Global Aviation Fuel Market (2023-2028) Competitive Analysis, Impact of Covid-19, Ansoff Analysis

According to IATA, SAF could contribute around 65% of the reduction in emissions needed by aviation to reach net-zero in 2050

The Global Aviation Fuel Market is estimated to be USD 292.87 Bn in 2023 and is expected to reach USD 606.68 Bn by 2028 growing at a CAGR of 15.68%.

Aviation fuels are petroleum-based fuels, or petroleum and synthetic fuel blends, used to power aircraft. It has more stringent requirements than fuels used for ground use, such as heating and road transport, and contains additives to enhance or maintain properties important to fuel performance or handling.

The market is driven by the demand to reduce emissions. Sustainable Aviation Fuel is key to meeting the aviation industry’s commitment to reducing carbon emissions from traffic growth. It reduces up to 80% in CO2 emissions over the fuel lifecycle compared to fossil jet fuel, which depends on the sustainable feedstock used, production method, and the supply chain to the airport. The production of SAF using biological, non-biological, and biomass resources. It allows it to be approximately carbon-neutral over its lifestyle. Moreover, SAF contains lesser impurities, enabling an even greater reduction in sulfur dioxide and particulate matter emissions than present technology. The SAF development allows using existing aircraft, including long-range models, but with a sustainable collective reduction of GHG emissions.

However, the market is restrained by high aviation fuel costs. The increased fuel cost is due to the increased Brent crude oil price, as jet fuel is the derivative of Brent crude oil. The price of Brent crude oil is increasing due to the supply-demand gap. The rising demand for Brent crude oil increases the prices, but the lack of crude oil production. Various factors can contribute to high aviation fuel costs, including geopolitical events that disrupt global oil supplies, natural disasters that disrupt oil production and transportation, and fluctuations in the global economy that affect oil demand.

The market has an opportunity due to the growing need for alternative aviation fuel by airlines. As airlines increasingly seek to reduce their environmental impact, the demand for SAF will grow significantly in the coming years. This represents a significant opportunity for companies involved in producing, distributing, and selling aviation fuels. Several airports have agreed to distribute SAF through their hydrant systems. This opportunity offtake agreements between researchers, airports, airlines, fixed-based operators, fuel producers, suppliers, & distributors will give immense growth prospects to widen the usability of SAF.

• The market is challenged by the high investment required for the approval and certification of SAF. The process typically involves rigorous testing and evaluation to ensure the fuel meets safety & performance standards and environmental sustainability criteria. This can involve significant investment in research & development and testing and certification processes. Additionally, the complex and time-consuming nature of the approval and certification process can slow down the adoption of SAFs by the aviation industry. This can delay the development and deployment of new SAF technologies and limit the ability of airlines to reduce their carbon emissions.

Market Segmentations

• The Global Aviation Fuel Market is segmented based on Fuel Type, Aircraft Type, End-Users, and Geography.
• By Fuel Type, the market is classified into Jet Fuel, Avgas, Biofuels, CNG, LNG, and Others. Jet Fuel has the largest market share. The segment growth is due to the rising usage of this fuel for a wide range of aircraft. Moreover, the reduced fuel cost compared to its counterparts and higher energy content are expected to boost the segment size. The jet fuel is generally less volatile as compared to gasoline and easier to handle. In addition, the fuel is also available in multiple types and configurations and is used for various applications.
• By Aircraft Type, the market is classified into Fixed Wings, Rotorcraft, and Unmanned Aerial Vehicles. The segment with the largest market share for the Global Aviation Fuel Market is Fixed Wings. Fixed-wing aircraft, including commercial airliners, business jets, and military aircraft, typically consume most aviation fuel globally. These aircraft are responsible for long-haul flights requiring significant fuel quantities, contributing to the larger market share in the fixed-wing segment. Rotorcraft (helicopters) and unmanned aerial vehicles (UAVs) have their specific fuel requirements but generally have a smaller market share than fixed-wing aircraft in fuel consumption.
• By End-Users, the market is classified into Commercial, Private, and Military. The commercial segment is the largest among all others. The segment's growth is due to increasing commercial airlines and international traffic in developing regions such as the Middle East & Africa, and Asia Pacific. Improved living standards with expanded travel routes are driving factors for the segment.
• By Geography, the market is classified into the Americas, Europe, Middle-East & Africa, and Asia-Pacific. Asia-Pacific dominates the global market. The growth in the aviation fuel market in the Asia-Pacific region is attributed to the increasing air passenger traffic, the growing number of airports, and the rising demand for low-cost carriers in countries such as India, China, and Indonesia. Additionally, the region has been witnessing increasing investments in airport infrastructure, which is expected to drive the demand for aviation fuel further.

