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Europe Defense Aircraft Aviation Fuel Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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  • 100 Pages
  • January 2022
  • Region: Europe
  • Mordor Intelligence
  • ID: 5529973

The Europe defense aircraft aviation fuel market is expected to grow at a CAGR of more than 11% over the forecast period. Growth in the defense budget to achieve NATO's defense spending target is expected to be a major driver for the Europe aircraft aviation fuel market. In addition, fight against terrorism, externally and internally, is also expected to support the growth of the defense aircraft market in the region. However, the high volatility of crude oil prices and high cost of renewable fuels are likely to restrain the studied market during the forecast period.

Key Highlights

  • Air Turbine Fuel (ATF) segment is expected to dominate in the Europe defense aircraft aviation fuel market during the forecast period.
  • The goal of military aviation industry to reduce rising level of carbon emissions, is driving the need for biofuels to tackle the problem, which in turn likely to provide an opportunity in the market.
  • The United Kingdom is expected to dominate in the Europe defense aircraft aviation fuel market over the forecast period.

Key Market Trends

Air Turbine Fuel (ATF) to Dominate the Market

  • The government of Europe maintains separate specifications for jet fuel for military use. The reasons for separate specifications include the operational and logistical differences between the military and civilian systems.​
  • JP fuels are military designations of jet fuels or air turbine fuel based largely on commercial kerosene-based fuels. JP-8 is also known as JET F-34.
  • JP-8 is the military equivalent of Jet A-1 with the addition of corrosion inhibitor and anti-icing additives. It is the dominant military jet fuel grade for NATO airforces. The United Kingdom also has a specification for this grade namely DEF STAN 91-87 AVTUR/FSII (formerly DERD 2453).
  • In Europe, members of NATO are also increasing defense budgets to reach a defense spending target of 2% of GDP. Hence, the demand for military-grade jet fuels is expected to increase in the market.
  • Germany has a total of 712 military aircraft as of 2019 and had the highest military spending in Europe that rose by 10% in 2019, to USD 49.3 billion. Therefore, new aircraft are expected to be instated, which would further promulgate aviation turbine fuel demand.​

The United Kingdom to Dominate the Market

  • The jet fuel consumption in the country increased exponentially, reaching 267.46 thousand barrels per day in 2019. Part of it is supported by the United Kingdom defense sector.
  • The total number of aircraft in the United Kingdom’s air force was 601 as of April 2019. Further, 17 new F-35B aircraft are to be delivered between 2020 and 2022, with the country committed to procuring more than 138 aircraft in the coming year.
  • Furthermore, the United Kingdom's government plans to invest in GBP2 billion on Tempest, a new fighter aircraft project (under development) by 2025.
  • Hence, the dominancy of the defense sector in the country is expected to drive the European defense aircraft aviation fuel market during the forecast period.​

Competitive Landscape

The Europe defense aircraft aviation fuel market is consolidated. Some of the major players in the market include Royal Dutch Shell Plc, World Fuel Services Corp, Total S.A., BP plc, and Eni SpA.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.

Table of Contents

1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
4.1 Introduction
4.2 Market Size and Forecast in USD, till 2025
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
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 Fuel Type
5.1.1 Air Turbine Fuel (ATF)
5.1.2 Aviation Biofuel
5.2 Geography
5.2.1 The United Kingdom
5.2.2 Germany
5.2.3 France
5.2.4 Italy
5.2.5 Rest of Europe
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 World Fuel Services Corp
6.3.2 Total S.A.
6.3.3 Royal Dutch Shell Plc
6.3.4 BP plc
6.3.5 Eni SpA
6.3.6 Coryton Advanced Fuels Ltd