it is usually not available outside the United States and a few Canadian airports, such as Toronto and Vancouver. Jet A fuel must have a freeze point of minus 40oC or below and does not typically contain static dissipator additive.
- LanzaTech’s ethanol based ATJ-SPK (alcohol-to-jet synthetic paraffinic kerosene) was made eligible for use as a blending component with standard Jet A for commercial airline use in the United States. Under the revised ASTM D7566, LanzaTech ATJ-SPK is eligible to be used up to a 50% blend in conventional jet fuel for commercial flights.
- Hence, such ongoing developments are expected to increase the demand for Jet A fuel (air turbine fuel) during the forecast period.
- Moreover, according to IATA, passengers travelling by air from Canada are expected to increase to 118 million by 2037 from 85.5 million carried by major air carriers in 2019. Therefore, the demand for aviation turbine fuel for commercial aircraft is expected to increase in the coming years.
The United States is Expected to Dominate the Market
- The United States is one of the largest markets for aviation fuel, and it has witnessed a continuous increase in the net profit in the aviation industry. The country has been the global hotspot, which has led to a steady increase in the air passenger traffic, an increase of around 3.2% in 2019 compared to 2018, and air cargo volumes in previous years.
- According to the Airlines for America (A4A), in 2019, the country’s airlines carried 2.5 million passengers worldwide, daily, which was an all-time high number of passengers in the country airline history. Moreover, 58,000 metric ton of cargo per day was ferried by the country’s airlines in 2019 (A4A). Therefore, the country’s robust growth in air travel and cargo volumes has resulted in greater demand for aviation fuel in the past years.
- The air travel in the country has increased as the real airfares have plunged in the past. Therefore, the increased propensity of people to prefer air travel, domestic, and international traveling has led to increased consumption of aviation fuel.
- Hence, due to factors such as high air traffic passenger and cargo, the United States is expected to dominate in the North America commercial aircraft fuel market over the forecast period.
The North America commercial aircraft aviation fuel market is moderately fragmented. Some of the major players in the market include Chevron Corporation, World Fuel Services Corp, Total S.A., Vitol Holding BV, and Royal Dutch Shell Plc.
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Table of Contents
1.2 Market Definition
1.3 Study Assumptions
4.2 Market Size and Forecast in USD billion, till 2025
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.6 Supply Chain Analysis
4.7 Porter's Five Force Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitute Products and Services
4.7.5 Intensity of Competitive Rivalry
5.1.1 Air Turbine Fuel (ATF)
5.1.2 Aviation Biofuel
5.2.1 The United States
5.2.3 Rest of North America
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 World Fuel Services Corp
6.3.2 Chevron Corporation
6.3.3 Total S.A.
6.3.4 Vitol Holding BV
6.3.5 Royal Dutch Shell Plc
6.3.6 Mercury Air Group, Inc.
6.3.7 Targray Technology International Inc.
6.3.8 Valero Energy Corporation
6.3.9 Irving Oil Ltd
6.3.10 Phillips 66