The Middle-East and Africa defense aircraft aviation fuel market is expected to grow at a CAGR of more than 10% over the forecast period. Factors such as changing nature of warfare, increasing defense spending, and increasing national security concerns are scaling up the development and investment in unmanned drones and defense aircraft, giving upward thrust to the demand for aviation fuel. However, high volatility of crude oil prices, stringent government regulations, and increasing awareness for the reduction of carbon emissions are some key challenges in the regional aerospace and defense fuel market.
- Aviation Turbine Fuel (ATF) segment is expected to dominate in the Middle-East and Africa defense aircraft aviation fuel market during the forecast period.
- Government efforts to decrease pollution and increase awareness towards cleaner fuels in the aviation sector across the region are likely to increase demand for biofuels, which in turn is likely to provide an opportunity in the market.
- Saudi Arabia is expected to dominate the Middle-East and Africa defense aircraft aviation fuel market over the forecast period.
Key Market Trends
Aviation Turbine Fuel (ATF) to Dominate the Market
- The aviation turbine fuel or jet fuel is available in various grades and forms, including Jet B, JP-8, JP-5 fuels, etc. which are ideal for military aircraft.
- For military jets, the main fuel is JP-8, which is the military equivalent of Jet A-1 with the addition of corrosion inhibitor and anti-icing additives. Jet B is primarily used in military aircraft for cold weather performance and JP-5 is also a jet fuel that has a higher flash point than the JP-8.
- Iran, Qatar, Saudi Arabia and the United Arab Emirates (UAE) had high levels of military expenditure as a share of gross domestic product in 2018.
- Israel, as of 2019, had 589 aircraft in its Air Force and is further planning to purchase 18-20 transport helicopters. Moreover, the air force has also been planning to buy Boeing KC-46 mid-air refueling planes.
- Furthermore, the Republic of Mali Air Force added various military transport aircraft and announced to add more 21 fighter jet for increasing military power of the country.
- Therefore, factors such as increasing investment and new aircraft addition in defense applications are expected to create demand for air turbine fuel in the Middle-East and Africa defense aircraft aviation fuel market.
Saudi Arabia to Dominate the Market
- The Royal Saudi Air Forces (RSAF) is continuously developing and modernizing its air systems and keen in acquiring modern fighters, to provide the flexibility of a rapid and the ability to intervene quickly.
- In 2018, Saudi Arabia’s military spending amounted to an estimated USD 67.6 billion. It was the third-largest military spender globally and by far the largest military spender in the Gulf region.
- Saudi Arabia’s total aircraft in the defense is expected to be more than 870 as of 2019. The military is further expected to increase its aircraft fleet, which from 2014-18 received 56 combat aircraft from the United States and 38 from the United Kingdom, in turn, increasing aviation fuel consumption.
- Fighter jets account for a large share of about 54% in the total Saudi Arabia air force fleet, followed by trainers and helicopters.
- Furthermore, Saudi Arabia’s air defenses are undergoing a realignment to provide a 360-degree air defense umbrella that could counter threats emerging from all sides, especially to counter drone attacks.
- Therefore, with the increasing military activities and increasing defense expenditure, the market for defense aircraft aviation fuel in Saudi Arabia is expected to dominate during the forecast period.
The Middle-East and Africa defense aircraft aviation fuel market is consolidated. Some of the major players in the market include Abu Dhabi National Oil Company, World Fuel Services Corp, BP plc, Emirates National Oil Co Ltd LLC, and Saudi Arabian Oil Co.
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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 Aviation Turbine Fuel (ATF)
5.1.2 Aviation Biofuel
5.2.1 The United Arab Emirates
5.2.2 Saudi Arabia
5.2.4 Rest of Middle-East and Africa
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Abu Dhabi National Oil Company
6.3.2 World Fuel Services Corp
6.3.3 BP plc
6.3.4 Emirates National Oil Co Ltd LLC
6.3.5 Saudi Arabian Oil Co
6.3.6 RNGS Trading