Recent Development

• British Airways signed an agreement with Philips 66 Humber Refinery to purchase SAFs to power several flights in 2022. The fuel will be supplied through the pipeline infrastructure directly linked with the UK airports. - December 2021
• Royal Dutch Shell PLC announced a final investment decision to construct an 820,000-tons per annum biofuels facility at Shell Energy and Chemicals Park Rotterdam, Netherlands, formerly known as the Pernis Refinery. The plant will be in Europe, producing renewable fuel and renewable diesel from waste. - September 2021

Company Profiles

The report provides a detailed analysis of the competitors in the market. It covers the financial performance analysis for the publicly listed companies in the market. The report also offers detailed information on the companies' recent development and competitive scenario. Some of the companies covered in this report are CITGO Petroleum Corp., ConocoPhillips Co., Eni S.p.A., ExxonMobil Corp., etc.

Countries Studied

• America (Argentina, Brazil, Canada, Chile, Colombia, Mexico, Peru, United States, Rest of Americas)
• Europe (Austria, Belgium, Denmark, Finland, France, Germany, Italy, Ireland, Luxemburg, Netherlands, Norway, Poland, Russia, Spain, Sweden, Switzerland, United Kingdom, Rest of Europe)
• Middle-East and Africa (Egypt, Israel, Nigeria, Qatar, Saudi Arabia, South Africa, United Arab Emirates, Rest of MEA)
• Asia-Pacific (Australia, Bangladesh, China, India, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Sri Lanka, Thailand, Taiwan, Rest of Asia-Pacific)

Competitive Quadrant

The report includes Competitive Quadrant, a proprietary tool to analyze and evaluate the position of companies based on their Industry Position score and Market Performance score. The tool uses various factors for categorizing the players into four categories. Some of these factors considered for analysis are financial performance over the last 3 years, growth strategies, innovation score, new product launches, investments, growth in market share, etc.

Ansoff Analysis

• The report presents a detailed Ansoff matrix analysis for the Global Aviation Fuel Market. Ansoff Matrix, also known as Product/Market Expansion Grid, is a strategic tool used to design strategies for the growth of the company. The matrix can be used to evaluate approaches in four strategies viz. Market Development, Market Penetration, Product Development and Diversification. The matrix is also used for risk analysis to understand the risk involved with each approach.
• The publisher analyses the Global Aviation Fuel Market using the Ansoff Matrix to provide the best approaches a company can take to improve its market position.
• Based on the SWOT analysis conducted on the industry and industry players, the publisher has devised suitable strategies for market growth.

Why buy this report?

• The report offers a comprehensive evaluation of the Global Aviation Fuel Market. The report includes in-depth qualitative analysis, verifiable data from authentic sources, and projections about market size. The projections are calculated using proven research methodologies.
• The research report also provides a detailed market size analysis and projections in volume and value terms. The projections are calculated using verified research methodologies.
• Excel data sheet for the market size will also be provided with the report.
• The report has been compiled through extensive primary and secondary research. The primary research is done through interviews, surveys, and observation of renowned personnel in the industry.
• The report includes an in-depth market analysis using Porter’s 5 forces model, PESTLE Analysis, and the Ansoff Matrix. In addition, the impact of COVID-19 on the market is also featured in the report.
• The report includes the regulatory scenario in the industry, which will help you make a well-informed decision. The report discusses major regulatory bodies and major rules and regulations imposed on this sector across various geographies.
• The report includes Self-Assessment Form, which helps customers evaluate their position in the market compared to their competitors
• The report offers customized research - tailored uniquely to our customers with a quick turnaround time. We offer a 15% customization option at no extra charge to all our clients for any of our syndicated reports.

Report Highlights:

• A complete analysis of the market, including the parent industry
• Important market dynamics and trends
• Impact Analysis - a comprehensive assessment to confront risk and make strategic & operational decisions to counter the changes in the market environment.
• Market segmentation
• Competitive Analysis: Comparative analysis of competitor
• Historical, current, and projected size of the market based on value and volume
• Market size of the US states
• Market shares and strategies of key players
• Recommendations to companies for strengthening their foothold in the market